As part of its restructuring activities, the Company has incurred expenses that qualify as exit and disposal costs under U.S. GAAP. These costs primarily include severance and employee-related costs associated with workforce reductions and certain facility exit costs associated with the facility consolidation initiatives.

The Company has also incurred restructuring-related costs that do not qualify as exit and disposal costs under U.S. GAAP. These costs primarily include professional fees, right-of-use asset impairment charges and accelerated depreciation of fixed assets.

Expenses associated with restructuring activities are recorded within Cost of sales or Restructuring expense in the Condensed Consolidated Statements of Comprehensive Income.

Restructuring expenses recorded within Cost of sales totaled $0.5 million for the three months ended August 29, 2026. Amounts recorded within Restructuring expense, a component of Operating expenses, totaled $6.0 million for the three months ended August 29, 2026.

No restructuring expenses were recorded within Cost of sales for the three months ended August 30, 2025. Amounts recorded within Restructuring expense, a component of Operating expenses, totaled $0.5 million for the three months ended August 30, 2025.

During the first quarter of fiscal year 2027, the Company initiated an action related to the 2027 restructuring plan ("2027 restructuring plan") to create operational efficiencies. The plan includes workforce reductions and costs associated with facility consolidation activities. Restructuring charges related to the 2027 restructuring plan totaled $6.5 million for the three months ended August 29, 2026.

During the first quarter of fiscal year 2026, the Company initiated an action related to the 2026 restructuring plan ("2026 restructuring plan") to improve operational efficiencies. The plan included workforce reductions and costs associated with facility consolidation activities. As part of the plan, the Company shortened the estimated useful lives of certain fixed assets, resulting in increased depreciation expense. Restructuring charges related to the 2026 restructuring plan totaled $13.5 million for the year ended May 30, 2026, including $4.7 million of accelerated depreciation expense. The restructuring plan was complete in fiscal 2026 and no future costs related to this plan are expected.

The following table summarizes changes in the restructuring liability that qualifies as exit and disposal costs under U.S. GAAP, including severance and employee-related costs and exit and disposal activities, related to the 2027 restructuring plan and the 2026 restructuring plan for the three months ended August 29, 2026:


	2027 Restructuring Plan								2026 Restructuring Plan
(In millions)	Severance and Employee Related		Exit and Disposal Activities		Other Restructuring Costs		Total		Severance and Employee Related
May 30, 2026	$	—	$	—	$	—	$	—	$	5.5
Restructuring Costs	3.1		1.3		2.1		6.5		—
Amounts Paid	(1.2)		(0.6)		—		(1.8)		(2.4)
Non-Cash Costs	—		—		(1.8)		(1.8)		—
August 29, 2026	$	1.9	$	0.7	$	0.3	$	2.9	$	3.1

The Company expects the remaining liability associated with the 2026 restructuring plan as of August 29, 2026 to be substantially paid during fiscal 2027.


	Three Months Ended
(In millions)	August 29, 2026		August 30, 2025
North America Contract	$	3.0	$	0.5
International Contract	2.8		—
Global Retail	0.7		—

Total	$	6.5	$	0.5