In fiscal 2026, the Company engaged in a transformation initiative to redesign and streamline its operating model to achieve a reduced cost structure, as well as to integrate the consulting capabilities of Reference Point LLC, a company acquired in July 2024, into the existing consulting business to form a more cohesive consulting segment (the "2026 Transformation Initiative"). As part of this initiative, the Company conducted a comprehensive review of its global operations. In connection with this effort, the Company executed workforce reductions throughout fiscal 2026.

Activity under the 2026 Transformation Initiative represents ongoing benefit arrangements, which are accounted for under ASC 712. All costs associated with the 2026 Transformation Initiative were recorded in selling, general and administrative expenses in the Company's Consolidated Statements of Operations. The Company incurred severance and benefits costs of $0.4 million in connection with the 2026 Transformation Initiative during the three months ended August 29, 2026. No restructuring costs were incurred during the three months ended August 30, 2025.

The liability for restructuring charges as of August 29, 2026 under the 2026 Transformation Initiative was related to severance and benefits costs related to the fiscal 2026 reduction in force and was recorded in accounts payable and other accrued expenses on the Company's Consolidated Balance Sheets. The table below summarizes the restructuring liability (in thousands):


	Employee Termination Costs
Balance as of May 30, 2026	$	2,258
Restructuring charges	417
Payments	(1,630)
Balance as of August 29, 2026	$	1,045