Restructuring and Severance Charges

12 Months Ended

Oct. 30, 2016

Restructuring and Related Activities [Abstract]

Impairment Charges

Impairment of Net Assets

During fiscal 2015, in conjunction with the initiative to exit certain non-core operations, the telephone directory publishing and printing business in Uruguay met the criteria to be classified as held for sale. As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell the operations was significantly lower than the carrying value of the net assets. Consequently, the net assets of the business of $2.8 million were fully impaired and were recorded as an impairment charge. On July 31, 2015, the Company completed the sale of our telephone directory publishing and printing business in Uruguay to affiliates of FCR Media Group.

As previously disclosed in Footnote 3, an impairment charge of $0.7 million in fiscal 2015 was recognized as a result of the required evaluation under the held for sale guidance related to the staffing reporting unit in Uruguay (“Lakyfor, S.A.”).

Impairment of Property, Equipment and Software

In an effort to reduce operating costs, the Company evaluated the efficiency of its current business delivery model, supply chain and back office support functions in light of existing and ongoing business requirements. The implementation of additional technology tools is expected to provide operating leverage and efficiencies. As a result of a system-wide upgrade to its operational and financial systems, the Company identified previously purchased software modules that will no longer be used and incurred an impairment charge of $0.4 million during the fourth quarter of fiscal 2016.

During the third quarter of fiscal 2015, it was determined that $1.9 million of previously capitalized internally developed software within the North American Staffing segment was impaired as it was no longer expected to provide future value in light of the anticipated technology upgrade. The remaining book value of this asset was $0.7 million as of November 1, 2015 and is expected to be utilized from existing and future technology projects.

Impairment of Goodwill

The Company performs its annual impairment test for goodwill during the second quarter of the fiscal year and when a triggering event occurs between annual impairment tests. During the second quarter, it was determined that no adjustment to the carrying value of goodwill was required. There were no events or changes in circumstances since the annual goodwill impairment assessment that caused the Company to perform an interim impairment assessment.

Impairment charges in fiscal 2015 resulted from our goodwill related to our staffing reporting unit in Uruguay.

The following represents the change in the carrying amount of goodwill during each fiscal year (in thousands):



	International Staffing
	October 30, 2016			November 1, 2015
Aggregate goodwill acquired	$	10,483		$	10,483
Accumulated impairment losses	(3,733		)	(3,733		)
Foreign currency translation adjustment	(1,667		)	(315		)
Goodwill, net of impairment losses	$	5,083		$	6,435

Restructuring and Severance Charges

In fiscal 2016, the Company implemented a cost reduction plan and incurred restructuring and severance charges of $5.8 million, primarily resulting from a reduction in workforce, facility consolidation and lease termination costs.

In fiscal 2015 and 2014 the Company had, from time to time, undertaken operational restructuring and other cost reduction actions to streamline processes and manage costs throughout various departments within the Company. For the years ended November 1, 2015 and November 2, 2014, restructuring charges were $3.6 million and $2.5 million, respectively, related primarily to severance payments to executive management in fiscal 2015 and reductions in workforce in fiscal 2015 and 2014.

The following table presents the restructuring and severance costs for the twelve months ended October 30, 2016 (in thousands):



	Year Ended October 30, 2016
	Total		North American Staffing		International Staffing		Technology Outsourcing Services and Solutions		Corporate & Other
Severance and benefit costs	$	5,373	$	995	$	445	$	327	$	3,606
Other	379		122		257		—		—
Total	$	5,752	$	1,117	$	702	$	327	$	3,606

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the fiscal year ended October 30, 2016 are summarized as follows (in thousands):




Balance at November 1, 2015	$	—
Charged to expense	5,752
Cash payments	(4,099		)
Balance at October 30, 2016	$	1,653

The remaining balance as of October 30, 2016 of $1.7 million, primarily related to Corporate & Other, is expected to be paid through the second quarter of fiscal 2018.