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RESTRUCTURING AND OTHER EXPENSE, NET
6 Months Ended
Jul. 02, 2016
RESTRUCTURING AND OTHER EXPENSE, NET  
RESTRUCTURING AND OTHER EXPENSE, NET

 

14.RESTRUCTURING AND OTHER EXPENSE, NET

 

Over the past three or more years, we have initiated a number of restructuring programs to integrate acquired businesses, improve the efficiency of our manufacturing and distribution network, and consolidate and reorganize our management and support teams.

 

In connection with the acquisition of Landshire in 1st Quarter 2015 and Better Bakery in 2nd Quarter 2015, we incurred $625 and $849 of integration costs in 2nd Quarter 2015 and the year to date period ended July 4, 2015, respectively.  Of these amounts, $262 and $362 for 2nd Quarter 2015 were included in gross profit and operating income, respectively, and $269 and $579 for the year to date period ended July 4, 2015 were included in gross profit and operating income, respectively.  These amounts represented costs for travel and meals, professional fees, facility closing costs and related severance.  Also, during the 2nd Quarter 2015 and the year to date period ended July 4, 2015, we incurred $304 in expenses (included in gross profit) to reconfigure production lines at our Portland, Maine manufacturing facility.

 

In addition, during fiscal 2013, we undertook various initiatives intended to improve our commercial effectiveness and reduce our operating costs, the execution of which continued into fiscal 2014, 2015 and 2016.  These initiatives included:

 

The consolidation of our business unit leadership and shared services teams in our Cincinnati, Ohio area facilities and the closure of an administrative office in Edmond, Oklahoma;

The reorganization of our senior leadership team; and

The implementation of staffing reductions and facility closures in our manufacturing, logistics and commercial operations.

 

During 2nd Quarter 2016, we incurred $108 in expenses associated with the closure of the office in Edmond, Oklahoma.

 

All the above initiatives were substantially complete as of July 2, 2016 and we expect any remaining payments to be complete in fiscal 2016. Restructuring charges included in the accompanying unaudited Condensed Consolidated Statements of Operations are summarized below:

 

 

 

Fiscal Quarter Ended

 

Fiscal Year to Date Ended

 

 

 

July 2,

 

July 4,

 

July 2,

 

July 4,

 

 

 

2016

 

2015

 

2016

 

2015

 

Gross profit

 

 

 

 

 

 

 

 

 

2013 initiatives

 

$

 

$

(2

)

$

 

$

285

 

2015 initiatives

 

 

566

 

 

573

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

$

564

 

$

 

$

858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

 

 

 

2013 initiatives

 

$

108

 

$

160

 

$

143

 

$

576

 

2015 initiatives

 

 

362

 

(23

)

579

 

 

 

 

 

 

 

 

 

 

 

 

 

108

 

522

 

120

 

1,155

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

108

 

$

1,086

 

$

120

 

$

2,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The charges for 2013 initiatives included in the table above for 2nd Quarter 2015 and the year to date period ended July 4, 2015 primarily represents charges for severance, relocation, recruiting, and professional services. There were no restructuring expenses that were directly attributable to any of our reportable segments.

 

Included below is the activity for liabilities related to restructuring charges, which are reflected in accrued liabilities (current portion) and other long-term liabilities (noncurrent portion):

 

 

 

Fiscal Quarter Ended

 

Fiscal Year to Date Ended

 

 

 

July 2,

 

July 4,

 

July 2,

 

July 4,

 

 

 

2016

 

2015

 

2016

 

2015

 

Balance at Beginning of Period

 

$

295

 

$

408

 

$

496

 

$

567

 

Accruals

 

108

 

1,086

 

120

 

2,013

 

Payments, net

 

(232

)

(1,238

)

(445

)

(2,324

)

 

 

 

 

 

 

 

 

 

 

Balance at End of Period

 

$

171

 

$

256

 

$

171

 

$

256