Voluntary Employee Separation Program

3 Months Ended

Jan. 29, 2017

Voluntary Employee Separation Program

Voluntary Employee Separation Program

(11)   During the fourth quarter of 2016, the Company announced a voluntary employee separation program as part of its effort to reduce operating costs. The program provides for cash payments based on previous years of service. The expense was recorded in the period the employees accept the separation offer. The program’s total pretax expenses were approximately $8.3 million, of which $.2 million was recorded in the fourth quarter of 2016, $6.9 million was recorded in the first quarter of 2017 and $1.2 million to be recognized over the remainder of the fiscal year. The payment for the program was substantially made in the first quarter of 2017. The 2017 expense was recorded in administrative and operating expenses.