FACILITY CONSOLIDATION AND SEVERANCE EXPENSES, NET

2015 Corporate Office Consolidation Plan

In April 2015, the Company's Board of Directors approved the Corporate Office Consolidation Plan, to cover the costs of consolidating three of the Company's existing leased divisional and corporate offices to a single leased facility located in Dalton, Georgia. The Company paid a fee to terminate one of the leased facilities, did not renew a second facility and vacated the third facility. Related to the vacated facility, the Company recorded the estimated costs related to the fulfillment of its contractual lease obligation and on-going facility maintenance, net of an estimate of sub-lease expectations. Accordingly, if the estimates differ, the Company would record an additional charge or benefit, as appropriate. Costs related to the consolidation included the lease termination fee, contractual lease obligations and moving costs.

2017 Profit Improvement Plan

During the fourth quarter of 2017, the Company announced a Profit Improvement Plan to improve profitability through lower cost and streamlined decision making and aligning processes to maximize efficiency. The plan included consolidating the management of the Company's two commercial brands, Atlas Carpet Mills and Masland Contract, under one management team, sharing operations in sales, marketing, product development and manufacturing. Specific to this plan, the Company has focused nearly all commercial solution dyed make-to-order production in its Atmore, Alabama operations where the Company has developed such make-to-order capabilities over the last 5 years. Further, the Company aligned its west coast production facilities, better utilizing its west coast real estate by moving production to its Santa Ana, California and Atmore, Alabama operations to more efficiently distribute its west coast products. Furthermore, the Company re-configured its east coast distribution facilities to provide more efficient distribution of its products. In addition, the Company realized reductions in related support functions such as accounting and information services. The plan is now substantially complete.

2020 COVID-19 Continuity Plan

As the extent of the COVID-19 pandemic became apparent, the Company implemented a continuity plan to maintain the health and safety of associates, preserve cash, and minimize the impact on customers. The response has included restrictions on travel, implementation of telecommuting where appropriate and limiting contact and maintaining social distancing between associates and with customers. In line with demand, running schedules have been reduced for most facilities to one shift while simultaneously reducing inventories to align them with the lower customer demand. Cost reductions have been implemented including cutting non-essential expenditures, reducing capital expenditures, rotating layoffs and furloughs, select job eliminations and temporary salary reductions. The Company has also deferred new product introductions and reduced sample and marketing expenses for 2020. Initiatives were taken with suppliers, lenders and landlords to extend payment terms in the second quarter for existing agreements. The Company is taking advantage of payment deferrals and credits related to payroll taxes under the CARES act as well as deferring payments into its defined contribution retirement plan.

Costs related to the facility consolidation plans are summarized as follows:



									As of June 27, 2020
	Accrued Balance at December 28, 2019		2020 Expenses To Date (1)		2020 Cash Payments		Accrued Balance at June 27, 2020		Total Costs Incurred To Date		Total Expected Costs
Corporate Office Consolidation Plan	$	38	$	5	$	43	$	—	$	834	$	834
Profit Improvement Plan	305		246		426		125		9,046		9,046
COVID-19 Continuity Plan	$	—	$	1,019	$	367	$	652	$	1,019	$	1,019	(2)
Total All Plans	$	343	$	1,270	$	836	$	777	$	10,899	$	10,899

Asset Impairments	$	—	$	—	$	—	$	—	$	3,323	$	3,323

	Accrued Balance at December 29, 2018		2019 Expenses To Date (1)		2019 Cash Payments		Accrued Balance at June 29, 2019
Corporate Office Consolidation Plan	$	98	$	8	$	42	$	64
Profit Improvement Plan	846		3,808		4,271		383
Totals	$	944	$	3,816	$	4,313	$	447

Asset Impairments	$	—	$	3	$	—	$	—

(1) Costs incurred under these plans are classified as "facility consolidation and severance expenses, net" in the Company's Consolidated Condensed

Statements of Operations.

(2) The total additional expected costs under the COVID-19 Continuity Plan cannot be reasonably estimated at this time due to the fluid nature of

the COVID-19 outbreak and the unpredictable future impact upon our business.