Note 3 - Restructuring Actions

3 Months Ended

Mar. 04, 2017

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

Note

3

:

Restructuring Actions

Business Integration Project

The integration of the industrial adhesives business we acquired in

March

2012

involved a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, we took a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We combined these

two

initiatives into a single project which we refer to as the “Business Integration Project.” During the

first

quarter ended

February

27,

2016,

we

incurred costs of

$413

related to transformation costs, workforce reduction costs, facility exit costs and other related costs for the Business Integration Project, which are included in special charges, net. The Business Integration Project was substantially complete at the end of

2016.

2017

Restructuring Plan

During the

first

quarter of

2017,

we approved a restructuring plan (the

“2017

Restructuring Plan”) related to organizational changes and other actions to optimize operations. The

2017

Restructuring Plan was implemented in the

first

quarter of

2017

and is currently expected to be completed by mid-year of fiscal

2018.

The

2017

Restructuring Plan resulted in a pre-tax charge of

$10,168

during the quarter ended

March

4,

2017.

The following table summarizes the pre-tax distribution of restructuring charges by income statement classification:

	Three Months Ended
	March 4, 2017
Cost of sales	$	3,647
Selling, general and administrative		6,521
	$	10,168

The following table summarizes the pre-tax impact of restructuring charges by segment:

	Three Months Ended
	March 4, 2017
Americas Adhesives	$	1,978
EIMEA		4,628
Asia Pacific		1,679
Construction Products		1,262
Engineering Adhesives		621
	$	10,168

A summary of the restructuring liability during the

first

quarter ended

March

4,

2017

is presented below:

	Employee-Related			Asset-Related			Other			Total
Balance at December 3, 2016	$	-			-			-			-
Expenses incurred		8,759			861			548			10,168
Non-cash charges		-			(417	)		-			(417	)
Cash payments		(4,479	)		(444	)		(210	)		(5,133	)
Foreign currency translation		(49	)		-			-			(49	)
Balance at March 4, 2017	$	4,231		$	-		$	338		$	4,569

Non-cash charges include accelerated depreciation resulting from the cessation of use of certain long-lived assets. Restructuring liabilities have been classified as a component of other accrued expenses on the Condensed Consolidated Balance Sheets.