SEVERANCE, RESTRUCTURING AND RELATED CHARGES

3 Months Ended

Mar. 27, 2015

SEVERANCE, RESTRUCTURING AND RELATED CHARGES [Abstract]

SEVERANCE, RESTRUCTURING AND RELATED CHARGES

Note 11. SEVERANCE, RESTRUCTURING AND RELATED CHARGES

In the first quarter of 2015, the Company committed to a plan to move its manufacturing facility from Bridgeton, Missouri to Jefferson City, Missouri. Management estimates the resulting severance, restructuring and related charges will be approximately $5.8 million. The relocation is expected to be completed by the end of 2015.

	Contract Termination Costs
Restructuring liabilities at December 31, 2014	$	-
Additions		1,600
Payments		(1,600	)
Other		-
Restructuring liabilities at March 27, 2015	$	-

In February 2015, the Company paid a $1.6 million early termination fee to exit the lease of its Bridgeton, Missouri facility. The early termination fee is included within severance, restructuring and related charges.

We recognized a gain of $0.7 million related to liabilities from the acceleration of the lease term, which is recorded in general and administrative expenses.

In addition, the Company entered into a new lease for its manufacturing operations in Jefferson City, Missouri in March 2015. The Company received a $1.7 million incentive payment upon signing of the lease, which is included in other liabilities. The incentive payment will be recognized straight-line over the term of the lease in cost of goods sold.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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