XML 48 R35.htm IDEA: XBRL DOCUMENT v3.3.1.900
Acquisition Integration Initiatives (Tables)
 12 Months Ended
Jan. 02, 2016
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs [Table Text Block]

Commercial Foodservice Equipment Group:

During the third quarter of 2015, the company closed one manufacturing facility within the Commercial Foodservice Equipment Group and transferred production to another existing manufacturing facility within the company. This action, which is not material to the company’s operations, resulted in a charge of $0.9 million for severance and lease costs in restructuring expenses in the consolidated statements of earnings for the year ended, January 2, 2016. The company estimates that these restructuring initiatives will result in future cost savings of approximately $1.0 million annually, beginning in fiscal year 2016 and no significant future costs related to this action are expected.

Food Processing Equipment Group:

During the third quarter of 2015, the company closed one manufacturing facility within the Food Processing Equipment Group and transferred production to another existing manufacturing facility within the company. This action, which is not material to the company’s operations, resulted in a charge of $2.4 million for severance and lease costs in restructuring expenses and $0.2 million in cost of sales in the consolidated statements of earnings for the year ended, January 2, 2016. The company estimates that these restructuring initiatives will result in future cost savings of approximately $3.5 million annually, beginning in fiscal year 2016 and no significant future costs related to this action are expected.

Residential Kitchen Equipment Group:

During the fiscal years 2015 and 2014, the company has taken actions to improve the operations of Viking within the Residential Kitchen Equipment Group. Additionally, during the fourth quarter of 2015, the company undertook acquisition integration initiatives related to AGA within the Residential Kitchen Equipment Group. These initiatives included organizational restructuring and headcount reductions, consolidation and disposition of certain facilities and business operations. The company recorded expense in the amount of $25.5 million, $7.1 million and $9.1 million, respectively in the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. This expense is reflected in restructuring expenses in the consolidated statements of earnings for such periods. The company estimates that these restructuring initiatives will result in future cost savings of approximately $24.1 million annually, beginning in fiscal year 2015, primarily related to compensation and facility costs. The company anticipates that all severance obligations for the Residential Kitchen Equipment Group will be satisfied by the end of fiscal of 2016. The lease obligations extend through July 2020.

 
 
Severance/Benefits
 
Inventory/Product
 
Facilities/Operations
 
Other
 
Total
Expenses
 
$
5,963

 
$
1,203

 
$
1,466

 
$
469

 
$
9,101

Payments
 
(4,344
)
 
(619
)
 
(1,389
)
 
(361
)
 
(6,713
)
Balance as of December 28, 2013
 
$
1,619

 
$
584

 
$
77

 
$
108

 
$
2,388

Expenses
 
3,776

 
(151
)
 
3,457

 
(4
)
 
7,078

Payments
 
(5,248
)
 
(433
)
 
(3,534
)
 
(67
)
 
(9,282
)
Balance as of January 3, 2015
 
$
147

 
$
—

 
$
—

 
$
37

 
$
184

Expenses
 
18,142

 
—

 
7,248

 
108

 
25,498

Payments
 
(2,628
)
 
—

 
(2,606
)
 
(25
)
 
(5,259
)
Balance as of January 2, 2016
 
$
15,661

 
$
—

 
$
4,642

 
$
120

 
$
20,423