Restructuring and Impairment Costs (Notes)

12 Months Ended

Sep. 27, 2014

Restructuring and Impairment Costs [Abstract]

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

Restructuring and Impairment Costs

Restructuring and impairment costs, incurred in the Company's AMER segment, largely relate to the consolidation of the Company's manufacturing facilities in the Fox Cities (Neenah and Appleton), Wisconsin, and the relocation of manufacturing operations from Juarez, Mexico to Guadalajara, Mexico. These charges are recorded within restructuring and impairment charges on the Consolidated Statements of Comprehensive Income. Restructuring liabilities are recorded within other accrued liabilities on the Consolidated Balance Sheets.

For the year ended September 27, 2014, the Company incurred restructuring and impairment costs of $11.3 million, which consisted of the following:

• $3.2 million of fixed asset impairment at the Company's facility in Juarez;

• $3.2 million of severance from the reduction of the Company's workforce in Juarez; and

• $4.9 million of rent, moving and associated costs resulting from the early exit of operating leases for two existing facilities and the consolidation of three existing facilities in the Fox Cities into the new manufacturing facility in Neenah, as well as moving and transition costs resulting from the relocation of manufacturing operations from Juarez to Guadalajara.

As part of the relocation of manufacturing operations from Juarez to Guadalajara, the Company evaluated the ongoing fair value of the long-lived assets associated with the Juarez facility. Based on this evaluation, the Company determined that long-lived assets were impaired and therefore recorded $3.2 million of fixed asset impairment for the year ended September 27, 2014. Fair value was evaluated using Level 3 inputs, as defined in Note 1.

The Company cannot recognize an income tax benefit for restructuring and impairment costs due to existing tax losses in these jurisdictions.

The Company's restructuring accrual activity for the year ended September 27, 2014 is included in the table below (in thousands):

				Employee			Lease
	Fixed			Termination			Obligations
	Asset			and Severance			and Other
	Impairment			Costs			Exit Costs			Total
Accrual balance, September 28, 2013	$	—		$	—		$	—		$	—
Restructuring and impairment costs	3,160			3,180			4,940			$	11,280
Amounts utilized	(3,160		)	(3,038		)	(4,940		)	$	(11,138	)
Accrual balance, September 27, 2014	$	—		$	142		$	—		$	142

Impairment costs were expensed for the year ended September 27, 2014. The restructuring accrual balance is expected to be utilized by the end of the first quarter of fiscal 2015.

For the years ended September 28, 2013 and September 29, 2012, restructuring costs were not material.