Restructuring and Related Charges

6 Months Ended

Jun. 28, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

6.    Restructuring and Related Charges

            In 2011, we evaluated our overall warehousing and distribution requirements for our Stanley Furniture product line and concluded only a portion of the leased warehouse space in Stanleytown, Virginia would be required.  As a result, we took charges for future lease obligations in 2011 and in 2012 for the portions of the Stanleytown warehouse facility no longer used.  During the second quarter of 2014, we completely exited the facility and recorded a charge of $354 for the remaining lease obligation included in cost of goods sold.

            In 2012, we made the strategic decision to consolidate our corporate office and High Point showroom into a single multi-purpose facility in High Point, North Carolina.  During 2013, we recorded $770 in restructuring charges in selling, general and administrative expenses for severance and relocation costs associated with this move and consolidation, with $522 of that total recorded in the first half.

            During the second quarter of 2014, we concluded that revenue on our Young America product line remained below the level needed to reach profitability and that the time frame needed to assure sustainable profitability was longer than we felt was economically justified.  Therefore, we made the decision to cease manufacturing operations at our Robbinsville, North Carolina facility.  

Restructuring accrual activity for the six months ending June 28, 2014 was as follows:

	Lease Obligations		Severance and other termination costs- Corporate Office		Severance and other termination costs Robbinsville Closing			Total
Accrual at January 1, 2014	$	488	$	169	$	-		$	657
Charges (credits) to expense		354		(39)		254			569
Cash payments		(122)		(116)		(30)			(268)
Accrual at June 28, 2014	$	720	$	14	$	224	.	$	958

Restructuring accrual activity for the six months ending June 29, 2013 was as follows:

	Lease Obligations				Severance and other termination costs			Total
Accrual at January 1, 2013	$	732			$	-	$	732
Charges to expense		-				522		522
Cash payments		(122)				(235)		(357)
Accrual at June 29, 2013	$	610	.	.	$	287	$	897

The restructuring accrual is classified as “Other accrued expenses”.

The following table summarizes restructuring and related expenses:

	Three Months Ended				Six Months  Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Property, plant and equipment	$	11,793	$	-	$	11,793	$	-
Inventory write-down		1,664		-		2,254		-
System and website write-down		1,578		-		1,810		-
Allowances for floor samples		495		-		495		-
Lease obligation		354		-		354		-
Severance and other termination costs		254		262		254		522
Other costs		106		-		461		-
Total restructuring and related charges	$	16,244	$	262	$	17,421	$	522

The above restructuring and related expenses are classified in the statement of operations as follows:

	Three Months Ended				Six Months Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Net sales	$	495	$	-	$	495	$	-
Cost of sales		14,105		-		14,696		-
Selling, general and administrative expenses		1,644		262		2,230		522
Total restructuring and related charges	$	16,244	$	262	$	17,421	$	522