XML 49 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
Distribution Facility Expansion, Consolidation & Technology Upgrade (Notes)
9 Months Ended
Oct. 31, 2015
Distribution Facility Expansion [Abstract]  
Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals [Table Text Block]
Distribution Facility Expansion, Consolidation & Technology Upgrade
During fiscal 2014, the Company began a significant operational expansion initiative with respect to overall warehousing capacity and new equipment and system technology upgrades at our Bowling Green, Kentucky distribution facility. During the first quarter of fiscal 2015 the new building was substantially completed and expanded our 262,000 square foot facility to an approximately 600,000 square foot facility. Subsequently, during the second quarter of fiscal 2015, the Company finished the building expansion and moved out of its leased satellite warehouse space. The updated facilities and technology upgrade will include a new high-speed parcel shipping and item sortation system coupled with a new warehouse management system to support our increased level of shipments and units and a new call center facility to better serve our customers. The new sortation and warehouse management systems are expected to be phased into production through the first half of fiscal 2016. Total cost of the physical building expansion, new sortation equipment and call center facility is estimated to be approximately $25 million and is being financed with our expanded PNC revolving line of credit and a $15 million PNC term loan. As of October 31, 2015, we have expended approximately $22 million in cash relating to the Bowling Green expansion initiative with additional cash commitments of approximately $3 million expected to be made over the next two quarters and primarily funded from the Credit Facility.
As a result of our distribution facility expansion, consolidation and technology upgrade initiative, the Company incurred approximately $294,000 and $1,266,000 in incremental expenses during the three and nine months ended October 31, 2015, respectively, relating primarily to increased labor, inventory and other warehousing transportation costs, training costs and increased equipment rental costs associated with: the move into the new expanded warehouse building, the move out of previously leased warehouse space and the preparation of our expanded facility for the new high-speed parcel shipping and item sortation system and upgraded warehouse management system.