Restructuring Programs

3 Months Ended

Dec. 26, 2015

5.Restructuring Programs

On July 31, 2015, the Company’s Board of Directors approved a multi-year productivity program intended to reduce structural costs and streamline organizational structures to drive efficiency. Over the first two quarters of the program, the Company has reduced its workforce by approximately 330 employees, or 5%. Implementation of the productivity program is expected to result in cumulative pre-tax restructuring charges of approximately $18.5 million, primarily including costs associated with employee terminations and other business transition costs and accelerated depreciation on assets as a result of a business exit plan. Cumulative pretax restructuring charges of $15.9 million have been recorded through December 26, 2015, the second fiscal quarter of the program, of which approximately $11.9 million represented employee severance related costs that will be settled in cash.

The following represents cumulative estimated pre-tax restructuring charges, by segment, to be incurred for the implementation of the productivity program (in thousands):

	Cumulative Expenses Incurred-to-date		Remaining Estimated Expenses		Cumulative Estimated Expenses
Domestic	$	12,533	$	—	$	12,533
Canada	2,609		2,573		$	5,182
Corporate - Unallocated	789		—		$	789

Total	$	15,931	$	2,573	$	18,504

During the thirteen weeks ended December 26, 2015, the Company recorded restructuring expenses for the multi-year productivity program under the caption Restructuring expenses, within operating income in the accompanying Unaudited Consolidated Statements of Operations as follows (in thousands):

	Severance and Related Costs		Asset Write- downs		Other Exit Activities		Total
Domestic	$	297	$	240	$	—	$	537
Canada	—		96		—		96
Corporate Unallocated	48		—		—		48

Total restructuring expenses	$	345	$	336	$	—	$	681

The activity for the restructuring liability associated with the multi-year productivity program was as follows (in thousands):

	Severance and Related Costs			Asset Write-downs			Other Exit Activities			Total
Liability balance, September 26, 2015	$	8,533		$	—		$	341		$	8,874
Charges	345			336			—			681
Cash spent	(4,463		)	—			(341		)	(4,804		)
Non-cash settlements / adjustments	—			(336		)	—			(336		)
Foreign currency adjustments	(44		)	—			—			(44		)

Liability balance, December 26, 2015	$	4,371		$	—		$	—		$	4,371

The Company spent $4.5 million during the thirteen weeks ended December 26, 2015 in cash severance and related costs. The Company also recognized non-cash asset write-downs (including accelerated depreciation) and other non-cash adjustments totaling $0.3 million during the thirteen weeks ended December 26, 2015. The Company’s accrued restructuring liability is included in the caption, Accrued expenses, in the accompanying Unaudited Consolidated Balance Sheets.