XML 31 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Property, Plant and Equipment, Net
12 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, Net
PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following:
 
June 30,
2018
 
June 30,
2017
Land
$
28,378

 
$
28,092

Buildings and improvements
83,289

 
83,648

Machinery and equipment
323,348

 
300,750

Computer hardware and software
54,092

 
50,773

Furniture and fixtures
17,894

 
15,613

Leasehold improvements
31,519

 
29,296

Construction in progress
17,280

 
11,134

 
555,800

 
519,306

Less: Accumulated depreciation
245,628

 
227,440

 
$
310,172

 
$
291,866



Depreciation expense for the fiscal years ended June 30, 2018, 2017, and 2016 was $33,973, $33,558 and $32,641, respectively.

During fiscal 2018, the Company determined that it was more likely than not that certain fixed assets at three of its manufacturing facilities would be sold or otherwise disposed of before the end of their estimated useful lives due to the Company’s decision to utilize third-party manufacturers for two facilities in the United States and to consolidate manufacturing of certain soup products in the United Kingdom. As such, the Company recorded a $6,344 non-cash impairment charge primarily related to the closures of these facilities and included $3,767 as assets held for sale within “Prepaid expenses and other current assets” in its June 30, 2018 Consolidated Balance Sheet. In connection with the planned closure of the facility in the United Kingdom, the Company expects to incur up to approximately $4,800 over the next twelve months, consisting primarily of costs associated with the early termination of an existing operating lease and employee severance costs.

Additionally, the Company discontinued additional slow moving SKUs in the United States as part of a product rationalization initiative. As a result, expected future cash flows are not expected to support the carrying value of certain machinery and equipment used to manufacture these products. As such, the Company recorded a $2,057 non-cash impairment charge to write down the value of these assets to fair value and included $686 as assets held for sale within “Prepaid expenses and other current assets” in its June 30, 2018 Consolidated Balance Sheet.

In fiscal 2017, the Company determined that it was more likely than not that certain fixed assets at one of its manufacturing facilities in the United Kingdom would be sold or otherwise disposed of before the end of their estimated useful lives due to the Company’s decision to exit its own-label chilled desserts business over the next twelve months. As such, the Company recorded a $23,712 non-cash impairment charge related to the long-lived assets associated with the own-label chilled desserts business to their estimated fair values, which was equal to its salvage value. Additionally, the Company recorded a $2,661 non-cash impairment charge related to fixed assets in the United States.

In fiscal 2016, the Company recorded a $3,476 non-cash impairment charge related to long-lived assets associated with the divestiture of certain portions of its own-label juice business in connection with its acquisition of Orchard House in the United Kingdom.