XML 32 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restructuring
 12 Months Ended
Nov. 29, 2015
Restructuring and Related Activities [Abstract]  
Restructuring
RESTRUCTURING
In 2014, the Company announced and began to implement a global productivity initiative designed to streamline operations and fuel long-term profitable growth. The Company expects that the majority of the actions related to the global productivity initiative will be implemented through the end of 2016, with a focus on redesigning business processes and identifying opportunities to reduce costs, increase efficiencies and further streamline processes in supporting functions, supply chain and planning.
For the year ended November 29, 2015, the Company recognized restructuring charges, net, of $14.1 million, as compared to $128.4 million for the same period in 2014. These restructuring charges were recorded in "Restructuring, net" in the Company's consolidated statements of income. Related charges of $30.7 million for the year ended November 29, 2015, as compared to $27.6 million for the same period in 2014, consist primarily of consulting fees for the Company's centrally-led cost-savings and productivity projects, as well as transition costs associated with the Company's decision to outsource certain global business service activities. These related charges represent costs incurred associated with ongoing operations which will benefit future periods and thus were recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income. Cash payments for charges recognized to date are expected to continue through 2016.
The table below summarizes the components of charges included in “Restructuring, net” in the Company’s consolidated statements of income:
 
Year Ended
 
November 29,
2015
 
November 30,
2014
 
(Dollars in thousands)
Restructuring, net:
 
 
 
Severance and employee-related benefits(1)
$
14,819

 
$
104,398

Adjustments to severance and employee-related benefits
(4,182
)
 
(5,697
)
Lease and other contract termination costs
516

 
—

Other(2)
2,727

 
25,027

Adjustments to other
(467
)
 
1,350

Noncash pension and postretirement curtailment losses, net(3)
658

 
3,347

Total
$
14,071

 
$
128,425

_____________

(1)
Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative.

(2)
Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with the execution of the restructuring initiative.

(3)
Noncash pension and postretirement curtailment gains or losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefits" on the Company's consolidated balance sheets.
The Company is unable at this time to make a good faith determination of cost estimates, or ranges of cost estimates, for additional actions associated with the global productivity initiative. Final estimates for headcount, timing and charges in certain areas of the international business are subject to completion of applicable local works council and other consultative processes.
The following table summarizes the activities associated with restructuring liabilities for the years ended November 29, 2015, and November 30, 2014. In the table below, "Charges" represents the initial charge related to the restructuring activity. "Adjustments" includes revisions of estimates related to severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. "Payments" consists of cash payments for severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs.
 
Year Ended November 29, 2015
 
Liabilities
 
 
 
Adjustments
 
 
 
Foreign Currency Fluctuation
 
Liabilities
 
November 30, 2014
 
Charges
 
 
Payments
 
 
November 29, 2015
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Severance and employee-related benefits
$
56,963

 
$
14,819

 
$
(4,182
)
 
$
(41,907
)
 
$
(4,919
)
 
$
20,774

Lease and other contract termination costs
—

 
516

 
—

 
(521
)
 
5

 
—

Other
6,400

 
2,727

 
(467
)
 
(7,696
)
 

 
964

Total
$
63,363

 
$
18,062

 
$
(4,649
)
 
$
(50,124
)
 
$
(4,914
)
 
$
21,738

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
$
57,817

 
 
 
 
 
 
 
 
 
$
20,141

Long-term portion
5,546

 
 
 
 
 
 
 
 
 
1,597

Total
$
63,363

 
 
 
 
 
 
 
 
 
$
21,738


 
Year Ended November 30, 2014
 
Liabilities
 
 
 
Adjustments
 
 
 
Foreign Currency Fluctuation
 
Liabilities
 
November 24, 2013
 
Charges
 
 
Payments
 
 
November 30, 2014
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Severance and employee-related benefits
$
—

 
$
104,398

 
$
(5,697
)
 
$
(38,527
)
 
$
(3,211
)
 
$
56,963

Lease and other contract termination costs
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
25,027

 
1,350

 
(19,977
)
 
—

 
6,400

Total
$
—

 
$
129,425

 
$
(4,347
)
 
$
(58,504
)
 
$
(3,211
)
 
$
63,363

 
 
 
 
 
 
 
 
 
 
 
 
Current portion
$
—

 
 
 
 
 
 
 
 
 
$
57,817

Long-term portion
—

 
 
 
 
 
 
 
 
 
5,546

Total
$
—

 
 
 
 
 
 
 
 
 
$
63,363