Restructuring

On July 30, 2014, we announced the planned closure of our wheel manufacturing facility located in Rogers, Arkansas, that will result in a workforce reduction of approximately 500 employees and a shift in production to other facilities. The planned closure of the Rogers facility, which is expected to be effective in the fourth quarter of 2014, was approved on July 29, 2014. The action was necessary in order to reduce costs and enhance our global competitive position. In addition, other measures were taken to reduce costs including the planned sale of the company's two aircraft. One airplane was sold for cash in September 2014 incurring a $0.2 million loss on sale. The remaining airplane is classified as held-for-sale with a carrying value of $1.0 million and is included in other current assets on our condensed consolidated balance sheet at September 28, 2014.

Included in selling, general and administrative expense in the condensed consolidated statements of operations for the thirteen weeks ended September 28, 2014 are charges totaling $1.0 million to reduce the carrying balance of the aircraft we currently are marketing for sale at its estimated fair value. Cost of sales for the thirteen weeks ended September 28, 2014 includes $3.1 million of depreciation accelerated due to shorter useful lives for assets to be abandoned when operations cease at the Rogers facility. Additional depreciation accelerated due to shorter useful lives of approximately $3.1 million related to the plant closure will be recorded in the fourth quarter of 2014. We do not expect any significant additional charges or impairments related to the fixed assets at this time.

As noted above, the operations are expected to cease at the facility in the fourth quarter of 2014. Following the date production ceases at the facility we currently expect to actively market the facility for sale. Based on the current carrying value of the land and building of $3.0 million, we do not expect a loss on the sale at this time. In addition, after production ceases at the facility, machinery and equipment to be held and used at our other plants will be transferred, with the carrying values depreciated over the remaining estimated useful lives of these assets.

The total cost expected to be incurred as a result of the Rogers facility closure is $10.5 million, of which $3.8 million is expected to be paid in cash. One-time termination benefits, equipment lease termination costs, inventory write-downs and other costs related to this plant closure are estimated to approximate $4.3 million, of which $1.1 million was recorded in the thirteen weeks ended September 28, 2014. Costs for one-time termination benefits included in cost of sales in the third quarter of 2014 totaled $0.8 million. These one-time termination benefits are derived from the individual agreements with each employee and are being accrued ratably over the requisite service period. We expect to incur additional one-time severance costs of approximately $1.2 million over the next three to six months.

The following table summarizes the Rogers, Arkansas plant closure costs and classification in the condensed consolidated statements of operations as of September 28, 2014:



(Dollars in thousands)	Costs Incurred Through September 28, 2014		Costs Remaining		Total Expected Costs		Classification
Accelerated depreciation of assets to be abandoned	$	3,112	$	3,145	$	6,257	Cost of sales, Restructuring costs
One-time severance costs	800		1,158		1,958		Cost of sales, Restructuring costs
Equipment removal, inventory write-down, lease termination and other costs	250		2,054		2,304		Cost of sales, Restructuring costs
	$	4,162	$	6,357	$	10,519

Changes in the accrued expenses related to restructuring liabilities during the thirty-nine weeks ended September 28, 2014 are summarized as follows:



(Dollars in thousands)

Balance December 29, 2013	$	—
Restructuring accruals	1,050
Cash payments	—
Balance September 28, 2014	$	1,050