Restructuring (Notes)

9 Months Ended

Sep. 27, 2015

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

During the second half of 2014, we completed a review of initiatives to reduce costs and enhance our competitive position. Based on this review, we committed to a plan to close operations at our Rogers, Arkansas manufacturing facility. During the fourth quarter of 2014 we shifted production to our other locations and closed operations at the Rogers facility. The closure resulted in a workforce reduction of approximately 500 employees. Additional restructuring actions taken in 2014 included a reduction in our Mexico workforce and the sale of one of the company’s aircraft. In 2015, the company continued its efforts to reduce costs by further reducing our labor costs in the U.S., completing the final sale of our remaining aircraft and selling an idle warehousing facility in West Memphis, Arkansas. The results for the first nine months of 2015 reflect $4.6 million of additional costs charged to cost of sales due to the closure of our Rogers facility, charges totaling $0.2 million in SG&A for the write-down of the carrying value of the aircraft we sold in February 2015 and a $0.5 million gain on the sale of the idle warehousing facility located in West Memphis, Arkansas. Additional expenses related to the Rogers facility fixed assets and other closing costs are expected to continue throughout 2015.

The total cost expected to be incurred as a result of the Rogers facility closure is $14.0 million, of which $5.9 million is expected to be paid in cash. As of September 27, 2015, estimated remaining cash payments total $0.4 million.

The following table summarizes the Rogers, Arkansas plant closure costs and classification in the condensed consolidated statements of operations as of September 27, 2015:



(Dollars in thousands)	Costs Incurred Through December 28, 2014		Costs Incurred During the Thirty-nine Week Period Ended September 27, 2015		Costs Remaining		Total Expected Costs		Classification
Depreciation of assets to be abandoned and depreciation on idled assets	$	5,365	$	1,366	$	808	$	7,539	Cost of sales, Restructuring costs
One-time severance costs	1,897		195		—		2,092		Cost of sales, Restructuring costs
Equipment removal, inventory write-down, lease termination and other costs	1,167		3,045		204		4,416		Cost of sales, Restructuring costs
	$	8,429	$	4,606	$	1,012	$	14,047

Changes in the accrued expenses related to restructuring liabilities during the thirty-nine weeks ended September 27, 2015 are summarized as follows:



(Dollars in thousands)

Balance December 29, 2013	$	—
Restructuring accruals	1,897
Cash payments	(1,682		)
Balance December 28, 2014	215
Restructuring accruals	2,427
Cash payments	(2,606		)
Balance September 27, 2015	$	36