Restructuring (Tables)

9 Months Ended

Sep. 25, 2016

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

We had $25 thousand accrued as of December 27, 2015 for restructuring and it has remained at about the same level for the thirty-nine weeks ended September 25, 2016.

Restructuring and Related Costs [Table Text Block]

Restructuring

On July 30, 2014, we announced the planned closure of our manufacturing facility located in Rogers, Arkansas. 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 reduction of the workforce of approximately 500 employees. The action was undertaken in order to reduce costs and enhance our global competitive position. The results for the first three quarters of 2015 reflect $4.6 million of additional costs charged to gross profit due to the closure of our Rogers facility, charges totaling $0.2 million in selling, general and administrative expenses 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 closure costs are expected to continue throughout 2016.

As noted above the operations ceased at the Rogers facility during the fourth quarter of 2014. The property is currently held for sale. Based on the current carrying value of the land and building of $2.9 million, we do not expect a loss on sale at this time. In addition, after production ceased at the facility, machinery and equipment to be held and used at our other plants were transferred, with the carrying values depreciating over the remaining estimated useful lives of these assets. We transferred a significant amount of assets to other facilities during 2015 and we determined that some of the assets will not ultimately be transferred. For the assets that were not transferred, we recorded a $2.7 million impairment during 2015.

The total cost expected to be incurred as a result of the Rogers facility closure is $15.6 million, of which $0.2 million and $4.6 million was recognized as of September 25, 2016 and September 27, 2015, respectively. The following table summarizes the Rogers, Arkansas plant closure costs and classification in the condensed consolidated statements of operations for the period ended September 25, 2016:



(Dollars in thousands)	Costs Incurred Through December 27, 2015		Costs Incurred During the Thirty-nine Week Period Ended September 25, 2016		Costs Remaining		Total Expected Costs		Classification
Accelerated and other depreciation of assets idled	$	7,006	$	209	$	566	$	7,781	Cost of sales, Restructuring costs
Severance costs	2,011		—		—		2,011		Cost of sales, Restructuring costs
Equipment removal and impairment, inventory written-down, lease termination and other costs	5,424		40		338		5,802		Cost of sales, Restructuring costs
	$	14,441	$	249	$	904	$	15,594