RESTRUCTURING EXPENSES

9 Months Ended

Oct. 01, 2016

RESTRUCTURING EXPENSES

RESTRUCTURING EXPENSES

15.RESTRUCTURING EXPENSES

Over the past three years, we have initiated a number of restructuring programs to integrate acquired businesses, improve the efficiency of our manufacturing and distribution network, and consolidate and reorganize our management and support teams.

In connection with the acquisition of Landshire in the first quarter of 2015 and Better Bakery in the second quarter of  2015, we incurred $859 and $1,707 of integration costs in 3rd Quarter 2015 and the year to date period ended October 3, 2015, respectively.  Of the 3rd Quarter amount, $606 was included in gross profit and $253 was included in operating income. For the year to date period ended October 3, 2015, $875 was included in gross profit and $832 was included in operating income.  These amounts represented costs for travel and meals, professional fees, facility closing costs and related severance.  Also, during 3rd Quarter 2015 and the year to date period ended October 3, 2015, we incurred $887 and $1,191, respectively, in expenses (included in gross profit) to reconfigure production lines at our Portland, Maine manufacturing facility.

In addition, during fiscal 2013, we began various initiatives intended to improve our commercial effectiveness and reduce our operating costs. These initiatives included:

	The consolidation of our business unit leadership and shared services teams in our Cincinnati, Ohio area facilities and the closure of an administrative office in Edmond, Oklahoma;
	The reorganization of our senior leadership team; and
	The implementation of staffing reductions and facility closures in our manufacturing, logistics and commercial operations.

During year to date period ended October 1, 2016, we incurred $108 in expenses associated with the closure of the office in Edmond, Oklahoma.

All the above initiatives were substantially complete as of October 1, 2016 and we expect any remaining payments to be complete in fiscal 2016. Restructuring charges included in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income are summarized below:

	Fiscal Quarter Ended				Fiscal Year to Date Ended
	October 1,		October 3,		October 1,			October 3,
	2016		2015		2016			2015
Gross profit
2013 initiatives	$	—	$	9	$	—		$	294
2015 initiatives	—		1,493		—			2,066
	$	—	$	1,502	$	—		$	2,360
Operating income
2013 initiatives	$	—	$	11	$	143		$	587
2015 initiatives	—		254		(23		)	833
	—		265		120			1,420
Total	$	—	$	1,767	$	120		$	3,780

Charges related to these initiatives primarily represent costs for severance, relocation, recruiting, and professional services. There were no restructuring expenses that were directly attributable to any of our reportable segments.

Included below is the activity for liabilities related to restructuring charges, which are reflected in accrued liabilities (current portion) and other long-term liabilities (noncurrent portion):

	Fiscal Quarter Ended						Fiscal Year to Date Ended
	October 1,			October 3,			October 1,			October 3,
	2016			2015			2016			2015
Balance at Beginning of Period	$	171		$	256		$	496		$	567
Accruals	—			1,767			120			3,780
Payments, net	(106		)	(1,895		)	(551		)	(4,219		)
Balance at End of Period	$	65		$	128		$	65		$	128