Change in Estimate

3 Months Ended

Sep. 26, 2014

Accounting Changes and Error Corrections [Abstract]

Change In Estimate

Change in Estimate

In October 2013, the regulatory agency charged with oversight of one of the Company’s Exit Strategy projects issued a letter requiring the Company to evaluate modifications to its current site remedy. While it is premature to predict the outcome of this evaluation, the Company’s best estimate of the cost of such modifications is $12,439. As a result, the Company updated its estimate to complete for this project during the three months ended September 27, 2013. This adjustment resulted in a reduction of gross revenue and NSR of $5,093 and a $7,346 charge to COS as a provision for future losses during the three months ended September 27, 2013. Because these additional costs are covered by insurance, the Company also recorded an insurance recoverable of $12,439 during the three months ended September 27, 2013. Therefore, this change in estimate had no impact on operating income or EPS.