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Note 16 - Restructuring, Asset Impairment, and Other Charges
 12 Months Ended
Nov. 24, 2012
Restructuring, Impairment, and Other Activities Disclosure [Text Block]
16. Restructuring, asset impairment, and other charges

The following table summarizes the restructuring, asset impairment charges and other unusual items by year:

   
2012
   
2011
   
2010
 
Restructuring and asset impairment charges:
                 
Asset impairment charges related to Company-owned retail store closures
  $ 123     $ 1,156     $ -  
Asset impairment charges & demolition costs associated with closed plants
    588       1,312       -  
Other
    -       32       -  
Total restructuring and asset impairment charges
  $ 711     $ 2,500     $ -  
                         
Lease exit costs
                       
Lease exit costs related to Company-owned retail store closures
  $ 228     $ 1,221     $ -  
Charge for modification of existing Company-owned retail store lease
    -       1,500       -  
Changes in estimates related to previously closed Company-owned retail stores
    131       1,007       -  
Total lease exit costs
  $ 359     $ 3,728     $ -  
                         
Licensee debt cancellation charges
  $ -     $ 6,447     $ -  
                         
Total charges related to restructuring, asset impairment, lease exit costs and debt cancellation included in loss from operations
  $ 1,070     $ 12,675     $ -  

Total restructuring and asset impairment charges by segment are as follows:

   
2012
   
2011
   
2010
 
Wholesale
  $ 719     $ 8,653     $ -  
Retail
    351       4,022       -  
    $ 1,070     $ 12,675     $ -  

The following table summarizes the activity related to our accrued lease exit costs:

   
2012
   
2011
 
             
Balance, beginning of the year
  $ 4,357     $ 2,847  
Provisions associated with corporate store and retail office closures
    228       2,721  
Provisions associated with licensee store closings
    -       661  
Provisions made to adjust previous estimates
    111       1,560  
Payments on unexpired leases
    (2,232 )     (2,048 )
Payment to terminate lease commitment
    -       (1,500 )
Accretion of interest on obligations
    150       116  
                 
Balance, end of the year
  $ 2,614     $ 4,357  
                 
Current portion included in other accrued liabilities
  $ 1,609     $ 1,756  
Long-term portion included in other long-term liabilities
    1,005       2,601  
    $ 2,614     $ 4,357  

Fiscal 2012

Restructuring and Asset Impairment Charges

During fiscal 2012, we incurred costs of $203 associated with the demolition of a previously closed manufacturing facility in Bassett, Virginia; non-cash charges of $385 associated with the write-down of a previously closed manufacturing facility in Mt. Airy, North Carolina; and $123 associated with the write off of abandoned leasehold improvements following the relocation of a retail store near Richmond, Virginia.

Lease Exit Costs

During fiscal 2012, we incurred non-cash charges of $228 for lease exit costs associated with the relocation of a retail store near Richmond, Virginia, as well as $131 of non-cash charges to reflect reduced estimates of recoverable lease costs at several previously closed retail locations.

Fiscal 2011

Restructuring and Asset Impairment Charges

During fiscal 2011, we recorded asset impairment charges of $2,500. These charges included costs of $318 for the demolition of a previously closed facility in Bassett, Virginia, and $32 associated with the relocation of our retail store in Manchester, Missouri.  We also incurred non-cash charges which included $966 for the write-off of leasehold improvements related to the closure of six retail locations in Albuquerque, New Mexico; Bear, Delaware; Bel Air, Maryland; Carol Stream, Illinois; Frederick, Maryland; and Spanish Fort, Alabama; $566 for the additional write-down of a previously closed manufacturing facility in Mt. Airy, North Carolina; $428 for the additional write-down of the previously closed manufacturing facility in Bassett, Virginia; and $190 for the write-off of leasehold improvements and other assets associated with the relocation of our retail store in Manchester, Missouri.  Total non-cash impairment charges described above for the year ended November 26, 2011 were $2,150. The write-downs of the previously closed manufacturing facilities are based on our estimates of their fair values. The inputs into these fair value estimates reflect our market assumptions and are not observable.  Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures. See Note 8.

Lease Exit Costs

During fiscal 2011, we recorded charges of $3,728 for lease exit costs and lease modifications which included: non-cash charges of $1,221 for lease exit costs related to the closure of retail stores in Albuquerque, New Mexico, Bel Air and Frederick, Maryland,  and a previously closed location in Lewisville, Texas; non-cash charges of $1,007 to reflect reduced estimates of recoverable lease costs at four previously closed retail locations; and a charge of $1,500 for a cash payment made for the modification of an existing lease at one of our Company-owned retail store locations.

Licensee Debt Cancellation Charges

During fiscal 2011, we gained significant liquidity as a result of the sale of our investment in IHFC (see Note 11). This liquidity event enabled us to become more opportunistic in managing our relationships with our licensees and therefore accelerate certain licensees’ ability to rebuild their businesses after several years of extremely difficult industry conditions. As such, during fiscal 2011, we cancelled certain debts of what we consider to be key licensees in select markets.  While the debts cancelled were considered to be collectible over time, we believe that, rather than requiring repayment of these obligations, we will realize a greater long-term benefit by the cancellation of these debts. In exchange for relieving the debts of these licensees and thus strengthening their respective financial positions, we believe these licensees will be in a much better position to reinvest in all aspects of their store operations (new product offerings, personnel, advertising, building appeal, etc.) which will ultimately lead to increased sales and profitability of the Bassett brand. As a result of this debt cancellation, we incurred a charge for fiscal 2011 of $6,447.

In addition to the charges discussed above affecting loss from operations during fiscal 2011, other income (loss), net for the year ended November 26, 2011 includes non-cash charges of $4,790 for asset impairments and lease termination costs associated with our retail real estate investments, including: asset impairment charges of $2,106 to write down idle retail locations in Henderson, Nevada and Chesterfield, Virginia to appraised values; $1,847 to write off certain tenant improvements deemed to be unrecoverable; $661 related to lease termination costs for a closed licensee store; and $176 related to adjustments of previous estimates. The write-downs of the retail assets are based on our estimates of their fair values.  The inputs into these fair value estimates reflect our market assumptions and are not observable.  Consequently, the inputs are considered to be Level 3 as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures. See Note 8.

Fiscal 2010

There were no restructuring charges or other significant non-recurring items were included in our loss from operations.