Restructuring and Severance Charges

12 Months Ended

Apr. 24, 2015

Restructuring and Related Activities [Abstract]

In fiscal 2013 we began a strategic organizational realignment including a closure of production facilities and a reduction of personnel at Bob Evans Restaurants, BEF Foods and at our corporate headquarters, as part of our comprehensive plan to reduce S,G&A expenses. In the third quarter of fiscal 2014, we closed our BEF Foods production plants in Springfield and Bidwell, Ohio. The action to close the food production facilities was intended to increase efficiency by consolidating production to our high capacity food production facility in Sulphur Springs, Texas. In the fourth quarter of fiscal 2014 we recorded charges related to a reduction of personnel at our corporate headquarters. In the fourth quarter of fiscal 2015 management approved a plan to further reduce headcount as part of the overall S,G&A cost reduction initiative.

As part of these organizational realignment and S,G&A cost reduction activities, we recorded pretax restructuring and severance charges in continuing operations totaling $3,234, $6,151 and $9,256 in fiscal 2015, 2014 and 2013 respectively. Restructuring costs related to personnel at our corporate headquarters are allocated to the Bob Evans Restaurants and BEF Foods business segments, and were primarily recorded in the S,G&A line of the consolidated statements of net income.

In the fourth quarter of fiscal 2015 the Board of Directors approved, and management committed to a plan to close 16 owned, and four leased, underperforming restaurants in fiscal 2016. We believe these closures will strengthen our restaurant portfolio by improving overall returns and freeing up resources for other uses. Associated with this plan we incurred severance costs of $549 that will be paid to both salaried and hourly employees at the closing restaurants. We also incurred lease termination charges of $557 related to three of the leased stores that are closing, while the fourth will terminate through natural lease expiration. These charges were recorded in the S,G&A line on the consolidated statement of net income. We closed eighteen of these restaurants in the first quarter of fiscal 2016, while the remaining two are expected to close by the end of the fiscal 2016.

Liabilities as of April 24, 2015, include $2,261 relating to corporate severance charges primarily recorded in the fourth quarter of fiscal 2015, $549 and $557 recorded to Bob Evans Restaurants for severance and lease termination charges related to restaurant closures and $259 recorded to BEF Foods for remaining payments related to our plant consolidation activities. We expect the majority of these liabilities, classified primarily in the accrued wages and related liabilities line of the Consolidated Balance Sheets, to be paid in fiscal 2016.



(in thousands)	Bob Evans Restaurants			BEF Foods			Total
April 27, 2012	$	—		$	—		—
Restructuring and related severance charges incurred	2,774			6,482			9,256
Amounts Paid	(1,514		)	(3,922		)	(5,436		)
Balance April 26, 2013	$	1,260		$	2,560		$	3,820
Restructuring and severance charges incurred	2,473			3,678			6,151
Adjustments	(131		)	—			(131		)
Amounts paid	(3,116		)	(5,497		)	(8,613		)
Balance April 25, 2014	$	486		$	741		$	1,227
Restructuring and severance charges incurred	2,931			1,409			4,340
Adjustments	(43		)	(49		)	(92		)
Amounts paid	(681		)	(1,168		)	(1,849		)
Balance April 24, 2015	$	2,693		$	933		$	3,626

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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