Restructuring and Severance Charges

3 Months Ended

Jul. 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 second quarter of fiscal 2014, we closed our BEF Foods production plant in Richardson, Texas, and in the third quarter of fiscal 2014, we closed our BEF Foods production plants in Springfield and Bidwell, Ohio. The actions to close these 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 our Board of Directors approved management's plan to further reduce headcount as part of the overall S,G&A cost reduction initiative. Additionally 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 under-performing restaurants in fiscal 2016. We believe these closures will strengthen our restaurant portfolio by improving overall returns and freeing up resources for other uses. As of July 24, 2015, we closed 18 of these under-performing restaurants, and we expect to close the remaining two by the end of fiscal 2016.

We recorded $128 of pretax restructuring charges in the three months ended July 24, 2015, compared to $950 in the corresponding period last year. These costs, reflected primarily in S,G&A, relate to the organizational realignments discussed above.

Liabilities as of July 24, 2015, include $1,021 relating to corporate severance charges primarily recorded in the fourth quarter of fiscal 2015, $289 recorded to BEF Foods for remaining payments related to our plant consolidation activities and $130 recorded to Bob Evans Restaurants for severance charges related to restaurant closures.

See tables below for detail of restructuring activity for the three months ended July 24, 2015 and July 24, 2015, respectively:



(in thousands)	Bob Evans Restaurants			BEF Foods			Corporate and Other			Total
Balance, April 24, 2015	$	1,105		$	481		$	2,040		$	3,626
Restructuring and related severance charges incurred	100			28			—			128
Amounts paid	(1,075		)	(216		)	(945		)	(2,236		)
Adjustments	—			(4		)	(74		)	(78		)
Balance, July 24, 2015	$	130		$	289		$	1,021		$	1,440



(in thousands)	Bob Evans Restaurants		BEF Foods			Corporate and Other			Total
Balance, April 25, 2014	$	—	$	553		$	674		$	1,227
Restructuring and related severance charges incurred	—		528			422			950
Amounts paid	—		(415		)	(314		)	(729		)
Balance, July 25, 2014	$	—	$	666		$	782		$	1,448