Restructuring and Severance Charges

9 Months Ended

Jan. 22, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Severance Charges

Restructuring and Severance Charges

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, management approved a plan to further reduce headcount as part of the overall S,G&A cost reduction initiative. Additionally, in the fourth quarter of fiscal 2015, management committed to a plan to close 16 owned and four leased under-performing restaurants in fiscal 2016. As of January 22, 2016, all 20 of these restaurants have been closed. We believe these closures strengthen our restaurant portfolio by improving overall returns and freeing up resources for other uses.

We recorded $140 of pretax restructuring charges in the nine months ended January 22, 2016, as compared to $950 of pretax restructuring charges in the nine months ended January 23, 2015. These costs, reflected primarily in S,G&A, related to the organizational realignments discussed above.

Liabilities related to restructuring charges as of January 22, 2016, were $348, and relate to corporate severance charges primarily recorded in the fourth quarter of fiscal 2015.

See tables below for detail of restructuring activity for the nine months ended January 22, 2016, and January 23, 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	112			28			—			140
Amounts paid	(1,086		)	(488		)	(1,276		)	(2,850		)
Adjustments	(131		)	(21		)	(416		)	(568		)
Balance, January 22, 2016	$	—		$	—		$	348		$	348

(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	—		(906		)	(959		)	(1,865		)
Balance, January 23, 2015	$	—	$	175		$	137		$	312