Restructuring and Severance Charges

12 Months Ended

Apr. 29, 2016

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 support center, 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 each of the fourth quarters of fiscal years 2016, 2015 and 2014, we recorded charges related to a reduction of personnel at our corporate support center. Restructuring costs related to personnel at our corporate support center are primarily recorded in the S,G&A line of the Consolidated Statements of Net Income. As part of these organizational realignment and S,G&A cost reduction activities, we recorded pretax restructuring and severance charges in continuing operations totaling $1,471, $3,234 and $6,151 in fiscal years 2016, 2015 and 2014 respectively.

In the fourth quarter of fiscal 2015 management committed to a plan to close 16 owned, and four leased restaurants in fiscal 2016. Associated with this plan we incurred severance and lease termination costs of $1,106 that were paid in fiscal 2016. We closed all 20 of these restaurants in the first half of fiscal 2016.

In the fourth quarter of fiscal 2016 management committed to a plan to close 21 owned and six leased restaurants. Associated with this plan, we incurred severance costs of $1,135 in fiscal 2016 that will be paid to both salaried and hourly employees at the closing restaurants. These charges were recorded primarily in the operating wages and fringe benefit expenses line of the Consolidated Statement of Net Income. We closed all 21 of the owned locations in the fourth quarter of fiscal 2016 and expect to close the leased restaurants in fiscal 2017.

Liabilities as of April 29, 2016, include $1,563 relating to corporate severance charges primarily recorded in the fourth quarter of fiscal 2016, and $1,135 recorded to Bob Evans Restaurants for severance charges related to restaurant closures. These liabilities are classified in the accrued wages and related liabilities line of the Consolidated Balance Sheets and we expect the majority of these liabilities to be paid in fiscal 2017.



	Bob Evans Restaurants			BEF Foods			Corporate and Other			Total
Balance April 26, 2013	$	—		$	2,416		$	1,404		$	3,820
Restructuring and related severance charges incurred	—			2,241			3,910			6,151
Amounts paid	—			(4,103		)	(4,510		)	(8,613		)
Balance Adjustments							(131		)	(131		)
Balance April 25, 2014	$	—		$	554		$	673		$	1,227
Restructuring and related severance charges incurred	1,105			758			2,477			4,340
Amounts paid	—			(906		)	(943		)	(1,849		)
Adjustments	—			76			(168		)	(92		)
Balance April 24, 2015	$	1,105		$	482		$	2,039		$	3,626
Restructuring and severance charges incurred	1,135			—			1,471			2,606
Amounts paid	(1,086		)	(488		)	(1,531		)	(3,105		)
Adjustments	(19		)	6			(416		)	(429		)
Balance April 29, 2016	$	1,135		$	—		$	1,563		$	2,698