Restructuring and Severance Charges

6 Months Ended

Oct. 28, 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 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.

In the fourth quarter of fiscal 2015 management committed to a plan to close 16 owned, and four leased restaurants 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 an additional 21 owned and six leased restaurants. Associated with this plan, we incurred severance costs for both salaried and hourly employees at the closing restaurants. We closed all 21 of the owned locations in the fourth quarter of fiscal 2016 and closed three of the leased restaurants in the first quarter of fiscal 2017. We incurred charges of $807 in the first quarter of fiscal 2017 associated with debranding and lease terminations.

Liabilities as of October 28, 2016, include $682 associated with corporate severance charges, primarily incurred in the fourth quarter of fiscal 2016, as well as $181 and $267 of severance and lease termination charges associated with restaurant closure activity.

See tables below for detail of restructuring activity for the six months ended October 28, 2016, and October 23, 2015, respectively:

(in thousands)	Bob Evans Restaurants			BEF Foods		Corporate and Other			Total
Balance at April 29, 2016	$	1,135		$	—	$	1,563		$	2,698
Restructuring and related severance charges incurred	807			—		—			807
Amounts paid	(1,481		)	—		(852		)	(2,333		)
Adjustments	(13		)	—		(29		)	(42		)
Balance at October 28, 2016	$	448		$	—	$	682		$	1,130

(in thousands)	Bob Evans Restaurants			BEF Foods			Corporate and Other			Total
Balance at April 24, 2015	$	1,105		$	481		$	2,040		$	3,626
Restructuring and related severance charges incurred	112			28			—			140
Amounts paid	(1,086		)	(488		)	(1,150		)	(2,724		)
Adjustments	(131		)	(21		)	(194		)	(346		)
October 23, 2015	$	—		$	—		$	696		$	696