Corporate Relocation (Notes)

9 Months Ended

Mar. 31, 2015

Corporate Relocation [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Corporate Relocation Plan

On February 5, 2015, the Company announced the Corporate Relocation Plan approved by the Board of Directors of the Company on February 3, 2015, pursuant to which the Company will close its Torrance, California facility and relocate these operations to a new manufacturing, distribution and corporate headquarters facility. The new facility will be located in the Town of Northlake, Denton County, Texas in the Dallas/Ft. Worth area. The Company expects to close its Torrance facility in phases beginning in the summer of 2015. Construction of the new facility and relocation are expected to be completed by the end of the summer of 2016. Approximately 350 positions are impacted as a result of the Torrance facility closure. The Torrance facility is expected to be sold after the relocation.

Expenses related to the Corporate Relocation Plan in the three months ended March 31, 2015 consisted of $2.5 million in employee retention and separation benefits, $0.1 million in facility relocation costs related to the relocation of certain distribution centers and $1.0 million in other related costs including travel, legal, consulting and other professional services. Expenses related to the Corporate Relocation Plan in the nine months ended March 31, 2015 consisted of $2.5 million in employee retention and separation benefits, $0.1 million in facility relocation costs related to the relocation of certain distribution centers and $2.0 million in other related costs including travel, legal, consulting and other professional services.

The following table sets forth the activity in liabilities associated with the Corporate Relocation Plan for the nine months ended March 31, 2015:

(In thousands)	Balances, July 1, 2014		Additions		Payments		Adjustments		Balances, March 31, 2015
Employee-related costs(1)	$	—	$	2,472	$	—	$	—	$	2,472
Facility-related costs	—		127		127		—		—
Other(2)	—		1,971		1,771		—		200
Total	$	—	$	4,570	$	1,898	$	—	$	2,672
Current portion	—								2,672
Non-current portion	—								—
Total	$	—							$	2,672

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(1) Included in "Accrued payroll expenses" on the consolidated balance sheets.

(2) Included in "Accounts payable" on the consolidated balance sheets.

Subject to the finalization of certain estimates, the Company estimates that it will incur approximately $25 million in cash costs in connection with the exit of the Torrance facility consisting of $14 million in employee retention and separation benefits, $4 million in facility relocation costs and $7 million in other related costs. The Company may incur certain other non-cash asset impairment costs and pension-related costs the amounts of which have not yet been determined.

The Company expects to recognize approximately 35% of the aggregate cash costs in fiscal 2015, including $4.6 million incurred in the first nine months of fiscal 2015, with the remainder expected to be recognized in fiscal 2016 and the first quarter of fiscal 2017. Subject to the finalization of the optimal size and build-out of the facility, the Company also expects to incur approximately $35 million to $40 million in new facility costs with an additional $20 million to $25 million in anticipated capital expenditures for machinery and equipment, furniture and fixtures, and related expenditures. The capital expenditures associated with the new facility are expected to be partially offset by the net proceeds from the planned sale of the Company's Torrance facility.