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Special Charges, net
3 Months Ended
Mar. 01, 2014
Special Charges [Abstract]  
Special Charges Disclosure [Text Block]

Note 6: Special Charges, net

 

The integration of the Forbo industrial adhesives business we acquired in March 2012 involves a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, we are taking a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We have combined these two initiatives into a single project which we refer to as the “Business Integration Project”. During the 13 weeks ended March 1, 2014 and March 2, 2013, we incurred special charges, net of $11,734 and $5,333, respectively for costs related to the Business Integration Project.

 

The following table provides detail of special charges, net:

  13 Weeks Ended
  March 1, 2014 March 2, 2013
Acquisition and transformation related costs$ 1,708 $ 2,282
Workforce reduction costs  2,059   484
Facility exit costs  5,126   1,789
Other related costs  2,841   778
 Special charges, net$ 11,734 $ 5,333

Acquisition and transformation related costs of $1,708 for the 13 weeks ended March 1, 2014 and $2,282 for the 13 weeks ended March 2, 2013 include costs related to organization consulting, financial advisory and legal services necessary to integrate the Forbo industrial adhesives business into our existing operating segments. During the 13 weeks ended March 1, 2014, we incurred workforce reduction costs of $2,059, cash facility exit costs of $3,574 and non-cash facility exit costs of $1,552 and other incremental transformation related costs of $2,841 including the cost of personnel directly working on the integration. During the 13 weeks ended March 2, 2013, we incurred workforce reduction costs of $484, cash facility exit costs of $1,397 and non-cash facility exit costs of $392 and other incremental transformation related costs of $778 including the cost of personnel directly working on the integration.

 

For the 13 weeks ended March 1, 2014, the activity in accrued compensation associated with the Business Integration Project, is as follows:

  Workforce Reduction Costs
Balance at November 30, 2013$ 18,057
 Workforce reduction costs  2,059
 Cash payments  (5,473)
 Foreign currency translation adjustment  37
Balance at March 1, 2014$ 14,680

Of the $14,680 in accrued workforce reduction costs at March 1, 2014 $13,895 was included in accrued compensation and $785 was included in other liabilities on our Condensed Consolidated Balance Sheets as this portion was not expected to be paid within the next year. The benefits were accrued based primarily on the formal severance plans in place for the various locations. The restructuring costs are not allocated to our operating segments.