XML 106 R10.htm IDEA: XBRL DOCUMENT v2.4.1.9
Restructuring and Impairment Charges
 12 Months Ended
Jan. 03, 2015
Restructuring and Related Activities [Abstract]  
Restructuring Related and Impairment Charges
Restructuring and Impairment Charges
During 2014, the Corporation made the decisions to close three office furniture manufacturing facilities located in Florence, Alabama; Chicago, Illinois and Nalagarh, India and consolidate production into existing office furniture manufacturing facilities. In connection with these decisions the Corporation recorded $8.8 million of pre-tax charges which included $5.2 million of accelerated depreciation on machinery and equipment recorded in cost of sales and $3.6 million of severance and facility exit costs which were recorded as restructuring charges during the year. The closures and consolidations of these facilities is expected to be substantially completed by the first quarter of 2015. The Corporation anticipates additional restructuring costs of approximately $1 million related to these closures during 2015.

During 2011, the Corporation made the decision to transition out of its Lithia Springs, Georgia office furniture distribution center and the transition was completed in fourth quarter 2012. In addition, during 2011, the Corporation made the decision to consolidate some office furniture manufacturing production from its Hickory, North Carolina facility into its Wayland, New York facility. During 2012, the Corporation recorded current period charges which included $0.3 million of accelerated depreciation of machinery and equipment recorded in cost of sales and $1.5 million of severance and facility exit costs recorded as restructuring costs. These included impairment of leasehold improvements of $0.2 million which was a non-cash transaction.

During 2010, the Corporation completed the shutdown of an office furniture facility in South Gate, California and consolidated production into existing office furniture manufacturing facilities.  During 2012 and 2013, the Corporation incurred $0.4 million and $0.3 million of current period charges due to ongoing costs related to a vacant building recorded as restructuring costs, respectively.

The following table summarizes the restructuring accrual activity since the beginning of fiscal 2012.
 
(In thousands)
Severance
Costs
 
Facility
Termination &
Other Costs
 
Total
Restructuring reserve at December 31, 2011
$
1,068

 
$
31

 
$
1,099

Restructuring charges
(316
)
 
2,107

 
1,791

Cash payments
(560
)
 
(2,120
)
 
(2,680
)
Restructuring reserve at December 29, 2012
$
192

 
$
18

 
$
210

Restructuring charges
(8
)
 
341

 
333

Cash payments
(135
)
 
(353
)
 
(488
)
Restructuring reserve At December 28, 2013
$
49

 
$
6

 
$
55

Restructuring charges
2,933

 
705

 
3,638

Cash Payments
(1,769
)
 
(711
)
 
(2,480
)
Restructuring reserve At January 3, 2015
$
1,213

 
$
—

 
$
1,213



The Corporation recorded $29.4 million of goodwill and long-lived asset impairments in 2014 included in the “Restructuring and Impairment Charges” line item on the Consolidated Statements of Income. See Goodwill and Other Intangible Assets footnote for more information.