XML 23 R11.htm IDEA: XBRL DOCUMENT v3.7.0.1
RESTRUCTURING ACTIVITIES AND ASSET IMPAIRMENTS
 9 Months Ended
Apr. 29, 2017
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
RESTRUCTURING ACTIVITIES AND ASSET IMPAIRMENTS

2017 Cost Saving and Efficiency Initiatives

During the third quarter of fiscal 2017, the Company announced a restructuring program in conjunction with various cost saving and efficiency initiatives, including the planned opening of a shared services center. Subsequent to the end of the third quarter of fiscal 2017, the Company announced on June 6, 2017 an extension of this restructuring program pursuant to which it expects to incur additional restructuring charges of between $3.0 million and $4.0 million, before taxes, during the fourth quarter of fiscal 2017. These expenses are primarily related to severance and other employee separation costs driven by the recently completed integration activities on several acquired businesses. For fiscal 2017, under the extended plan, the Company expects to incur total expenses in fiscal 2017 of between $6.9 million and $7.9 million, before taxes, with $3.9 million incurred in the third quarter of fiscal 2017 and the remainder expected to be incurred in the fourth quarter of fiscal 2017.

Of the $3.9 million total restructuring charges incurred in the third quarter of fiscal 2017, the Company incurred a total workforce reduction charge of $3.7 million, primarily relating to severance and other employee separation and transition costs. In addition, the Company also incurred early lease termination and facility closing costs in the third quarter of fiscal 2017 of $0.3 million, related to the closing of its Gourmet Guru facility in Bronx, New York.

The following is a summary of the restructuring costs the Company recorded in the third quarter of fiscal 2017, as well as the remaining liability as of April 29, 2017 (in thousands):
 
 
Restructuring Costs Recorded in the Third Quarter of Fiscal 2017
 
Payments and Other Adjustments
 
Restructuring Cost Liability as of April 29, 2017
Severance and other employee separation and transition costs
 
$
3,688

 
$
(795
)
 
$
2,893

Early lease termination and facility closing costs
 
258

 
(29
)
 
229

Total
 
$
3,946

 
$
(824
)
 
$
3,122



Restructuring Charges Recorded in Fiscal 2016

The following is a summary of the restructuring costs the Company recorded in fiscal 2016 related to the termination of its distribution arrangement with a large customer, the closing of two of its Earth Origins Market stores and the closing of a Canadian facility, as well as the remaining liability as of April 29, 2017 (in thousands):

 
 
Restructuring Costs Recorded in Fiscal 2016
 
Payments and Other Adjustments
 
Restructuring Cost Liability as of April 29, 2017
Severance
 
$
3,443

 
$
(3,429
)
 
$
14

Early lease termination and facility closing costs
 
368

 
(368
)
 
—

Operational transfer costs
 
570

 
(570
)
 
—

Earth Origins:
 
 
 
 
 
 
Severance
 
41

 
(37
)
 
4

Store closing costs
 
443

 
(443
)
 
—

Total
 
$
4,865

 
$
(4,847
)
 
$
18



For a more detailed discussion of these costs, see the footnotes to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 30, 2016.