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Restructuring
12 Months Ended
Apr. 30, 2016
Restructuring  
Restructuring

 

Note 3: Restructuring

During fiscal 2014, we committed to a restructuring of our casegoods business to transition to an all-import model for our wood furniture. We ceased casegoods manufacturing operations at our Hudson, North Carolina facility during the second quarter of fiscal 2015. As a result of this restructuring, we transitioned our remaining Kincaid and American Drew bedroom product lines to imported product. We exited the hospitality business as we had manufactured those products in our Hudson facility. We transitioned our warehouse and repair functions from two North Wilkesboro, North Carolina facilities to our Hudson plant. In addition, during fiscal 2015, we sold both of the North Wilkesboro facilities and most of the wood-working equipment from our Hudson plant and completed the consolidation of our casegoods showroom.

We have recorded pre-tax restructuring charges of $8.3 million ($5.4 million after tax) since the inception of this restructuring plan, with $5.1 million pre-tax ($3.3 million after tax) related to continuing operations and $3.2 million pre-tax ($2.1 million after tax) related to discontinued operations. These charges relate to severance and benefit-related costs, rent for an idled showroom, rent for an idled office building, and various asset write-downs, including fixed assets, inventory and trade names. The pre-tax restructuring income recorded in fiscal 2015 mainly related to gains on the sale of the North Wilkesboro warehouse, as well as inventory recoveries. These items were partly offset by severance and benefit related costs and rent expense related to an idled showroom.

The table below details the total pre-tax restructuring (income)/expense recorded by type for the fiscal years ended April 30, 2016, April 25, 2015, and April 26, 2014:

                                                                                                                                                                                    

(Amounts in thousands)

 

4/30/2016

 

4/25/2015

 

4/26/2014

 

Fixed asset (recoveries) write-downs

 

$

132

 

$

(987

)

$

2,272

 

Inventory (recoveries) write-downs

 

 

(43

)

 

(578

)

 

2,216

 

Other

 

 

490

 

 

1,194

 

 

351

 

​  

​  

​  

​  

​  

​  

Total restructuring—continuing operations

 

 

579

 

 

(371

)

 

4,839

 

Inventory write-downs

 

 


 

 


 

 

1,804

 

Trade name write-down

 

 

 

 

 

 

1,265

 

Other

 

 

 

 

11

 

 

163

 

​  

​  

​  

​  

​  

​  

Total restructuring—discontinued operations

 

 

 

 

11

 

 

3,232

 

​  

​  

​  

​  

​  

​  

Total restructuring expense (income)

 

$

579

 

$

(360

)

$

8,071

 

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

​  

We had $0.1 million of restructuring liability remaining as of April 30, 2016, related to severance and warranty. We expect the severance liability to be settled by the end of the second quarter of fiscal 2017. The warranty liability will remain until it is either used by warranty claims or the warranty period expires, whichever occurs first.