FACILITY CLOSURE

HOGANSVILLE DISTRIBUTION FACILITY

In conjunction with the plan to close the Hogansville distribution facility, the Company recorded expense of approximately $0.6 million in closing-related costs during the two fiscal quarters ended June 29, 2013, substantially all of which was recognized in the first fiscal quarter ended March 30, 2013. The Company recorded approximately $0.7 million and $1.8 million in closing-related costs during the fiscal quarter and two fiscal quarters ended June 30, 2012, respectively.

The total amount of charges consisted of the following components:



	Fiscal quarters ended					Two fiscal quarters ended
(dollars in millions)	June 29, 2013			June 30, 2012		June 29, 2013		June 30, 2012

Severance	$	(0.2	)	$	0.3	$	0.3	$	1.4
Accelerated depreciation	$	0.1		$	0.4	$	0.3	$	0.4
Other closure costs	$	—		$	—	$	—	$	—
Total	$	—		$	0.7	$	0.6	$	1.8

The following table summarizes restructuring reserves related to the closure of the Hogansville facility which are included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet as of June 29, 2013:



(dollars in thousands)	Severance			Other closure costs		Total
Balance at December 29, 2012	$	2,039		$	—	$	2,039
Provision	433			9		442
Payments	—			—		—
Balance at March 30, 2013	$	2,472		$	9	$	2,481
Provision	$	(179	)	9		(170		)
Payments	—			—		—
Balance at June 29, 2013	$	2,293		$	18	$	2,311

As of June 30, 2012, restructuring reserves were approximately $1.5 million.

In conjunction with the plan to close the Hogansville, Georgia distribution facility, the Company expects to incur, in total for fiscal 2013, closure-related charges of approximately $2.5 million, comprising $1.0 million for one-time termination benefits, $0.5 million in accelerated depreciation, and other closure costs of $1.0 million.

OFFICE CONSOLIDATION

In connection with the plan to consolidate its Shelton, Connecticut and Atlanta, Georgia offices, as well as certain functions from its other offices, into a new headquarters facility in Atlanta, Georgia, the Company recorded approximately $10.2 million and $18.2 million in closing-related costs in the fiscal quarter and two fiscal quarters ended June 29, 2013, respectively.

The total amount of charges consisted of the following:



	Fiscal quarter ended		Two fiscal quarters ended
(dollars in millions)	June 29, 2013		June 29, 2013
Recruiting, relocation and other closure costs	$	6.2	$11.2
Severance and other benefits	$	2.7	$4.5
Accelerated depreciation	$	1.3	$2.5
Total	$	10.2	$18.2

The following table summarizes restructuring reserves related to the office consolidation which are included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet as of June 29, 2013:



(dollars in thousands)	Severance		Other closure costs			Total
Balance at December 29, 2012	$	2,235	$	—		$	2,235
Provision	1,806		4,900			6,706
Payments	—		(4,900		)	(4,900		)
Balance at March 30, 2013	$	4,041	$	—		$	4,041
Provision	2,700		6,200			8,900
Payments	—		(5,988		)	(5,988		)
Balance at June 29, 2013	$	6,741	$	212		$	6,953

The Company expects to substantially complete this consolidation by the end of fiscal 2013. The Company anticipates pre-tax consolidation-related expenses for the full year of fiscal 2013 to be approximately $37 - $41 million. Included in the total are cash charges of approximately $35 million, comprising $16 million of recruiting and relocation expenses, $6 million of employee severance and other benefit costs, $7 million of lease-related charges, and $6 million of other closure costs. The Company also expects approximately $4 million in non-cash accelerated depreciation expense.