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Subsequent Events
6 Months Ended
Nov. 24, 2019
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

Restructuring

On January 2, 2020, the Company announced a restructuring plan to focus the business on its strategic assets and redesign the organization to be the appropriate size to compete and thrive. This includes a reduction-in-force, a reduction in leased office spaces, and the sale of non-strategic assets.

The Company will close its leased Santa Clara, California office and its leased Los Angeles, California office. The Company estimates that over the third and fourth quarter of fiscal year 2020 the total amount of pre-tax restructuring and related expense will be approximately $1.2 to $1.5 million for employee and severance related expenses and approximately $0.4 to $0.6 million for lease exit costs.

The Company plans to sell its salad dressing plant in Ontario, California. The Company designated the fixed assets of its office and manufacturing space located in Ontario, California, as assets held for sale after the balance sheet date. The Ontario assets, included as construction in process within property and equipment, net, has been designated as held for use within the Consolidated Balance Sheets as of November 24, 2019, as no finalized plan for disposition existed at the balance sheet date. The disposal is expected to occur by the end of fiscal year 2020, and at this time the Company is not able to estimate the range of any gains or losses this transaction may have to the Company's financial statements. The net carrying value of the designated fixed assets as of November 24, 2019 is $13.0 million.
San Rafael

On December 24, 2019 the Company closed escrow on the San Rafael property held for sale. The Company received cash proceeds of $2.4 million in connection with the sale. The disposal did not have a material impact to the Company’s financial statements.

Derivative Instruments

On December 2, 2019, the Company entered into an interest rate swap contract (the “2019 Swap”) with BMO at a notional amount of $110 million. The 2019 Swap has the effect of changing the Company’s Term Loan obligation from a variable interest rate to a fixed 30-day LIBOR rate of 1.53%.