Quarterly report pursuant to Section 13 or 15(d)

Restructuring Plan

Restructuring Plan

6 Months Ended

Apr. 01, 2017

Restructuring and Related Activities [Abstract]

On May 10, 2016, in connection with certain strategic manufacturing initiatives, we announced plans to realign our manufacturing operations with the closing of our textile manufacturing facility in Maiden, North Carolina, the consolidation of sew facilities in Mexico, and the expansion of production at our lower-cost Ceiba Textiles facility in Honduras. In September 2016, we sold the real estate and certain machinery, equipment and supply parts used in the Maiden facility for approximately $1.7 million. As part of the closing of the Maiden facility and the expansion of operations at our offshore facilities, we incurred the following costs in our basics segment during the third and fourth quarters of fiscal year 2016 (in thousands):



	Fiscal Year Ended
	October 1, 2016
Excess manufacturing costs related to the shutdown and start-up operations	$	1,096
Total expenses included in cost of goods sold	1,096

Employee termination costs	597
Fixed asset impairment	607
Inventory and supply part impairment	144
Other costs to exit facility	393
Total restructuring costs	1,741
Total manufacturing realignment expenses	$	2,837

We paid $0.4 million of the above-referenced employee termination benefits during fiscal year 2016 and $0.1 million during the first six months of fiscal year 2017, with $0.1 million remaining accrued at April 1, 2017. We have not incurred, and do not expect to incur, any significant expense related to these manufacturing initiatives in fiscal year 2017.