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Selling, General and Administrative Expense
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3 Months Ended |
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Dec. 27, 2014
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| Selling, General and Administrative Expense [Abstract] | |
| Selling, General and Administrative Expense |
Selling, General and Administrative Expense
We include in selling, general and administrative ("SG&A") expenses costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of stocking, warehousing, picking and packing, and shipping goods for delivery to our customers. Distribution costs included in SG&A expenses totaled $3.7 million and $3.9 million for the three months ended December 27, 2014, and December 28, 3013, respectively. In addition, SG&A expenses include costs related to sales associates, administrative personnel, advertising and marketing expenses, royalty payments on licensed products and other general and administrative expenses.
During the fourth quarter of fiscal year 2014, certain strategic initiatives were implemented to improve net profitability. This included streamlining our administrative workforce, delayering our management structure and streamlining decision-making and information flow, as well as reducing duplicative and excess fixed cost. We also began a comprehensive rationalization analysis of our manufacturing operations, product lines and sales channels intended to refocus our capital and other resources on the areas we believe are strategic to our business. Certain production was moved into our lower-cost facilities and we anticipate further efforts of this nature as we progress through fiscal year 2015. We have implemented new information systems that should also further streamline our operations and better support our customer needs.
During the fourth quarter of fiscal year 2014, we recorded a total of $4.0 million in expense associated with these strategic initiatives. As of September 27, 2014, approximately $1.8 million of these expenses were accrued and reported on our Condensed Consolidated Balance Sheet. During the first quarter of fiscal year 2015, no additional expense was incurred in association with our strategic initiatives and $0.4 million was disbursed during the quarter, leaving approximately $1.4 million remaining accrued on our December 27, 2014, Condensed Consolidated Balance Sheet.
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