Annual report pursuant to Section 13 and 15(d)

Restructuring Plan

Restructuring Plan

12 Months Ended

Oct. 01, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING PLAN

On May 10, 2016, in connection with our ongoing strategic manufacturing initiatives, we announced plans to restructure 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 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

All of these expenses were recorded in our basics segment. We do not expect to incur any significant additional costs related to the manufacturing initiative in fiscal year 2017. At the end of 2016, we had paid $0.4 million in employee termination benefits and had $0.2 million accrued.