Quarterly report pursuant to Section 13 or 15(d)

Restructuring Plan

v3.7.0.1
Restructuring Plan
9 Months Ended
Jul. 01, 2017
Restructuring and Related Activities [Abstract]  
Restructuring Plan
Restructuring Plan
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 costs during fiscal year 2016 and $0.1 million during the first nine months of fiscal year 2017, with $0.1 million remaining accrued at July 1, 2017. We have not incurred, and do not expect to incur, any significant expense related to these manufacturing initiatives in fiscal year 2017.