Quarterly report pursuant to Section 13 or 15(d)

Other Severance Expense

v3.10.0.1
Other Severance Expense
9 Months Ended
Sep. 30, 2018
Restructuring and Related Activities [Abstract]  
Other Severance Expense
PLANT CLOSURE EXPENSES
In the third quarter of 2017, our board of directors approved the closure of two Wood Flooring segment manufacturing facilities, including a solid wood plant in Jackson, Tennessee and an engineered wood plant in Vicksburg, Mississippi (the "Wood Plant Closures"), in response to a decline in sales. The Wood Plant Closures were completed in the fourth quarter of 2017 and resulted in the separation of approximately 300 employees.

As part of these activities, we incurred expenses consisting of employee separation and other direct exit costs, accelerated depreciation and other incremental costs. We expect to incur approximately $0.4 million of additional pre-tax cash expenses in the remainder of 2018.

The following table details expenses related to the Wood Plant Closures:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Cash expenses
 
 
 
 
 
 
 
Severance and employee benefit costs
$

 
$
1.1

 
$

 
$
1.1

Decommissioning costs
0.2

 
1.0

 
1.2

 
1.0

Contract termination costs
0.2

 
0.6

 
0.7

 
0.6

Total cash expenses
0.4

 
2.7

 
1.9

 
2.7

Non-cash expenses
 
 
 
 
 
 
 
Accelerated depreciation

 
18.7

 

 
18.7

Asset write-downs & other non-cash exit costs

 
2.3

 

 
2.3

Total non-cash expenses

 
21.0

 

 
21.0

Total
$
0.4

 
$
23.7

 
$
1.9

 
$
23.7

OTHER SEVERANCE EXPENSE
In the first quarter of 2018, we announced that we were changing our residential go-to-market strategy and empowering our distributors with the responsibilities of marketing, merchandising and direct sales representation. The new structure was designed to provide enhanced support and responsiveness to retailers. As a result of the reorganization, approximately 70 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $3.1 million primarily in SG&A expenses, of which $1.9 million and $1.2 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively.

In the first quarter of 2017, we announced the combination of our commercial and residential go-to-market structures and related organization. The new structure was designed to provide enhanced support and responsiveness to retailers and contractors and to foster greater alignment with distributors, which cover both commercial and residential markets. As a result of this reorganization, approximately 40 positions were eliminated, and the impacted employees received severance benefits. We recognized charges of $4.6 million in SG&A expenses as a result of this reorganization, of which $2.7 million and $1.9 million was recognized in the Resilient Flooring segment and Wood Flooring segment, respectively