Quarterly report pursuant to Section 13 or 15(d)

Closure Costs

v3.5.0.2
Closure Costs
 6 Months Ended
Jun. 30, 2016
Closure Costs  
Closure Costs

13.  CLOSURE COSTS

 

We continuously evaluate our national footprint to ensure we are strategically located throughout the U.S. to serve our customers and position ourselves for continued growth.  As a result of this evaluation, management approved a plan to close 13 locations within our Installation and Distribution segments during the first and second quarters of 2016.  In conjunction with this evaluation, we eliminated certain positions at our corporate headquarters located in Daytona Beach, Florida.  We recognize expenses related to branch closures and position eliminations at the time of announcement or notification.  Such costs may include termination and other severance benefits, lease abandonment costs, and other contract termination costs.  Closure costs are accrued on our Condensed Consolidated Balance Sheets as part of accrued liabilities and reflected in our Condensed Consolidated Statements of Operations as selling, general, and administrative expense.  Unpaid amounts noted as of June 30, 2016, are expected to be paid within the next nine months.

 

The following table details our total estimated closure costs by cost type and segment related to the above closures and position eliminations, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment / Cost Type

 

Closure Costs Liability at December 31, 
2015

 

Closure Costs Incurred for the Six Months Ended
June 30, 2016

 

Cash Payments for the Six Months Ended
June 30, 2016

 

Non-cash Adjustments for the Six Months Ended
June 30, 2016

 

Closure Costs Liability at
June 30, 2016

Installation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

$

 —

 

$
582.7

 

$
(369.2)

 

$
(33.2)

 

$
180.3

Lease abandonment

 

 

 —

 

 
212.6

 

 
(101.1)

 

 
(12.6)

 

 
98.9

Total Installation:

 

 

 —

 

 
795.3

 

 
(470.3)

 

 
(45.8)

 

 
279.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

 

 —

 

 
12.6

 

 
(12.6)

 

 

 —

 

 

 —

Lease abandonment

 

 

 —

 

 
70.5

 

 
(50.7)

 

 
(0.5)

 

 
19.3

Total Distribution:

 

 

 —

 

 
83.1

 

 
(63.3)

 

 
(0.5)

 

 
19.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

 

 —

 

 
110.1

 

 
(78.1)

 

 

 —

 

 
32.0

Total Corporate:

 

 

 —

 

 
110.1

 

 
(78.1)

 

 

 —

 

 
32.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

 

 —

 

 
705.4

 

 
(459.9)

 

 
(33.2)

 

 
212.3

Lease abandonment

 

 

 —

 

 
283.1

 

 
(151.8)

 

 
(13.1)

 

 
118.2

Total Consolidated:

 

$

 —

 

$
988.5

 

$
(611.7)

 

$
(46.3)

 

$
330.5