Restructuring Costs

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

U.S. Distribution and Corporate Functions

During the quarter ended October 3, 2015, the Company announced a restructuring plan focused on realigning certain costs within its U.S. distribution business and select corporate functions. The restructuring plan included the closure of four underperforming company-operated supply centers in the U.S. and the elimination of its roofing product offering in 11 U.S. supply centers. Supply center closures were completed by the end of the fourth quarter 2015.

Manufacturing

The Company discontinued its use of the warehouse facility adjacent to the Ennis manufacturing plant during the second quarter of 2009 and recorded a restructuring liability related to the discontinued use of the warehouse facility. The restructuring liability is re-measured when changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term change.

Changes in the restructuring liabilities are as follows (in thousands):



	Quarter Ended April 2, 2016
	Distribution			Manufacturing			Total
Balance at January 2, 2016	$	1,654		$	1,147		$	2,801
Accretion of related lease obligations	—			115			115
Payments	(298		)	(337		)	(635		)
Balance at April 2, 2016	$	1,356		$	925		$	2,281

	Quarter Ended April 4, 2015
	Distribution			Manufacturing			Total
Balance at January 3, 2015	$	—		$	1,960		$	1,960
Accretion of related lease obligations	—			114			114
Payments	—			(364		)	(364		)
Balance at April 4, 2015	$	—		$	1,710		$	1,710

The remaining restructuring liability is included in “Accrued Liabilities” and “Other Liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid until April 2020 and July 2020, the lease expiration dates for the Ennis warehouse facility and the last of the supply center closures, respectively. For the quarters ended April 2, 2016 and April 4, 2015, there were no changes in the restructuring liabilities that impacted selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss.

ASSOCIATED MATERIALS, LLC 10-Q