UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)of
the Securities Exchange Act of 1934
March 31, 2008
(Date of Report (Date of Earliest Event Reported))
LA-Z-BOY INCORPORATED
(Exact name of registrant as specified in its charter)
MICHIGAN
| 1-9656
| 38-0751137
|
|---|
| | (State or other jurisdiction of | | | (Commission | | | (IRS Employer | |
| | incorporation) | | | File Number) | | | Indentification Number) | |
1284 North Telegraph Road, Monroe, Michigan
| 48162-3390
|
|---|
| (Address of principal executive offices) | | | Zip Code | | |
Registrant's telephone number, including area code(734) 242-1444
None
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05. Costs Associated with Exit or Disposal Activities.
On March 31,2008, management committed to a restructuring plan which includes two major initiatives designed to strengthen its North American operations. As a result of this restructuring plan, the company will consolidate all of its domestic cutting and sewing operations in Mexico and will transfer production from its Tremonton, Utah plant, which will be closed, to its five remaining La-Z-Boy branded upholstery manufacturing facilities.
The transition of the company´s domestic cutting and sewing operations to Ramos Arizpe, Mexico, in the State of Coahuila, will impact approximately 1,050 La-Z-Boy employees at the five remaining facilities and will take place over a period of 18 to 24 months. La-Z-Boy expects to begin production at its Mexican facility in early calendar 2009.
The company´s Utah facility, which employs 630 people, will cease operations during the summer of 2008 and production will be shifted to the company´s remaining five facilities. As a result, La-Z-Boy expects to add approximately 400 production positions to its other facilities.
In connection with these activities, the Company expects to record total pre-tax restructuring and related asset impairment charges of $17 to $20 million or $0.20 to $0.24 per share as follows:
o | | Asset impairment charges of $0.5 million in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 144 Accounting for the Impairment or Disposal of Long-Lived Assets to write-down the facilities´ real and personal property to estimated fair market value, less costs to sell, will be recorded in the fourth quarter of fiscal 2008. |
| | |
o | | Severance and benefit costs of $9.0 to $11.0 million in accordance with SFAS No. 146 Accounting for Costs Associated with Exit or Disposal Activities will be recorded as follows: about $1.0 to $1.5 million in the fourth quarter of fiscal 2008, about $4.0 to $4.5 million in fiscal 2009 and the remainder in fiscal 2010. |
| | |
o | | Other costs incurred to close and consolidate facilities as well as transfer production to other facilities of $7.5 to $8.5 million will be recorded as follows: about $0.5 million in the fourth quarter of fiscal 2008, about $5.0 to $5.5 million in fiscal 2009 and the remainder in fiscal 2010. |
All of the charges, except for the $0.5 million asset impairment charge, will result in future cash expenditures relating to severance, benefits and other plant exit and consolidation costs.
Further information about the restructuring plan is set forth in the press release attached as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
| (d) Exhibits | | | |
| | | | |
| | Exhibit No. | | Description |
| | 99.1 | | Press Release issued by the Company, dated April 2, 2008, announcing the two major initiatives designed to strengthen its North American operations. |
| | | | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | LA-Z-BOY INCORPORATED
(Registrant)
|
Date: April 4, 2008
| | |
BY: /S/ Louis M. Riccio, Jr.
——————————————
Louis M. Riccio, Jr.
Senior Vice President and Chief Financial Officer |
