Interface (NASDAQ:TILE) plans to reduce ~200 positions globally and the write-down of certain obsolete, underutilized and impaired information technology and manufacturing assets.
The Company expects to incur a pre-tax restructuring and asset impairment charge of $22M in 4Q18. The charge is expected to result in future cash expenditures of $13.5M, primarily for severance payments of $12.5M.
The restructuring plan is expected to be substantially complete in the 1H19 first half of 2019.
The plan is expected to yield gross annual savings of approximately $12.5M and will be used to fund sales and strategic growth initiatives and those investments will start in 2019 yielding negligible net savings on the Company’s income statement.
The Company expects to record a non-cash charge of $8.2M in 4Q18 for material impairment of assets that include the write-down of certain obsolete, underutilized and impaired information technology and manufacturing assets.
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