Item 2.05
Costs Associated with Exit or Disposal Activities
On January 26, 2017, the Board of Directors of the Company approved a comprehensive restructuring plan for the Companys businesses that includes a wide range of organizational efficiency initiatives and other cost reduction opportunities.
The Company estimates that it will incur total aggregate charges of approximately $12 million to $14 million from this restructuring, including estimated severance and related costs of $7 million. The Company expects that most of these charges will be cash expenditures and expects to recognize most of the charges related to this restructuring in the second quarter of fiscal 2017. The estimated annualized pre-tax benefit of the restructuring initiatives is estimated to be between $17 million and $19 million, with benefits estimated in the range of $10 million and $12 million realized over the remainder of fiscal 2017.
Cautionary Notice Regarding Forward-Looking Statements
Statements in this Current Report which are not purely historical facts or which depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as anticipate, believe, estimate, expect, intend, plan, project, target, can, could, may, should, will, would, or similar expressions may also identify such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including, but not limited to, risks and uncertainties related to: our ability to implement the restructuring in various jurisdictions; our ability to manage the effects of our cost reduction plans; possible changes in the size and components of the expected costs and charges associated with the restructuring; and the ability to realize the expected cost savings within the anticipated time frame.
Additional factors that could cause actual events or results to differ materially from the events or results described in the forward-looking statements can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended September 30, 2016, as filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.
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