KNOLL, INC. Item 2.05. Costs Associated with Exit or Disposal Activities
On
As part of this restructuring, certain manufacturing operations currently
conducted at the Company's
The restructuring will commence during the first quarter of 2020. The closure
of the manufacturing operations is expected to be substantially complete by the
end of the second quarter of 2020, with the remaining restructuring expected to
be completed by the end of 2021. Set forth below is an estimate of the costs by
type that will be incurred in connection with this restructuring:
Severance and Retention Costs
$6.0 million Facility Preparation & Related Costs$3.7 million Equipment Write Offs$1.5 million Total Restructuring Charges$18.2 million
The Company estimates that the restructuring charges above will result in cash
expenditures of approximately
The expected annual savings, restructuring charges and cash expenditures that the Company expects to incur in connection with this restructuring are subject to a number of assumptions, and actual results may materially differ. The Company may also incur other material charges not currently contemplated due to events that may occur as a result of, or are associated with, the restructuring plan. A copy of the Company's press release announcing the closure of theGrand Rapids, MI manufacturing facility is attached hereto as Exhibit 99.1 and incorporated herein by reference. This current report on Form 8-K includes 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. All statements regarding the Company's expected future financial position, results of operations, expected savings, revenue levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "goals, " "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward- looking statements. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of the Company's management. The Company does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include corporate spending and service-sector employment, our ability to effectively implement the restructuring plan and realize the expected benefits, price competition, acceptance of the Company's new products, the pricing and availability of raw materials and components, foreign currency exchange, transportation costs, demand for high quality, well designed furniture and interiors solutions, changes in the competitive marketplace, changes in the trends in the market for furniture and interiors, the financial strength and stability of our suppliers, customers and dealers, access to capital, and other risks identified in the Company's annual report on Form 10-K, and other filings with theSecurities and Exchange Commission . Many of these factors are outside of the Company's control. Item 9.01. Financial Statements and Exhibits (d) Exhibits Exhibit No. Description EX-99.1 Press Release datedJanuary 16, 2020 EX 104 Cover Page Interactive Data File (formatted as Inline XBRL)
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