Annual report pursuant to Section 13 and 15(d)

Costs Associated With An Exit Activity (Notes)

v3.6.0.2
Costs Associated With An Exit Activity (Notes)
 12 Months Ended
Dec. 31, 2016
Costs Associated with Exit Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
COSTS ASSOCIATED WITH AN EXIT ACTIVITY
    
As part of its supply chain optimization initiative, HSNi announced in June 2015 its plan to close the HSN distribution center in Roanoke, Virginia and expand the capabilities of its distribution center in Piney Flats, Tennessee. The closure will involve the eventual elimination of approximately 350 positions at the Virginia facility. HSNi expects the closure to occur in accordance with a two-year transition plan and be substantially completed in 2017.

HSN expects to incur approximately $4 million to $5 million in total charges related to the closure. These charges include approximately $3 million to $4 million in employee-related expenses, including severance payments and retention incentives. During the years ended December 31, 2016 and 2015, HSN recognized $0 and $3.2 million, respectively, in employee-related costs which are included in "General and administrative” operating expenses in the accompanying consolidated statements of operations.

A summary of HSNi’s liability associated with exit activities, which is recorded in “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets, are presented in the following table (in thousands):
 
Employee Related Costs
 
2016
 
2015
Balance at January 1,
$
3,221

 
$
—

Provisions
—

 
3,132

Payments
(121
)
 
—

Adjustments
—

 
89

Balance at December 31,
$
3,100

 
$
3,221