Workers compensation normalization wc 09 325 111 92

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Workers' compensation normalization WC-09 325 111 (92) Executive profit sharing WC-10 (113) (169) (135) Vacation accruals WC-11 - - (676) Adjusted working capital 24,809 29,279 31,290 $ in thousands November 29, 2014 November 28, 2015 August 27, 2016 Recorded accrual 949 983 858 Adjusted accrual 949 983 756 Working capital adjustment (0) (0) 102
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 33 Working capital, continued Working capital Management adjustments WC-05 Non-operational receivables: The Company recorded receivables related to the sale of a tract of land at an airport, as well as expenses incurred related to a flood occurring at one of the Company's warehouses and the check received for those expenses. As the insurance proceeds received related to the flood were greater than flood costs capitalized, the net result is a credit balance in AR as of August 27, 2016. We have removed these amounts from working capital as they are non-recurring in nature. WC-06 Bonus and profit sharing expense: As discussed in MA-02 , the Company accrued for different bonus and profit sharing amounts during the Historical Period that were adjusted for in the Quality of Earnings section. The following table presents the working capital effect of adjusting for the bonuses in MA-02 : $ in thousands November 29, 2014 November 28, 2015 August 27, 2016 Reported bonus accrual - - - Gain share 435 - - Bonus 749 394 206 Profit sharing 370 645 161 Total reported accrual 1,553 1,039 367 Adjusted bonus Gain share 435 - - Bonus 749 353 206 Profit sharing 370 339 161 Total adjusted accrual 1,553 692 367 WC Adjustment - 347 - Adjusting working capital $ in thousands Ref. No. November 29, 2014 November 28, 2015 August 27, 2016 Receivables, gross 35,531 40,919 50,260 Allowance for doubtful accounts (1,077) (855) (923) Inventories, net 16,405 17,710 20,560 Prepaid expenses 952 1,657 1,489 Current assets 51,811 59,431 71,386 Accounts payable 4,038 4,694 4,496 Accrued expenses 23,675 26,023 35,323 Current liabilities 27,713 30,718 39,818 Working capital 24,099 28,713 31,568 Adjustments Acquisition related accruals WC-01 218 191 191 Engineering reserve WC-02 - - 150 Group insurance true-up WC-03 (0) (0) 102 Reserve for AR WC-04 300 226 102 Non-operational receivables WC-05 (20) (145) 81 Bonus and profit sharing expense WC-06 - 347 - Payroll entry correction WC-07 - 6 - Product warranty methodology change WC-08 - - - Workers' compensation normalization WC-09 325 111 (92) Executive profit sharing WC-10 (113) (169) (135) Vacation accruals WC-11 - - (676) Adjusted working capital 24,809 29,279 31,290
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© 2016 Grant Thornton LLP | Project Lightning | October 21, 2016 DRAFT 34 Working capital, continued Working capital Management adjustments WC-07 Payroll entry correction: The Company switched to a new flex- spending account provider and was required to prefund their account for a year. Since the accrual is non-recurring in nature, we have added back the balances related to this account, resulting in an add-back of $6 at Nov-15. Additionally, the Company recorded debit balances due to a payroll entry error done by Target Co. in Feb-16 and May-16. Although not affecting the Historical Balance Sheet dates, we have adjusted these months to remove the balance from AP.
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  • Spring '08
  • McCaffrey
  • Revenue, Grant Thornton LLP

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