UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): September 25, 2007
THE TIMBERLAND COMPANY
(Exact name of Registrant as Specified in Charter)
| |
|
|
|
|
| DELAWARE
|
|
1-9548
|
|
02-0312554 |
|
|
|
|
|
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission File
Number)
|
|
(I.R.S. Employer
Identification No.) |
| |
|
|
| 200 Domain Drive, Stratham, NH
|
|
03885 |
|
|
|
|
| (Address of Principal Executive Offices)
|
|
(Zip Code) |
(603) 772-9500
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| o |
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| |
| o |
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
| o |
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-
2(b)) |
| |
| o |
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-
4(c)) |
Item 2.05. Costs Associated with Exit or Disposal Activities.
On September 25, 2007, the Board of Directors of The Timberland Company (referred to as
“Timberland”, “Company”, “we”, “our”, or “us”) approved management’s recommendation to discontinue
sales operations of approximately 50 of its retail stores, primarily specialty stores located in
the United States, specialty stores located in Europe and Asia and several outlet stores located in
the United States. The majority of the store closures are expected to occur in the first several
months of 2008. On September 26, 2007, the Company issued a press release announcing our proposal
to discontinue these sales operations which included information related to the reasons for the
closure, the expected timing of the closure, and an estimate of the costs and charges expected to
be incurred in connection with the closure. A copy of our press release is attached hereto as
Exhibit 99 and is incorporated by reference herein.
The Company estimates that it will incur pre-tax restructuring costs of approximately $17
million, of which approximately $11 million will be future cash expenditures, and consist of:
| |
|
|
|
|
| |
|
Pre-tax |
|
| |
|
Charge |
|
| Type of Cost |
|
(in millions) |
|
Lease Termination Costs |
|
$ |
9 |
|
Non-cash charges related to property and equipment |
|
$ |
6 |
|
Severance and other related costs |
|
$ |
2 |
|
We anticipate incurring approximately $7 million of these costs in the third quarter of 2007,
$8 million in the fourth quarter of 2007, and $2 million in early 2008.
Item 9.01. Financial Statements and Exhibits.
Press Release of The Timberland Company dated September 26, 2007.
Exhibit Index
| |
|
|
| Exhibit Number |
|
Description |
|
|
|
99
|
|
Press Release of The Timberland Company dated September 26, 2007. |
-2-