(11)Plant Consolidations

On January 7, 2014, the Company committed to move forward with a plan to cease operations at its Glendale Heights, Illinois plant and consolidate operations into its Grand Rapids, Michigan, facility. The Company’s decision was in response to a pending significant increase in lease cost, declining sales at the Illinois facility, and significant anticipated savings as a result of the consolidation. The Company expects annual cost savings of approximately $750,000 as a result of the Michigan plant consolidation. The consolidation into the Michigan facility is substantially complete and the actual costs incurred through September 30, 2014 are included in the table below.

On July 16, 2014, the Company committed to move forward with a plan to cease operations at its Costa Mesa, California, plant and consolidate operations into its Rancho Dominguez, California, facility and other UFP facilities. The Company’s decision was in response to the upcoming December 31, 2014, expiration of the lease on the Costa Mesa facility as well as the close proximity of the two properties. The Company expects the activities related to this consolidation to be completed on or before December 31, 2014.

The Company expects to incur approximately $535,000 in one-time expenses in connection with the consolidation of the California plants. Included in the $535,000 amount are approximately $50,000 of expenses the Company expects to incur relating to employee severance payments, approximately $465,000 in moving expenses and expenses associated with vacating the Costa Mesa property and approximately $20,000 in expenses in moving equipment within the Rancho Dominguez location. The Company does not expect to incur any lease separation costs as the completion of the move is expected to coincide with the expiration of the Costa Mesa lease. Total cash charges are estimated at $535,000 and the actual costs incurred through September 30, 2014 are included in the table below. The Company expects annual cost savings of approximately $550,000 as a result of the California plant consolidation.

The Company has recorded the following restructuring costs associated with the plant consolidations discussed above for the three and nine-month periods ended September 30, 2014 (in thousands):

	Three Months Ended September 30, 2014						Nine Months Ended September 30, 2014
Restructuring Costs	Michigan		California		Total		Michigan		California		Total

Employee severance payments	$	212	$	—	$	212	$	237	$	—	$	237
Relocation costs	241		62		303		356		62		418
Workforce training costs	249		—		249		362		—		362
Plant infrastructure costs	8		—		8		79		—		79

Total restructuring costs	$	710	$	62	$	772	$	1,034	$	62	$	1,096

The Company also incurred approximately $219,000 and $350,000 for the three- and nine-month periods ended September 30, 2014, respectively, in related capital improvements at its Michigan facility.