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Restructuring Charges

3 Months Ended

Apr. 01, 2012

NOTE 8 – RESTRUCTURING CHARGES

2012 Restructuring Charge

In March of 2012, the Company committed to a new restructuring plan in its continuing efforts to reduce costs across its worldwide operations and more closely align its operations with reduced demand levels in certain markets. The plan primarily consists of ceasing manufacturing and warehousing operations at its facility in Shelf, England. In connection with this restructuring plan, the Company incurred a pre-tax restructuring and asset impairment charge in the first quarter of 2012 in an amount of $16.3 million. The expected charge is comprised of employee severance expenses of $5.4 million, other related exit costs of $1.6 million, and a charge for impairment of assets of approximately $9.3 million. Approximately $7 million of the charge will result in future cash expenditures, primarily severance expense. The restructuring plan is expected to be substantially completed in the second quarter of 2012.

A summary of these restructuring activities is presented below:


	Total Restructuring Charge		Costs Incurred in 2012		Balance at April 1, 2012
	(In thousands)
Workforce Reduction		5,356		377		4,979
Fixed Asset Impairment		9,364		9,364		—
Other Related Exit Costs		1,596		—		1,596

The table below details these restructuring activities by segment:


	Modular Carpet		Bentley Prince Street		Corporate		Total
	(In thousands)
Total amounts expected to be incurred	$	16,316	$	—	$	—	$	16,316
Cumulative amounts incurred to date		9,741		—		—		9,741
Total amounts incurred in the three-month period ended April 1, 2012		9,741		—		—		9,741

2011 Restructuring Charge

In the fourth quarter of 2011, the Company committed to a restructuring plan intended to reduce costs across its worldwide operations and more closely align its operations with reduced demand in certain markets. As a result of this plan, the Company incurred pre-tax restructuring and asset impairment charges of $6.2 million in the fourth quarter of 2011. The majority of this charge ($5.4 million) relates to the severance of approximately 110 employees in Europe, Asia and the United States. The remainder of the charge ($0.8 million) relates to contract termination and fixed asset impairment costs. Approximately $5.4 million of this charge will result in cash expenditures, primarily severance expenses. Actions and expenses related to this plan were substantially completed by the end of 2011.

A summary of these restructuring activities is presented below:


	Restructuring Charge		Costs Incurred in 2011		Costs Incurred in 2012		Balance at April 1, 2012
	(In thousands)
Workforce Reduction		5,401		1,147		2,202		2,052
Fixed Asset Impairment		776		776		—		—

The table below details these restructuring activities by segment:


	Modular Carpet		Bentley Prince Street		Corporate		Total
	(In thousands)
Total amounts expected to be incurred	$	5,755	$	422	$	—	$	6,177
Cumulative amounts incurred to date		3,786		339		—		4,125
Total amounts incurred in 2012		2,143		59		—		2,202

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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