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Restructuring Charges and Acquisition Costs

12 Months Ended

Oct. 01, 2011

Restructuring Charges and Acquisition Costs [Abstract]

Restructuring Charges and Acquisition Costs

(5) Restructuring Charges and Acquisition Costs

Restructuring charges. Subsequent to the Ivy Acquisition, the Company elected to consolidate certain of its welded wire reinforcement operations in order to reduce its operating costs, which involved the closure of facilities in Wilmington, Delaware and Houston, Texas. These actions were taken in response to the close proximity of Ivy’s facilities in Hazleton, Pennsylvania and Houston, Texas to the Company’s existing facilities in Wilmington, Delaware and Dayton, Texas. The Houston plant closure was completed in December 2010 and the Wilmington plant closure was completed in May 2011.

Following is a summary of the restructuring activities and associated costs that were incurred during the current year:


(In thousands)	Severance and other employee separation costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
Liability as of October 2, 2010	$	—		$	—		$	—		$	—		$	—

Restructuring charges		2,263			3,825			2,606			1,233			9,927
Gain on sale of assets held for sale		—			—			(1,609	)		—			(1,609	)

Restructuring charges, net		2,263			3,825			997			1,233			8,318

Cash payments		(2,198	)		—			(920	)		(1,121	)		(4,239	)
Non-cash charges		—			(3,825	)		—			—			(3,825	)

Liability as of October 1, 2011	$	65		$	—		$	77		$	112		$	254

Included within asset impairment charges are the proceeds received from the scrapping of certain machinery and equipment that were previously impaired. Also, within facility closure costs, the Company recorded a $1.6 million gain from the sale of the Wilmington, Delaware facility which had been closed in May 2011. As of October 1, 2011, the Company recorded restructuring liabilities amounting to $254,000 on its consolidated balance sheet, including $112,000 in accounts payable and $142,000 in accrued expenses. The Company currently expects the remaining restructuring activities to be completed by the end of the first quarter of 2012.

Acquisition costs. During the current year, the Company recorded $3.5 million of acquisition-related costs associated with the Ivy Acquisition for advisory, accounting, legal and other professional fees. The Company does not expect to incur any additional acquisition costs related to the Ivy Acquisition in future periods.