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Restructuring Charges and Acquisition Costs

3 Months Ended

Dec. 31, 2011

Restructuring Charges and Acquisition Costs [Abstract]

Restructuring Charges and Acquisition Costs

(4) 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 are summaries of the restructuring activities and associated costs that were incurred during the three-month periods ended December 31, 2011 and January 1, 2011:


*2012* (In thousands)	Severance and other employee costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
Liability as of October 1, 2011	$	65		$	—		$	77		$	112		$	254

Restructuring charges		(40	)		(11	)		139			511			599

Cash payments		(25	)		—			(216	)		(456	)		(697	)
Non-cash charges		—			11			—			—			11

Liability as of December 31, 2011	$	—		$	—		$	—		$	167		$	167

During the three-month period ended December 31, 2011, all of the remaining severance liabilities were satisfied and the final proceeds were received from the sale of previously impaired machinery and equipment, which have been included within asset impairment charges. As of December 31, 2011, the Company recorded restructuring liabilities amounting to $167,000 on its consolidated balance sheet, including $158,000 in accounts payable and $9,000 in accrued expenses.


*2011* (In thousands)	Severance and other employee costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
Liability as of October 2, 2010	$	—		$	—		$	—		$	—		$	—

Restructuring charges		979			2,868			533			10			4,390

Cash payments		(310	)		—			(75	)		(10	)		(395	)
Non-cash charges		—			(2,868	)		—			—			(2,868	)

Liability as of January 1, 2011	$	669		$	—		$	458		$	—		$	1,127

As of January 1, 2011, the Company recorded restructuring liabilities amounting to $1.1 million on its consolidated balance sheet, including $465,000 in accounts payable and $662,000 in accrued expenses.

Acquisition costs. During the three-month period ended January 1, 2011, the Company recorded $2.8 million of acquisition-related costs associated with the Ivy Acquisition for advisory, accounting, legal and other professional fees. There were no acquisition-related costs incurred during the three-month period ended December 31, 2011.