NOTE 14 - RESTRUCTURING CHARGES AND ASSETS HELD FOR SALE

12 Months Ended

Jan. 29, 2012

Restructuring and Related Activities Disclosure [Text Block]

NOTE 14 – RESTRUCTURING CHARGES AND ASSETS HELD FOR SALE

We have incurred significant restructuring and asset impairment charges since 2000 in connection with the closing of our domestic wood furniture manufacturing facilities and consolidation of our domestic upholstery operations. These charges included severance and related benefits for terminated employees, asset impairment charges to write down real and personal property to fair market value (as determined based on market prices for similar assets in similar condition) less selling costs, and factory disassembly and other related costs to consolidate operations and prepare each closed facility for sale.

Pretax restructuring and asset impairment charges and credits decreased operating income by 0.8% of net sales in fiscal 2012, 0.9% of net sales in fiscal 2011 and 0.6% of net sales in 2010.

During fiscal 2012 we recorded a $1.8 million ($1.1 million after tax, or $0.10 per share) impairment to write down the carrying value of our Bradington-Young trade name.

During fiscal 2011, we recorded $1.8 million pretax ($1.1 million after tax or $0.10 per share) in restructuring and intangible asset impairment charges related to:

§	the consolidation of Bradington-Young’s Cherryville, NC manufacturing facility to Hickory, NC ($1.4 million pretax, $874,000 after tax or $0.08 per share); and

§	the write-down of our Opus Designs by Hooker trade name ($396,000 pretax, and $247,000 after tax or $0.02 per share).

During fiscal 2010, we transitioned frame production from our Bradington-Young Woodleaf, North Carolina plant (a leased facility) to Bradington-Young’s Cherryville, North Carolina facility and recorded $80,000 in accelerated depreciation on fixed assets utilized at that location.

The following table sets forth the significant components of and activity related to the accrued restructuring and asset impairment charges for fiscal years 2010, 2011 and 2012:

	Severance and			Asset						Pretax			After-tax
	Related Benefits			Impairment			Other			Amount			Amount

Accrued balance at February 1, 2009		-			-			45			45

Restructuring charges accrued during fiscal 2010
Non-cash charges		-			-			-			-
Cash payments		-			-			(7	)		(7	)
Accrued balance at January 31, 2010		-			-			38			38

Restructuring charges accrued during fiscal 2011		275			1,128						1,403			(874	)
Non-cash charges					(1,128	)					(1,128	)
Cash payments		(112	)					(7	)		(119	)
Accrued balance at January 30, 2011	$	163		$	-		$	31		$	194

Restructuring charges accrued during fiscal 2012
Non-cash charges
Cash payments		(141	)					(16	)		(157	)
Accrued balance at January 29, 2012	$	22		$	-		$	15		$	37

Accrued restructuring charges are included in “accrued salaries, wages and benefits,” “other accrued expenses” and “other long-term liabilities” in the consolidated balance sheets. Restructuring expenses are included in “restructuring charges” in the consolidated statements of operations.

- 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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