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RESTRUCTURING

3 Months Ended

Mar. 31, 2012

NOTE 17 — RESTRUCTURING

During the third quarter of 2011, the Company conducted a review of its business strategies and product plans based on the outlook for the economy at large, the forecast for the industries it serves, and its business environment. The Company concluded that its manufacturing footprint and fixed cost base are too large and expensive for its medium-term needs and has begun restructuring its facility capacity and its management structure to consolidate and increase the efficiencies of its operations.

The Company plans to reduce its facility footprint by at least 30% through the sale and/or closure during the next fifteen months of facilities comprising a total of approximately 400,000 square feet. The Company believes the remaining locations will be sufficient to support its Towers and Weldments, Gearing, Services and general corporate and administrative activities, while allowing for growth for the next several years.

As part of this plan, in the third quarter of 2011, the Company determined that the Brandon Facility should be sold, and as a result the Company has reclassified the land, building and fixtures valued at $8,000 from Property and Equipment to Assets Held for Sale. In addition, the related indebtedness associated with the Brandon Facility of $4,583 has been reclassified from Long-Term Debt Net of Current Maturities and Current Maturities of Long-Term Debt to Liabilities Held for Sale. The Company expects that this sale will be completed in the next twelve months. The Company had previously recorded an impairment charge of $13,326 in the fourth quarter of 2010 to bring these assets to fair value; no further impairment charges were recorded.

Additional restructuring plans were approved in the fourth quarter of 2011. The Company expects to incur a total of $12,800 of expenses to implement its restructuring plan. Of the total projected expenses, the Company anticipates $4,000 will consist of non-cash expenditures. The Company expects the remaining cash expenditures will be funded substantially by net proceeds from asset sales of $7,500. The table below details the Company’s total expected restructuring charges as of March 31, 2012:

	2011			Q1 ‘12			Total
	Actual			Actual			Projected

Capital Expenditures	$	(5	)	$	(262	)	$	(4,900	)

Cash Expense
Cost of Sales	(131		)	(95		)	(2,800		)
Selling, general, and administrative expenses	(441		)	(75		)	(1,100		)

Non Cash Expense-Other Income (Loss)	(297		)	(294		)	(4,000		)
	$	(874	)	$	(726	)	$	(12,800	)

- 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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