Restructuring Costs

9 Months Ended

Jun. 30, 2012

Restructuring Costs

Restructuring Costs

11.Restructuring Costs

Headwaters recorded restructuring costs in the 2011 fiscal year and during the six months ended March 31, 2012 as a result of actions taken to lower operating costs and improve operational efficiency, primarily in the light building products segment. As reflected in the following table, the charges represent costs for workforce reductions and related severance expenses, facility closures and consolidations, and certain asset impairments and write-downs. The restructuring was initiated in fiscal 2011 primarily due to the depressed new housing and residential remodeling markets. This restructuring effort was completed in the March 2012 quarter and no additional restructuring costs related to the 2011 actions have been incurred since that time.

(in thousands)	Expenses incurred in fiscal 2011		Expenses incurred in fiscal 2012		Total expenses incurred
Workforce reductions and related severance expenses	$	4,124	$	519	$	4,643
Facility closures and consolidations	7,213		838		8,051
Asset impairments and write-downs	6,593		788		7,381
Total restructuring costs	$	17,930	$	2,145	$	20,075

Most of the expenses related to workforce reductions and related severance and approximately half of the expenses related to facility closures and consolidations have resulted or will result in cash outlays. None of the asset impairments and write-downs resulted in cash outlays.

The following table shows the activity in the restructuring cost liability accrual through June 30, 2012. A majority of the remaining unpaid balance as of June 30, 2012 is currently expected to be paid in years subsequent to fiscal 2012 because it relates to lease obligations under long-term facility leases.

	(in thousands)
Balance as of September 30, 2010	$	0
Costs incurred	7,370
Costs paid	(2,932		)
Balance as of September 30, 2011	$	4,438
Costs incurred	1,357
Costs paid	(3,813		)
Balance as of June 30, 2012	$	1,982