RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

We have been executing plans to improve our performance. These measures include consolidating and reconfiguring manufacturing facilities, warehouses, and processes to eliminate waste and improve efficiency, managing product inventory levels better to reflect consumer demand, transforming our transportation methods to be more cost effective, exiting unprofitable retail locations, limiting our credit exposure to weak retail partners, and discontinuing unprofitable lines of business and licensing arrangements. In addition, we have been executing plans to reduce our workforce and to centralize certain functions.

Restructuring and asset impairment charges associated with these measures include the following:



	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Restructuring charges:
Facility costs to shutdown, cleanup, and vacate	$	—	$	620	$	—	$	815
Termination benefits	1,358		205		1,506		111
Closed store occupancy and lease costs	564		843		1,503		2,265
Gain on the sale of assets	—		—		—		(439		)
	1,922		1,668		3,009		2,752
Impairment charges	454		600		477		1,102
	$	2,376	$	2,268	$	3,486	$	3,854

Statement of Operations classification:
Cost of sales	$	—	$	—	$	—	$	408
Selling, general, and administrative expenses	2,376		2,268		3,486		3,446
	$	2,376	$	2,268	$	3,486	$	3,854

Asset impairment charges were recorded to reduce the carrying value of idle facilities and related assets to their net realizable value. The determination of impairment charges is based primarily upon (i) consultations with real estate brokers, (ii) proceeds from recent sales of Company facilities, and (iii) the market prices being obtained for similar long-lived assets. Qualifying assets related to restructuring are recorded as assets held for sale within Other Assets in the Consolidated Balance Sheets until sold. Total assets held for sale were $11,246 at June 30, 2012 and $13,553 at December 31, 2011. We own additional facilities that are being leased until they are sold with a book value of $3,300 at June 30, 2012 and recorded as assets in use within Property, Plant, and Equipment.

Closed store occupancy and lease costs include occupancy costs associated with closed retail locations, early contract termination settlements for retail leases, and closed store lease liabilities representing the present value of the remaining lease rentals reduced by the current market rate for sublease rentals of similar properties. This liability is reviewed quarterly and adjusted, as necessary, to reflect changes in estimated sublease rentals.

Activity in the accrual for closed store lease liabilities was as follows:



	Three Months Ended June 30,
	2012			2011
Accrual for closed store lease liabilities at beginning of period	$	16,029		$	20,681
Charges (credit) to expense	(75		)	(458		)
Less cash payments	1,371			1,314
Accrual for closed store lease liabilities at end of period	$	14,583		$	18,909

At June 30, 2012, $4,798 of the accrual for closed store lease liabilities is classified as other accrued expenses, with the remaining balance in Other Long-term Liabilities.

Remaining minimum payments under operating leases for closed stores as of June 30, 2012 are as follows:



	Minimum
	Lease
	Payments —
Year	Closed Stores
2012	$	3,482
2013	6,986
2014	6,523
2015	3,886
2016	1,402
thereafter	516
	$	22,795

Activity in the accrual for termination benefits was as follows:



	Three Months Ended June 30,
	2012		2011
Accrual for termination benefits at beginning of period	$	748	$	4,081
Charges to expense	1,358		205
Less cash payments	444		1,448
Accrual for termination benefits at end of period	$	1,662	$	2,838

The accrual for termination benefits at June 30, 2012 is classified as Accrued Employee Compensation.