Note 5 - Restructuring Charges and Acquisition Costs

12 Months Ended

Sep. 29, 2012

Restructuring Charges And Acquisition Costs [Text Block]

(5) 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 is a summary of the restructuring activities and associated costs that were incurred during the current and prior year periods:

(In thousands)	Severance and other employee separation costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
2012
Liability as of October 1, 2011	$	65		$	-		$	77		$	112		$	254
Restructuring charges, net		(40	)		(11	)		139			744			832
Cash payments		(25	)		-			(216	)		(856	)		(1,097	)
Non-cash charges		-			11			-			-			11
Liability as of September 29, 2012	$	-		$	-		$	-		$	-		$	-
2011
Liability as of October 2, 2010	$	-		$	-		$	-		$	-		$	-
Restructuring charges		2,263			3,825			2,606			1,233			9,927
Gain on sale of assets held for sale		-			-			(1,609	)		-			(1,609	)
Restructuring charges, net		2,263			3,825			997			1,233			8,318
Cash payments		(2,198	)		-			(920	)		(1,121	)		(4,239	)
Non-cash charges		-			(3,825	)		-			-			(3,825	)
Liability as of October 1, 2011	$	65		$	-		$	77		$	112		$	254

During the year ended September 29, 2012, all of the remaining restructuring liabilities were satisfied and the final proceeds were received from the sale of previously impaired machinery and equipment, which have been included in asset impairment charges.

Asset impairment charges include the proceeds received from the scrapping of certain machinery and equipment that were previously impaired. Facility closure costs for the prior year include a $1.6 million gain from the sale of the Wilmington, Delaware facility, which had been closed in May 2011. As of October 1, 2011, the Company had recorded restructuring liabilities amounting to $254,000 on its consolidated balance sheet, including $112,000 in accounts payable and $142,000 in accrued expenses.

Acquisition costs. For the year ended October 1, 2011, the Company recorded $3.5 million of acquisition-related costs associated with the Ivy Acquisition for advisory, accounting, legal and other professional fees. The Company did not incur any additional acquisition costs related to the Ivy Acquisition in fiscal 2012.