Note 3 - Restructuring Charges

3 Months Ended

Dec. 29, 2012

Restructuring and Related Activities Disclosure [Text Block]

 (3) Restructuring Charges

           On November 19, 2010, the Company purchased certain of the assets and assumed certain of the liabilities of Ivy Steel and Wire, Inc. (“Ivy”) for a final adjusted purchase price of $50.3 million (the “Ivy Acquisition”).  Ivy was one of the nation’s largest producers of welded wire reinforcement and wire products for concrete construction applications. The addition of Ivy’s facilities has enhanced the Company’s competitiveness in its Northeast, Midwest and Florida markets, in addition to providing a platform to serve the West Coast markets more effectively. The assets purchased included Ivy’s production facilities in Arizona, Florida, Missouri and Pennsylvania; production equipment in Texas; and certain related inventories. In addition, the Company assumed certain of Ivy’s accounts payable and employee benefit obligations.

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.  All of the restructuring activities associated with the Ivy Acquisition were concluded during fiscal 2012.

Following is a summary of the restructuring activities and associated costs that were incurred during the three-month period ended December 31, 2011:

(In thousands)	Severance and other employee costs			Asset impairment charges			Facility closure costs			Equipment relocation costs			Total
2012
Liability as of October 1, 2011	$	65		$	-		$	77		$	112		$	254
Restructuring charges		(40	)		(11	)		139			511			599
Cash payments		(25	)		-			(216	)		(456	)		(697	)
Non-cash charges		-			11			-			-			11
Liability as of December 31, 2011	$	-		$	-		$	-		$	167		$	167

During the three-month period ended December 31, 2011, all of the remaining severance liabilities were satisfied and the final proceeds were received from the sale of previously impaired machinery and equipment, which have been included within asset impairment charges. As of December 31, 2011, the Company recorded restructuring liabilities amounting to $167,000 on its consolidated balance sheet, including $158,000 in accounts payable and $9,000 in accrued expenses.