Note 5 - Restructuring Charges and Acquisition Costs

12 Months Ended

Sep. 27, 2014

Restructuring Charges And Acquisition Costs [Text Block] [Abstract]

Restructuring Charges And Acquisition Costs [Text Block]

(5) Restructuring Charges and Acquisition Costs

Restructuring charges. Subsequent to the ASW Acquisition, the Company incurred $1.2 million in employee separation costs for staffing reductions related to the acquisition. Current and long-term restructuring liabilities were $0.5 million and $0.7 million, respectively, as of September 27, 2014.

On November 19, 2010, the Company purchased certain assets and assumed certain liabilities of Ivy Steel and Wire, Inc. (“Ivy”). Subsequent to the acquisition of Ivy, 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 2012:

	Severance and			Asset
(In thousands)	other employee			impairment			Facility			Equipment
	separation costs			charges			closure costs			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	$	-		$	-		$	-		$	-		$	-

During 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.

Acquisition costs. During 2014, the Company recorded $0.6 million of acquisition-related costs associated with the ASW Acquisition for legal, accounting and other professional fees.