XML 31 R17.htm IDEA: XBRL DOCUMENT

Restructuring

9 Months Ended

Sep. 30, 2012

10. Restructuring

In 2009, the Company restructured its business operations to rationalize its cost structure in an uncertain economic environment. The restructuring included plans for the relocation and consolidation of its Ellicottville, New York operations into its Texas facility. This planned relocation resulted in severance and payroll charges during the year ended December 31, 2009 of $264,000. At December 31, 2011 the balance remaining of such payments was $123,000 and the Company expects to make such payment before December 31, 2012.

During the second quarter of 2012, the Company commenced the Ellicottville relocation, resulting in the realization of expense for discontinued inventory, severance and professional fees to complete the move. As a result, the Company recorded a restructuring charge in June 2012 of approximately $174,000. Additionally, in the nine months ended September 30, 2012, the Company expensed approximately $109,900 of related moving expense, bringing the total expense recorded in 2012 to approximately $283,900.

The Company incurred approximately $66,200 in relocation expenses during the third quarter of 2012, which was not accrued at June 30, 2012.

When completed, the restructuring and relocation is expected to result in approximately $240,000 in annual savings. Accrued restructuring expenses of $130,800 are included in “Other accrued expenses” in the Company’s consolidated balance sheet, while the $89,000 increase to inventory obsolescence is included in “Inventory reserve.”

The following table analyzes the changes in the Company’s reserve with respect to the restructuring plan for the nine months ended September 30, 2012:


	December 31, 2011		2012 Expense		Payment			September 30, 2012
Severance	$	111,000	$	64,000	$	(56,200	)	$	118,800
Professional fees		—		42,000		(42,000	)		—
Inventory		—		89,000		—			89,000
Other		12,000		88,900		(88,900	)		12,000

Total	$	123,000	$	283,900	$	(187,100	)	$	219,800

The following table analyzes the changes in the Company’s reserve with respect to the restructuring plan for the three months ended September 30, 2012:


	June 30, 2012		2012 Expense		Payment			September 30, 2012
Severance	$	138,700	$	21,000	$	(40,900	)	$	118,800
Professional fees		42,000		—		(42,000	)		—
Inventory		89,000		—					89,000
Other		55,700		45,200		(88,900	)		12,000

Total	$	325,400	$	66,200	$	(171,800	)	$	219,800

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References+ Details