Exit Activity Costs And Asset Impairments

6 Months Ended

Jun. 30, 2011

Exit Activity Costs And Asset Impairments

Exit Activity Costs And Asset Impairments

16.  EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company has focused on being the low-cost provider of its products by reducing operating costs and implementing lean manufacturing initiatives, which have in part led to the consolidation of its facilities and production lines.  The Company consolidated two facilities in the six months ended June 30, 2011 and six facilities during 2010 in this effort.  During this process, the Company has incurred exit activity costs, including contract termination costs, severance costs, and other moving and closing costs.  During 2011, the Company continued to incur exit activity costs for the facilities consolidated in previous years and some other ongoing restructuring activities.  Ongoing restructuring activities resulted in $198,000 and $430,000 of asset impairment charges related to the facility consolidations during the six months ended June 30, 2011 and 2010, respectively.

The following table provides a summary of where the exit activity costs and asset impairments were recorded in the statement of operations for the three and six months ended June 30 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2011		2010
Cost of sales	$	317	$	417	$	1,175	$	464
Selling, general and administrative expense		473		77		483		77
Total exit activity costs and asset impairments	$	790	$	494	$	1,658	$	541

The following table reconciles the beginning and ending liability for exit activity costs relating to the Company's facility consolidation efforts (in thousands):

		2011		2010
Accrued costs as of January 1	$	2,069	$	1,781
Exit activity costs recognized		1,460		111
Cash payments		(1,100)		(558)
Accrued costs as of June 30	$	2,429	$	1,334