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Facility Closure and Restructuring Costs
3 Months Ended
Mar. 31, 2014
Restructuring and Related Activities [Abstract]  
FACILITY CLOSURE AND RESTRUCTURING COSTS
NOTE 3: FACILITY CLOSURE AND RESTRUCTURING COSTS

In August 2013, the Company announced its two manufacturing facilities in Portland, Oregon would be consolidated into one location, and its Milwaukie, Oregon location would be closed, to further improve efficiencies. Direct costs associated with this action were $0.8 million in the three months ended March 31, 2014. These costs consisted of asset impairment charges on additional equipment identified for disposal during the first quarter of 2014, and moving costs for equipment relocated to other Blount manufacturing facilities. The cumulative costs incurred to date were $9.0 million, including $2.2 million reported in cost of sales during 2013. Of these cumulative charges, $3.9 million were cash transition costs including severance and moving expenses, and $5.1 million were non-cash charges for impairment and accelerated depreciation on land, building and equipment to be disposed. As of March 31, 2014, substantially all accrued severance expense had been paid. The Company does not expect to incur significant further costs on this facility consolidation, which is expected to be completed in the second quarter of 2014.

In January 2014, the Company announced plans to consolidate its North American lawn and garden blade manufacturing into its Kansas City, Missouri plant and close a small facility acquired with Finalame SA, which included PBL SA and related companies (collectively “PBL”) in 2011 in Queretaro, Mexico in order to reduce operating costs and improve efficiencies. During the three months ended March 31, 2014, we recognized direct costs of $0.7 million associated with this plant closure and consolidation, consisting of severance, asset impairment charges, lease exit costs, and moving expenses for equipment and inventories. As of March 31, 2014, $83 thousand in accrued severance expense had not yet been paid. The Company expects to incur an additional $0.6 million to $0.8 million in the second quarter of 2014 to complete this facility consolidation.