RESTRUCTURING

6 Months Ended

Jun. 30, 2012

RESTRUCTURING

RESTRUCTURING

NOTE 17 — RESTRUCTURING

During the third quarter of 2011, the Company conducted a review of its business strategies and product plans based on the outlook for the economy at large, the forecast for the industries it serves, and its business environment. The Company concluded that its manufacturing footprint and fixed cost base are too large and expensive for its medium-term needs and has begun restructuring its facility capacity and its management structure to consolidate and increase the efficiencies of its operations.

The Company is executing a plan to reduce its facility footprint by approximately 40% through the sale and/or closure during the next twelve months of facilities comprising a total of approximately 600,000 square feet. The Company believes the remaining locations will be sufficient to support its Towers and Weldments, Gearing, Services and general corporate and administrative activities, while allowing for growth for the next several years.

As part of this plan, in the third quarter of 2011, the Company determined that the Brandon Facility should be sold, and as a result the Company has reclassified the land, building and fixtures valued at $8,000 from Property and Equipment to Assets Held for Sale. In addition, the related indebtedness associated with the Brandon Facility of $4,583 was reclassified in the third quarter of 2011 from Long-Term Debt Net of Current Maturities and Current Maturities of Long-Term Debt to Liabilities Held for Sale. The Company expects that this sale will be completed in the next twelve months. The Company had previously recorded an impairment charge of $13,326 in the fourth quarter of 2010 to bring these assets to fair value; no further impairment charges were recorded.

Additional restructuring plans were approved in the fourth quarter of 2011. To date, the Company has incurred $2,756 of costs in conjunction with its restructuring plan. Including costs incurred to date, the Company expects that a total of approximately $11,600 of costs will be incurred to implement this restructuring plan. Of the total projected expenses, the Company anticipates that a total of approximately $3,400 will consist of non-cash expenditures. The Company expects the remaining cash expenditures will be funded substantially by net proceeds from asset sales of $7,200. The table below details the Company’s total restructuring charges incurred to date and the total expected restructuring charges as of June 30, 2012:

	2011		Q1 ‘12		Q2 ‘12		Total		Total
	Actual		Actual		Actual		Incurred		Projected
Capital expenditures:
Gearing	$	5	$	262	$	644	$	911	$	4,200
Other	—		—		—		—		—
Total capital expenditures	5		262		644		911		4,200
Cash expenses:
Cost of sales:
Gearing	131		89		236		456		2,894
Services	—		6		—		6		6
Other	—		—		—		—		—
Total cost of sales	131		95		236		462		2,900
Selling, general, and administrative expenses:
Gearing	35		25		25		85		144
Services	—		40		—		40		40
Corporate	406		10		—		416		916
Total selling, general and administrative expenses	441		75		25		541		1,100
Non-cash expenses:
Gearing	247		294		251		792		3,350
Corporate	50		—		—		50		50
Total non-cash expenses	297		294		251		842		3,400
Grand total	$	874	$	726	$	1,156	$	2,756	$	11,600