Restructuring Reserve And Plant Closures

9 Months Ended

Oct. 01, 2011

Restructuring and Related Activities [Abstract]

Restructuring Reserve and Plant Closures

As a result of the Corporation's ongoing business simplification and cost reduction strategies, management made the decision in the third quarter of 2011 to transition out of its Lithia Springs, Georgia office furniture distribution center. The distribution center is operated by a third-party logistics provider. The Corporation will add distribution capacity to its Cedartown, Georgia office furniture manufacturing facility and distribution center to make up for the loss of the Lithia Springs distribution center. To make room for the additional distribution capacity, the Corporation will consolidate some office furniture manufacturing production from the Cedartown facility into existing office furniture manufacturing facilities in Muscatine, Iowa. In connection with the closure, consolidation and realignment, the Corporation recorded $0.8 million of charges during the quarter ended October 1, 2011 which included $0.3 million of severance costs for four members, $0.3 million of facility exist costs and $0.2 million of accelerated depreciation recorded in cost of sales. The Corporation anticipates the closure, consolidation and realignment to be substantially completed by the end of first quarter of 2012.

In connection with other office furniture plant closures announced in 2010 and 2009, the Corporation recorded a $0.3 million reduction in restructuring costs. During the third quarter of 2011 the Corporation reduced a previously recorded accrual related to a withdrawal liability associated with a multi-employer pension plan due to an increase in the market value of the plan assets.

The following is a summary of changes in restructuring accruals during the nine months ended October 1, 2011.



(In thousands)	Severance			Facility Exit Costs & Other			Total
Balance as of January 1, 2011	$	2,389		$	243		$	2,632
Restructuring charges	97			2,033			2,130
Cash payments	(1,060		)	(2,232		)	(3,292		)
Balance as of October 1, 2011	$	1,426		$	44		$	1,470