RESTRUCTURING AND ASSET IMPAIRMENT CHARGES

We have been executing plans to improve our performance. These measures include consolidating and reconfiguring manufacturing facilities and processes to eliminate waste and improve efficiency, managing product inventory levels better to reflect consumer demand, transforming our transportation methods to be more cost effective, exiting unprofitable retail locations, limiting our credit exposure to weak retail partners, and discontinuing unprofitable lines of business and licensing arrangements. In addition, we have been executing plans to reduce our workforce and to centralize certain functions.

Restructuring and asset impairment charges associated with these measures include the following:



	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011			2010
Restructuring charges:
Contract termination costs	$	—	$	—	$	—		$	614
Facility costs to shutdown, cleanup, and vacate	620		—		815			—
Termination benefits	205		822		111			855
Closed store occupancy and lease costs	843		988		2,265			1,920
Loss (gain) on the sale of assets	—		—		(439		)	(928		)
	1,668		1,810		2,752			2,461
Impairment charges	600		120		1,102			187
	$	2,268	$	1,930	$	3,854		$	2,648

Statement of Operations classification:
Cost of sales	$	—	$	—	$	408		$	33
Selling, general, and administrative expenses	2,268		1,930		3,446			2,615
	$	2,268	$	1,930	$	3,854		$	2,648

Asset impairment charges were recorded to reduce the carrying value of idle facilities and related assets to their net realizable value. The determination of impairment charges is based primarily upon (i) consultations with real estate brokers, (ii) proceeds from recent sales of Company facilities, and (iii) the market prices being obtained for similar long-lived assets. Qualifying assets related to restructuring are recorded as assets held for sale within Other Assets in the Consolidated Balance Sheets until sold. Total assets held for sale were $17,526 at June 30, 2011 and $9,609 at December 31, 2010.

Closed store occupancy and lease costs include occupancy costs associated with closed retail locations, early contract termination settlements for retail leases, and closed store lease liabilities representing the present value of the remaining lease rentals reduced by the current market rate for sublease rentals of similar properties. This liability is reviewed quarterly and adjusted, as necessary, to reflect changes in estimated sublease rentals.

Activity in the accrual for closed store lease liabilities was as follows:



	Three Months Ended June 30,
	2011			2010
Accrual for closed store lease liabilities at beginning of period	$	20,681		$	24,574
Charges (credit) to expense	(458		)	(336		)
Less cash payments	1,314			2,102
Accrual for closed store lease liabilities at end of period	$	18,909		$	22,136

At June 30, 2011, $5,312 of the accrual for closed store lease liabilities is classified as other accrued expenses, with the remaining balance in other long-term liabilities.

Remaining minimum payments under operating leases for closed stores as of June 30, 2011 are as follows:



	Minimum
	Lease
	Payments —
Year	Closed Stores
2011	$	3,901
2012	7,861
2013	7,760
2014	7,003
2015	3,760
thereafter	1,910
	$	32,195

Activity in the accrual for termination benefits was as follows:



	Three Months Ended June 30,
	2011		2010
Accrual for termination benefits at beginning of period	$	4,081	$	1,945
Charges (credit) to expense	205		822
Less cash payments	1,448		1,769
Accrual for termination benefits at end of period	$	2,838	$	998

The accrual for termination benefits at June 30, 2011 is classified as accrued employee compensation.