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 September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Restructuring charges:
Contract termination costs (credit)	$	—		$	(614	)	$	—		$	—
Facility costs to shutdown, cleanup, and vacate	669			—			1,484			—
Termination benefits	7,495			194			7,606			1,049
Closed store occupancy and lease costs	2,831			1,610			5,096			3,530
Loss (gain) on the sale of assets	(837		)	—			(1,276		)	(928		)
	10,158			1,190			12,910			3,651
Impairment charges	—			1,847			1,102			2,034
	$	10,158		$	3,037		$	14,012		$	5,685

Statement of Operations classification:
Cost of sales	$	2,759		$	175		$	3,265		$	208
Selling, general, and administrative expenses	7,399			2,862			10,747			5,477
	$	10,158		$	3,037		$	14,012		$	5,685

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 September 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 September 30,
	2011		2010
Accrual for closed store lease liabilities at beginning of period	$	18,909	$	22,136
Charges to expense	1,684		257
Less cash payments	2,065		1,481
Accrual for closed store lease liabilities at end of period	$	18,528	$	20,912

At September 30, 2011, $5,214 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 September 30, 2011 are as follows:



	Minimum
	Lease
	Payments —
Year	Closed Stores
2011	$	2,025
2012	8,035
2013	7,945
2014	7,296
2015	4,184
thereafter	2,440
	$	31,925

Activity in the accrual for termination benefits was as follows:



	Three Months Ended September 30,
	2011		2010
Accrual for termination benefits at beginning of period	$	2,838	$	998
Charges to expense	7,495		194
Less cash payments	1,846		822
Accrual for termination benefits at end of period	$	8,487	$	370

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