Restructuring

The charges related to various restructuring programs implemented by the Company are included in selling, general and administrative ("SG&A") expenses and cost of sales depending on the type of cost incurred. In our Distribution Segment, as well as Corporate, costs were recorded in SG&A, while in our Engineered Products Segment expenses were recorded in cost of sales. Our Material Handling Segment and Lawn and Garden Segment restructuring costs were recorded in both SG&A and cost of sales. The restructuring charges by segment are presented in the following table.



	Three Months Ended June 30,					Six Months Ended June 30,
Segment	2013		2012			2013		2012
Material Handling	$	15	$	—		$	225	$	—
Lawn and Garden	736		419			1,139		442
Distribution	18		(20		)	92		410
Engineered Products	—		99			3		201
Corporate	—		—			17		—
Total	$	769	$	498		$	1,476	$	1,053

The Company recorded restructuring expenses of $0.5 million in SG&A and $0.3 million in cost of sales for the three months ended June 30, 2013. The Company recorded total restructuring expenses of $0.4 million in SG&A and $0.1 million in cost of sales for the three months ended June 30, 2012. A gain of $0.3 million on the sale of two facilities was also recorded in Distribution Segments SG&A for the three months ended June 30, 2012.

The Company recorded total restructuring expenses of $1.1 million in SG&A and $0.4 million in cost of sales for the six months ended June 30, 2013. The Company recorded total restructuring expenses of $0.9 million in SG&A and $0.2 million in cost of sales for the six months ended June 30, 2012. A gain of $0.3 million on the sale of two facilities was also recorded in Distribution Segments SG&A for the six months ended June 30, 2012. Estimated lease obligations associated with closed facilities were based on level 2 inputs.

The amounts for severance and personnel costs associated with restructuring have been included in other accrued expenses on the accompanying Condensed Consolidated Statements of Financial Position.



	Severance and			Other
	Personnel			Exit Costs			Total
Balance at January 1, 2012	$	—		$	605		$	605
Provision	651			402			1,053
Less: Payments	(651		)	(532		)	(1,183		)
Balance at June 30, 2012	$	—		$	475		$	475

Balance at January 1, 2013	$	318		$	—		$	318
Provision	522			954			1,476
Less: Payments	(840		)	(954		)	(1,794		)
Balance at June 30, 2013	$	—		$	—		$	—

Approximately $5.7 million of property, plant, and equipment has been classified as held for sale due to restructuring actions and are included in other assets in the Condensed Consolidated Statement of Financial Position at both June 30, 2013 and December 31, 2012. In July, 2013, the Company announced as part of a Lawn and Garden Segment restructuring that it will be re-opening a plant in Sparks Nevada, which at June 30, 2013 is classified as held for sale. This facility will no longer be actively marketed for sale and subsequently be reported as property, plant, and equipment in the Condensed Consolidated Statements of Financial Position. The Company is actively pursuing the sale of the remaining facilities classified as held for sale.

On July 18, 2013, the Company announced that its Board approved a restructuring plan in its Lawn and Garden Segment. The planned actions announced comprise the closure of two manufacturing plants; one in Brantford, Ontario and the second in Waco, Texas. A plant in Sparks, Nevada will be re-opened in order to lower our costs to serve the West Coast market and position the segment for future growth. The restructuring actions include closure, relocation and employee related costs. The aggregate charge is expected to approximate $15.0 million, of which $3.0 million will be noncash costs. These actions are expected to improve annual operating profit by approximately $8.0 million. A portion of the benefits from these actions will begin in the fourth quarter of 2013. The majority of the benefits are planned to be realized throughout 2014 in decreased labor, overhead, plant and freight costs.