Capacity Rationalization Charges

6 Months Ended

Jan. 31, 2013

CAPACITY RATIONALIZATION CHARGES [Abstract]

CAPACITY RATIONALIZATION CHARGES

We recorded approximately $50,000 of expense during the second quarter of fiscal 2013 and $62,000 of expense during the first six months of fiscal 2013 related to the relocation of production of our industrial floor absorbent and cat litter products from our facility located in Mounds, Illinois, to our plants located in Mississippi, which we announced in fiscal 2012. These costs are shown as “Capacity Rationalization Charges” on the condensed Consolidated Statements of Income and Retained Earnings. Allocation of these expenses between operating segments is impracticable due to the shared nature of our production facilities. In addition, we expect to incur an additional estimated $2,000 of expense for employee relocation during the remainder of fiscal 2013.

Following is a rollforward of the reserve included in Other Accrued Expenses on the condensed Consolidated Balance Sheets as of January 31, 2013 (in thousands).



	Severance and other employee related costs
Reserve balance at July 31, 2012	$	413
Charges against reserve	$	(394	)
Reserve balance at January 31, 2013	$	19

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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