NOTE 11. RESTRUCTURING ACTIONS

During the third quarter of 2010, management made several significant decisions to address our cost structure. Given the materiality to our financial statements and impact to our operations, we decided to classify charges related to these actions as restructuring charges. The following table summarizes the restructuring charges recorded in the third quarters and first nine months of 2011 and 2010:

Action Title	Three Months Ended September 30, 2011	Three Months Ended September 30, 2010	Nine Months Ended September 30, 2011	Nine Months Ended September 30, 2010	Segment
Floor Products Europe	$ 0.7	$ 11.9	$ 6.0	$ 11.9	Resilient Flooring
Beaver Falls plant	-	1.0	1.3	1.0	Building Products
North America SG&A	-	1.0	0.9	1.0	Unallocated Corporate, Resilient Flooring, Building Products
Other initiatives	-	1.1	(0.2)	1.1
Total	$ 0.7	$ 15.0	$ 8.0	$ 15.0

Floor Products Europe: In the third quarter of 2010, we announced or intent to focus our European flooring strategy on products and regions in which we believe we can be a market leader, and to streamline our product range and sales organization accordingly. During the fourth quarter of 2010, we withdrew from the residential market and, as a result, we sold our Teesside, UK manufacturing facility. In addition, we ceased production at our heterogeneous vinyl flooring plant in Holmsund, Sweden, during the second quarter of 2011.

In addition to the restructuring costs reflected in the above table, we recorded $1.4 million in the third quarter and $6.2 million in the first nine months of 2011 of other related costs in cost of goods sold ($0.6 million in the third quarter and $4.7 million in the first nine months) and SG&A expense ($0.8 million in the third quarter and $1.5 million in the first nine months). We also recorded other related costs of $2.6 million in cost of goods sold and $0.6 million in SG&A in the third quarter and first nine months of 2010. Other related costs are primarily related to inventory and samples obsolescence, accelerated depreciation and plant closure costs.

Through September 30, 2011, we have incurred expense of $29.0 million related to this initiative. In total, we expect to incur expenses of up to $30 million for these actions through 2011. The remaining expenses primarily will include severance benefits.

Beaver Falls Plant: In the third quarter of 2010, we announced that the Beaver Falls, Pennsylvania, plant was scheduled to close in 2011. Production at the facility ended March 31, 2011, and production requirements have been transitioned to other facilities. The decision to close the plant was driven by the location and layout of the plant, technology limitations and the continued limited demand for the products we made at the plant.

In addition to the restructuring costs reflected in the table above, we also recorded $0.1 million in the third quarter and $6.6 million in the first nine months of 2011 of accelerated depreciation and $1.7 million in the third quarter and $4.5 million in the first nine months of 2011 of closure-related costs. We also recorded $4.8 million of accelerated depreciation in cost of goods sold in the third quarter and first nine months of 2010.

Through September 30, 2011, we have incurred expense of $24.7 million related to this initiative. We do not expect to incur additional costs in the future as the plant was sold in the third quarter of 2011. The sale resulted in a net gain of $0.7 million which was recorded in SG&A.

North America SG&A: We are committed to augmenting margin expansion through the aggressive adoption of projects to standardize, simplify or eliminate SG&A activities. As a result, in the third quarter of 2010, we began to restructure our North American SG&A operations. The first nine months of 2011 restructuring expense related to this initiative was recorded in the Unallocated Corporate ($0.6 million), Resilient Flooring ($0.2 million) and Building Products ($0.1 million) segments.

Through September 30, 2011 we have incurred restructuring expense of $6.7 million related to this initiative. In total, we expect to incur restructuring expenses of up to $8 million through 2012 as we further streamline SG&A functions.

The following table summarizes activity in the restructuring accruals.

	Severance and Related Costs
	Floor Products Europe	Beaver Falls Plant	North America SG&A	Other Initiatives	Total
December 31, 2010	$ 6.1	$ 1.9	$ 4.7	$ 1.8	$ 14.5
Net charges/(reversals)	6.0	1.3	0.9	(0.2)	8.0
Cash payments	(8.6)	(3.1)	(5.0)	(1.6)	(18.3)
Other	0.5	-	-	-	0.5
September 30, 2011	$ 4.0	$ 0.1	$ 0.6	$ -	$4.7

The amounts in "Other" are related to the effects of foreign currency translation.

Most of the accrual balance as of September 30, 2011 is expected to be paid by June 30, 2012.