Restructuring Charges

9 Months Ended

Jan. 31, 2012

NOTE K—RESTRUCTURING CHARGES

In the third quarter of fiscal 2012, the Company announced a restructuring plan ("2012 Restructuring Plan") that committed to the closing of two of the Company's manufacturing plants, which are located in Hardy County, West Virginia, and Hazard, Kentucky, offering its assembly plant in Tahlequah, Oklahoma, idled since 2009, for sale, and realigning its retirement program, including freezing the Company's defined benefit pension plans. The two plants are expected to cease operations by April 30, 2012. The continuing housing slump led to the decision to reduce production capacity. The2012 Restructuring Plan is intended to reduce costs and increase the Company's utilization rates and decrease overhead costs within the Company's manufacturing operations. As a result of the 2012 Restructuring Plan, the Company expects to incur total pre-tax exit costs of $15.6 million related to this shut-down initiative, including severance and separation costs of $5.6 million, pension curtailments of $0.3 million, and $9.7 million for equipment, inventory, and facilities-related expenses.

During the three and nine month periods ended January 31, 2012, the Company recognized pre-tax restructuring charges of $10.3 million and $10.4 million, respectively, of which $10.2 million were related to the 2012 Restructuring Plan. Included in the $10.2 million of restructuring charges were $2.4 million of severance and separation costs, pension curtailments of $0.3 million and $7.5 million for equipment, inventory and facilities-related expenses.

A reserve for restructuring charges in the amount of $2.3 million is included in the Company's consolidated balance sheet as of January 31, 2012 relating to employee termination costs. Below is a summary of the restructuring reserve balance as of January 31, 2012:

2012 Restructuring Plan

(in thousands)

Restructuring reserve balance as of April 30, 2011	$	0
Additions		2,401
Payments		(140	)
Reserve balance as of January 31, 2012	$	2,261

The Company has a total of four manufacturing plants classified as held for sale; two manufacturing plants that were idled in 2009, plus the two manufacturing plants for which the Company plans to cease operations by April 30, 2012. During the third quarter of fiscal 2012, the Company recorded an impairment charge of $5.4 million relating to three of the four plants that are included as held for sale. The Company believes that the remaining $10.0 million net book value of these four plants is fully recoverable. These assets are included in Other Assets on the Company's balance sheet at January 31, 2012.

- 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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