Restructuring Charges

12 Months Ended

Apr. 30, 2012

In the third quarter of fiscal 2012, the continuing impact of the housing economy’s lengthy downturn caused the Company to announce a restructuring plan (“2012 Restructuring Plan”) that committed to the closing of two of the Company’s manufacturing plants located in Hardy County, West Virginia and Hazard, Kentucky, offering its previously idled plant in Tahlequah, Oklahoma for sale, and realigning its retirement program, including freezing the Company’s defined benefit pension plans. Operations ceased in Hazard in April 2012 and in Hardy County in May 2012. The 2012 Restructuring Plan was adopted to reduce costs, increase the Company’s capacity utilization rates and decrease overhead costs. As a result of the 2012 Restructuring Plan, the Company expects to incur total pre-tax exit costs of $16.3 million related to this initiative, including severance and separation costs of $4.7 million, pension curtailments of $0.3 million, and $11.3 million for equipment, inventory, and facilities-related expenses.

During fiscal 2012, the Company recognized a total of $15.9 million in restructuring costs related to these initiatives, including severance and separation costs of $4.4 million, pension curtailment costs of $0.3 million, , building impairment charges of $7.7 million, equipment impairment charges of $2.2 million, facilities-related expenses of $0.2 million, professional fees of $0.1 million, and $1.0 million related to inventory at these facilities. The Company expects to incur most of its remaining plant closure costs during the first quarter of fiscal 2013.

A reserve for restructuring charges in the amount of $2.8 million is included in the Company’s consolidated balance sheet as of April 30, 2012 which relates to employee termination costs accrued but not yet paid. Below is the summary of the restructuring reserve balance as of April 30, 2012:


2012 Restructuring Plan
(in thousands)

Restructuring reserve balance as of April 30, 2011	$	0
Additions		4,353
Payments		(1,536)
Reserve balance as of April 30, 2012	$	2,817

In the fourth quarter of fiscal 2009, the Company announced a restructuring plan (“2009 Restructuring Plan”) to close two of its manufacturing plants, located in Berryville, Virginia and Moorefield, West Virginia and suspend operations in a third manufacturing plant located in Tahlequah, Oklahoma. These closures were completed during the first quarter of fiscal 2010. These initiatives were intended to increase the Company’s capacity utilization rates and decrease overhead costs. In addition to these initiatives, the Company made other staffing reductions during the fourth quarter of fiscal 2009.

During fiscal years 2012, 2011 and 2010, the Company recognized total pre-tax restructuring charges for both the 2012 Restructuring Plan and the 2009 Restructuring Plan of $16.3 million, $62,000 and $2.8 million, respectively. The Company recognized recurring operating costs for the facilities closed as part of the 2009 Restructuring Plan of $0.5 million in fiscal 2012. The Company will continue to incur costs related to its closed and unsold plants until they are sold.

The Company has a total of three manufacturing plants classified as held for sale; one plant that was idled in 2009, plus the two manufacturing plants included in the 2012 Restructuring Plan. During the fourth quarter of fiscal 2012, the Company sold its closed plant located in Moorefield, West Virginia and recognized a $0.1 million loss on the sale. The loss was included as a restructuring charge. During fiscal 2012, the Company recorded impairment charges of $7.9 million relating to two of the three plants that are included as held for sale and the property that was sold during the fourth quarter. The Company believes that the remaining $7.3 million net book value of the properties classified as held for sale is fully recoverable. These assets are included in Other Assets on the Company’s balance sheet at April 30, 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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