Restructuring Charges

9 Months Ended

Jan. 31, 2013

NOTE J--RESTRUCTURING CHARGES

In the third quarter of fiscal 2012, the continuing impact of the housing economy’s lengthy downturn caused the Company to announce a restructuring initiative (“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 at the Hazard plant in April 2012 and at the Hardy County plant in May 2012. The 2012 Restructuring Plan was adopted to reduce costs and increase the Company’s capacity utilization rates.

During fiscal 2012, the Company recognized pre-tax restructuring charges of $15.9 million related to the 2012 Restructuring Plan. During the nine months ended January 31, 2013, the Company recognized pre-tax restructuring charges of $1.0 million related to the 2012 Restructuring Plan. In addition, the Company recognized recurring operating costs for the closed facilities of $0.8 million for the nine months ended January 31, 2013 that are expected to continue to some degree until the plants are sold.

A reserve for restructuring charges in the amount of $21 thousand is included in the Company’s consolidated balance sheet as of January 31, 2013 which primarily relates to severance costs accrued but not yet paid. Below is the summary of the restructuring reserve balance as of January 31, 2013:


2012 Restructuring Plan
(in thousands)

Restructuring reserve balance as of April 30, 2012	$	2,817
Additions		190
Payments		(2,986)
Reserve balance as of January 31, 2013	$	21

As of January 31, 2013, the Company had two manufacturing plants classified as held for sale, which were closed in the 2012 Restructuring Plan. During the second quarter of fiscal 2013, the Company sold its closed plant located in Tahlequah, Oklahoma and recognized a gain of $0.3 million on the sale. The gain was included in restructuring charges on the Company’s statements of operations. The Company believes that the remaining $3.0 million net book value of the two properties classified as held for sale is fully recoverable. These assets are included in Other Assets on the Company’s balance sheet at January 31, 2013.

- 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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