Manufacturing Restructuring Costs

6 Months Ended

Jul. 02, 2011

Manufacturing Restructuring Costs [Abstract]

Note 10 — Manufacturing Restructuring Costs

The following is a reconciliation of the manufacturing restructuring liability of the warehouse facility adjacent to the Ennis manufacturing plant related to the discontinued use (in thousands):


	Quarters Ended						Six Months Ended
	July 2,			July 3,			July 2,			July 3,
	2011			2010			2011			2010
	Successor			Predecessor			Successor			Predecessor
Beginning liability	$	4,298		$	4,730		$	4,583		$	5,036
Additions		228			—			228			—
Accretion of related lease obligations		121			93			259			184
Payments		(299	)		(289	)		(722	)		(686	)

Ending liability	$	4,348		$	4,534		$	4,348		$	4,534

During the second quarter of 2011, the Company re-measured its restructuring liability due to changes in the expected timing and amount of cash flows over the remaining lease term. As a result, the Company recorded an adjustment to increase the restructuring liability and recognized a charge of approximately $0.2 million within selling, general and administrative expenses reported in the condensed consolidated statements of operations for the quarter and six months ended July 2, 2011.

Of the remaining restructuring liability at July 2, 2011, approximately $0.5 million is expected to be paid during the remainder of 2011. Amounts related to the ongoing facility obligations will continue to be paid over the lease term, which ends April 2020.