Asset Impairment and Restructuring Charges

Due to uncertain market conditions for industrial real estate, during the fourth quarter of fiscal 2011, the Company recorded an asset impairment charge of $324 to reduce the carrying value of real property of the Company's VCS Properties facility to a fair value of $1,900 based primarily on an independent assessment that considered recent sales of similar properties, as well as an income approach.

Impairment recoveries of $230 were recorded during fiscal 2011 for cash received upon the sales of assets from the Company's Liverpool Stamping facility that was impaired in fiscal 2009.

During the third quarter of fiscal 2011, the Company recorded a restructuring charge of $352 based on a negotiated settlement with approximately 90 employees for severance and health insurance related to the previously announced planned closure of the Company's plant in Mansfield, Ohio.

During the fourth quarter of fiscal 2010, the Board of Directors approved the Company's plan to purchase a plant site in Bowling Green, Kentucky for the manufacture of first operation precision blanks and other complementary products that were manufactured at the Company's plant in Mansfield, Ohio. The plan also included the transfer of other Mansfield business to the Company's Medina Blanking facility in Valley City, Ohio. The Company, therefore, ceased operations of its Mansfield Blanking Division during fiscal 2011 as its work has been relocated to these other plants. The Company has relocated certain machinery and equipment to Bowling Green or Valley City to support the ongoing business and to service the new business in the Kentucky area. As a result, during the fourth quarter of fiscal 2010, the Company recorded an impairment charge of $2,480 to reduce long lived assets that would not be transferred to their estimated fair value. The fair value of machinery and equipment, as determined using level 3 inputs, was zero as the items were worn equipment for which the Company had no further use and they have limited use and limited value in the used equipment market. The Mansfield real property was reduced by $2,095 to a fair value of $3,300 based on an independent assessment by a real estate firm that considered recent sales of similar properties, tax valuation, and replacement cost value. The Company also recorded a restructuring charge of $309 in fiscal year 2010 representing the curtailment of the retirement plan of Mansfield Blanking employees. Recovery of previously impaired assets from the sale of equipment from a former Company facility of $48 reduced the Mansfield impairment charge to a net amount of $4,527.

A summary of the charges included in the accompanying consolidated statements of income for fiscal 2011 and 2010, is below.




	2011		2010
Asset impairment, net	$	94	$	4,527

Restructuring-Severance and benefits	$	352	$	—
Restructuring-Pension curtailment	—		309
	$	352	$	309

An analysis of restructuring charges and related reserves of the Company for fiscal 2011 is as follows:



	Restructuring Reserves at October 31, 2010		Restructuring Charges		Cash Payments			Restructuring Reserves at October 31, 2011
Restructuring - Severance and benefits	$	—	$	352	$	(73	)	$	279