Facility Rationalization Charges - Band Segment

6 Months Ended

Jun. 30, 2011

Facility Rationalization Charges - Band Segment

Facility Rationalization Charges - Band Segment

Although we are still in the process of quantifying the impact of this plant closure, we do not expect impairment charges or equipment relocation costs, if any, to be material.

(9)           Facility Rationalization Charges — Band Segment

During the second quarter of 2011, we determined that the book value of our former manufacturing facility in Elkhorn, Wisconsin exceeded the fair value. Accordingly, we recorded a facility impairment charge of $0.2 million as a component of operating expenses. This facility, which has a remaining book value of less than $0.1 million, is included in other assets and is being held for sale.

During the fourth quarter of 2011, we intend to close our tuned percussion instrument manufacturing facility located in LaGrange, Illinois and consolidate the production into our other percussion facility in Monroe, North Carolina. As a result of this pending closure, we recorded charges of $0.4 million in severance and related expenses during the first quarter of 2011 as a component of cost of goods sold. We currently do not expect to incur any additional severance expenses during the remainder of 2011.

The severance liability and related activity associated with this plant closure is as follows:

Facility rationalization severance liability:
Balance at January 1, 2011	$	—
Additions charged to cost of sales	417
Payments	—
Balance, June 30, 2011	$	417

          Although we are still in the process of quantifying the impact of this plant closure, we do not expect impairment charges or equipment relocation costs, if any, to be material.