Exit Activity Costs And Asset Impairments

12 Months Ended

Dec. 31, 2011

Exit Activity Costs And Asset Impairments [Abstract]

Exit Activity Costs And Asset Impairments

15. EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company focuses on being the low-cost provider of its products by reducing operating costs and implementing lean manufacturing initiatives, which have in part led to the consolidation of facilities and product lines. The Company consolidated three, six, and six facilities during 2011, 2010, and 2009, respectively, in this effort. In addition, the Company approved a plan to consolidate two additional facilities during 2012.

During this process, the Company has incurred exit activity costs, including contract termination costs, severance costs, and other moving and closing costs. As of December 31, 2011, the Company expects to incur approximately $2,200,000 of additional exit activity costs related to moving and severance costs related to facilities to be closed during 2012. Other than those facilities, the Company has not specifically identified any other facilities to close or consolidate and, therefore, does not expect to incur any material exit activity costs for future restructuring activities. However, if future opportunities for cost savings are identified, other facility consolidations and closings will be considered.

The Company incurred asset impairment charges related to the restructuring activities noted above. The fair values of the impaired assets were determined using a market approach relying upon significant assumptions primarily associated with sales data of assets having similar utility. The following table sets forth the asset impairment charges incurred during the years ended December 31 related to the restructuring activities described above (in thousands):

	2011		2010		2009
Asset impairment charges related to restructuring activities	$	1,642	$	4,299	$	–

The following table provides a summary of where the exit activity costs and asset impairments are recorded in the consolidated statements of operations for the years ended December 31 (in thousands):

	2011		2010		2009
Cost of sales	$	3,916	$	6,361	$	1,705
Selling, general, and administrative expense		581		724		880
Total exit activity and costs and asset impairments	$	4,497	$	7,085	$	2,585

The following table reconciles the beginning and ending liability for exit activity costs relating to the Company's facility consolidation efforts (in thousands):

	2011			2010
Balance as of January 1	$	2,069		$	1,781
Exit activity costs recognized		2,855			2,786
Cash payments		(2,609	)		(2,498	)
Balance as of December 31	$	2,315		$	2,069