ASSOCIATED MATERIALS, LLC | 2011 | FY | 3


13. MANUFACTURING RESTRUCTURING COSTS

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 consolidated statement of operations for the year ended December 31, 2011.

The Company discontinued its use of the warehouse facility adjacent to the Ennis manufacturing plant during the second quarter of 2009. As a result, the related lease costs associated with the discontinued use of the warehouse facility were recorded as a restructuring charge of approximately $5.3 million during fiscal 2009.

The following is a reconciliation of the manufacturing restructuring liability (in thousands):

 

                                     
    Year Ended
December 31,
2011
    October 13,  2010
to
January 1, 2011
         January 3,  2010
to
October 12, 2010
    Year Ended
January  2,
2010
 
    Successor          Predecessor  

Beginning liability

  $ 4,583     $ 4,728         $ 5,036     $ —    

Additions

    228       —             —         5,332  

Reclass of related lease obligations

    —         —             389       —    

Accretion of related lease obligations

    498       89           295       76  

Payments

    (1,223     (234         (992     (372
   

 

 

   

 

 

       

 

 

   

 

 

 

Ending liability

  $ 4,086     $ 4,583         $ 4,728     $ 5,036  
   

 

 

   

 

 

       

 

 

   

 

 

 

Of the remaining restructuring liability as of December 31, 2011, approximately $1.2 million is expected to be paid in 2012. Amounts related to the ongoing facility obligations will continue to be paid over the lease term, which ends April 2020.


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