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 |
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| Successor | Predecessor | |||||||||||||||||
|
Beginning liability |
$ | 4,583 | $ | 4,728 | $ | 5,036 | $ | — | ||||||||||
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Additions |
228 | — | — | 5,332 | ||||||||||||||
|
Reclass of related lease obligations |
— | — | 389 | — | ||||||||||||||
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Accretion of related lease obligations |
498 | 89 | 295 | 76 | ||||||||||||||
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Payments |
(1,223 | ) | (234 | ) | (992 | ) | (372 | ) | ||||||||||
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Ending liability |
$ | 4,086 | $ | 4,583 | $ | 4,728 | $ | 5,036 | ||||||||||
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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.