The notes to the financial statements for Maytag Corporation provided the following table of special charges.
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Maytag Corporation
Schedule of Special Charges (annotated)
For the Year Ended January 1, 2005 (in thousands)
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Description of Special Charge
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Balance, Jan. 3, 2004
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Charged to Earnings 2004
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Cash Utilization
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Noncash Utilization
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Balance, Jan. 1, 2005
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Severance and related
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expense
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$15,326
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$37,999
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$(30,822)
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$22,503
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Moving of equipment
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981
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(981)
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Asset write-downs
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30,174
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$(30,174)
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Excess inventory
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1,453
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(1,453)
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Purchase commitment
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1,610
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1,610
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Other
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1,096
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(1,096)
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Total
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$15,326
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$73,313
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$(32,899)
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$(31,627)
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$24,113
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The special charges include both severance-related and asset impairments. The columns of the table indicate the balances and change in balances of the balance sheet accounts affected by the restructuring events.
a. Journalize the entry for special charges for 2004.
b. What is meant by "noncash utilization"?
c. Provide the balance sheet disclosure for the restructuring obligation on January 1, 2005.