Reorganization and Expense-Reduction Program Costs

3 Months Ended

Mar. 31, 2012

Reorganization and Expense-Reduction Program Costs [Abstract]

Reorganization and Expense-Reduction Program Costs

Note 8 — Reorganization and Expense-Reduction Program Costs

During the first quarter of 2012, we implemented further headcount reductions primarily to better align the operating expenses of our Australian operations in Asia-Pacific with its lower sales volumes. We also initiated the closure of our in-country Argentina operations in Latin America. Associated with these actions, we incurred reorganization costs of $692 ($436, $224 and $32 in Asia-Pacific, Latin America and North America, respectively) during the thirteen weeks ended March 31, 2012 related to employee termination benefits for workforce reductions for 79 employees (66, 10 and 3 employees in Asia-Pacific, Latin America and North America, respectively). At March 31, 2012, remaining liabilities associated with these actions totaled $333, which we expect to be substantially utilized by the end of 2012.

In the second half of 2011, we implemented a cost-reduction program related to our Australian operations in Asia-Pacific primarily to align our level of operating expenses with declines in sales volume as a result of the system-implementation complications and loss of market share in that country. We also implemented headcount reductions in certain operations in North America, Europe and Latin America. The remaining liabilities and 2012 activities associated with these actions are summarized in the table below for the thirteen weeks ended March 31, 2012:

	Remaining Liability at December 31, 2011		Amounts Paid and Charged Against the Liability			Adjustments			Remaining Liability at March 31, 2012
Employee termination benefits	$	2,948	$	(1,599	)	$	(89	)	$	1,260

Adjustments reflected in the table above include a reduction of $135 to reorganization liabilities recorded in prior years in Asia-Pacific for lower than expected employee termination benefits as well as the net foreign currency impact that increased the U.S. dollar liability by $46. We expect the remaining liabilities to be substantially utilized by the end of 2012.

In the second half of 2008 and through 2009, we implemented cost-reduction programs in all of our regions to align our level of operating expenses with declines in sales volume resulting primarily from the economic downturn. The remaining liabilities and 2012 activities associated with these actions are summarized in the table below for the thirteen weeks ended March 31, 2012:

	Remaining Liability at December 31, 2011		Amounts Paid and Charged Against the Liability			Adjustments		Remaining Liability at March 31, 2012
Facility costs	$	5,852	$	(674	)	$	34	$	5,212

Adjustments reflected in the table above include the net foreign currency impact that increased the U.S. dollar liability by $34. We expect the remaining liabilities to be substantially utilized by the end of 2014.

Prior to 2006, we launched other outsourcing and optimization plans to improve operating efficiencies and to integrate past acquisitions. While these reorganization actions were completed prior to the periods included herein, future cash outlays are required for future lease payments related to exited facilities. The remaining liabilities and 2012 activities associated with these actions are summarized in the table below for the thirteen weeks ended March 31, 2012:

	Remaining Liability at December 31, 2011		Amounts Paid and Charged Against the Liability			Adjustments		Remaining Liability at March 31, 2012
Facility costs	$	2,428	$	(144	)	$	48	$	2,332

Adjustments reflected in the table above include the net foreign currency impact that increased the U.S. dollar liability by $48. We expect the remaining liabilities to be fully utilized by the end of 2015.

In the first quarter of 2011, we recorded a credit of $269 to reorganization liabilities recorded in prior years in Europe for lower than expected costs associated with facility consolidations.