Provision for Restructuring

6 Months Ended

Jun. 26, 2011

Note 11. PROVISION FOR RESTRUCTURING

Restructuring expense for the three and six months ended June 26, 2011 and June 27, 2010 was as follows:


(amounts in thousands)	Quarter (13 weeks) Ended		Six Months (26 weeks) Ended
	June 26, 2011	June 27, 2010	June 26, 2011	June 27, 2010
SG&A Restructuring Plan
Severance and other employee-related charges	$ 874	$ 741	$ 2,459	$ 837
Other exit costs	578	—	610	—
Manufacturing Restructuring Plan
Severance and other employee-related charges	(32)	274	(41)	569
Other exit costs	75	184	64	229
Total	$ 1,495	$ 1,199	$ 3,092	$ 1,635

Restructuring accrual activity for the six months ended June 26, 2011 was as follows:

(amounts in thousands)

Accrual at Beginning of Year	Charged to Earnings	Charge Reversed to Earnings	Cash Payments	Exchange Rate Changes	Accrual at 6/26/2011
SG&A Restructuring Plan
Severance and other employee-related charges	$ 6,660	$ 2,577	$ (118)	$ (2,545)	$ 314	$ 6,888
Other exit costs(1)	—	610	—	(128)	—	482
Manufacturing Restructuring Plan
Severance and other employee-related charges	719	69	(110)	(494)	—	184
Other exit costs(2)	143	75	(11)	(132)	—	75
Total	$ 7,522	$ 3,331	$ (239)	$ (3,299)	$ 314	$ 7,629

(1)	During the first six months of 2011, there was a net charge to earnings of $0.6 million due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility.

(2)	During 2010, costs were recorded due to the closing of a manufacturing facility. For the first six months of 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

SG&A Restructuring Plan

During 2009, we initiated a plan focused on reducing our overall operating expenses by consolidating certain administrative functions to improve efficiencies. The first phase of this plan was implemented in the fourth quarter of 2009 with the remaining phases of the plan expected to be substantially complete by the end of 2011.

As of June 26, 2011, the net charge to earnings of $3.1 million represents the current year activity related to the SG&A Restructuring Plan. The anticipated total costs related to the plan are expected to approximate $20 million to $25 million, of which $12.9 million have been incurred. The total number of employees currently affected by the SG&A Restructuring Plan were 204, of which 141 have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

Manufacturing Restructuring Plan

In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our Apparel Labeling Solutions (ALS) business, formerly Check-Net®, and to support incremental improvements in our EAS systems and labels businesses. For the six months ended June 26, 2011, there was a net charge to earnings of $23 thousand recorded in connection with the Manufacturing Restructuring Plan. This net charge was primarily due to other exit costs associated with the closing of manufacturing facilities partially offset by lower than estimated severance accruals.

The total number of employees currently affected by the Manufacturing Restructuring Plan was 420, of which 417 have been terminated. As of June 26, 2011 the implementation of the Manufacturing Restructuring Plan is substantially complete, with total costs incurred of $4.2 million. Termination benefits are planned to be paid one month to 24 months after termination.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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