Provision For Restructuring

9 Months Ended

Sep. 25, 2011

Note 11. PROVISION FOR RESTRUCTURING

In the third quarter of 2011, the Company approved an expansion of our previous SG&A Restructuring Plan to include manufacturing and other cost reduction initiatives. The expanded global plan including the new Global Restructuring Plan and the SG&A Restructuring Plan will impact over 1,000 existing employees. Total costs of the two plans are expected to approximate $54 million by the end of 2013, with $33 million to $38 million in total anticipated costs for the Global Restructuring Plan and $19 million to $21 million in total anticipated costs for the SG&A Restructuring Plan.

Restructuring expense for the three and nine months ended September 25, 2011 and September 26, 2010 was as follows:


(amounts in thousands)	Quarter (13 weeks) Ended		Nine Months (39 weeks) Ended
	September 25, 2011	September 26, 2010	September 25, 2011	September 26, 2010
Global Restructuring Plan
Severance and other employee-related charges	$ 6,085	$ —	$ 6,085	$ —
Asset Impairments	7,479	—	7,479	—
SG&A Restructuring Plan
Severance and other employee-related charges	3,661	724	6,120	1,561
Other exit costs	216	—	826	—
Manufacturing Restructuring Plan
Severance and other employee-related charges	(49)	89	(90)	658
Other exit costs	—	362	64	591
Total	$ 17,392	$ 1,175	$ 20,484	$ 2,810

Restructuring accrual activity for the nine months ended September 25, 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 September 25, 2011
Global Restructuring Plan
Severance and other employee-related charges	$ —	$ 6,085	$ —	$ —	$ —	$ 6,085
SG&A Restructuring Plan
Severance and other employee-related charges	6,660	6,240	(120)	(4,349)	65	8,496
Other exit costs(1)	—	826	—	(494)	(13)	319
Manufacturing Restructuring Plan
Severance and other employee-related charges	719	69	(159)	(585)	—	44
Other exit costs(2)	143	75	(11)	(132)	—	75
Total	$ 7,522	$ 13,295	$ (290)	$ (5,560)	$ 52	$ 15,019

(1)	During the first nine months of 2011, there was a net charge to earnings of $0.8 million primarily 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 nine months of 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

Global Restructuring Plan

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

As of September 25, 2011, the net charge to earnings of $13.6 million represents the current year activity related to the Global Restructuring Plan. The anticipated total costs related to the plan are expected to approximate $33 million to $38 million, of which $13.6 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan is 897. Termination benefits are planned to be paid one month to 24 months after termination.

SG&A Restructuring Plan

During 2009, we initiated the SG&A Restructuring 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 September 25, 2011, the net charge to earnings of $6.9 million represents the current year activity related to the SG&A Restructuring Plan. The total anticipated costs related to the plan are expected to approximate $19 million to $21 million, of which $16.8 million have been incurred. The total number of employees planned to be affected by the SG&A Restructuring Plan is 325, of which 215 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 nine months ended September 25, 2011, there was a net increase to earnings of $26 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 planned to be affected by the Manufacturing Restructuring Plan is 420, of which 417 have been terminated. As of September 25, 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.