Note 15. 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 $51 million by the end of 2013, with $27 million to $32 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 periods ended December 25, 2011, December 26, 2010, and December 27, 2009 were as follows:

(amounts in thousands)

	December 25, 2011	December 26, 2010	December 27, 2009
Global Restructuring Plan
Severance and other employee-related charges	$ 11,115	$ —	$ —
Asset impairments	7,761	—	—
Other exit costs	519	—	—
SG&A Restructuring Plan
Severance and other employee-related charges	7,015	6,993	2,828
Asset impairments	72	—	—
Other exit costs	2,203	—	—
Manufacturing Restructuring Plan
Severance and other employee-related charges	(146)	641	1,481
Other exit costs	101	577	—
2005 Restructuring Plan
Severance and other employee-related charges	—	—	1,149
Other exit costs	—	—	(57)
Total	$ 28,640	$ 8,211	$ 5,401

Restructuring accrual activity for the periods ended December 25, 2011, and December 26, 2010, were as follows:

(amounts in thousands)

Fiscal 2011	Accrual at Beginning of Year	Charged to Earnings	Charge Reversed to Earnings	Cash Payments	Exchange Rate Changes	Accrual at December 25, 2011
Global Restructuring Plan
Severance and other employee-related charges	$ —	$ 11,382	$ (267)	$(1,268)	$ (137)	$ 9,710
Other exit costs(1)	—	519	—	(519)	—	—
SG&A Restructuring Plan
Severance and other employee-related charges	6,660	7,147	(132)	(6,718)	(239)	6,718
Other exit costs(2)	—	2,214	(11)	(1,095)	1	1,109
Manufacturing Restructuring Plan
Severance and other employee-related charges	719	69	(215)	(583)	10	—
Other exit costs(3)	143	112	(11)	(169)	—	75
Total	$ 7,522	$ 21,443	$ (636)	$ (10,352)	$ (365)	$ 17,612

(1)	During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

(2)	During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

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

(amounts in thousands)

Fiscal 2010	Accrual at Beginning of Year	Charged to Earnings	Charge Reversed to Earnings	Cash Payments	Other	Exchange Rate Changes	Accrual at December 26, 2010
SG&A Restructuring Plan
Severance and other employee-related charges	$ 2,810	$ 7,732	$ (739)	$ (3,005)	$ —	$ (138)	$ 6,660
Manufacturing Restructuring Plan
Severance and other employee-related charges	1,481	1,203	(562)	(1,339)	—	(64)	719
Other exit costs(1)	—	577	—	(541)	107	—	143
Total	$ 4,291	$ 9,512	$ (1,301)	$ (4,885)	$ 107	$ (202)	$ 7,522

(1)	During 2010, lease termination and other exit costs of $0.6 million were recorded due to the closing of a manufacturing facility, which were partially offset by a deferred rent charge of $0.1 million previously incurred in prior periods for the manufacturing facility.

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 December 25, 2011, the net charge to earnings of $19.4 million represents the current year activity related to the Global Restructuring Plan. The anticipated total costs related to the plan are expected to approximate $27 million to $32 million, of which $19.4 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan is 894, of which 97 have been terminated. 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 substantially completed by the end of the first quarter of 2012.

As of December 25, 2011, the net charge to earnings of $9.3 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 $19.1 million have been incurred. The total number of employees planned to be affected by the SG&A Restructuring Plan is 368, of which 294 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 year ended December 25, 2011, there was a net increase to earnings of $45 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, all of which have been terminated. As of December 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.