PROVISION FOR RESTRUCTURING

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. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. 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.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact over 2,400 existing employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $70 million to $75 million by the end of 2013, with $52 million to $55 million in total anticipated costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete.

Restructuring expense for the periods ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows:



(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	16,945		$	11,115		$	—
Asset impairments	6,506			7,761			—
Other exit costs	5,068			519			—
SG&A Restructuring Plan
Severance and other employee-related charges	(86		)	7,015			6,993
Asset impairments	—			72			—
Other exit costs	64			2,203			—
Manufacturing Restructuring Plan
Severance and other employee-related charges	—			(146		)	641
Other exit costs	(75		)	101			577
Total	$	28,422		$	28,640		$	8,211

Restructuring accrual activity for the periods ended December 30, 2012, and December 25, 2011, were as follows:



(amounts in thousands)
Fiscal 2012	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 30, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges⁽³⁾	$	9,710	$	21,558	$	(4,613	)	$	(19,044	)	$	141		$	7,752
Other exit costs⁽¹⁾	—		5,068		—			(4,600		)	(8		)	460
SG&A Restructuring Plan
Severance and other employee-related charges⁽³⁾	6,718		1,100		(1,186		)	(5,363		)	(63		)	1,206
Other exit costs⁽²⁾	1,109		64		—			(1,012		)	—			161
Manufacturing Restructuring Plan
Other exit costs	75		—		(75		)	—			—			—
Total	$	17,612	$	27,790	$	(5,874	)	$	(30,019	)	$	70		$	9,579


⁽¹⁾	During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.


⁽²⁾	During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.


⁽³⁾	During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.



(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 (including LEAN)
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.

Global Restructuring Plan (including LEAN)

As of December 30, 2012, the net charge to earnings of $28.5 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. The anticipated total costs related to the plan are expected to approximate $52 million to $55 million, of which $47.9 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,100, of which 1,484 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 30, 2012, the net charge reversed to earnings of $22 thousand represents the current year activity related to the SG&A Restructuring Plan. The implementation of the SG&A Restructuring Plan is substantially complete, with total costs incurred of approximately $18 million. The total number of employees planned to be affected by the SG&A Restructuring Plan is approximately 369, of which substantially all 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 30, 2012, there was a $0.1 million charge reversed to earnings recorded in connection with the Manufacturing Restructuring Plan.

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 30, 2012 the implementation of the Manufacturing Restructuring Plan is substantially complete, with total costs incurred of $4.1 million.