PROVISION FOR RESTRUCTURING

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by implementing 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 first quarter of 2014.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact approximately 2,500 employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $71 million to $73 million by the end of 2013, with $53 million to $55 million in total anticipated costs for the Global Restructuring Plan and approximately $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete.

Restructuring expense for the three and nine months ended September 29, 2013 and September 23, 2012 was as follows:



	Quarter						Nine Months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 29, 2013			September 23, 2012			September 29, 2013			September 23, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	658		$	2,442		$	1,943		$	16,661
Asset impairments	—			859			731			6,156
Other exit costs	323			1,174			1,940			3,680
SG&A Restructuring Plan
Severance and other employee-related charges	(67		)	(288		)	(82		)	608
Other exit costs	23			—			50			66
Manufacturing Restructuring Plan
Other exit costs	—			(75		)	—			(75		)
Total	$	937		$	4,112		$	4,582		$	27,096

Restructuring accrual activity for the nine months ended September 29, 2013 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 29, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,752	$	3,819	$	(1,876	)	$	(6,534	)	$	(6	)	$	3,155
Other exit costs⁽¹⁾	460		1,940		—			(2,278		)	(23		)	99
SG&A Restructuring Plan
Severance and other employee-related charges	1,206		93		(175		)	(763		)	3			364
Other exit costs⁽²⁾	161		50		—			(210		)	(1		)	—
Total	$	9,579	$	5,902	$	(2,051	)	$	(9,785	)	$	(27	)	$	3,618


⁽¹⁾	During the first nine months of 2013, there was a net charge to earnings of $1.9 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 the first nine months of 2013, there was a net charge to earnings of $50 thousand primarily due to lease termination costs in connection with the restructuring plan.

Global Restructuring Plan (including LEAN)

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 first quarter of 2014.

For the nine months ended September 29, 2013, the net charge to earnings of $4.6 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 $53 million to $55 million, of which $52.5 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,200, of which 2,126 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.

For the nine months ended September 29, 2013, the net charge reversed to earnings of $32 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.