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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan has impacted over 2,600 existing employees since inception. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are $79 million through the end of the first quarter of 2014, with $61 million in total costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan. Through our Global Restructuring Plan including Project LEAN, we plan to stabilize sales, actively manage margins, dramatically reduce operating expenses, more effectively manage working capital and improve global cash management control.

Restructuring expense for the three months ended March 30, 2014 and March 31, 2013 was as follows:



	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	1,572	$	339
Asset impairments	172		731
Other exit costs	143		885
SG&A Restructuring Plan
Severance and other employee-related charges	5		(16		)
Other exit costs	—		77
Total	$	1,892	$	2,016

Restructuring accrual activity for the three months ended March 30, 2014 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 March 30, 2014
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,757	$	2,093	$	(521	)	$	(1,850	)	$	(6	)	$	7,473
Other exit costs⁽¹⁾	66		143		—			(173		)	(1		)	35
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		—			(214		)	—			143
Total	$	8,175	$	2,241	$	(521	)	$	(2,237	)	$	(7	)	$	7,651


⁽¹⁾	During the first quarter of 2014, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal 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, including final headcount terminations, expected to be substantially completed by the third quarter of 2014.

For the quarter ended March 30, 2014, the net charge to earnings of $1.9 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60.8 million have been incurred through March 30, 2014. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,273, of which 2,181 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 quarter ended March 30, 2014, the net charge to earnings of $5 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 affected by the SG&A Restructuring Plan was approximately 369, all of which have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.