PROVISION FOR RESTRUCTURING

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. The projects included in this plan are currently underway, with final headcount reductions expected to be recognized by the fourth quarter of 2015. Total costs of the plan are $5.3 million through the end of the fourth quarter of 2014.

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.

The Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan have impacted over 2,600 existing employees since inception. Total costs of the projects are $78 million through the end of the fourth quarter of 2014, with $60 million in total costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan.

Restructuring expense for the years ended December 28, 2014, December 29, 2013, and December 30, 2012 was as follows:



(amounts in thousands)	December 28, 2014			December 29, 2013			December 30, 2012
Profit Enhancement Plan
Severance and other employee-related charges	$	5,181		$	—		$	—
Other exit costs	101			—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	976			7,421			16,945
Asset impairments	172			1,210			6,506
Other exit costs	231			2,389			5,084
SG&A Restructuring Plan
Severance and other employee-related charges	(7		)	(222		)	(86		)
Other exit costs	—			68			64
Manufacturing Restructuring Plan
Other exit costs	—			—			(75		)
Total	$	6,654		$	10,866		$	28,438

Restructuring accrual activity for the year ended December 28, 2014 was as follows:



(amounts in thousands)
Fiscal 2014	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 28, 2014
Profit Enhancement Plan
Severance and other employee-related charges⁽²⁾	$	—	$	5,233	$	(52	)	$	(770	)	$	(329	)	$	4,082
Other exit costs⁽¹⁾	—		101		—			(101		)	—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges⁽²⁾	7,901		2,917		(1,941		)	(6,434		)	(393		)	2,050
Other exit costs⁽¹⁾	66		231		—			(285		)	3			15
SG&A Restructuring Plan
Severance and other employee-related charges⁽²⁾	208		42		(49		)	(67		)	(26		)	108
Total	$	8,175	$	8,524	$	(2,042	)	$	(7,657	)	$	(745	)	$	6,255


⁽¹⁾	During 2014, there was a net charge to earnings of $0.3 million primarily due to outplacement and legal costs in connection with the restructuring plan.


⁽²⁾	During 2014, there was a severance charge reversed to earnings of $2.0 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.

Restructuring accrual activity for the year ended December 29, 2013 was as follows:



(amounts in thousands)
Fiscal 2013	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 29, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges⁽³⁾	$	7,752	$	9,799	$	(2,378	)	$	(7,469	)	$	197		$	7,901
Other exit costs⁽¹⁾	460		2,389		—			(2,763		)	(20		)	66
SG&A Restructuring Plan
Severance and other employee-related charges⁽³⁾	1,206		104		(326		)	(780		)	4			208
Other exit costs⁽²⁾	161		68		—			(228		)	(1		)	—
Total	$	9,579	$	12,360	$	(2,704	)	$	(11,240	)	$	180		$	8,175


⁽¹⁾	During 2013, there was a net charge to earnings of $2.4 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 2013, there was a net charge to earnings of $0.1 million primarily due to lease termination costs in connection with the restructuring plan.


⁽³⁾	During 2013, there was a severance charge reversed to earnings of $2.7 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 2013.

Profit Enhancement Plan

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and streamlining manufacturing processes. The first phase of this plan was implemented in the third quarter of 2014 with the remaining phases of the plan, including headcount reductions, expected to be substantially completed by the fourth quarter of 2015. As of December 28, 2014, the net charge to earnings of $5.3 million represents the current year activity related to the Profit Enhancement 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, substantially completed by the fourth quarter of 2014.

As of December 28, 2014, the net charge to earnings of $1.4 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60.3 million have been incurred through December 28, 2014. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN since inception is approximately 2,250, of which 2,244 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 28, 2014, the net charge reversed to earnings of $7 thousand represents the current year activity related to the SG&A Restructuring Plan. Total costs related to the plan of $18 million have been incurred through December 28, 2014. The total number of employees affected by the SG&A Restructuring Plan was 369, all of which have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.