PROVISION FOR RESTRUCTURING

Profit Enhancement Plan

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. The first phase of this plan was implemented in the third quarter of 2014 and was expanded in the fourth quarter of 2015. The remaining phases of the plan, including headcount reductions, are expected to be substantially completed by the fourth quarter of 2016.

For the three months ended March 27, 2016, the net charge to earnings of $0.4 million represents the current year activity related to the Profit Enhancement Plan. Total costs of the plan are $16 million through March 27, 2016. Termination benefits are planned to be paid 1 month to 24 months after termination.

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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed.

For the three months ended March 27, 2016, the net charge to earnings of $30 thousand represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60 million have been incurred through March 27, 2016. All terminations for the plan were substantially completed during the fourth quarter of 2014. Termination benefits are planned to be paid 1 month to 24 months after termination.

Restructuring expense for the three months ended March 27, 2016 and March 29, 2015 was as follows:



	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 27, 2016		March 29, 2015
Profit Enhancement Plan
Severance and other employee-related charges	$	332	$	1,346
Other exit costs	70		47
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	28		(89		)
Other exit costs	2		—
Total	$	432	$	1,304

Restructuring accrual activity for the three months ended March 27, 2016 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 27, 2016
Profit Enhancement Plan
Severance and other employee-related charges⁽²⁾	$	8,142	$	1,028	$	(696	)	$	(1,242	)	$	36	$	7,268
Other exit costs⁽¹⁾	12		70		—			(82		)	—		—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	457		28		—			(199		)	6		292
Other exit costs ⁽¹⁾	—		2		—			(2		)	—		—
SG&A Restructuring Plan
Severance and other employee-related charges	53		—		—			—			1		54
Total	$	8,664	$	1,128	$	(696	)	$	(1,525	)	$	43	$	7,614


⁽¹⁾	During the first three months of 2016, there was a net charge to earnings of $0.1 million primarily due to legal costs and restructuring agent costs in connection with the restructuring plan.


⁽²⁾	During the first three months of 2016, there was a severance charge reversed to earnings of $0.7 million primarily due to eliminations of the individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments.