We completed the acquisition of the Forbo industrial adhesives business on March 5, 2012. The integration of this business will involve a significant amount of restructuring and capital investment to optimize the new combined entity. In addition, in July of 2011 we announced our intentions to take a series of actions in our existing EIMEA operating segment to improve the profitability and future growth prospects of this operating segment. We have combined these two initiatives into a single project which we refer to as the “Business Integration Project”. During the years ended December 1, 2012 and December 3, 2011, we incurred special charges, net of $52,467 and $7,499, respectively, for costs related to the Business Integration Project.

		Fiscal Years
		2012		2011
Acquisition and transformation related costs:
	Professional services	$	24,647	$	4,410
	Financing availability costs		4,300		-
	Foreign currency option contract		841		3,089
	Gain on foreign currency forward contracts		(11,621)		-
	Other related costs		2,010		-
Restructuring costs:
	Workforce reduction costs		28,087		-
	Facility exit costs		4,203		-

Special charges, net		$	52,467	$	7,499

Acquisition and transformation related costs of $24,647 for the year ended December 1, 2012 include costs related to organization consulting, investment advisory, financial advisory, legal and valuation services necessary to acquire and integrate the Forbo industrial adhesives business into our existing operating segments. For the year ended December 1, 2012, we also incurred other costs related to the acquisition of the Forbo industrial adhesives business including an expense of $4,300 to make a bridge loan available if needed and an expense of $841 related to the purchase of a foreign currency option to hedge a portion of the acquisition purchase price. For the year ended December 3, 2011, we incurred acquisition and transformation related costs of $4,410 for investment advisory, financial advisory, legal and valuation services necessary to acquire the Forbo industrial adhesives business and an expense of $3,089 related to the purchase of a foreign currency option to hedge a portion of the acquisition purchase price.

During the first quarter of 2012, we entered into forward currency contracts maturing on March 5, 2012 to purchase 370,000 Swiss francs at a blended forward rate of 1.06245 USD/CHF. Our objective was to economically hedge the purchase price for the pending acquisition of the global industrial adhesives business of Forbo Group after the price was established. The currency contracts were not designated as hedges for accounting purposes. When the acquisition closed on March 5, 2012, the forward currency contracts were settled at a rate of 1.09385 USD/CHF. For the year ended December 1, 2012, the net gain on the forward currency contracts was $11,621 which partially offset other acquisition and transformation related costs.

During 2012, we incurred workforce reduction costs of $28,087, cash facility exit costs of $1,033, non-cash facility exit costs of $3,170 and other costs of $2,010 related to the Business Integration Project.

For the year ended December 1, 2012, the activity in accrued restructuring costs associated with the Business Integration Project is as follows:

		Workforce Reduction Costs
Balance at December 3, 2011		$	-
	Restructuring charges		28,087
	Cash payments		(5,308)
	Foreign currency translation adjustment		(2,931)
Balance at December 1, 2012		$	19,848

Of the $19,848 in accrued restructuring costs at December 1, 2012, $16,511 was included in accrued compensation and $3,337 was included in other liabilities on our Consolidated Balance Sheets as this portion is not expected to be paid within the next year. In Europe, the accrued restructuring charges included statutory minimum amounts for two sites for which final agreements have not been reached with the works councils as well as amounts being accrued ratably for three sites in which works council agreements have been reached. At the communication date to employees, final termination benefits will be measured and will be recognized ratably over the service period employees are required to work to be eligible for termination benefits. In North America and Asia, the benefits were accrued based primarily on the formal severance plans in place for the various locations. The restructuring costs are not allocated to our operating segments. See Note 15 to Consolidated Financial Statements.