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 first quarter of 2015. Total costs of the project are $0.9 million through the end of the third 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 $79 million through the end of the third 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.

Restructuring expense for the three and nine months ended September 28, 2014 and September 29, 2013 was as follows:



	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 28, 2014			September 29, 2013			September 28, 2014			September 29, 2013
Profit Enhancement Plan
Severance and other employee-related charges	$	925		$	—		$	925		$	—
Other exit costs	9			—			9			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	(485		)	658			1,359			1,943
Asset impairments	—			—			172			731
Other exit costs	10			323			252			1,940
SG&A Restructuring Plan
Severance and other employee-related charges	—			(67		)	(25		)	(82		)
Other exit costs	—			23			—			50
Total	$	459		$	937		$	2,692		$	4,582

Restructuring accrual activity for the nine months ended September 28, 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 September 28, 2014
Profit Enhancement Plan
Severance and other employee-related charges	$	—	$	925	$	—		$	(117	)	$	(29	)	$	779
Other exit costs⁽¹⁾	—		9		—			(9		)	—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	7,757		2,821		(1,462		)	(5,534		)	(300		)	3,282
Other exit costs⁽¹⁾	66		252		—			(302		)	—			16
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		(30		)	(214		)	(13		)	100
Total	$	8,175	$	4,012	$	(1,492	)	$	(6,176	)	$	(342	)	$	4,177


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

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 final headcount reductions, expected to be substantially completed by the first quarter of 2015. For the nine months ended September 28, 2014, the net charge to earnings of $0.9 million represents the current year activity related to the Profit Enhancement Plan.

Global Restructuring Plan (including LEAN)

For the nine months ended September 28, 2014, the net charge to earnings of $1.8 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $61 million have been incurred through September 28, 2014. The total number of employees affected by the Global Restructuring Plan including Project LEAN is approximately 2,260, of which 2,219 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 28, 2014, the net charge reversed to earnings of $25 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.