Consolidation Program and Restructuring Charge

3 Months Ended

Mar. 31, 2013

Consolidation Program and Restructuring Charge [Abstract]

Consolidation Program and Restructuring Charge

(9) Consolidation Program and Restructuring Charge

In the fourth quarter of 2012 the Company announced a multi-year cost savings initiative. This initiative includes workforce reductions, facility consolidations, process improvements and other cost savings. Through March 31, 2013, the Company has incurred pre-tax restructuring charges of $64,971. Of these charges, $36,045 was recorded during the fourth quarter of 2012 and $28,926 was recorded during the first quarter of 2013.

During the fourth quarter of 2012, charges included severance costs of $34,888 related to the planned reduction of approximately 560 employees and $1,157 of facility costs related to the commencement of this program.The first quarter 2013 charges totaling $28,926 were comprised of $24,238 in severance costs, $2,959 in non-cash pension charges, and $1,729 in costs associated with exiting a contractual obligation.  The severance costs recognized during the first quarter of 2013 were primarily related to a voluntary retirement program for certain eligible employees in the United States, and the non-cash pension charges resulting from a curtailment charge related to the Company's U.S. pension plans . Costs associated with exiting a contractual obligation were paid during the quarter ended March 31, 2013. The total 2013 charge of $28,926 was recorded in the consolidated statements of operations as follows:  $8,493 – cost of sales; $3,515 – product development; and $16,918 – selling, distribution and administration.  

The following is a summary of the severance and other personnel charges related to the Company's cost savings initiative included in accrued liabilities as of March 31, 2013:

Balance at December 30, 2012	$	34,888
1st Quarter 2013 Charges		24,238
Payments		(4,408	)
Balance at March 31, 2013	$	54,718

The quarter ended April 1, 2012 also included severance charges of $11,130 associated with certain business functions.  These charges were recognized in the consolidated statement of operations as follows: $2,764 – cost of sales; $2,479 – product development; and $5,887 – selling, distribution and administration.  

See Note 10 for information by segment.