Consolidation Program and Restructuring Charge

12 Months Ended

Dec. 30, 2012

Consolidation Program and Restructuring Charge [Abstract]

Consolidation Program and Restructuring Charge

(18) 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 operating cost savings. The Company incurred restructuring charges of $36,045 in the fourth quarter of 2012 which 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. Of the amount recognized, substantially all of the amount is included in accrued liabilities at December 30, 2012.

Another phase of this initiative includes a voluntary retirement program for certain eligible employees in the United States that was announced during 2013. Costs associated with this component of the program, along with other aspects of the cost savings initative to be implemented in 2013, will be recognized in 2013 and beyond. The Company also expects that it may incur additional pension charges in 2013 resulting from the workforce reduction, including the 2013 voluntary retirement program.

For the year ended December 30, 2012, restructuring charges related to the cost savings initiative were recorded in the consoliated statements of operations as follows:

	Severance Costs		Building Costs		Total
Product development	$	8,469		-		8,469
Selling, distribution and administration		26,419		1,157		27,576
	$	34,888		1,157		36,045