Other Operating Expense, Net is comprised of the following (in thousands):

	Three Months Ended
	March 29,		March 30,
		2013		2012
Orthopaedic facility optimization	$	2,636	$	344
Medical device facility optimization		105		329
ERP system upgrade		321		895
Acquisition and integration costs		111		943
Asset dispositions, severance and other		65		234
	$	3,238	$	2,745

Orthopaedic facility optimization. In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011.

In 2011, the Company began construction on an orthopaedic manufacturing facility in Fort Wayne, IN and transferred the manufacturing operations being performed at its Columbia City, IN facility into this new facility. This initiative was completed in 2012.

During 2012, the Company transferred most functions performed at its facilities in Orvin and Corgemont, Switzerland into existing facilities in Fort Wayne, IN and Tijuana, Mexico. In connection with this consolidation, in 2012, the Company entered into an agreement to sell certain non-core Swiss orthopaedic product lines to an independent third party which included the inventory, machinery, equipment, customer lists and technology related to these product lines. As these product lines were considered a business, goodwill was allocated to the transaction. As these product lines did not have cash flows that were clearly distinguishable, both operationally and for financial reporting purposes, from the rest of the Company, they were not considered discontinued operations. This transaction closed in the first quarter of 2013 and no additional loss on sale was recognized. During the first quarter of 2013, the Company received $1.8 million in connection with this transaction and the third party assumed $2.4 million of severance liabilities.

The total capital investment expected for these initiatives is between $25 million and $30 million, of which $21.2 million has been expended to date. Total expense expected to be incurred for these initiatives is between $36 million and $40 million, of which $35.8 million has been incurred to date. All expenses will be recorded within the Implantable Medical segment and are expected to include the following:

Other costs include production inefficiencies, moving, revalidation, personnel, training and travel costs associated with these consolidation projects.

The change in accrued liabilities related to the orthopaedic facility optimization is as follows (in thousands):

			Severance and Retention		Accelerated Depreciation/Asset Write-offs		Other		Total
At	December 28, 2012	$	9,567	$	0	$	0	$	9,567
Restructuring charges			359		(378)		2,655		2,636
Write-offs			0		378		0		378
Liability assumed in sale of product lines			(2,398)		0		0		(2,398)
Cash payments			(6,067)		0		(2,655)		(8,722)
At	March 29, 2013	$	1,461	$	0	$	0	$	1,461

Medical device facility optimization. Near the end of 2011, the Company initiated plans to upgrade and expand its manufacturing infrastructure in order to support its medical device strategy. This includes the transfer of certain product lines to create additional capacity for the manufacture of medical devices, expansion of two existing facilities, as well as the purchase of equipment to enable the production of medical devices. These initiatives are expected to be completed over the next two years. Total capital investment under these initiatives is expected to be between $15 million to $20 million of which approximately $10.3 million has been expended to date. Total expense expected to be incurred on these projects is between $2.0 million to $3.0 million, of which $1.6 million has been incurred to date. All expenses will be recorded within the Implantable Medical segment and are expected to include the following:

The change in accrued liabilities related to the medical device facility optimization is as follows (in thousands):

			Production Inefficiencies, Moving and Revalidation		Personnel		Other		Total
At	December 28, 2012	$	0	$	0	$	0	$	0
Restructuring charges			19		2		84		105
Cash payments			(19)		(2)		(84)		(105)
At	March 29, 2013	$	0	$	0	$	0	$	0

ERP system upgrade. In 2011, the Company initiated plans to upgrade its existing global ERP system. This initiative is expected to be completed over the next year. Total capital investment under this initiative is expected to be between $4 million to $5 million of which approximately $3.0 million has been expended to date. Total expense expected to be incurred on this initiative is between $6 million to $7 million, of which $5.3 million has been incurred to date. Expenses related to this initiative are recorded within the applicable segment and corporate cost centers that the expenditures relate to and include the following:

The change in accrued liabilities related to the ERP system upgrade is as follows (in thousands):

			Training & Consulting Costs		Accelerated Depreciation/ Asset Write-offs		Total
At	December 28, 2012	$	169	$	0	$	169
Charges			321		-		321
Cash payments			(177)		0		(177)
At	March 29, 2013	$	313	$	0	$	313

Acquisition and integration costs. During 2013 and 2012, the Company incurred costs related to the integration of Micro Power Electronics, Inc. and NeuroNexus, which were acquired in December 2011 and February 2012, respectively. These expenses were primarily for retention bonuses, travel costs in connection with integration efforts, training, severance, and the change in fair value of the contingent consideration recorded in connection with these acquisitions.

Asset dispositions, severance and other. During 2013 and 2012, the Company recorded (gains) write-downs in connection with various asset disposals, net of insurance proceeds received, if any.