15RESTRUCTURING

On July 11, 2012, the Company announced plans to restructure Watercraft sales and distribution in Europe and to consolidate all of its U.S. operations at a single location in Old Town, Maine. The Company believes this plan will enhance the competitiveness and profit potential of its Watercraft business. This action will result in the closure of a sales office in the U.K., the closure of a marketing and R&D facility in Bellingham, Washington and the elimination of approximately 24 positions in the U.S. and Europe. These charges are included in the “Administrative management, finance and information systems” line in the Company’s Consolidated Statements of Operations in the Watercraft segment. The restructuring accrual is included in the “Other current liabilities” line in the Company’s Consolidated Balance Sheet. In addition, the Company increased its allowance for doubtful accounts by $450 as a result of this action. The Company expects the total cost of this restructuring to be approximately $2,400 and to be completed over the next 12 months.


The following table presents changes in the accrual related to this restructuring project through September 28, 2012:

		Employee Termination Costs		Contract Exit Costs		Other Exit Costs		Total
Accrued restructuring liabilities as of September 30, 2011	$	-	$	-	$	-	$	-
Activity during the year ended September 28, 2012:
Charges to earnings		574		282		162		1,018
Settlement payments		(146)		(282)		(62)		(490)
Accrued restructuring liabilities as of September 28, 2012	$	428	$	-	$	100	$	528