11 RESTRUCTURING

On July 11, 2012, the Company announced plans to restructure Watercraft product 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 sales offices in France and the U.K. and closure of a marketing and R&D facility in Bellingham, Washington and the elimination of approximately 28 positions in the U.S. and Europe. These charges are included in the “Administrative management, finance and information systems” line in the Company’s condensed consolidated statements of operations in the Watercraft segment. The restructuring accrual is included in the “Other current liabilities” line in the Company’s Condensed Consolidated Balance Sheet. In addition, the Company increased its reserve for bad debts by $310 as a result of this action. The Company expects the total cost of this restructuring to be approximately $2,200 and to be completed over the next 12 months.


The following table presents changes in the accrual related to this restructuring project through June 29, 2012.

		Employee Termination Costs		Contract Exit Costs		Other Exit Costs		Total
Accrued restructuring liabilities as of September 30, 2011	$	-	$	-	$	-	$	-
Activity during the period ended June 29, 2012:
Charges to earnings		488		316		84		888
Settlement payments		-		-		-		-
Accrued restructuring liabilities as of June 29, 2012	$	488	$	316	$	84	$	888