11RESTRUCTURING

On July 11, 2012, the Company announced plans to restructure certain operations related to its Watercraft segment. Specifically, the Company is restructuring the product sales and distribution in Europe and consolidating 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 Europe and 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 accompanying Condensed Consolidated Statements of Operations in the Watercraft segment. The restructuring accrual is included in the “Other current liabilities” line in the Company’s accompanying Condensed Consolidated Balance Sheet. The Company expects the total cost of this restructuring to be approximately $2,350 and to be completed over the next 9 months.


Changes in the accrual related to this restructuring project for the three month period ended December 28, 2012 were as follows:

		Employee Termination Costs		Contract Exit Costs		Other Exit Costs		Total
Accrued restructuring liabilities as of September 28, 2012	$	428	$	-	$	100	$	528
Activity during the period ended December 28, 2012:
Charges to earnings		332		72		77		481
Settlement payments		(200)		(5)		(95)		(300)
Accrued restructuring liabilities as of December 28, 2012	$	560	$	67	$	82	$	709