11RESTRUCTURING

On July 11, 2012, the Company announced plans to restructure certain operations related to its Watercraft segment. Specifically, the Company is restructuring 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 two sales offices in Europe, and 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. The related 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 Sheets. The Company expects the total cost of this restructuring to be approximately $2,650 and to be completed over the next three months.

Changes in the accrual related to this restructuring project for the nine month period ended June 28, 2013 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 June 28, 2013:
Charges to earnings		641		294		168		1,103
Settlement payments		(686)		(43)		(255)		(984)
Accrued restructuring liabilities as of June 28, 2013	$	383	$	251	$	13	$	647