Restructuring Activities

2018 Restructuring Plan

On August 10, 2018, the Company approved a plan to reduce the Company's cost structure while driving returns for its clients and shareholders. The plan was adopted as a result of the Company's determination that its selling, general and administrative costs were disproportionately high in relation to its revenue and gross profit. In connection with these actions, the Company expects to incur pre-tax cash restructuring charges of $8.0 million to $10.0 million and pre-tax non-cash restructuring charges of $0.4 million. Cash charges are expected to include $6.0 million to $8.0 million for employee severance and related benefits and $2.0 million for lease and contract terminations and other associated costs. Where required by law, the Company will consult with each of the affected countries’ local Works Councils prior to implementing the plan. The plan is expected to be completed by the end of 2019.

For the three and nine months ended September 30, 2018, the Company recognized $3.1 million in restructuring charges.

The following table summarizes the accrued restructuring activities for this plan for the nine months ended September 30, 2018 (in thousands):



	Employee Severance and Related Benefits			Lease and Contract Termination Costs		Other		Total
Balance at December 31, 2017	$	—		$	—	$	—	$	—
Charges	1,954			212		976		3,142
Cash payments	(216		)	—		—		(216		)
Non-cash settlements/adjustments	(305		)			—		(305		)
Balance at September 30, 2018	$	1,433		$	212	$	976	$	2,621

During the three and nine months ended September 30, 2018, the Company recorded the following restructuring costs within (income) loss from operations and (income) loss before income taxes (in thousands):



	North America		EMEA		LATAM		Total
For the Three and Nine Months Ended September 30, 2018
Restructuring charges	$	1,666	$	1,186	$	290	$	3,142

2015 Restructuring Plan

On December 14, 2015, the Company approved a global realignment plan that allowed the Company to more efficiently meet client needs across its international platform. Through improved integration of global resources, the plan created back office and other efficiencies and allowed for the elimination of approximately 100 positions. In connection with these actions, the Company incurred pre-tax cash restructuring charges of $6.7 million, the majority of which were recognized during 2016. These cash charges included approximately $5.6 million for employee severance and related benefits and $1.1 million for lease and contract terminations and other associated costs. The charges were all incurred by the end of 2016 with the final payouts of the charges expected to occur in 2018. As required by law, the Company consulted with each of the affected countries’ local Works Councils throughout the plan.

The following table summarizes the accrued restructuring activities for this plan for the nine months ended September 30, 2018 (in thousands), all of which relate to EMEA:



	Employee Severance and Related Benefits			Lease and Contract Termination Costs		Other		Total
Balance at December 31, 2017	$	484		$	—	$	—	$	484
Cash payments	(47		)	—		—		(47		)
Balance at September 30, 2018	$	437		$	—	$	—	$	437