RESTRUCTURING

Restructuring costs primarily consist of employee separation benefits under our existing severance programs, foreign statutory termination benefits, certain one-time termination benefits, contract termination costs, asset impairment charges and other costs that are associated with restructuring actions. Certain restructuring charges are accrued prior to payments made in accordance with applicable guidance. For such charges, the amounts are determined based on estimates prepared at the time the restructuring actions were approved by management.

In the first quarter of 2016, we implemented our optimization program to realign FoodTech’s Protein business in North America and Liquid Foods business in Europe, accelerate JBT’s strategic sourcing initiatives, and consolidate smaller facilities. The total cost in connection with this plan was approximately $12.0 million. We completed this plan in the first quarter 2018, and in doing so released $1.7 million in remaining liability during the quarter. Approximately half of this release was related to amounts we no longer expect to pay in connection with this plan due to actual severance payments differing from original estimates and natural attrition of employees. The remainder was included in the restructuring liability balance recorded in the first quarter attributable to the 2018 restructuring plan as we do expect to incur these severance costs.

During the fourth quarter of 2016 we implemented and acquired a restructuring plan to consolidate certain facilities and optimize our general and administrative infrastructure subsequent to a FoodTech acquisition. The total estimated cost in connection with this plan is approximately $4.0 million. We incurred no additional expense in the quarter, and have incurred $3.0 million to date. We expect to complete this plan by mid 2018.

In the first quarter of 2018, we implemented a restructuring program to address JBT's global processes to flatten the organization, improve efficiency and better leverage general and administrative resources. In the first quarter we incurred $14.4 million in expense primarily associated with the FoodTech segment, $3.4 million related to consulting fees and $11.0 million in severance amounts incurred as a direct result of the 2018 plan. The total estimated cost in connection with this plan is approximately $50 million, of which we have recognized $14.4 million in the first quarter 2018, and the remainder we expect to recognize by mid 2019.

Restructuring expense is recorded in our condensed consolidated statements of income and is excluded from our calculation of segment operating profit.

Liability balances for restructuring activities are included in other current liabilities in the accompanying condensed consolidated balance sheets. The table below details the activities in 2018:



			Impact to Earnings
(In millions)	Balance as of December 31, 2017		Charged to Earnings		Release of Liability			Payments Made			Balance as of March 31, 2018
Severance and related expense	$	3.2	$	11.0	$	(1.7	)	$	(0.8	)	11.7
Other	—		3.4		—			(3.4		)	—
Total	$	3.2	$	14.4	$	(1.7	)	$	(4.2	)	11.7