Restructuring Costs

6 Months Ended

Jul. 02, 2016

Restructuring and Related Activities [Abstract]

Restructuring costs represent the cost reduction programs initiated by the Company. Restructuring costs are expensed during the period in which the Company determines it will incur those costs and all requirements for accrual are met. Because these costs are recorded based upon estimates, actual expenditures for the restructuring activities may differ from the initially recorded costs. If the initial estimates are too low or too high, the Company could be required to either record additional expense in future periods or to reverse part of the previously recorded charges.

The Company recorded aggregate restructuring costs of $1.0 million and $0.3 million during the fiscal quarters ended July 2, 2016 and June 27, 2015, respectively, and $1.7 million and $0.4 million during the fiscal six months ended July 2, 2016 and June 27, 2015, respectively. Restructuring costs consist mainly of employee termination costs, including severance and statutory retirement allowances and facility closure costs.

On March 23, 2016, the Company announced, in connection with the November 16, 2015 global cost reduction program, the decision to close its facility in Alajuela, Costa Rica. Approximately $0.4 million of restructuring costs were recorded during the six fiscal months ended July 2, 2016 related to this closure. This closure is expected to be substantially complete by the end of the third quarter of 2016.

During the fiscal six months ended July 2, 2016, the Company initiated other cost reduction plans at locations in Europe, the U.S. and Canada. Approximately $1.0 million of restructuring costs, primarily severance, were recorded during the the six fiscal months ended July 2, 2016 related to these plans.

On November 16, 2015, the Company announced a global cost reduction program as part of its efforts to improve efficiency and operating performance. Approximately $0.3 million of restructuring costs, excluding the Costa Rica closure, were recorded during the six fiscal months ended July 2, 2016 related to this program. Complete implementation of this program is expected to occur by the end of the second quarter of 2017.

The following table summarizes the activity related to all restructuring programs. The accrued restructuring liability balance as of July 2, 2016 and December 31, 2015, respectively, is included in other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands):



Balance at December 31, 2015	$	2,827
Restructuring costs in 2016	1,686
Cash payments	(3,351		)
Foreign currency translation	1
Balance at July 2, 2016	$	1,163