Restructuring Activities

Summary of 2017 Restructuring Plan

In November 2017, management approved and commenced a restructuring plan that is expected to increase operating efficiencies. We currently estimate this initiative will result in $19.0 million to $22.0 million in total pre-tax restructuring charges through 2018, with $8.8 million recorded during 2017. We are currently evaluating a number of possible scenarios to execute the second phase of the restructuring plan, which will result in additional restructuring charges during 2018. We anticipate the additional charges will include cash payments for employee separation and non-cash charges for asset impairments, depending on the specific plan we develop. On an annualized basis, beginning in 2019, we estimate these restructuring actions will result in total savings of $14.0 million.

In the Electronic Systems segment, we have recorded expenses of $1.2 million for severance and benefits which was charged to restructuring charges.

In the Structural Systems segment, we have recorded expenses of $1.7 million for severance and benefits which was charged to restructuring charges. In addition, we recorded non-cash expenses of $3.6 million for property and equipment impairment which was charged to restructuring charges. Further, we recorded non-cash expenses of $0.5 million for inventory write down which was charged to cost of sales.

In Corporate, we have recorded expenses of $0.4 million for severance and benefits and non-cash expenses of $1.4 million for stock-based compensation awards which were modified, all of which was charged to restructuring charges.

As of December 31, 2017, we have accrued $1.0 million, $1.3 million, and $0.4 million for severance and benefits and loss on early exit from lease in the Electronic Systems segment, Structural Systems segment, and Corporate, respectively.

Summary of 2016 Restructuring Plan

In May 2016, management approved and commenced implementation of the closure of one of our Tulsa facilities that was completed in June 2016, and is part of our overall strategy to streamline operations. We have recorded cumulative expenses of $0.2 million for severance and benefits and loss on early exit from a lease, all of which were charged to restructuring charges in 2016. We do not expect to record additional expenses related to this restructuring plan.

As of December 31, 2017, we have accrued less than $0.1 million for loss on early exit from lease in the Electronic Systems segment.

Summary of 2015 Restructuring Plans

In September 2015, management approved and commenced implementation of several restructuring actions, including organizational re-alignment, consolidation and relocation of the New York facilities that was completed in December 2015, closure of the Houston facility that was completed in December 2015, and closure of the St. Louis facility that was completed in April 2016, all of which are part of our overall strategy to streamline operations. We have recorded cumulative expenses of $2.2 million for severance and benefits and loss on early exit from leases, all of which were charged to restructuring charges in 2015. We do not expect to record additional expenses related to these restructuring plans.

As of December 31, 2017, all payments have been made on early exit from lease in the Structural Systems segment.

Our restructuring activities for 2017 and 2016 were as follows (in thousands):



	December 31, 2016		2017										December 31, 2017
	Balance		Charges		Cash Payments			Non-Cash Payments			Change in Estimates		Balance
Severance and benefits	$	—	$	3,337	$	(678	)	$	—		$	—	$	2,659
Modification of stock-based compensation awards	—		1,334		—			(1,334		)	—		—
Lease termination	654		18		(670		)	—			64		66
Property and equipment impairment due to restructuring	—		3,607		—			(3,607		)	—		—
Inventory write down	—		478		—			(478		)	—		—
Ending balance	$	654	$	8,774	$	(1,348	)	$	(5,419	)	$	64	$	2,725