Restructuring Activities

Summary of 2017 Restructuring Plan

In November 2017, management approved and commenced a restructuring plan that was intended to increase operating efficiencies. We currently estimate this initiative will result in $20.0 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. On an annualized basis, beginning in 2019, we anticipate these restructuring actions will result in estimated total savings of $14.0 million.

In the Electronic Systems segment, we have recorded cumulative expenses of $1.6 million for severance and benefits and $0.1 million for professional service fees, both of which were classified as restructuring charges.

In the Structural Systems segment, we have recorded cumulative expenses of $2.1 million for severance and benefits and $0.1 million for professional service fees, both of which were classified as restructuring charges. In addition, we recorded cumulative non-cash expenses of $4.7 million for property and equipment impairment which was classified as restructuring charges. Further, we recorded cumulative non-cash expenses of $0.5 million for inventory write down which was classified as cost of sales.

In Corporate, we have recorded cumulative expenses of $0.4 million for severance and benefits and non-cash expenses of $1.5 million for stock-based compensation awards which were modified, all of which was classified as restructuring charges.

As of March 31, 2018, we have accrued $1.0 million, $0.8 million, and $0.3 million for severance and benefits and loss on early exit from lease in the Electronic Systems segment, Structural Systems segment, and Corporate, respectively.

Our restructuring activities in the three months ended March 31, 2018 were as follows (in thousands):



	December 31, 2017		Three Months Ended March 31, 2018										March 31, 2018
	Balance		Charges		Cash Payments			Non-Cash Payments			Change in Estimates		Balance
Severance and benefits	$	2,659	$	755	$	(1,571	)	$	—		$	—	$	1,843
Modification of stock-based compensation awards	—		105		—			(105		)	—		—
Lease termination	66		21		(7		)	—			—		80
Property and equipment impairment due to restructuring	—		1,077		—			(1,077		)	—		—
Professional service fees	—		215		—			—			—		215
Ending balance	$	2,725	$	2,173	$	(1,578	)	$	(1,182	)	$	—	$	2,138