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 continue to evaluate a number of possible scenarios to execute the second phase of the restructuring plan, which will result in additional restructuring charges during 2018. In June 2018, we finalized one of the scenarios which will result in the closure of our Phoenix operation, part of our Electronic Systems segment, by December 31, 2018. As a result, we recorded $5.4 million of restructuring charges during the three months ended June 30, 2018. We anticipate the additional charges for the other possible scenarios will include cash payments for employee separation and non-cash charges for asset impairments.

In the Electronic Systems segment, we recorded $0.6 million during the three months ended June, 30, 2018 and cumulative expenses of $2.2 million for severance and benefits which was classified as restructuring charges. We also recorded non-cash expenses of $0.2 million during the three months ended June, 30, 2018 for inventory write off which was classified as cost of sales.

In the Structural Systems segment, we recorded $0.5 million during the three months ended June 30, 2018 and cumulative expenses of $2.5 million, for severance and benefits which were classified as restructuring charges. We also recorded non-cash expenses of $3.3 million during the three months ended June 30, 2018 and cumulative expenses of $7.9 million for property and equipment impairment which were 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 recorded $0.7 million during the three months ended June 30, 2018 and cumulative expenses of $1.1 million for severance and benefits and non-cash expenses of $1.5 million for stock-based compensation awards which were modified, all of which were classified as restructuring charges. We also recorded $0.4 million during the three months ended June 30, 2018 and cumulative expenses of $0.4 million for professional service fees which were classified as restructuring charges.

As of June 30, 2018, we have accrued $1.0 million, $0.6 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 six months ended June 30, 2018 were as follows (in thousands):



	December 31, 2017		Six Months Ended June 30, 2018										June 30, 2018
	Balance		Charges		Cash Payments			Non-Cash Payments			Change in Estimates		Balance
Severance and benefits	$	2,659	$	2,554	$	(3,631	)	$	—		$	—	$	1,582
Modification of stock-based compensation awards	—		105		—			(105		)	—		—
Lease termination	66		21		(6		)	—			—		81
Property and equipment impairment due to restructuring	—		4,375		—			(4,375		)	—		—
Professional service fees	—		356		(265		)	—			—		91
Total charged to restructuring charges	2,725		7,411		(3,902		)	(4,480		)	—		1,754
Inventory reserve	—		168		—			—			—		168
Total charged to cost of sales	—		168		—			—			—		168
Ending balance	$	2,725	$	7,579	$	(3,902	)	$	(4,480	)	$	—	$	1,922