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 $21.0 million to $23.0 million in total pre-tax restructuring charges through 2018, with $8.8 million recorded during 2017. We recorded an additional $11.0 million during the nine months ended September 29, 2018, with $0.2 million recorded to cost of sales, and cumulative expenses of $19.8 million. We have finalized our decisions and are executing to the restructuring plan. This will result in additional restructuring charges during the remainder of 2018. We anticipate the additional charges for the other remaining actions will include cash payments for employee separation and non-cash charges for asset impairments.

In the Electronic Systems segment, we recorded $0.7 million during the three months ended September 29, 2018 and cumulative expenses of $2.9 million for severance and benefits which was classified as restructuring charges. We recorded $0.4 million during the three months ended September 29, 2018 for professional service fees which were classified as restructuring charges. We also recorded non-cash expenses of $0.1 million for property and equipment impairment during the three months ended September 29, 2018 which were classified as restructuring charges. Further, we have recorded cumulative non-cash expenses of $0.2 million for inventory write off which was classified as cost of sales.

In the Structural Systems segment, we recorded $0.3 million during the three months ended September 29, 2018 and cumulative expenses of $2.8 million, for severance and benefits which were classified as restructuring charges. We also recorded non-cash expenses of $1.3 million during the three months ended September 29, 2018 and cumulative expenses of $9.2 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 $0.3 million during the three months ended September 29, 2018 and cumulative expenses of $1.4 million for severance and benefits and cumulative 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 $0.3 million during the three months ended September 29, 2018 and cumulative expenses of $0.7 million for professional service fees which were classified as restructuring charges.

As of September 29, 2018, we have accrued $1.5 million, $0.5 million, and $0.3 million for severance and benefits and professional service fees in the Electronic Systems segment, Structural Systems segment, and Corporate, respectively.

Our restructuring activities in the nine months ended September 29, 2018 were as follows (in thousands):



	December 31, 2017		Nine Months Ended September 29, 2018											September 29, 2018
	Balance		Charges		Cash Payments			Non-Cash Payments			Change in Estimates			Balance
Severance and benefits	$	2,659	$	3,849	$	(3,994	)	$	—		$	(539	)	$	1,975
Modification of stock-based compensation awards	—		105		—			(105		)	—			—
Lease termination	66		3		(69		)	—			—			—
Property and equipment impairment due to restructuring	—		5,784		—			(5,784		)	—			—
Professional service fees	—		1,043		(908		)	—			—			135
Total charged to restructuring charges	2,725		10,784		(4,971		)	(5,889		)	(539		)	2,110
Inventory reserve	—		168		—			—			—			168
Total charged to cost of sales	—		168		—			—			—			168
Ending balance	$	2,725	$	10,952	$	(4,971	)	$	(5,889	)	$	(539	)	$	2,278