RESTRUCTURING

On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business.

During the first quarter of fiscal 2017, in connection with our global strategic review, we launched the first phase of a restructuring program designed to reposition our organization and improve our cost structure. The first phase includes both a reduction of headcount and operating costs as well as projects to simplify product lines. In the later phases of the restructuring program, we may also take steps to modify our manufacturing operations to align with our strategic direction.

We expect to incur approximately $26 million of restructuring and restructuring related charges, comprised of $17 million in termination benefits and $9 million in other related exit costs. Substantially all of these charges result in cash outlays expected to be incurred during fiscal 2017. Savings from this program are estimated to be approximately $40 million in fiscal 2017. Subsequent phases of the program may require restructuring charges in future fiscal years. During the first quarter of fiscal 2017, we incurred $17.7 million of restructuring and restructuring related charges under this program. Additionally, during the first quarter of fiscal 2017, we recorded $1.1 million of restructuring and restructuring related charges under a prior program.

The following summarizes the restructuring activity for the three months ended July 2, 2016:



(In thousands)	Severance and Other Employee Costs			Other Costs			Accelerated Depreciation		Asset Write Down			Total Restructuring
Balance at April 2, 2016	$	8,752		$	—		$	—	$	—		$	8,752
Costs incurred	15,840			212			—		334			16,386
Payments	(7,134		)	(212		)	—		—			(7,346		)
Non-cash adjustments	—						—		(334		)	(334		)
Balance at July 2, 2016	$	17,458		$	—		$	—	$	—		$	17,458

The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of loss. As of July 2, 2016, we had a restructuring liability of $17.5 million, of which, approximately $16.5 million is payable within the next twelve months.

In addition to the restructuring expenses included in the table above, we also incurred $2.4 million of costs that do not constitute as restructuring under ASC 420, which we refer to as restructuring related costs. These costs consist primarily of expenditures directly related to our restructuring initiative and include program management, implementation of the global strategic review initiatives and accelerated depreciation.

The tables below present restructuring and restructuring related costs by reportable segment:



Restructuring costs	Three Months Ended
(in thousands)	July 2, 2016		June 27, 2015
Japan	$	874	$	9
EMEA	3,074		20
North America Plasma	375		—
All Other	12,063		9,430
Total	$	16,386	$	9,459

Restructuring related costs	Three Months Ended
(in thousands)	July 2, 2016		June 27, 2015
Japan	$	1	$	144
EMEA	26		242
North America Plasma	—		40
All Other	2,403		4,931
Total	$	2,430	$	5,357

Total restructuring and restructuring related costs	$	18,816	$	14,816