RESTRUCTURING CHARGES

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

In March 2017, management initiated a strategic restructuring program (the "Program") in our MMS segment with the goals of streamlining the Company's cost structure, increasing operational efficiencies, generating cash and improving shareholder returns. This Program consists of rationalizing certain product lines, consolidating certain European manufacturing operations, and the sale of assets. The Program, which is projected to be substantially complete by mid-2018, is expected to generate annual pre-tax savings in the range of approximately $2.0 million to $2.5 million once fully implemented. Of the total costs estimated below, we expect approximately $1.6 million will be non-cash costs.

Restructuring charges are included in the "Restructuring" line item in the Consolidated Statements of Operations. The table below presents the total costs expected to be incurred in connection with the Program, the amount of costs that have been recognized during the three months ended March 31, 2017 and the cumulative costs recognized to date by the Program (in thousands):



	Total Costs Expected to be Incurred		Cost Recognized for Three Months Ended March 31, 2017		Total Cumulative Costs
Restructuring:
Employee termination costs	$	1,010	$	—	$	—
Inventory impairment	1,401		1,401		$	1,401
Facility related costs	1,373		10		$	10
Other related costs	492		25		$	25
Total Restructuring Activity	$	4,276	1,436		$	1,436

The amounts accrued associated with the Program are included in "Accrued expenses" and "Inventory" in the Consolidated Balance Sheets. A roll forward of the accrued restructuring costs and inventory impairment reserve is presented below (in thousands):




Balance at December 31, 2016	$	—
Restructuring charges:
Employee termination costs	—
Inventory impairment	1,401
Facility related costs	10
Other related costs	25
Total restructuring charges	1,436

Cash expenditures	(35		)
Other adjustments to accrual	—
Foreign currency translation adjustment	—
Balance at March 31, 2017	$	1,401