RESTRUCTURING CHARGES

In March 2017, management initiated a strategic restructuring program in our MMS segment with the goals of streamlining the Company's cost structure, increasing operational efficiencies and cash generation, and improving shareholder returns. This program consists of rationalizing certain product lines, consolidating certain European manufacturing operations, and selling certain assets. It is projected to be substantially complete by mid-2018 and is expected to generate annual pre-tax savings ranging from approximately $2.0 million to $2.5 million once fully implemented. We expect to incur costs of approximately $4.7 million, of which $1.4 million is a non-cash inventory impairment charge related to the product line rationalization.

As part of the above mentioned program, in September 2017, the Company agreed to sell a manufacturing facility in Biel, Switzerland for $9.8 million, excluding customary closing costs, for which a deposit of $0.5 million was received. The building and the related deposit are included in "Assets Held for Sale" and "Accrued Expenses" in the Consolidated Balance Sheets. The sale is expected to be finalized in the second quarter of 2018.

During September 2017, the Company initiated a strategic global realignment of our selling organization with a focus on unified regional sales channels to improve customer contact and service, a simplified product offering, and the elimination of redundancies. In addition, we have initiated a program to optimize our purchasing and supply chain management practices through consolidation of these teams into a single organization to leverage our global talent and buying power. This program is expected to provide cost savings of approximately $10.0 million per year beyond the March 2017 initiative, of which approximately $5.0 million will be from SG&A, primarily from headcount reductions, and $5.0 million will be from material cost savings. We expect to incur costs of approximately $2.0 million, primarily related to severance, in conjunction with this initiative. These costs will be incurred over the next several quarters.

The combined March 2017 initiative and the September 2017 global strategic program (the combined "Program") is intended to generate annual pre-tax savings ranging from approximately $12.0 million to $12.5 million once fully implemented in the latter part of 2018. The total costs estimates are included in the table below.

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 and nine months ended September 30, 2017 and the cumulative costs recognized to date by the Program (in thousands):



	Total Costs Expected to be Incurred		Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017 (Cumulative costs recognized to date)
Restructuring:
Employee termination costs	$	3,319	$	615	$	1,008
Inventory Impairment	1,401		—		1,401
Facility related costs	1,373		43		158
Other related costs	561		131		200
Total Restructuring Activity	$	6,654	$	789	$	2,767

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



Balance at December 31, 2016	$	—
Restructuring charges:
Employee termination costs	1,008
Inventory Impairment	1,401
Facility related costs	158
Other related costs	200
Total restructuring charges for the period	2,767

Cash expenditures	(882		)
Other adjustments to accrual	—
Foreign currency translation adjustment	131
Balance at September 30, 2017	$	2,016