RESTRUCTURING AND OTHER RELATED CHARGES

Our restructuring and other related charges, net for the three and nine months ended September 30, 2017 are summarized by segment as follows (in thousands):



	Three Months Ended September 30, 2017		Nine Months Ended September 30, 2017
	(unaudited)		(unaudited)
Furmanite Belgium and Netherlands Exit
Severance and related costs (credits)
TeamFurmanite	$	5	$	(152	)
Disposal gain
TeamFurmanite	—		(1,056		)
Subtotal	5		(1,208		)

2017 Cost Savings Initiative
Severance and related costs
TeamQualspec	862		862
TeamFurmanite	1,219		1,219
Quest Integrity	424		424
Corporate and shared support services	127		364
Subtotal	2,632		2,869
Grand total	$	2,637	$	1,661

Furmanite Belgium and Netherlands Exit

Due to continued economic softness and unfavorable costs structures, we committed to a plan to exit the acquired Furmanite operations in Belgium and the Netherlands in the fourth quarter of 2016 and communicated the plan to the affected employees. The closures are now substantially complete. During the nine months ended September 30, 2017, we recorded a reduction to severance costs of $0.2 million and a disposal gain of $1.1 million. The disposal gain resulted from an asset sale of the Furmanite operations in Belgium, which was completed during the first quarter of 2017, whereby we conveyed the business operations, $0.3 million of cash and approximately $0.2 million of other assets to the purchaser in exchange for the assumption by the purchaser of certain liabilities, primarily severance-related liabilities of $1.6 million associated with the employees who transferred to the purchaser in connection with the transaction.

A rollforward of our accrued severance liability associated with the Belgium and Netherlands exit is presented below (in thousands):



	Nine Months Ended September 30, 2017
	(unaudited)
Balance, beginning of period	$	4,846
Charges (credits), net	(152		)
Payments	(3,024		)
Disposal	(1,601		)
Foreign currency adjustments	70
Balance, end of period	$	139

With respect to these exit activities, to date we have incurred cumulatively $4.7 million of severance-related costs and an impairment loss on property, plant and equipment of $0.7 million, partially offset by a disposal gain of $1.1 million. We estimate that we will incur additional costs associated with this restructuring/closure, primarily related to certain lease terminations, of less than $1 million.

2017 Cost Savings Initiative

On July 24, 2017, we announced our commitment to a cost savings initiative to take direct actions to reduce our overall cost structure given the ongoing weak and uncertain macro environment in the industries in which we operate. The cost savings initiative includes the elimination of certain employee positions and reductions to discretionary spending and is expected to reduce our annual operating expenses by approximately $30 million. The resulting severance and related charges of this initiative amounted to $2.9 million during the nine months ended September 30, 2017.

A rollforward of our accrued severance liability associated with this initiative is presented below (in thousands):



	Nine Months Ended September 30, 2017
	(unaudited)
Balance, beginning of period	$	—
Charges	2,869
Payments	(2,527		)
Balance, end of period	$	342

With respect to this initiative, to date we have incurred cumulatively $2.9 million in severance and related expenses. Although the initial phase of our cost savings initiative is largely complete, the Company is continuing a comprehensive assessment of its operating plan, which could result in additional initiatives.