Restructuring and Other Charges

During the second fiscal quarter of 2015, the Company began implementing a series of initiatives intended to improve operational efficiency, reduce costs, and better position itself to drive growth of the business in the future. We refer to these initiatives, in the aggregate, as the "2015 Restructuring". These activities evolved and developed over time as management identified and evaluated opportunities for changes in the Company’s operations (and related areas of potential cost savings), as economic conditions changed and as the realignment of the Company’s operations into its four global lines of business was implemented. Actions related to the 2015 Restructuring include involuntary terminations, the abandonment of certain leased offices, combining operational organizations, and the co-location of employees into other existing offices. We are not exiting any service types or client end-markets in connection with the 2015 Restructuring. The 2015 Restructuring was substantially completed as of the end of the second fiscal quarter of 2017, with future expenses not expected to exceed $15 million.

The majority of the costs associated with the 2015 Restructuring are included in SG&A expense in the Consolidated Statements of Earnings. The following table summarizes the impact of the 2015 Restructuring on the Company's reportable segments for the three and six month periods ended March 31, 2017 and April 1, 2016 (in thousands):

	Three Months Ended				Six Months Ended
	March 31, 2017		April 1, 2016		March 31, 2017		April 1, 2016
Aerospace & Technology	$	834	$	239	$	1,004	$	2,435
Buildings & Infrastructure		8,315		601		16,223		15,567
Industrial		6,964		2,316		9,488		19,893
Petroleum & Chemicals		15,791		29,039		29,375		53,015
Corporate		20,362		3,173		27,917		12,841
Total	$	52,266	$	35,368	$	84,007	$	103,751

The activity in the Company’s accrual for the 2015 Restructuring for the three and six month periods ended March 31, 2017 is as follows (in thousands):

Balance at September 30, 2016	$	152,174
Charges		31,741
Payments		(44,166	)
Balance at December 30, 2016	$	139,749
Charges		52,266
Payments		(37,008	)
Balance at March 31, 2017	$	155,007

The following table summarizes the 2015 Restructuring by major type of restructuring costs for the three and six month periods ended March 31, 2017 and April 1, 2016 (in thousands):

	Three Months Ended				Six Months Ended
	March 31, 2017		April 1, 2016		March 31, 2017		April 1, 2016
Lease Abandonments	$	27,992	$	19,872	$	44,601	$	64,271
Involuntary Terminations		18,554		15,410		29,886		38,289
Outside Services		2,261		86		3,552		1,191
Other restructuring related		3,459		-		5,968		-
Total	$	52,266	$	35,368	$	84,007	$	103,751

Cumulative amounts incurred to date for the 2015 Restructuring by each major type of restructuring costs as of March 31, 2017 is as follows (in thousands):

	Cumulative Amount Incurred to Date
Lease Abandonments	$	227,813
Involuntary Terminations		170,798
Outside Services		23,684
Other restructuring related		6,811
Total	$	429,106

Also, during the second fiscal quarter of 2017, the Company entered into strategic business restructuring activities associated with realignment of its Europe, U.K. and Middle East regional operations. Pre-tax net charges of $22.6 million were recorded during the quarter associated mainly with net realizable value write-offs on contract accounts receivable of $16.5 million, with additional charges recorded for statutory redundancy and severance costs of $1.4 million and other liabilities of $4.7 million which are both expected to be paid or settled within the next 12 months. Further, management has determined that these business restructuring activities do not qualify for discontinued operations treatment in accordance with U.S. GAAP as the associated businesses were not material.

Collectively, the 2015 Restructuring and the above mentioned business restructuring activities in the Europe, U.K. and Middle East region are referred to as “Restructuring and other charges”.