Note 4. Restructuring Charges

Cody Restructuring Program

On June 29, 2018, the Company announced a restructuring plan with respect to Cody Labs (the “Cody Restructuring Plan”). The plan focuses on a more select set of opportunities which will result in streamlined operations, improved efficiencies and a reduced cost structure. The Company currently estimates that it will incur approximately $4.5 million of total costs to implement the Cody Restructuring Plan, comprised primarily of approximately $3.0 million of severance and employee-related costs.

The expenses associated with the Cody Restructuring Plan included in restructuring expenses (credits) during the three and six months ended December 31, 2018 were as follows:


	Three Months Ended		Six Months Ended
(In thousands)	December 31, 2018		December 31, 2018
Employee separation costs (credits)	$	(640)	$	(496)
Facility closure costs		—		—
Total	$	(640)	$	(496)

In the second quarter of Fiscal 2019, the Company adjusted separation costs related to changes in stock price for unvested equity awards, which will be paid upon termination to certain employees.

A reconciliation of the changes in restructuring liabilities associated with the Cody Restructuring Plan from June 30, 2018 through December 31, 2018 is set forth in the following table:


	Employee		Facility Closure
(In thousands)	Separation Costs		Costs		Total
Balance at June 30, 2018	$	3,092	$	—	$	3,092
Restructuring Charges		(496)		—		(496)
Payments		(1,074)		—		(1,074)
Balance at December 31, 2018	$	1,522		—	$	1,522

2016 Restructuring Program

On February 1, 2016, in connection with the acquisition of KUPI, the Company announced a plan related to the future integration of KUPI and the Company’s operations (the “2016 Restructuring Program”). The plan focuses on the closure of KUPI’s corporate functions and the consolidation of manufacturing, sales, research and development and distribution functions. The Company estimates that it will incur an aggregate of up to approximately $20.0 million in restructuring charges for actions that have been announced or communicated since the 2016 Restructuring Program began. Of this amount, approximately $11.0 million relates to employee separation costs, approximately $1.0 million relates to contract termination costs and approximately $8.0 million relates to facility closure costs and other actions. The 2016 Restructuring Program is expected to be completed by the end of Fiscal 2019. The expenses associated with the restructuring program included in restructuring expenses during the three and six months ended December 31, 2018 and 2017 were as follows:


	Three Months Ended				Six Months Ended
	December 31,				December 31,
(In thousands)	2018		2017		2018		2017
Employee separation costs (credits)	$	293	$	210	$	707	$	(380)
Facility closure costs		560		825		1,024		1,942
Total	$	853	$	1,035	$	1,731	$	1,562

A reconciliation of the changes in restructuring liabilities associated with the 2016 Restructuring Program from June 30, 2018 through December 31, 2018 is set forth in the following table:


	Employee		Facility Closure
(In thousands)	Separation Costs		Costs		Total
Balance at June 30, 2018	$	3,614	$	—	$	3,614
Restructuring Charges		707		1,024		1,731
Payments		(150)		(1,024)		(1,174)
Balance at December 31, 2018	$	4,171	$	—	$	4,171