4. Restructuring

On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment, which related primarily to anticipated facility shutdowns and associated activities. Total restructuring costs expected to be incurred are approximately $7.9 million, which includes employee severance and other employee-related costs of approximately $3.2 million, $2.6 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.1 million. The Company expects to incur approximately $0.8 million during the remainder of 2017 under the Plan, as all remaining actions under the Plan are expected to be substantially completed by the end of the year.

During the three and nine months ended September 30, 2017, the Company incurred restructuring charges of $1.0 million and $5.2 million, respectively, related to closing a manufacturing plant in Bluffton, Indiana. In the third quarter of 2017, the Bluffton facility and certain related equipment, previously classified as held for sale, were sold for approximately $6.0 million, which resulted in a gain of $2.6 million. Additional gains of $0.2 million and $1.5 million for the three and nine months ended September 30, 2017, respectively, were recognized on other asset dispositions in connection with closing this plant.

In the second quarter of 2017, the Company finalized the specific actions to be taken under the Plan to reduce headcount in its Scarborough, Ontario, Canada location. These actions resulted in the recognition of $0.9 million and $1.6 million of severance and related costs for the three and nine months ended September 30, 2017, respectively.

During the three and nine months ended September 30, 2017, the Company recognized $0.2 million and $0.3 million of restructuring charges related to the planned closure of a manufacturing plant in Sandusky, Ohio.

The restructuring charges noted above are presented in the Condensed Consolidated Statement of Operations (Unaudited) as follows:

	For the Three Months Ended September 30, 2017		For the Nine Months Ended September 30, 2017
Cost of sales	$	1,908	$	6,968
Selling, general and administrative expenses		164		164
	$	2,072	$	7,132

The table below summarizes restructuring activity for the nine months ended September 30, 2017:

	Employee Reduction			Accelerated Depreciation			Other Exit Costs			Total
Balance at January 1, 2017	$	—		$	—		$	—		$	—
Charges to expense		2,868			2,018			2,246			7,132
Cash payments		(773	)		—			(1,929	)		(2,702	)
Non-cash utilization		—			(2,018	)		—			(2,018	)
Balance at September 30, 2017	$	2,095		$	—		$	317		$	2,412

In addition to the restructuring costs noted above, the Company has also incurred other associated costs of the Plan of $0.3 million and $1.0 million for the three and nine months ended September 30, 2017, respectively, which are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operations (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.2 million are expected to be incurred throughout the remainder of 2017.