Restructuring Charges

During fiscal 2015, in response to the adverse market conditions, management implemented further cost reduction initiatives, which we refer to as the Restructuring Program. Expected and actual costs related to the Restructuring Program have continued into 2016 as more activities have been planned and initiated. These costs include entering into severance and termination agreements and full or partial closures and idling of certain facilities in order to better align the Company's overall cost structure with anticipated levels of future demand. We currently have costs forecasted under the Restructuring Program through the end of fiscal 2017.

Restructuring charges incurred to date related to the Restructuring Program have consisted primarily of employee severance and termination costs, asset impairment charges and accelerated depreciation. Other costs consist primarily of equipment and inventory relocation costs, site clean-up costs, production readiness testing costs, and transition costs, as well as inventory and other asset write-downs. The following tables summarize restructuring costs by line item:



In thousands	Year Ended October 28, 2016						Year Ended October 30, 2015
	Restructuring and Other Impairment Charges		Cost of Sales		Total		Restructuring and Other Impairment Charges		Cost of Sales		Total
Employee severance and termination costs	$	46,559	$	—	$	46,559	$	31,376	$	—	$	31,376
Asset impairment charges	18,962		—		18,962		—		—		—
Accelerated depreciation	20,065		—		20,065		2,079		—		2,079
Other costs	4,310		6,276		10,586		—		—		—
Total restructuring and related charges	$	89,896	$	6,276	$	96,172	$	33,455	$	—	$	33,455

The following tables summarize the amounts incurred for the year by segment:



In thousands	Year Ended October 28, 2016
	Underground		Surface		Corporate		Total
Employee severance and termination costs*	$	41,115	$	5,049	$	395	$	46,559
Asset impairment charges	18,962		—		—		18,962
Accelerated depreciation	13,325		6,740		—		20,065
Other costs	9,691		895		—		10,586
Total restructuring and related charges	$	83,093	$	12,684	$	395	$	96,172



In thousands	Year Ended October 30, 2015
	Underground		Surface		Corporate		Total
Employee severance and termination costs	$	16,340	$	12,451	$	2,585	$	31,376
Accelerated depreciation	2,079		—		—		2,079
Total restructuring and related charges	$	18,419	$	12,451	$	2,585	$	33,455

* The amount incurred during the year ended October 28, 2016 includes $9.4 million of expense for contractual termination benefits under the Joy Global qualified pension plan as part of continued restructuring activities in our Underground division. As noted below, amounts accrued for contractual termination benefits are included in our retiree benefit liabilities.

The impairment charges above relate to both property, plant and equipment and indefinite-lived trademarks. During fiscal 2016, we assessed for impairment the long-lived assets of an asset group in China. This assessment was performed as a result of our decision to idle certain facilities in China due to the continued market challenges in that region. As a result of such assessment, it was determined that the cash flows associated with this asset group would be insufficient to support their carrying values. Valuations were performed over property, plant and equipment using the market approach for real property. Personal property was valued primarily using the cost approach. As a result of this analysis, we recorded non-cash, pre-tax impairment charges of $12.4 million for the year ended October 28, 2016 for our Underground segment related to such property, plant, and equipment. These fair value determinations are categorized as Level 3 in the fair value hierarchy. Refer to Note 20, Fair Value Measurements, for the definition of Level 3 inputs.

As discussed in Note 8, Goodwill and Other Intangible Assets, we also assessed our indefinite-lived trademarks using the relief-from-royalty methodology during fiscal 2016 due to our decision to idle certain facilities in China and the continued market challenges in that region. As a result, a valuation was performed over trademarks using the relief-from-royalty methodology and a non-cash, pre-tax impairment charge of $6.6 million was recorded for the year ended October 28, 2016 by our Underground segment.

The following table summarizes the cumulative amounts incurred from inception to date by segment:



In thousands	October 28, 2016
	Underground		Surface		Corporate		Total
Employee severance and termination costs	$	57,455	$	17,500	$	2,980	$	77,935
Asset impairment charges	18,962		—		—		18,962
Accelerated depreciation	15,404		6,740		—		22,144
Other costs	9,691		895		—		10,586
Total restructuring and related charges	$	101,512	$	25,135	$	2,980	$	129,627

The following table summarizes the total expected costs from inception of the Restructuring Program through fiscal 2017 by segment:



In thousands	October 28, 2016
	Underground		Surface		Corporate		Total
Employee severance and termination costs	$	59,000	$	18,000	$	3,000	$	80,000
Asset impairment charges	19,000		—		—		19,000
Accelerated depreciation	20,000		7,000		—		27,000
Other costs	13,000		2,000		—		15,000
Total restructuring and related charges	$	111,000	$	27,000	$	3,000	$	141,000

Amounts impacting the Company's reserves for restructuring charges for its Restructuring Program relate to employee severance and termination and other costs as follows:



In thousands	October 28, 2016									October 30, 2015
	Employee Severance and Termination Costs			Other Costs			Total			Employee Severance and Termination Costs			Other Costs		Total
Beginning accrual	$	13,613		$	—		$	13,613		$	—		$	—	$	—
Costs incurred	37,149			4,858			42,007			31,376			—		31,376
Costs paid/settled	(41,616		)	(4,858		)	(46,474		)	(17,751		)	—		(17,751		)
Other adjustments	(2,915		)	—			(2,915		)	—			—		—
Effect of foreign currency translation	(252		)	—			(252		)	(12		)	—		(12		)
Ending accrual	$	5,979		$	—		$	5,979		$	13,613		$	—	$	13,613

Included in other adjustments for the year ended October 28, 2016 is $2.6 million of contractual termination benefits recognized in fiscal 2015 under the Joy Global qualified pension plan for benefits to be provided to certain employees as part of restructuring activities in our Underground division. Those amounts are recorded in our retiree benefit liabilities and are therefore excluded from the restructuring accrual roll-forward above.

For the Restructuring Program, total restructuring charges are currently anticipated to be approximately $141 million through fiscal 2017, with total expected cash costs related to the Restructuring Program estimated to be approximately $88 million.