RESTRUCTURING, REORGANIZATION, RELOCATION AND SEVERANCE

Second Quarter 2014 Realignment

During the second quarter of 2014, we began to implement a resource realignment plan that will cause us to incur expenses during the remainder of 2014. The realignment plan aims to improve our operational efficiency by eliminating redundancies in sites and personnel resulting from recent acquisitions and expansion activities. We intend to shift our resources to growing regions, such as Asia, and potential growth markets, such as structural biology, oil and gas, near-line semiconductor processing and metals research, and expect the realignment plan to better position us to pursue our growth strategy. The realignment plan activities currently include the consolidation of our three Australia sites in Canberra; the closure of our facility in Delmont, Pennsylvania and relocation of those operations to our new facility in the Czech Republic; relocation of our Japan demonstration facility to our Shanghai facility; selective reductions in staffing, relocations and compensation adjustments related to the foregoing activities and other realignment of management resources.

The following table summarizes the costs incurred under our second quarter realignment plan:



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
Realignment Costs	September 28, 2014		June 29, 2014		September 28, 2014
Inventory write-offs	$	230	$	755	$	985
Acceleration of acquisition-related earn-out	—		2,500		2,500
Impairment and other asset write-offs	1,831		466		2,297
Restructuring activities	7,699		2,228		11,259
Total	$	9,760	$	5,949	$	17,041

These costs have been recorded in our Consolidated Statements of Operations as follows:



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
Statement of Operations Classification	September 28, 2014		June 29, 2014		September 28, 2014
Cost of sales	$	230	$	755	$	985
Selling, general and administrative	1,831		2,966		4,797
Restructuring, reorganization and relocation	7,699		2,228		11,259
Total	$	9,760	$	5,949	$	17,041

The total cost of the realignment plan, including costs to move to our new facility in the Czech Republic, is estimated to be between $24.0 million and $26.0 million, with all costs to be incurred during 2014. Savings from the realignment plan are expected to be approximately $10.0 million on an annual basis.

First Quarter 2014 Restructuring

During the first quarter of 2014, we engaged in a restructuring plan principally aimed at consolidating our sales force in Europe. The $1.3 million cost incurred in implementing the restructuring plan primarily consisted of severance and other employee termination related costs, and was incurred during the first quarter of 2014. We do not expect to incur any additional costs under this plan. Savings from this plan are expected to be approximately $1.8 million on an annual basis.

Group Structure Reorganization

During the first quarter of 2013, we reorganized the company into a group structure in order to enable us to efficiently execute our growth strategy. The costs associated with the reorganization consisted primarily of severance costs and resulted in the termination of certain positions throughout the company. In anticipation of this reorganization, we incurred $2.9 million of costs during the fourth quarter of 2012, and recorded $1.1 million of severance costs during 2013, for a total cost of $4.0 million. We do not expect to incur any additional costs under this reorganization plan.

Restructuring, Reorganization, Relocation and Severance Accrual

The following table summarizes the charges, expenditures, write-offs and adjustments related to our restructuring, reorganization, relocation and severance accrual (in thousands):



Thirty-Nine Weeks Ended September 28, 2014	Second Quarter 2014 Realignment			First Quarter 2014 Restructuring			Group Structure Reorganization			Total
Beginning accrued liability	$	—		$	—		$	50		$	50
Charged to expense, net	9,928			1,331			—			11,259
Expenditures	(3,466		)	(1,331		)	(50		)	(4,847		)
Ending accrued liability	$	6,462		$	—		$	—		$	6,462



Thirty-Nine Weeks Ended September 29, 2013	Group Structure Organization			Total
Beginning accrued liability	$	2,692		$	2,692
Charged to expense, net	1,090			1,090
Expenditures	(3,466		)	(3,466		)
Write-offs and adjustments	50			50
Ending accrued liability	$	366		$	366