Note 4 – Restructuring and Related Activities

The Company places a strong emphasis on controlling its costs and combats general price inflation by continuously improving its efficiency and operating performance. When the ongoing cost containment activities are not adequate, the Company takes actions to maintain its cost competitiveness.

The Company incurred significant restructuring costs in its past to reduce its cost structure. Historically, the Company's primary cost reduction technique was through the transfer of production from high-labor-cost countries to lower-labor-cost countries. Since 2013, the Company's cost reduction programs have primarily focused on reducing fixed costs, including selling, general, and administrative expenses. As of December 31, 2017, the Company's restructuring programs were substantially completed.

The following table summarizes restructuring and related expenses which were recognized and reported on a separate line in the accompanying consolidated statements of operations:

	Years ended December 31,
	2017		2016
MOSFETs Enhanced Competitiveness Program	$	3,204	$	9,744
Global Cost Reduction Programs		8,069		9,918
Modules Production Transfer		-		(463	)
Total	$	11,273	$	19,199

MOSFETs Enhanced Competitiveness Program

Over a period of approximately 2 years and in a period of discrete steps, the manufacture of wafers for a substantial share of products was transferred into a more cost-efficient fab. As a consequence, certain other manufacturing previously occurring in-house was transferred to third-party foundries. This transfer of production was substantially completed by the end of the first fiscal quarter of 2016.

As a result of a review of the financial results and outlook for the Company's MOSFETs segment following the completion of the aforementioned production transfers, in November 2016, the Company determined to implement further cost reductions for the MOSFETs segment. In November 2016, the Company announced an extension of the MOSFETs Enhanced Competitiveness Program. The revised program included various cost reduction initiatives, primarily the transfer of all remaining manufacturing operations at its Santa Clara, California facility to other Vishay facilities or third-party subcontractors.

The following table summarizes the activity to date related to this program:

Expense recorded in 2013	$	2,328
Cash paid		(267	)
Balance at December 31, 2013	$	2,061
Expense recorded in 2014		6,025
Cash paid		(856	)
Balance at December 31, 2014	$	7,230
Expense recorded in 2015		5,367
Cash paid		(426	)
Foreign currency translation		1
Balance at December 31, 2015	$	12,172
Expense recorded in 2016		9,744
Cash paid		(15,686	)
Foreign currency translation		2
Balance at December 31, 2016	$	6,232
Expense recorded in 2017		3,204
Cash paid		(7,173	)
Balance at December 31, 2017	$	2,263
Cash paid		(2,055	)
Balance at December 31, 2018	$	208

Note 4 – Restructuring and Related Activities (continued)

Severance benefits are generally paid in a lump sum at cessation of employment. Other exit costs of $958 and $5,763 are included in the expenses incurred in 2017 and 2016, respectively, in the table above. The entire amount of the liability is considered current and is included in other accrued expenses on the accompanying consolidated balance sheets.

Sale of Vacated Property

On December 20, 2018, the Company entered into a transaction to sell the site of its former manufacturing facility in Santa Clara, California to a third-party buyer. On December 20, 2018, the Company received sale proceeds of $45,500 and concurrently leased-back the property under a short-term arrangement, to raze the buildings on the property.

Due to the short-term lease-back, obligation to raze the buildings, and other factors, the transaction is not considered a completed sale under U.S. GAAP. The cash received is included in other accrued expenses on the accompanying consolidated balance sheet, and included in proceeds from sale of property and equipment on the accompanying consolidated statement of cash flows. The short-term lease-back will expire on the earlier of 15 days after the completion of demolition or June 30, 2019.

The Company continues to evaluate the effect of ASU No. 2016-02 on the transaction.

Modules Production Transfer

In an effort to reduce costs and streamline production of its module products within its Diodes segment, the Company committed to two smaller cost reduction programs related to the transferring of production of certain of its products.

The Company recorded restructuring and severance costs of $2,080 for the year ended December 31, 2014 and an adjustment of $(463) during the year ended December 31, 2016 related to these production transfer programs. Substantially all amounts related to these programs were paid as of December 31, 2016.

Note 4 – Restructuring and Related Activities (continued)

Global Cost Reduction Programs

The global cost reduction programs announced in 2015 included a plan to reduce selling, general, and administrative costs company-wide, and targeted streamlining and consolidation of production for certain product lines within its Capacitors and Resistors & Inductors segments. These programs were substantially completed as of December 31, 2017.

The following table summarizes the activity to date related to this program:

Expense recorded in 2015	$	13,753
Cash paid		(986	)
Foreign currency translation		(150	)
Balance at December 31, 2015	$	12,617
Expense recorded in 2016		9,918
Cash paid		(16,237	)
Foreign currency translation		(34	)
Balance at December 31, 2016	$	6,264
Expense recorded in 2017		8,069
Cash paid		(7,168	)
Foreign currency translation		500
Balance at December 31, 2017	$	7,665
Cash paid		(3,903	)
Foreign currency translation		(117	)
Balance at December 31, 2018	$	3,645

The following table summarizes the expense recognized by segment related to this program:

	Years ended December 31,
	2017		2016
Diodes	$	428	$	788
Optoelectronic Components		437		936
Resistors & Inductors		4,981		5,173
Capacitors		434		687
Unallocated Selling, General, and Administrative Expenses		1,789		2,334
Total	$	8,069	$	9,918

Severance benefits are generally paid in a lump sum at cessation of employment. Other exit costs of $577 are included in the expenses incurred in 2017 in the tables above. The current portion of the liability is $2,330 and is included in other accrued expenses on the accompanying consolidated balance sheet. The non-current portion of the liability is included in other liabilities on the accompanying consolidated balance sheet.