Restructuring and Severance Charges

The Company incurred total restructuring and severance costs of $2.0 million and $3.1 million in the third quarter of fiscal 2019 and 2018, respectively, and $2.8 million and $3.7 million for the nine months ended July 28, 2019 and July 29, 2018, respectively.

2018 Restructuring Plan

On October 16, 2018, the Company approved a restructuring plan (the “2018 Plan”) based on an organizational and process redesign intended to optimize the Company’s strategic growth initiatives and overall business performance. In connection with the 2018 Plan, the Company incurred restructuring charges comprised of severance and benefit costs and facility and lease termination costs. The 2018 Plan is expected to be completed by the Company's fiscal year end on November 3, 2019. The Company incurred restructuring and severance costs of $0.5 million for the third quarter 2019. The total costs since inception through the third quarter of fiscal 2019 are approximately $5.3 million, consisting of $1.1 million in North American Staffing, $0.4 million in International Staffing and $3.8 million in Corporate and Other. As of July 28, 2019, the Company anticipates payments of $0.9 million and $0.6 million will be made in fiscal 2019 and 2020, respectively. The remaining $1.3 million related to facility and lease termination costs will be paid through December 2025.

Change in Executive Management

Effective June 6, 2018, Michael Dean departed from his role as President and Chief Executive Officer of the Company and is no longer a member of the Board of Directors. The Company and Mr. Dean subsequently executed a separation agreement, effective June 29, 2018 (the "Dean Separation Agreement"). The Company incurred related severance costs of $2.6 million in the third quarter of fiscal 2018, which is payable over a period of 24 months.

Exit of Customer Care Solutions Business

In the third quarter of fiscal 2019, the Company exited its customer care solutions business, which is currently reported as a part of the Corporate and Other category. This exit will enable the Company to further strengthen its focus on its core staffing business and align its resources to streamline operations, improve cost competitiveness and increase profitability. As a result of this exit, the Company incurred restructuring and severance costs of $1.4 million and $1.7 million during the third quarter and the first nine months of fiscal 2019, respectively.

Other Restructuring Costs

During fiscal 2019 and 2018, there were other restructuring actions taken by the Company as part of its continued efforts to reduce costs and achieve operational efficiency. The Company recorded severance costs of $0.1 million and $0.5 million in the third quarter of fiscal 2019 and 2018, respectively, primarily resulting from the elimination of certain positions.

Accrued restructuring and severance costs are included in Accrued compensation and Accrued insurance and other in the Consolidated Balance Sheets. Activity for the first nine months of fiscal 2019 is summarized as follows (in thousands):



	July 28, 2019
Balance, beginning of year	$	5,702
Charged to expense	2,800
Cash payments	(4,326		)
Ending Balance	$	4,176

The remaining balance at July 28, 2019 of $4.2 million, primarily related to Corporate and Other, includes $2.3 million related to the cost reduction plan implemented in fiscal 2018, $1.1 million related to the change in executive management and $0.8 million related to the exit of the customer care solutions business.