Restructuring and Other Charges

Restructuring Charges

During the second quarter of 2018, in connection with the Combination, the Company committed to a restructuring plan to achieve cost savings. The Company expects to integrate its operations and reduce its combined cost structure through workforce reductions that eliminate duplicative positions and the consolidation of certain administrative, manufacturing and research and development facilities. In connection with this plan, the Company announced on May 10, 2018 that it will close its Hayward, California based operations (the "Plan"). Employee separation charges include the cost of benefits provided pursuant to the Company’s severance programs for employees at the Company's Hayward facility and other facilities.

The Company recorded a $2.2 million net benefit, primarily related to changes in estimates for certain employee-related separation liabilities, for the three months ended September 30, 2018. The Company recorded employee separation charges of $42.3 million for the nine months ended September 30, 2018. There were no restructuring charges in 2017.

The charges related to restructuring impacted segment earnings as follows (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018		2017
Generic	(2,885		)	$	—	21,912		$	—
Specialty	(27		)	—		2,394		—
Corporate	756			—		18,003		—
Total restructuring charges	$	(2,156	)	$	—	$	42,309	$	—

The following table shows the change in the employee separation-related liability associated with the Company's restructuring programs (in thousands):



	Employee Separation
Balance at December 31, 2017	$	—
Liabilities assumed in Impax acquisition	2,199
Charges to income	45,405
Change in estimated liability	(3,096		)
Payments	(18,079		)
Balance at September 30, 2018	$	26,429

As of September 30, 2018, the Company currently estimates that it will incur additional aggregate cash expenditures of approximately $35.0 million to $45.0 million related to severance and other employee costs in connection with the Plan over the next 15 months. Since the Company is in the early stages of implementing the Plan, the amount and timing of any cash expenditures related to dismantling and asset removal and other site exit costs cannot be estimated at this time. As the Plan is implemented, the Company's management will reevaluate the estimated expenses and charges set forth above and may revise its estimates, as appropriate.