RESTRUCTURING PLANS

Business Restructuring

In the first quarter of fiscal 2019, the Company announced a restructuring plan to combine its operations in the United Kingdom and its operations in Australia. This restructuring was undertaken in order to improve profitability and efficiency through the elimination of (i) redundant back office functions; (ii) certain staffing positions and (iii) excess distribution and warehouse capacity, and was substantially completed in the second quarter of fiscal 2019. As part of this restructuring plan, the Company recorded a restructuring reserve of $557,000 in the second quarter of fiscal 2019. In the third quarter of fiscal 2019, the Company increased the restructuring reserve by $425,000 primarily for costs related to the wind down of one of its operations in Australia. Also, in connection with this restructuring plan, the Company recorded an impairment of property, plant and equipment at one of the affected facilities in the United Kingdom of $1,398,000, which is included in restructuring expenses. During the quarter and nine months ended December 31, 2018, the Company made payments of $649,000 and $703,000, respectively, related to the restructuring reserve. As of December 31, 2018, the remaining liability of $279,000 was classified in accrued other liabilities in the accompanying consolidated balance sheet.

Selected information relating to the aforementioned restructuring follows (in thousands):



	Employee Termination Costs			Facility Exit Costs			Other Costs			Total
Initial accrual	$	297		$	127		$	133		$	557
Charges to expense	132			152			141			425
Cash paid	(400		)	(87		)	(216		)	(703		)
Restructuring reserve as of December 31, 2018	$	29		$	192		$	58		$	279

Strategic Business Initiative

In the third quarter of fiscal 2019, the Company announced that it engaged an international consulting firm to perform a comprehensive review of its operating structure with the goal of improving the alignment of processes across the business, as the Company continues to integrate recent acquisitions and evaluate its portfolio. In connection with this initiative, the Company recorded a restructuring reserve of $797,000 for severance in the third quarter of fiscal 2019. This liability was classified in accrued other liabilities in the accompanying consolidated balance sheet as of December 31, 2018.