Costs Associated with Exit and Restructuring Activities

Costs associated with exit and restructuring activities are recorded in the Condensed Consolidated Statement of Earnings as follows: restructuring related charges are recorded as a component of Cost of Goods Sold, and restructuring and impairment charges are reported on a separate line and included in Operating Earnings.

Total restructuring, impairment and restructuring related charges were as follows:



	Three Months Ended
	March 31,		March 29,
	2016		2015
Restructuring-related charges (1)	$	—	$	75
Restructuring and impairment charges	—		738
Total restructuring, impairment, and restructuring-related charges	$	—	$	813

(1) Restructuring-related charges are included in costs of goods sold

In April 2014, CTS announced plans to restructure its operations and consolidate its Canadian operations into other existing CTS facilities as part of CTS’ overall plan to simplify its business model and rationalize its global footprint (“April 2014 Plan”).

During the second quarter of 2015, CTS management revised the April 2014 Plan. The revision added $4,250 in planned costs. Additional administrative and legal costs were expected to account for $1,300 of the additional restructuring and impairment charges. The remaining $2,950 in restructuring related charges are for additional costs related to equipment relocation, training, travel and shipping.

These restructuring actions, which were substantially completed during 2015, resulted in the reduction of approximately 120 positions.

The following table displays the planned restructuring and restructuring-related charges associated with the April 2014 Plan, as well as a summary of the actual costs incurred through March 31, 2016:



			Actual costs
	Planned		incurred through
April 2014 Plan	Costs		March 31, 2016
Inventory write-down	$	850	$	—
Equipment relocation	1,800		444
Other charges	1,400		113
Restructuring-related charges, included in cost of goods sold	$	4,050	$	557

Workforce reduction	$	4,200	$	4,423
Other charges, including pension termination costs	1,700		3,413
Restructuring and impairment charges	$	5,900	$	7,836

Total restructuring, impairment and restructuring related charges	$	9,950	$	8,393

Total restructuring, impairment and restructuring related charges under the April 2014 Plan were as follows:



	Three Months Ended
	March 31,		March 29,
	2016		2015
Restructuring-related charges	$	—	$	—
Restructuring and impairment charges	—		361
Total restructuring, impairment, and restructuring related charges	$	—	$	361

In June 2013, CTS announced a restructuring plan to simplify CTS’ global footprint by consolidating manufacturing facilities into existing locations (“June 2013 Plan”). The June 2013 Plan included the consolidation of operations from the U.K. manufacturing facility into the Czech Republic facility, the Carol Stream, Illinois manufacturing facility into the Juarez, Mexico facility and discontinuing manufacturing at the Singapore facility. Certain Corporate functions were consolidated or eliminated as a result of the June 2013 Plan. These restructuring actions were completed in 2015 and resulted in the reduction of approximately 350 positions.

During the fourth quarter of 2014, CTS management revised the June 2013 Plan. The revision added $4,000 in planned costs. Future settlement of the U.K. pension plan was expected to account for $2,000 of the added cost. The remaining $2,000 in restructuring and impairment charges were for severance costs and resulted in the reduction of approximately 130 additional positions throughout CTS businesses. The above actions were substantially complete in 2015.

The following table displays the planned restructuring and restructuring-related charges associated with the June 2013 Plan and a summary of the actual costs incurred through March 31, 2016:



	Planned		Actual costs incurred through
June 2013 Plan	Costs		March 31, 2016
Inventory write-down	$	800	$	1,143
Equipment relocation	900		1,792
Other charges	100		702
Restructuring-related charges, included in cost of goods sold	$	1,800	$	3,637

Workforce reduction	$	10,150	$	9,615
Asset impairment charge	3,000		4,139
Other charges, including pension termination costs	7,650		10,205
Restructuring and impairment charges	$	20,800	$	23,959

Total restructuring and restructuring-related charges	$	22,600	$	27,596

Under the June 2013 Plan, total restructuring, impairment and restructuring related charges incurred were as follows:



	Three Months Ended
	March 31,		March 29,
	2016		2015
Restructuring-related charges	$	—	$	75
Restructuring and impairment charges	—		377
Total restructuring, impairment, and restructuring-related charges	$	—	$	452

The following table displays the restructuring reserve activity for the period ended March 31, 2016:



June 2013 Plan and April 2014 Plan
Restructuring liability at January 1, 2016	$	826
Restructuring and restructuring-related charges, excluding asset impairments and write-offs	—
Cost paid	—
Restructuring liability at March 31, 2016	$	826