Costs Associated with Exit and Restructuring Activities

Restructuring and impairment charges are reported as a separate line within operating earnings in the Consolidated Statements of Earnings. Restructuring-related charges are recorded as a component of cost of goods sold. Total restructuring, impairment and restructuring-related charges were:



	Years Ended December 31,
	2016		2015		2014
Restructuring-related charges	$	—	$	631	$	1,935
Restructuring and impairment charges	3,048		14,564		5,941
Total restructuring, impairment, and restructuring-related charges	$	3,048	$	15,195	$	7,876

In June 2016, we announced plans to restructure operations by phasing out production at the Elkhart facility by mid-2018 and transitioning it into a research and development center supporting our global operations ("June 2016 Plan"). Additional organizational changes will also occur in various other locations. The cost of the plan is expected to be approximately $16,000 including severance and other one-time benefit arrangements. We have recorded $3,048 of termination and other one-time benefit charges impacting approximately 230 employees as of December 31, 2016. Additional costs related to line movements, asset impairment and equipment charges, and other costs will be expensed as incurred. The total restructuring liability related to the June 2016 Plan was $1,739 at December 31, 2016.

The following table displays the planned restructuring and impairment charges associated with the June 2016 Plan as well as a summary of the actual costs incurred through December 31, 2016:



June 2016 Plan	Planned Costs		Actual costs incurred through December 31, 2016
Workforce reduction	$	3,075	$	2,504
Equipment relocation	7,925		341
Asset impairment charge	3,700		—
Other charges	1,300		203
Restructuring and impairment charges	$	16,000	$	3,048

Total restructuring and impairment charges for the June 2016 Plan were as follows:



	Years Ended December 31,
	2016		2015
Restructuring and impairment charges	$	3,048	$	—

Not included in restructuring and impairment charges, but directly attributable to the June 2016 Plan, is an increase in tax expense of $2,316 relating to increases in valuation allowances on deferred tax assets for state net operating losses and tax credits and the revaluation of U.S. deferred taxes as a result of a change in our expected future tax rate as discussed in Note 17 "Income Taxes".

During April 2014, we announced plans to restructure our operations and consolidate our Canadian operations into other existing facilities as part of our overall plan to simplify our business model and rationalize our global footprint ("April 2014 Plan").

During the second quarter of 2015, management revised the April 2014 Plan. The amendment added $4,250 in planned costs for additional charges due to the extension of the timing of the plant shutdown, equipment impairment and relocation costs, administrative and legal costs, and training, travel and shipping costs to facilitate an effective transition.

These restructuring actions, which were substantially completed during 2015, resulted in the elimination 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 December 31, 2016:



April 2014 Plan	Planned Costs		Actual costs incurred through December 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

Under the April 2014 Plan, there were no restructuring, impairment, and restructuring-related charges for the year ended December 31, 2016. Restructuring, impairment, and restructuring-related charges were $4,923 for the year ended December 31, 2015 and $3,470 for the year ended December 31, 2014. The total restructuring liability related to the April 2014 Plan was $423 at December 31, 2016

During June 2013, we announced a restructuring plan to simplify our global footprint by consolidating manufacturing facilities into existing locations. This Plan included (1) the consolidation of operations from the U.K. manufacturing facility into the Czech Republic facility, (2) the consolidation of operations from the Carol Stream, Illinois manufacturing facility into the Juarez, Mexico facility, and (3) the discontinuation of manufacturing at the Singapore facility. Certain Corporate functions were consolidated or eliminated as a result of the June 2013 Plan and also as a result of the sale of our EMS business. These restructuring actions called for the elimination of approximately 350 positions.

During the fourth quarter of 2014, management revised the June 2013 Plan. The amendment added $4,000 in planned costs. Settlement of the U.K. pension plan was estimated to account for $2,000 of the added cost. The remaining $2,000 in restructuring and impairment charges were for severance costs that were estimated to result in the elimination of approximately 130 additional positions. The positions eliminated were spread globally throughout our businesses.

The following table displays the planned restructuring and restructuring-related charges associated with the June 2013 Plan, as well as a summary of the actual costs incurred through completion of the plan as of December 31, 2015:



June 2013 Plan	Planned Costs		Actual costs incurred through December 31, 2015
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, restructuring, impairment and restructuring-related chargers were $10,272 for the year ended December 31, 2015 and $4,406 for the year ended December 31, 2014.

Actions under this plan were complete by the end of 2015 and no liability remains related to the June 2013 Plan as of December 31, 2016.

The following table displays the restructuring liability activity for the year ended December 31, 2016:



June 2013 Plan and April 2014 Plan and June 2016 Plan	Restructuring Liability
Restructuring liability at January 1, 2016	$	826
Restructuring charges	3,048
Cost paid	(1,729		)
Other activities (1)	17
Restructuring liability at December 31, 2016	$	2,162

(1) Other activities includes currency translation adjustments not recorded through restructuring expense.

Total restructuring liability included in Other long-term obligations is $1,121 at December 31, 2016. The remaining liability of $1,041 is included in Accrued expenses and other liabilities at December 31, 2016.