RESTRUCTURING

On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business.

During fiscal 2017, we launched a multi-year restructuring initiative designed to reposition our organization and improve our cost structure. This initiative included a reduction of headcount and operating costs, simplification of certain product lines, and modification of manufacturing operations to align with our strategic direction.

During the three months ended July 1, 2017 and July 2, 2016, we incurred $2.5 million and $17.7 million, respectively, of restructuring and turnaround costs under the initial phase of the restructuring initiative. This initial phase of the multi-year restructuring initiative is substantially complete. Additionally, during the three months ended July 2, 2016, we recorded $1.1 million of restructuring and turnaround costs under a prior program. We continue to assess non-core and underperforming assets and evaluate opportunities to improve our cost structure as part of our turnaround and expect to incur additional costs and benefits during fiscal 2018 and beyond.

The following summarizes the restructuring activity for the three months ended July 1, 2017:



(In thousands)	Severance and Other Employee Costs			Other Costs			Total Restructuring
Balance at April 1, 2017	$	7,001		$	467		$	7,468
Costs incurred, net of reversals	350			706			1,056
Payments	(2,811		)	(338		)	(3,149		)
Balance at July 1, 2017	$	4,540		$	835		$	5,375

Substantially all of the restructuring costs for the three months ended July 1, 2017 have been included as a component of selling, general and administrative expenses in the accompanying consolidated statements of income (loss). As of July 1, 2017, we had a restructuring liability of $5.4 million, of which approximately $4.9 million is payable within the next twelve months.

In addition to the restructuring costs included in the table above, during the three months ended July 1, 2017, we also incurred $1.4 million of costs that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, which we refer to as turnaround costs. These costs consist primarily of expenditures directly related to our restructuring initiative and include program management, implementation of the global strategic review initiatives and accelerated depreciation.

The tables below present restructuring and turnaround costs by reportable segment:



Restructuring costs	Three Months Ended
(in thousands)	July 1, 2017		July 2, 2016
Japan	$	109	$	874
EMEA	10		3,074
North America Plasma	—		375
All Other	937		12,063
Total	$	1,056	$	16,386

Turnaround costs	Three Months Ended
(in thousands)	July 1, 2017		July 2, 2016
Japan	$	—	$	1
EMEA	6		26
North America Plasma	152		—
All Other	1,269		2,403
Total	$	1,427	$	2,430

Total restructuring and turnaround costs	$	2,483	$	18,816