RESTRUCTURING CHARGES

In March 2017, management initiated a strategic restructuring program in our MMS segment with the goals of streamlining the Company's cost structure, increasing operational efficiencies and cash generation, and improving shareholder returns. This program consists of rationalizing certain product lines, consolidating certain European manufacturing operations, and selling certain assets and is projected to be substantially complete by mid-2018.

As part of the above mentioned program, in September 2017, the Company agreed to sell a manufacturing facility in Biel, Switzerland for $9.8 million, for which a deposit of $0.5 million was received. The building and the related deposit are included in "Assets Held for Sale" and "Accrued Expenses" in the Consolidated Balance Sheets. The sale is expected to be finalized in the second quarter of 2018.

During September 2017, the Company initiated a strategic global realignment of our selling organization with a focus on unified regional sales channels to improve customer contact and service, a simplified product offering, and the elimination of redundancies. In addition, we have initiated a program to optimize our purchasing and supply chain management practices through consolidation of these teams into a single organization to leverage our global talent and buying power. This initiative is expected to be substantially completed in 2018.

The combined March 2017 initiative and the September 2017 global strategic program (the combined "Program") is intended to generate annual pre-tax savings ranging from approximately $12.0 million to $12.5 million once fully implemented in the latter part of 2018. We expect to incur total costs of approximately $7.5 million, of which $1.4 million is a non-cash inventory impairment charge related to product line rationalization. The total costs estimates are included in the table below.

Restructuring charges are included in the "Restructuring charges" line item in the Consolidated Statements of Operations. The table below presents the total costs incurred in connection with the Program, the amount of costs that have been recognized during the year ended December 31, 2017, and the cumulative costs recognized by the Program (in thousands):



	Total Costs Expected to be Incurred		Twelve Months Ended December 31, 2017 (Cumulative costs recognized to date)
Total:
Employee termination costs	$	2,897	$	2,270
Inventory Impairment	1,401		1,401
Facility related costs	862		195
Consulting fees	1,715		315
Other related costs	663		325
Total Company	$	7,538	$	4,506

The amounts accrued associated with the Program are included in "Accrued expenses" and "Inventory" in the Consolidated Balance Sheets. A rollforward of the accrued restructuring costs is presented below (in thousands):



	Total

Balance at December 31, 2016	$	—
Restructuring charges:
Employee termination costs	2,270
Inventory impairment	1,401
Facility related costs	195
Consulting fees	315
Other related costs	325
Total restructuring charges for the period	$	4,506

Cash expenditures	(2,077		)
Non cash item	(1,401		)
Other adjustments to accrual	—
Foreign currency translation adjustment	18
Balance at December 31, 2017	$	1,046