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, excluding customary closing costs, 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 strategic restructuring program and the September 2017 strategic global realignment program (together, the "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" line item in the Consolidated Statements of Operations. The table below presents the total costs expected to be incurred in connection with the Program, the amount of costs that have been recognized during the three months ended March 31, 2018, and the cumulative costs recognized to date by the Program (in thousands):



	Total Costs Expected to be Incurred		Costs Recognized for Three Months Ended March 31, 2018		Cumulative Costs Recognized to Date
Restructuring:
Employee termination costs	$	2,897	$	404	$	2,674
Inventory Impairment	1,401		—		1,401
Consulting fees	1,715		902		1,217
Facility related costs	862		11		206
Other related costs	663		35		360
Total Restructuring Activity	$	7,538	$	1,352	$	5,858

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



	Total
Balance at December 31, 2017	$	1,097
Restructuring charges:
Employee termination costs	404
Consulting fees	902
Facility related costs	11
Other related costs	35
Total restructuring charges	1,352

Cash expenditures	1,186
Foreign currency translation adjustment	(11		)
Balance at March 31, 2018	$	1,274