4. Severance and Restructuring Charges

In 2015, the Company commenced two restructuring actions that included workforce reductions, facility closures and actions to reduce costs through management delayering in order to achieve broader functional alignment of the organization (“2015 restructuring action”). The charges associated with this action were included in “Warehousing, marketing and administrative expenses.” This action was substantially completed in 2016.

In the first quarter of 2018, the Company launched a restructuring program (“2018 restructuring action”) that will span to mid-2020. It includes facility consolidations totaling an anticipated $23 million to $28 million and workforce reductions totaling an anticipated $7 million to $12 million, or in aggregate an estimated cash cost of $30 million to $40 million over the restructuring period. These amounts are included in restructuring charges in the Condensed Consolidated Statement of Operations in the three and six months ended June 30, 2018.

Product assortment refinement charges have also been incurred and are reflected as additional cost of goods sold in the three and six months ended June 30, 2018. The reduction in product assortment charges in the three months ended June 30, 2018 was due to better recovery rates than previously estimated.

The expenses, cash flows, and liabilities associated with the 2015 and 2018 restructuring actions described above are noted in the following table (in thousands):

	Expense						Cash flow				Liabilities
	For the three months ended June 30,			For the six months ended June 30,			For the six months ended June 30,		For the six months ended June 30,		As of June 30,		As of December 31,
	2018			2018			2018		2017		2018		2017
2018 Actions:
Product assortment refinement	$	(8,554	)	$	34,269			-		-		-		-

Workforce reduction		(152	)		11,436			2,592		-		8,844		-
Facility closure		8,171			11,183			7,235		-		3,770	$	-
Total	$	8,019		$	22,619		$	9,827	$	-	$	12,614	$	-

Fourth Quarter 2015 Actions:
Workforce reduction	$	(13	)	$	(553	)	$	103	$	316	$	261	$	917

First Quarter 2015 Actions:
Workforce reduction	$	-		$	-		$	-	$	94	$	664	$	664

Total	$	(548	)	$	56,335		$	9,930	$	410	$	13,539	$	1,581