Note 3. Restructuring Charges

Cody Restructuring Program

On June 29, 2018, the Company announced a restructuring plan with respect to Cody Labs (the “Cody Restructuring Plan”). The plan focuses on a more select set of opportunities which will result in streamlined operations, improved efficiencies and a reduced cost structure. The Company currently estimates that it will incur approximately $5.0 million of total costs to implement the Cody Restructuring Plan, comprised primarily of approximately $3.5 million of severance and employee-related costs, of which approximately $3.1 million was recorded in the quarter ended June 30, 2018. In addition, the Company recorded a $21.5 million non-cash impairment charge in connection with the Cody Restructuring Plan relating to the facility, equipment and other plant-related assets primarily associated with the expansion project at Cody Labs. See Note 6 “Property, Plant and Equipment” for more information.

The expenses associated with the Cody Restructuring Plan included in restructuring expenses during the fiscal year ended June 30, 2018 were as follows:

(In thousands)	Twelve Months Ended June 30, 2018
Employee separation costs	$	3,092
Facility closure costs	—

Total	$	3,092

A reconciliation of the changes in restructuring liabilities associated with the Cody Restructuring Plan from June 30, 2017 through June 30, 2018 is set forth in the following table:

(In thousands)	Employee Separation Costs		Facility Closure Costs		Total
Balance at June 30, 2017	$	—	$	—	$	—
Restructuring Charges	3,092		—		3,092
Payments	—		—		—

Balance at June 30, 2018	$	3,092	—		$	3,092

2016 Restructuring Plan

On February 1, 2016, in connection with the acquisition of KUPI, the Company announced a plan related to the future integration of KUPI and the Company’s operations. The plan focuses on the closure of KUPI’s corporate functions and the consolidation of manufacturing, sales, research and development and distribution functions. The Company estimates that it will incur an aggregate of up to approximately $19.0 million in restructuring charges for actions that have been announced or communicated since the 2016 Restructuring Program began. Of this amount, approximately $10.0 million relates to employee separation costs, approximately $1.0 million relates to contract termination costs and approximately $8.0 million relates to facility closure costs and other actions. The 2016 Restructuring Program is expected to be completed by the end of Fiscal 2019. The expenses associated with the restructuring program included in restructuring expenses during the twelve months ended June 30, 2018 and 2017 were as follows:

(In thousands)	Twelve Months Ended June 30, 2018		Twelve Months Ended June 30, 2017
Employee separation costs	$	246	$	3,486
Contract termination costs	—		—
Facility closure costs	3,723		3,682

Total	$	3,969	$	7,168

A reconciliation of the changes in restructuring liabilities associated with the 2016 Restructuring Program from June 30, 2016 through June 30, 2018 is set forth in the following table:

(In thousands)	Employee Separation Costs			Contract Termination Costs			Facility Closure Costs			Total
Balance at June 30, 2016	$	3,833		$	297		$	—		$	4,130
Restructuring Charges	3,486			—			3,682			7,168
Payments	(1,888		)	(297		)	(3,682		)	(5,867		)

Balance at June 30, 2017	5,431			—			—			5,431

Restructuring Charges	246			—			3,723			3,969
Payments	(2,063		)	—			(3,723		)	(5,786		)

Balance at June 30, 2018	$	3,614		$	—		$	—		$	3,614