Restructuring

In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which will include plant consolidations and transfer of equipment to other facilities within the segment's Europe and China operations. The consolidation of certain plants, which is expected to conclude in the second quarter of 2019, is expected to reduce operating costs, increase efficiency and enhance the Company’s flexibility by better aligning its manufacturing footprint with the segment's customer base. Accordingly, the Company expects to record pre-tax expenses of approximately $5.0 million, in connection with this restructuring plan, of which approximately $4.8 million is expected to result in cash expenditures over the period of consolidation. The Company also expects to incur cash expenditures of approximately $3.5 million for capital expenditures associated with this plan.

During the quarter ended September 30, 2017, the Company recorded pre-tax restructuring expenses of $0.2 million as part of this restructuring plan in cost of sales for the quarter. During the nine months ended September 30, 2017, the Company recorded pre-tax restructuring expenses of $0.4 million as part of this restructuring plan. Restructuring expenses of $0.2 million were recorded in both cost of sales and selling, product development and administrative expenses for the nine months ended September 30, 2017. The Company expects to record approximately $0.7 million of restructuring expenses in the fourth quarter of 2017.

Actual pre-tax expenses incurred and total estimated pre-tax expenses for the restructuring program by type are as follows:



In thousands	Severance and Related Expenses		Contract Termination Expenses			Facility Exit, Move and Set-up Expenses		Total
Expense incurred during quarter ended:
June 30, 2017	$	74	$	185		$	34	$	293
September 30, 2017	87		(49		)	116		154
Total pre-tax expense incurred	$	161	$	136		$	150	$	447
Estimated remaining expense at September 30, 2017	1,000		150			3,400		4,550
Total estimated pre-tax expense	$	1,161	$	286		$	3,550	$	4,997

There were cash outflows of $0.1 million for the restructuring program for the quarter and nine months ended September 30, 2017.

Accrued restructuring costs were as follows at September 30, 2017:



In thousands	Total
Balance as of March 31, 2017	$	—
Pre-tax restructuring expenses	293
Cash paid	—
Balance as of June 30, 2017	$	293
Pre-tax restructuring expenses	71
Cash paid	(54		)
Balance as of September 30, 2017	$	310