Restructuring

In April 2017, the Company commenced a restructuring plan in the Technical Nonwovens segment which includes 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 total 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 June 30, 2018, the Company recorded pre-tax restructuring expenses of $0.9 million, primarily related to severance and equipment move costs, in cost of sales. During the six months ended June 30, 2018, the Company recorded pre-tax restructuring expenses of $1.4 million as part of this restructuring plan. Restructuring expenses of $1.3 million, primarily related to severance and equipment move costs, were recorded in cost of sales and $0.1 million of severance and engineering costs were recorded in selling, product development and administrative expenses during the six months ended June 30, 2018. The Company expects to record approximately $1.3 million of restructuring expenses in the second half of 2018 and $2.8 million for the year ending December 31, 2018.

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
Total estimated expenses	$	1,200	$	300	$	3,500	$	5,000
Expenses incurred through December 31, 2017	181		154		327		662
Estimated remaining expense at December 31, 2017	$	1,019	$	146	$	3,173	$	4,338
Expense incurred during quarter ended:
March 31, 2018	$	315	$	—	$	219	$	534
June 30, 2018	185		—		700		885
Total pre-tax expense incurred	$	681	$	154	$	1,246	$	2,081
Estimated remaining expense at June 30, 2018	$	519	$	146	$	2,254	$	2,919

There were cash outflows of $0.5 million and $0.8 million for the restructuring program for the quarter and six months ended June 30, 2018, respectively.

Accrued restructuring costs were as follows at June 30, 2018:



In thousands	Total
Balance as of December 31, 2017	$	333
Pre-tax restructuring expenses, excluding depreciation	1,307
Cash paid	(770		)
Balance as of June 30, 2018	$	870