4. Restructuring

On March 9, 2017, the Company announced a restructuring plan (the “Plan”) to improve the Company’s organizational structure and operational efficiency within the Material Handling Segment, which related primarily to anticipated facility shutdowns and associated activities. Total restructuring costs expected to be incurred are approximately $8.7 million, which includes employee severance and other employee-related costs of approximately $3.6 million, $2.5 million related to equipment relocation and facility shut down costs and non-cash charges, primarily accelerated depreciation charges on property, plant and equipment, of approximately $2.6 million. The Company expects to incur approximately $3.6 million during the second half of 2017 under the Plan, as all remaining actions under the Plan are expected to be substantially completed by the end of the year.

During the three and six months ended June 30, 2017, the Company recognized gains of $0.6 million and $1.3 million, respectively, on asset dispositions in connection with closing a manufacturing plant in Bluffton, Indiana. Restructuring charges related to this plant were $3.3 million and $4.4 million for the three and six months ended June 30, 2017, respectively, and were included in Cost of Sales in the accompanying Condensed Consolidated Statements of Operations (Unaudited). In addition, the Bluffton facility and certain related equipment have been classified as held for sale as of June 30, 2017, and reflected at their net book value of approximately $3.4 million in Other Assets in the Condensed Consolidated Statements of Financial Position (Unaudited). Based on a preliminary sales agreement with a third party entered into in July 2017, the expected net proceeds of the sale exceed the net book value, and thus, no impairment of these assets has been recorded.

In the second quarter of 2017, the Company finalized the specific actions to be taken under the Plan to reduce headcount in its Scarborough, Ontario, Canada location. These actions resulted in the recognition of $0.7 million of severance and related costs, which were included in Cost of Sales in the accompanying Condensed Consolidated Statements of Operation (Unaudited).

The table below summarizes restructuring activity for the six months ended June 30, 2017:

	Employee Reduction			Accelerated Depreciation			Other Exit Costs			Total
Balance at January 1, 2017	$	—		$	—		$	—		$	—
Charges to expense		1,688			1,929			1,442			5,059
Cash payments		(48	)		—			(971	)		(1,019	)
Non-cash utilization		—			(1,929	)		—			(1,929	)
Balance at June 30, 2017	$	1,640		$	—		$	471		$	2,111

In addition to the restructuring costs noted above, the Company has also incurred other associated costs of the Plan of $0.2 million and $0.7 million for the three and six months ended June 30, 2017, respectively, which are included in Selling, General and Administrative expenses in the accompanying Condensed Consolidated Statements of Operation (Unaudited), and are primarily related to third party consulting costs. Additional estimated costs of $0.5 million are expected to be incurred throughout the remainder of 2017.