16. Restructuring and Cost Management Plans

2017 Corporate Restructuring:

In the fourth quarter of 2017, the Company initiated a restructuring plan to improve business effectiveness and streamline operations to achieve a stated target profit level for the Company as a whole. As a part of the restructuring plan, the management team was reorganized from a business unit to a functional structure; the Company closed facilities in Montreal, Canada; Napa, California; and Sunnyvale, California; the Company discontinued certain products; and the Company made select reductions in headcount across the Company. Actions under this plan were completed as of the end of the third fiscal quarter of 2018.

Total expenses related to the plan were $17.1 million in 2018, while no expenses have occurred in the first quarter of 2019. Included in the 2018 expenses are approximately $13.3 million of charges impacting gross margins, all incurred in the first and second quarters of 2018, primarily related to impairment of other assets and inventory stemming from the product portfolio program reviews which resulted in discontinuing certain products. Operating expense charges included $2.3 million of facilities and fixed assets charges related to streamlining facilities and discontinued products and $1.3 million of employee severance and related costs. Product portfolio reviews related to the restructuring plan were completed as of the end of the third quarter of 2018. The impacts of the decisions made in the portfolio reviews involve the use of certain estimates. Actual results could differ from those estimates and result in additional charges.

The following table presents the total expected restructuring costs as of June 30, 2018 (in thousands):



	Total Expected Costs for the Plan		Costs Recognized from inception of the plan through the Quarter ended Jun 30, 2018		Remaining Costs to be Recognized Subsequent to Jun 30, 2018
Employee severance and related personnel costs	$	4,925	$	4,925	$	—
Site closure costs	1,516		1,516		—
Current asset impairments and other gross profit charges⁽¹⁾	14,947		14,947		—
Non-current asset impairments	3,033		3,033		—
Other costs	239		239		—
Total	$	24,660	$	24,660	$	—

(1) Current asset impairments include inventory charges recorded in cost of sales.

The following table presents the amounts payable related to the 2017 Corporate Restructuring (in thousands):



	Employee severance and related personnel costs			Site closure costs			Current asset impairments and other gross profit charges⁽¹⁾			Non-current asset impairments			Other Costs			Total
Balance as of April 2, 2017	$	3,247		$	888		$	—		$	—		$	—		$	4,135
Costs incurred	1,337			627			13,278			1,657			175			17,074
Cash payments	(4,445		)	(1,515		)	(2,402		)	32			(175		)	(8,505		)
Non-cash items	—			—			(10,876		)	(1,689		)	—			(12,565		)
Balance as of March 31, 2018	$	139		$	—		$	—		$	—		$	—		$	139
Costs incurred	—			—			—			—			—			—
Cash (payments) receipts	(58		)	—			—			—			—			(58		)
Non-cash items	—			—			—			—			—			—
Balance as of June 30, 2018	$	81		$	—		$	—		$	—		$	—		$	81

(1) Asset and facilities costs include inventory charges recorded in cost of sales.

Other restructuring plans:

The Company's previously disclosed other restructuring plans are largely complete. No net restructuring costs related to these plans were recorded in 2019 while $0.4 million were recorded in 2018. The amounts payable of $0.2 million at June 30, 2018 are expected to be future cash outflows, primarily relating to facility costs to be paid through the end of the third quarter of 2019. The Company does not expect to incur additional expenses related to these plans.

The following table presents the amounts related to restructuring costs payable (in thousands):



Restructuring and cost management amounts payable as of April 2, 2017	$	861
Cash payments and other adjustments	(980		)
Costs incurred	409
Restructuring and cost management amounts payable as of March 31, 2018	290
Cash payments and other adjustments	(108		)
Costs incurred	—
Restructuring and cost management amounts payable as of June 30, 2018	$	182

Overall restructuring reserve:

As of June 30, 2018, and March 31, 2018, the amount of unpaid restructuring costs included in accrued liabilities on the Consolidated Balance Sheets were $0.3 million and $0.4 million, respectively. Included in the payable balance are amounts for severance and employee benefits, and net lease commitments.