Commercial Foodservice Equipment Group:

During the fiscal year 2017, the company undertook cost reduction initiatives related to the entire Commercial Foodservice Equipment Group. This action, which is not material to the company's operations, resulted in a charge of $6.2 million in the twelve months ended December 30, 2017, primarily for severance related to headcount reductions and consolidation of manufacturing operations. These expenses are reflected in restructuring expenses in the consolidated statements of earnings. The company estimates that these 2017 restructuring initiatives will result in future cost savings of approximately $10.0 million annually. The realization of the saving began in 2017 and will continue into the first six months of fiscal year 2018 and the restructuring costs in the future are not expected to be significant related to these actions.

Food Processing Equipment Group:

During the fiscal year 2017, the company undertook cost reduction initiatives related to the entire Food Processing Equipment Group. This action, which is not material to the company's operations, resulted in a charge of $0.6 million in the twelve months ended December 30, 2017, primarily for severance related to headcount reductions and is reflected in restructuring expenses in the consolidated statements of earnings. The company estimates that these 2017 restructuring initiatives will result in future cost savings of approximately $4.0 million annually. The realization of the savings began in 2017 and will continue into the first six months of fiscal year 2018 and no significant future costs related to this action are expected.

Residential Kitchen Equipment Group:

During the fiscal years 2016 and 2015, the company undertook acquisition integration initiatives primarily related to AGA within the Residential Kitchen Equipment Group. These initiatives included organizational restructuring and headcount reductions, consolidation and disposition of certain facilities and business operations. During fiscal year 2017, the company continued initiatives, primarily related the AGA Group, including additional headcount reductions and the impairment of equipment in conjunction of the disposition of certain facilities and business operations. The company recorded expense in the amount of $13.1 million, $11.0 million and $25.5 million, respectively in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. This expense is reflected in restructuring expenses in the consolidated statements of earnings for such periods. The cumulative expenses incurred to date for these initiatives is approximately $40.6 million. The company estimated that these restructuring initiatives in 2017 would result in future cost savings of approximately $20.0 million annually. The realization of the savings began in 2017 and will continue into the first six months of fiscal year 2018, primarily related to compensation and facility costs. The company anticipates that all severance obligations for the Residential Kitchen Equipment Group will be paid by the end of fiscal of 2018. The lease obligations extend through December 2019.

The costs and corresponding reserve balances for the Residential Kitchen Equipment Group are summarized as follows (in thousands):



	Severance/Benefits			Facilities/Operations			Other			Total
Balance as of January 3, 2015	$	147		$	—		$	37		$	184
Expenses	18,142			7,248			108			25,498
Payments	(2,628		)	(2,606		)	(25		)	(5,259		)
Balance as of January 2, 2016	$	15,661		$	4,642		$	120		$	20,423
Expenses	9,816			1,160			10			10,986
Exchange Effect	(749		)	(73		)	(32		)	(854		)
Payments	(19,583		)	(3,697		)	(29		)	(23,309		)
Balance as of December 31, 2016	$	5,145		$	2,032		$	69		$	7,246
Expenses	8,662			3,872			601			13,135
Exchange Effect	533			358			11			902
Payments/Utilization	(10,642		)	(4,795		)	(524		)	(15,961		)
Balance as of December 30, 2017	$	3,698		$	1,467		$	157		$	5,322