Restructuring

2018 Projects

On February 22, 2018, our Board of Directors approved a restructuring plan (the 2018 Projects) to continue our efforts to optimize our global supply chain and manufacturing operations, research and development, and sales and marketing organizations. We expect to substantially complete the plan by the end of 2020. Many of the affected employees are represented by unions or works councils, which require consultation, and potential restructuring projects may be subject to regulatory approval, both of which could impact the timing of charges, total expected charges, cost recognized, and planned savings in certain jurisdictions.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2018 Projects are as follows:



In thousands	Total Expected Costs at March 31, 2019		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2019		Expected Remaining Costs to be Recognized at March 31, 2019
Employee severance costs	$	75,573	$	73,778	$	1,795	$	—
Asset impairments & net loss on sale or disposal	218		117		101		—
Other restructuring costs	23,304		4,228		3,736		15,340
Total	$	99,095	$	78,123	$	5,632	$	15,340

2016 Projects

On September 1, 2016, we announced projects (2016 Projects) to restructure various company activities in order to improve operational efficiencies, reduce expenses and improve competitiveness. We expect to close or consolidate several facilities and reduce our global workforce as a result of the restructuring. The 2016 Projects were initiated during the third quarter of 2016 and were substantially completed at December 31, 2018.

The total expected restructuring costs, the restructuring costs recognized, and the remaining expected restructuring costs related to the 2016 Projects are as follows:



In thousands	Total Expected Costs at March 31, 2019		Costs Recognized in Prior Periods		Costs Recognized During the Three Months Ended March 31, 2019			Expected Remaining Costs to be Recognized at March 31, 2019
Employee severance costs	$	36,274	$	35,845	$	429		$	—
Asset impairments & net loss on sale or disposal	5,659		5,664		(5		)	—
Other restructuring costs	13,719		11,763		1,206			750
Total	$	55,652	$	53,272	$	1,630		$	750

The following table summarizes the activity within the restructuring related balance sheet accounts for the 2018 and 2016 Projects during the three months ended March 31, 2019:



In thousands	Accrued Employee Severance			Asset Impairments & Net Loss on Sale or Disposal		Other Accrued Costs			Total
Beginning balance, January 1, 2019	$	72,152		$	—	$	3,416		$	75,568
Costs charged to expense	2,224			96		4,942			7,262
Cash (payments) receipts	(4,088		)	—		(6,021		)	(10,109		)
Net assets disposed and impaired	—			—		—			—
Effect of change in exchange rates	(822		)	—		10			(812		)
Ending balance, March 31, 2019	$	69,466		$	96	$	2,347		$	71,909

Asset impairments are determined at the asset group level. Revenues and net operating income from the activities we have exited or will exit under the restructuring projects are not material to our operating segments or consolidated results.

Other restructuring costs include expenses for employee relocation, professional fees associated with employee severance, and costs to exit the facilities once the operations in those facilities have ceased. Costs associated with restructuring activities are generally presented in the Consolidated Statements of Operations as restructuring, except for certain costs associated with inventory write-downs, which are classified within cost of revenues, and accelerated depreciation expense, which is recognized according to the use of the asset.

The current portion of restructuring liabilities was $30.6 million and $36.0 million as of March 31, 2019 and December 31, 2018. The current portion of restructuring liabilities is classified within other current liabilities on the Consolidated Balance Sheets. The long-term portion of restructuring liabilities balances was $41.3 million and $39.6 million as of March 31, 2019 and December 31, 2018. The long-term portion of restructuring liabilities is classified within other long-term obligations on the Consolidated Balance Sheets and include severance accruals and facility exit costs.