OTHER OPERATING EXPENSES

Other Operating Expenses is comprised of the following (in thousands):



	Three Months Ended					Six Months Ended
	June 29, 2018			June 30, 2017		June 29, 2018		June 30, 2017
Strategic reorganization and alignment	$	3,727		$	—	$	5,781	$	—
Manufacturing alignment to support growth	1,103			—		1,616		—
Consolidation and optimization initiatives	(14		)	2,729		561		5,076
Acquisition and integration expenses	—			2,970		—		7,790
Asset dispositions, severance and other	(124		)	1,028		518		5,555
Other operating expenses - continuing operations	4,692			6,727		8,476		18,421
Discontinued operations	2,497			193		3,990		270
Total other operating expenses	$	7,189		$	6,920	$	12,466	$	18,691

Strategic Reorganization and Alignment

During the fourth quarter of 2017, the Company began to take steps to better align its resources in order to enhance the profitability of its portfolio of products. This includes improving its business processes and redirecting investments away from projects where the market does not justify the investment, as well as aligning resources with market conditions and the Company’s future strategic direction. The Company estimates that it will incur aggregate pre-tax charges in connection with the strategic reorganization and alignment plan, including projects currently classified as discontinued operations, of between approximately $28 million to $30 million, of which an estimated $16 million to $20 million are expected to result in cash outlays. During the six months ended June 29, 2018, the Company incurred charges relating to this initiative which primarily included severance and personnel related costs for terminated employees and fees for professional services. These expenses were primarily recorded within the Medical segment. As of June 29, 2018, total expense incurred for this initiative since inception, including amounts reported in discontinued operations, was $15.5 million. These actions are expected to be substantially completed by the end of the third quarter of 2018.

(8.) OTHER OPERATING EXPENSES (Continued)

Manufacturing Alignment to Support Growth

In 2017, the Company initiated several initiatives designed to reduce costs, improve operating efficiencies and increase manufacturing capacity to accommodate growth. The plan involves the relocation of certain manufacturing operations and expansion of certain of the Company's facilities. The Company estimates that it will incur aggregate pre-tax restructuring related charges in connection with the realignment plan of between approximately $9 million to $11 million, the majority of which are expected to be cash expenditures, and capital expenditures of between approximately $4 million to $6 million. Costs related to the Company’s manufacturing alignment to support growth initiative were primarily recorded within the Medical segment. As of June 29, 2018, total expense incurred for this initiative since inception, including amounts reported in discontinued operations, was $2.0 million. These actions are expected to be substantially completed by the end of 2019.

Consolidation and Optimization Initiatives

In 2014, the Company initiated plans to transfer certain manufacturing functions performed at its facility in Beaverton, OR to a new facility in Tijuana, Mexico. Additionally, during 2016, the Company announced it would be closing its facility in Clarence, NY after transferring the machined component product lines manufactured in that facility to other Integer locations in the U.S. Costs related to the Company’s consolidation and optimization initiatives were primarily recorded within the Medical segment. The Company does not expect to incur any material additional costs associated with these activities are substantially complete.

The following table summarizes the change in accrued liabilities related to the initiatives described above (in thousands):



	Severance and Retention			Other			Total
December 29, 2017	$	1,308		$	—		$	1,308
Restructuring charges	4,427			3,531			7,958
Cash payments	(4,514		)	(1,336		)	(5,850		)
June 29, 2018	$	1,221		$	2,195		$	3,416

Acquisition and Integration Expenses

The Company did not incur any additional costs associated with these activities during the six months ended June 29, 2018. During the three and six months ended June 30, 2017, the Company incurred $3.0 million and $7.8 million in acquisition and integration costs related to the acquisition of Lake Region Medical, consisting primarily of integration costs. Integration costs primarily include professional, consulting, severance, retention, relocation, and travel costs. The $0.4 million of acquisition and integration costs accrued as of December 29, 2017 were paid during the first quarter of 2018. These projects were completed as of December 29, 2017.

Asset Dispositions, Severance and Other

During the first six months of 2018 and 2017, the Company recorded losses in connection with various asset disposals and/or write-downs. The 2017 amount also includes approximately $5.3 million in expense related to the Company’s leadership transitions, which were recorded within the corporate unallocated segment.