Restructuring

Our 2015 and 2016 Reorganization Plans (the “Plans”) were initiated October 2015 and March 2016, respectively, in conjunction with the completion of the Mergers. We initiated these plans to leverage economies of scale, streamline distribution and logistics and strengthen operational and administrative effectiveness in order to reduce overall costs. Costs associated with these plans were reported as ‘Restructuring expenses’ in our operating results in the condensed consolidated statements of income (loss). We estimate that the Plans will result in a net reduction of 326 personnel of which 292 have occurred as of September 30, 2017.

In March 2017, we committed to a plan to sell our Suzhou Industrial Park facility in Shanghai, China. As a result of this exit plan we recorded an impairment of the building and equipment of $4.6 million and accrued $0.5 million of additional costs, primarily related to employee severance, during the nine months ended September 30, 2017. In addition, the remaining carrying value of the land, building and equipment was reclassified to ‘Assets held for sale’ in March 2017, with a balance of $14.1 million as of September 30, 2017, on the condensed consolidated balance sheet.

The following table presents restructuring expense accrual detail (in thousands):



	Employee Severance and Other Termination Costs			Other			Total
Balance at December 31, 2016	$	21,092		$	3,056		$	24,148
Charges	7,126			4,934			12,060
Cash payments and adjustments	(23,804		)	(5,480		)	(29,284		)
Balance at September 30, 2017	$	4,414		$	2,510		$	6,924

The following table presents restructuring expense by reportable segment (in thousands):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Cardiac Surgery	$	441		$	916	$	6,944		$	5,878
Cardiac Rhythm Management	(391		)	571		(1,750		)	16,592
Neuromodulation	14			2,882		513			7,017
Other	728			12		6,353			7,732
Total	$	792		$	4,381	$	12,060		$	37,219