Restructuring and Impairment

2017 Restructuring Plan

On July 27, 2017, the Company’s Board of Directors approved a restructuring plan (the “2017 restructuring plan”) to more closely align its financial resources with the critical priorities of the business. After completion of the 2017 restructuring plan, the Company recognized approximately $100.4 million of pre-tax charges in connection with this restructuring plan for the year ended December 31, 2017. In addition to these charges, the Company also recognized restructuring related goodwill impairment charges of approximately $28.6 million for its Connected Fitness business.

2018 Restructuring Plan

On February 9, 2018, the Company's Board of Directors approved an additional restructuring plan (the "2018 restructuring plan") identifying further opportunities to optimize operations. In conjunction with this plan, approximately $110.0 to $130.0 million of pre-tax restructuring and related charges are expected to be incurred during the Company's 2018 fiscal year, including:


•	Up to $105.0 million in cash charges, consisting of up to: $55.0 million in facility and lease terminations and $50.0 million in contract termination and other restructuring charges; and,


•	Up to $25.0 million in non-cash charges comprised of approximately $10.0 million of inventory related charges and approximately $15.0 million of intangibles and other asset related impairments.

The summary of the costs incurred during the three months ended March 31, 2018 in connection with the 2018 restructuring plan are as follows:



	Restructuring and Impairment Charges Incurred		Estimated Restructuring and Impairment Charges to be Incurred
(In thousands)	Three Months Ended March 31, 2018		Nine Months Ending December 31, 2018 (1)		Year Ending December 31, 2018 (1)
Costs recorded in cost of goods sold:
Inventory write-offs	$	7,474	$	2,500	$	9,974
Total costs recorded in cost of goods sold	7,474		2,500		9,974

Costs recorded in restructuring and impairment charges:
Property and equipment impairment	2,248		13,000		15,248
Other restructuring related costs	9,882		12,000		21,882
Contract exit costs	25,350		55,000		80,350
Total costs recorded in restructuring and impairment charges	37,480		80,000		117,480
Total restructuring, impairment and restructuring related costs	$	44,954	$	82,500	$	127,454

(1) Estimated restructuring and impairment charges to be incurred reflect the high-end of the range of the estimated remaining charges expected to be taken by the Company during 2018 in connection with the restructuring plan.

A summary of the activity in the restructuring reserve related to the Company's 2017 and 2018 restructuring plans is as follows:



	Employee Related Costs			Contract Exit Costs			Other Restructuring Related Costs
Balance at January 1, 2018	$	4,555		$	2,848		$	3,000
Additions charged to expense	—			19,843			6,757
Cash payments charged against reserve	(709		)	(3,296		)	(3,000		)
Changes in reserve estimate	$	(239	)	$	(293	)	$	—
Balance at March 31, 2018	$	3,607		$	19,102		$	6,757