Costs Associated with Exit and Restructuring Activities

Costs associated with exit and restructuring activities are recorded in the Condensed Consolidated Statement of Earnings as follows: restructuring related charges are recorded as a component of Cost of Goods Sold, and restructuring and impairment charges are reported on a separate line and included in Operating Earnings.

Total restructuring, impairment and restructuring related charges were as follows:



	Three Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	217
Restructuring and impairment charges	206		2,118
Total restructuring, impairment, and restructuring-related charges	$	206	$	2,335



	Six Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	292
Restructuring and impairment charges	206		2,856
Total restructuring, impairment, and restructuring-related charges	$	206	$	3,148

In June 2016, CTS announced plans to restructure operations by phasing out production at the Elkhart facility by mid-2018 and transitioning it into a research and development center supporting CTS' global operations ("June 2016 Plan"). Additional organizational changes will also occur in various other locations. The cost of the plan is preliminarily expected to range between $16,000 and $18,000, including the severance charges below, however this range may change significantly as we are still in the early stages of estimating the cost of the Plan. The total restructuring liability related to the June 2016 Plan was $196 at June 30, 2016. Additional liabilities related to the June 2016 Plan will be accrued following finalization of cost estimates and notification of our plans to the affected employees following negotiations with employee labor representatives.

Total restructuring and impairment charges under the June 2016 Plan were as follows:



	Three Months Ended
	June 30, 2016	June 28, 2015
Restructuring and impairment charges	206	—



	Six Months Ended
	June 30, 2016	June 28, 2015
Restructuring and impairment charges	206	—

In April 2014, CTS announced plans to restructure its operations and consolidate its Canadian operations into other existing CTS facilities as part of CTS’ overall plan to simplify its business model and rationalize its global footprint (“April 2014 Plan”).

During the second quarter of 2015, CTS management revised the April 2014 Plan. The revision added $4,250 in planned costs. Additional administrative and legal costs were expected to account for $1,300 of the additional restructuring and impairment charges. The remaining $2,950 in restructuring related charges are for additional costs related to equipment relocation, training, travel and shipping.

These restructuring actions, which were completed during 2015, resulted in the reduction of approximately 120 positions.

The following table displays the planned restructuring and restructuring-related charges associated with the April 2014 Plan, as well as a summary of the actual costs incurred through June 30, 2016:



			Actual costs
	Planned		incurred through
April 2014 Plan	Costs		June 30, 2016
Inventory write-down	$	850	$	—
Equipment relocation	1,800		444
Other charges	1,400		113
Restructuring-related charges, included in cost of goods sold	$	4,050	$	557

Workforce reduction	$	4,200	$	4,423
Asset impairment charge	—		—
Other charges, including pension termination costs	1,700		3,413
Restructuring and impairment charges	$	5,900	$	7,836

Total restructuring, impairment and restructuring related charges	$	9,950	$	8,393

Total restructuring, impairment and restructuring related charges under the April 2014 Plan were as follows:



	Three Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	217
Restructuring and impairment charges	—		1,516
Total restructuring, impairment, and restructuring related charges	$	—	$	1,733



	Six Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	217
Restructuring and impairment charges	—		1,877
Total restructuring, impairment, and restructuring-related charges	$	—	$	2,094

Total restructuring liability related to the April 2014 Plan was $611 at June 30, 2016.

In June 2013, CTS announced a restructuring plan to simplify CTS’ global footprint by consolidating manufacturing facilities into existing locations (“June 2013 Plan”). The June 2013 Plan included the consolidation of operations from the U.K. manufacturing facility into the Czech Republic facility, the Carol Stream, Illinois manufacturing facility into the Juarez, Mexico facility and discontinuing manufacturing at the Singapore facility. Certain corporate functions were consolidated or eliminated as a result of the June 2013 Plan. These restructuring actions were completed in 2015 and resulted in the reduction of approximately 350 positions.

During the fourth quarter of 2014, CTS management revised the June 2013 Plan. The revision added $4,000 in planned costs. Settlement of the U.K. pension plan was expected to account for $2,000 of the added cost. The remaining $2,000 in restructuring and impairment charges were for severance costs and resulted in the reduction of approximately 130 additional positions throughout CTS businesses. The above actions were completed in 2015.

The following table displays the planned restructuring and restructuring-related charges associated with the June 2013 Plan and a summary of the actual costs incurred through June 30, 2016:



			Actual
	Planned		incurred through
June 2013 Plan	Costs		June 30, 2016
Inventory write-down	$	800	$	1,143
Equipment relocation	900		1,792
Other charges	100		702
Restructuring-related charges, included in cost of goods sold	$	1,800	$	3,637

Workforce reduction	$	10,150	$	9,615
Asset impairment charge	3,000		4,139
Other charges, including pension termination costs	7,650		10,205
Restructuring and impairment charges	$	20,800	$	23,959

Total restructuring and restructuring-related charges	$	22,600	$	27,596

Under the June 2013 Plan, total restructuring, impairment and restructuring related charges incurred were as follows:



	Three Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	—
Restructuring and impairment charges	—		602
Total restructuring, impairment, and restructuring-related charges	$	—	$	602



	Six Months Ended
	June 30, 2016		June 28, 2015
Restructuring-related charges	$	—	$	75
Restructuring and impairment charges	—		979
Total restructuring, impairment, and restructuring-related charges	$	—	$	1,054

No remaining liability is recorded for the June 2013 Plan as of June 30, 2016.

The following table displays the restructuring liability activity for all plans for the period ended June 30, 2016:



Combined Plans
Restructuring liability at January 1, 2016	$	826
Restructuring and restructuring-related charges, excluding asset impairments and write-offs	206
Cost paid	(265		)
Other activity (1)	$	40
Restructuring liability at June 30, 2016	$	807

(1) Other activity includes asset impairments, write-offs of property, plant and equipment, the effects of currency translation and other charges that do not flow through restructuring expense.