The Company plans to close its PE Films manufacturing facility in Lake Zurich, Illinois, which produces elastic materials. Production at the Lake Zurich plant is expected to cease during the first half of 2020 with product transfers to the new elastic production lines at Terre Haute, Indiana (“Lake Zurich plant shutdown”). As a result of the Lake Zurich plant shutdown, the Company expects to recognize pre-tax cash costs of $7.6 million comprised of (i) customer-related costs ($0.7 million), (ii) severance and other employee related costs ($1.8 million), and (iii) asset disposal and other cash costs ($5.1 million). In addition, the Company expects non-cash asset write-offs and accelerated depreciation of $1.6 million. Total expenses associated with the Lake Zurich plant shutdown are $2.7 million since project inception. Cash expenditures were $0.5 million in 2019. Proceeds from the expected sale of Lake Zurich’s real property are estimated at approximately $5 million. The Company anticipates that the Lake Zurich plant shutdown will be completed by the end of 2020.

The Company plans to consolidate the production of certain PE Films personal care products in Europe over the next twelve months (“PC Europe consolidation”). As a result of this consolidation, the Company expects to recognize pre-tax cash costs of $1.7 million, primarily for severance and customer-related costs. Total expenses associated with the PC Europe consolidation are $0.8 million since project inception. Cash expenditures were $0.5 million in 2019.

In June 2018, the Company announced plans to close its facility in Shanghai, China, which primarily produced plastic films used as components for personal care products (“Shanghai plant shutdown”). Production ceased at this plant during the fourth quarter of 2018. Total expenses associated with the Shanghai plant shutdown are $4.1 million since project inception. Cash expenditures were $0.8 million in 2019 and $3.3 million since project inception. The plant facilities were sold in the third quarter of 2019, resulting in a pre-tax gain of $6.3 million, reported in “Other income (expense), net” in the consolidated statements of income. The Shanghai plant shutdown was completed in the fourth quarter of 2019.

Other pre-tax charges in 2019 include restructuring costs in PE Films for severance in the amount of $0.8 million, the write-off of inventory at PE Films’ Personal Care facility in Rétság, Hungary in the amount of $0.2 million, and the write-off of a Personal Care production line at the Guangzhou, China facility in the amount of $0.4 million.

A reconciliation of the beginning and ending balances of accrued expenses associated with exit and disposal activities and charges associated with asset impairments and reported as “Asset impairments and costs associated with exit and disposal activities, net of adjustments” in the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017 is as follows:



(In Thousands)	Severance			Asset Impairments			Other			Total
Balance at January 1, 2017	$	1,854		$	—		$	554		$	2,408
For the year ended December 31, 2017:
Charges:
Flexible Packaging Films impairment	—			101,254			—			101,254
Other restructuring charges^(a)	589			341			304			1,234
	589			101,595			304			102,488
Cash spend	(1,816		)	—			(382		)	(2,198		)
Charges against assets	—			(101,595		)	—			(101,595		)
Balance at January 1, 2018	627			—			476			1,103
For the year ended December 31, 2018:
Charges:
Shanghai plant shutdown	1,832			233			98			2,163
Other restructuring charges^(b)	822			—			20			842
	2,654			233			118			3,005
Cash spend	(2,665		)	—			(434		)	(3,099		)
Charges against assets	—			(141		)	—			(141		)
Reversed to income	—			(92		)	—			(92		)
Balance at January 1, 2019	616			—			160			776
For the year ended December 31, 2019:
Charges:
Shanghai plant shutdown	113			—			716			829
Lake Zurich plant shutdown	874			191			58			1,123
PC Europe consolidation	588			96			—			684
Other restructuring charges^(c)	842			595			52			1,489
	2,417			882			826			4,125
Cash spend	(1,739		)	—			(900		)	(2,639		)
Charges against assets	—			(882		)	—			(882		)
Balance at December 31, 2019	$	1,294		$	—		$	86		$	1,380
(a) Other restructuring charges in 2017 include PE Films severance ($0.2 million) and an impairment of a production line at its Rétság, Hungary facility ($0.2 million), Aluminum Extrusions severance ($0.1 million), Corporate severance ($0.3 million) and closure costs at the shutdown Kentland facility ($0.2 million). (b) Other restructuring charges in 2018 include severance of $0.7 million and $0.1 million at PE Films and Aluminum Extrusions, respectively. (c) Other restructuring charges in 2019 include PE Films severance ($0.8 million), write-off of inventory at its Personal Care facility in Rétság, Hungary ($0.2 million), and write-off of a Personal Care production line at the Guangzhou, China facility ($0.4 million).