Restructuring

In August 2015, the Company approved a restructuring initiative to better position the Company to operate in current market conditions and more closely align operating expenses with revenues, which included employee severance costs and facility exit related costs. In the fourth quarter of 2015, the Company commenced certain initiatives relating to the reorganization of executive level management (collectively, the “2015 Initiatives”). The Company continued these initiatives in 2016 with a reduction-in-force and the completion of the closure of its facility in Richardson, TX. The 2015 Initiatives are expected to cost a total of approximately $6.0 million and be completed when the Richardson, TX lease expires in June 2020.

During the year ended December 31, 2017, the Company commenced certain restructuring initiatives intended to continue to improve its strategic focus on its more profitable business lines and consolidate operations of its subsidiaries with those of the Company, including reductions-in-force, further reorganization of executive level management and the consolidation of certain of its facilities (the “2017 Initiatives”). The 2017 Initiatives are expected to cost a total of approximately $4.3 million and be completed in May 2018.

The following table sets forth activity in the restructuring liability for the year ended December 31, 2017 (in thousands):



	Balance at December 31, 2016		Costs Incurred		Payments			Non-cash			Translation Adjustment		Balance at December 31, 2017		Cumulative Costs Incurred to Date
2015 Initiatives
Employee Severance Costs	$	455	$	1	$	(456	)	$	—		$	—	$	—	$	4,131
Facility Exit Related Costs	588		862		(469		)	—			—		981		1,728

2017 Initiatives
Employee Severance Costs	—		3,351		(3,088		)	—			24		287		3,351
Facility Exit Related Costs	—		283		(268		)	91			—		106		283
Other Related Costs	—		655		(326		)	(169		)	—		160		655
Total	$	1,043	$	5,152	$	(4,607	)	$	(78	)	$	24	$	1,534	$	10,148

The balance of the restructuring liability at December 31, 2017 consists of approximately $1.0 million included in accrued expenses and other current liabilities in the consolidated balance sheet and approximately $0.5 million included in long-term liabilities in the consolidated balance sheet.

In the fourth quarter of 2016, the Company wrote down the value of certain inventory by approximately $11.5 million related to the abandonment of certain Enfora product lines that management decided to exit. During the year ended December 31, 2017, the Company sold certain inventory that had been written down related to the abandonment of certain Enfora product lines that management decided to exit, net of the value of additional inventory related to the abandonment of certain Enfora product lines that management decided to exit, resulting in a net recovery of approximately $0.3 million. The Company accounted for the adjustments in accordance with the ASC 330, Inventory, and included the adjustments in impairment of abandoned product line within cost of net revenues in the consolidated statements of operations.