Restructuring

In the third quarter of 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 $6.1 million and be completed when the Richardson, TX lease expires in June 2020.

In the first and second quarters of 2017, the Company commenced certain restructuring initiatives intended to continue to improve its strategic focus on its most 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 cost a total of approximately $4.4 million and were completed in May 2018.

In the first quarter of 2018, the Company commenced certain restructuring initiatives intended to continue to consolidate operations of its subsidiaries with those of the Company, including reductions-in-force and the consolidation of certain of its facilities (the “2018 Initiatives”). The 2018 Initiatives cost a total of approximately $1.0 million and were completed in December 2018.

The following table sets forth activity in the restructuring liability for the year ended December 31, 2018 (in thousands):



	Balance at December 31, 2017		Costs Incurred		Payments			Translation Adjustment			Balance at December 31, 2018		Cumulative Costs Incurred to Date
2015 Initiatives
Employee Severance Costs	$	—	$	—	$	—		$	—		$	—	$	4,131
Facility Exit Related Costs	981		114		(461		)	—			634		1,842
2017 Initiatives
Employee Severance Costs	287		61		(359		)	11			—		3,412
Facility Exit Related Costs	106		2		(108		)	—			—		285
Other Related Costs	160		20		(180		)	—			—		675
2018 Initiatives
Employee Severance Costs	—		994		(960		)	(34		)	—		994
Total	$	1,534	$	1,191	$	(2,068	)	$	(23	)	$	634	$	11,339

The balance of the restructuring liability at December 31, 2018 consists of approximately $0.4 million included in accrued expenses and other current liabilities in the consolidated balance sheet and approximately $0.2 million included in long-term liabilities in the consolidated balance sheet.

During the year ended December 31, 2018, the Company wrote down the value of certain inventory by approximately $0.4 million related to the abandonment of certain 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 product lines that management decided to exit, net of the value of additional inventory related to the abandonment of certain 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, net of recoveries, within cost of net revenues in the consolidated statements of operations.