Restructuring

Lighting Business Restructuring

In April 2018, the Company approved a plan to restructure the Lighting Products business. The purpose is to restructure and realign the Company's cost base with the long-range business strategy that was announced February 26, 2018. The restructuring activity is expected to be completed in the first quarter of fiscal 2019.

The following table summarizes the actual charges incurred (in thousands):



Capacity and overhead cost reductions	Total estimated charges		Cumulative amounts incurred through fiscal year 2018		Affected Line Item in the Consolidated Statements of Loss
Loss on disposal or impairment of long-lived assets		$227		$227	Loss on disposal or impairment of long-lived assets
Severance expense	5,470		4,682		Sales, general and administrative expenses
Lease termination and facility consolidation costs	2,182		156		Sales, general and administrative expenses
Increase in inventory reserves	897		897		Sales, general and administrative expenses
Total restructuring charges		$8,776		$5,962

LED Business Restructuring

In June 2015, the Company's Board of Directors approved a plan to restructure the LED Products business. The restructuring reduced excess capacity and overhead in order to improve the cost structure moving forward. The primary components of the restructuring include the planned sale or abandonment of certain manufacturing equipment, facility consolidation and the elimination of certain positions. The restructuring activity ended in the second quarter of fiscal 2016. During fiscal 2016, the company realized $18.8 million in LED restructuring charges which were partially offset by a $1.1 million gain on the sale of long-lived assets related to the restructuring which were sold for a value in excess of their estimated net realizable value during fiscal 2016.

The following table summarizes the actual charges incurred (in thousands):



Capacity and overhead cost reductions	Amounts incurred during fiscal year 2016		Cumulative amounts incurred through fiscal year 2016		Affected Line Item in the Consolidated Statements of Loss
Loss on disposal or impairment of long-lived assets		$15,506		$58,222	Loss on disposal or impairment of long-lived assets
Severance expense	264		2,283		Sales, general and administrative expenses
Lease termination and facility consolidation costs	3,079		4,325		Sales, general and administrative expenses
Increase in channel inventory reserves	—		26,479		Revenue, net
Increase in inventory reserves	—		11,091		Cost of revenue, net
Total restructuring charges		$18,849		$102,400

In the table above, the lease termination costs relate to the relocation of certain manufacturing operations from a leased facility in Huizhou, China to a company-owned facility which is also in Huizhou, China.

In the table above, the severance expense relates to a reduction in manufacturing and support positions. There is not a significant retention period for impacted employees and all severance was paid in fiscal 2016.