11. Restructuring charges

Fiscal Year 2017 Restructuring Plan

On March 6, 2017, the Company announced a restructuring of its Ultrasound business designed to improve profitability and provide consistent long term growth. The Company intends to focus on its core markets of Urology and Surgery as well as specific areas of the Point of Care market where its products have a competitive advantage. The Company will consolidate the activities currently conducted in Vancouver, British Columbia with its existing operations in Copenhagen, Denmark and Peabody, Massachusetts and plans to exit the Vancouver facility by the end fiscal 2017. The Company intends to re-size its U.S. sales, global marketing as well as general and administration organizations in-line with its objectives. These activities will result in a workforce reduction of approximately 130 employees and is expected to be substantially completed by the end of fiscal 2017.

The Company expects to incur restructuring related charges of up to $5.0 million in fiscal 2017.  We incurred pre-tax charges of $2.1 and $2.5 million during the three and nine months ended April 30, 2017.

Fiscal Year 2016 Restructuring Plan

On September 16, 2015, the Company announced our fiscal year 2016 restructuring plan, or 2016 Restructuring Plan. This plan includes the transition of certain manufacturing activities from our Peabody, Massachusetts location to our existing facility in Shanghai, China, and a reduction in force in order to align our research and development investment with expected customer funding. We had pre-tax adjustment of approximately $0.0 million and $(0.1) million to restructuring during the three and nine months ended April 30, 2017. We incurred pre-tax charges of $1.8 million and $8.3 million during the three and nine months ended April 30, 2016, respectively, primarily relating to severance and personnel related costs for terminated employees. We expect that the 2016 Restructuring Plan will be substantially completed during the fourth quarter of fiscal year 2017.

Current Period Activity

The following table summarizes accrued restructuring activities for the three months ended April 30, 2017:

 

 

The following table summarizes accrued restructuring activities for the nine months ended April 30, 2017:

 

 

Restructuring and related charges, including actions associated with acquisitions, by segment are as follows:

 

 

Accrued restructuring charges are classified on the Consolidated Balance Sheets in the Current Liabilities section.