5. EMPLOYEE AND CONTRACT TERMINATION COSTS

Restructuring Plan

During the fourth quarter of 2014, we announced a plan to provide qualified employees with voluntary early retirement packages and notified employees of the elimination of certain positions within the Company (the “Restructuring Plan”). We also announced that the Company would be closing its Cincinnati, OH office location in 2015 and relocating certain employees to its Knoxville, TN headquarters during 2015. Our 2015 and 2014 operating results include $17.9 million and $14.4 million, respectively, of severance, retention and related retirement benefit costs, as well as relocation and accelerated depreciation expense that was incurred as a result of the Restructuring Plan. Net income attributable to SNI was reduced by $11.1 million and $8.9 million in 2015 and 2014, respectively. The Restructuring Plan was substantially completed as of December 31, 2015.

A rollforward of the liability related to Restructuring Plan charges by segment is as follows:


		For the year ended December 31, 2015
(in thousands)	U.S. Networks				International Networks		Corporate and Other			Total
Liability as of December 31, 2014	$		12,041		$	-	$	2,031		$	14,072
Net accruals			7,403			-		10,519			17,922
Payments			(17,265	)		-		(4,809	)		(22,074	)
Non-cash ^(a)			(1,574	)		-		(2,427	)		(4,001	)
Liability as of December 31, 2015	$		605		$	-	$	5,314		$	5,919

		For the year ended December 31, 2014
(in thousands)	U.S. Networks				International Networks		Corporate and Other			Total
Liability as of December 31, 2013	$		-		$	-	$	-		$	-
Net accruals			12,041			-		2,311			14,352
Payments			-			-		(280	)		(280	)
Non-cash ^(a)			-			-		-			-
Liability as of December 31, 2014	$		12,041		$	-	$	2,031		$	14,072

^(a) Primarily represents the reclassification of accelerated depreciation, pension payments made from the pension plan and share-based compensation included in current period charges.

Reorganization

During the fourth quarter of 2015, the Company committed to undertaking activities intended to streamline and integrate the management of its various networks, creating a cohesive and holistic organization (the “Reorganization”). As part of the Reorganization, the Company announced it would be relocating certain employees to its Knoxville, TN headquarters during 2016. Our 2015 operating results include $3.9 million of costs for severance, retention and related benefit costs incurred as a result of the Reorganization, and net income attributable to SNI was reduced by $2.4 million in 2015. We anticipate that the Reorganization will be completed by the end of 2016.

A rollforward of the liability related to the charges by segment is as follows:


	For the year ended December 31, 2015
(in thousands)	U.S. Networks			International Networks		Corporate and Other			Total
Liability as of December 31, 2014	$	-		$	-	$	-		$	-
Net accruals		3,835			-		31			3,866
Payments		(19	)		-		(23	)		(42	)
Non-cash ^(b)		(558	)		-		-			(558	)
Liability as of December 31, 2015	$	3,258		$	-	$	8		$	3,266

^(b) Primarily represents the reclassification of share-based compensation included in current period charges.

Contract Termination Costs

During the second quarter of 2014, we reached an agreement to terminate the master services agreement and sales agency agreement related to services provided for our Food Network and Fine Living operations in EMEA. We also entered into an arrangement that established a transition plan for us to assume the activities associated with these provided services. Selling, general and administrative includes a $9.7 million charge in 2014 for the early termination of these agreements.