Severance and Restructuring

3 Months Ended

Mar. 31, 2017

Severance and Restructuring [Abstract]

9. Severance and Restructuring

In 2016, the Company initiated steps to streamline its operations. The Company incurred total expenses related to these initiatives of approximately $0.9 million and $3.5 million for the three months ended March 31, 2017 and 2016, respectively, which is included in general and administrative expenses on the Condensed Consolidated Statements of Income. The Company expects some additional restructuring and other costs to occur, however, the amount and timing cannot be determined at this time. The expenses recorded for the three months ended March 31, 2017 included costs related to terminated employees. The expenses recorded for the three months ended March 31, 2016 included costs related to terminated employees and other direct costs associated with implementing these initiatives. Other direct costs included contract termination costs, accelerated depreciation and asset write-offs.

The following provides the components of and changes in our severance and restructuring accruals:


		Employee
		Termination			Restructuring
		Costs			and Other
		(Amounts in Thousands)
Balance at December 31, 2016	$	1,326		$	1,786
Provision		888			—
Utilization		(684	)		(74	)
Balance at March 31, 2017	$	1,530		$	1,712

Employee termination costs represent accrued severance payable to terminated employees with employment and/or separation agreements with the Company. The terminations resulted mainly from changes made to the executive leadership team made during the three months ended March 31, 2017 and 2016.

No restructuring and other costs were recorded for the three months ended March 31, 2017. Restructuring and other costs comprised of fees for the termination of an employee incentive program and various contracts with outside vendors for the three months ended March 31, 2016.

The aforementioned accruals are included in Accrued Expenses on the Condensed Consolidated Balance Sheets and the aforementioned expenses are included in General and Administrative Expenses on the Condensed Consolidated Statements of Income.