Restructuring Activity

As part of the Company’s continued efforts to adapt operations to market conditions, additional restructuring activities were announced in the second quarter of 2015. The organizational changes include workforce reductions and the consolidations of facilities in locations it deems to have redundant operations. The consolidations and organizational changes are part of the Company’s restructuring plan to streamline the organizational structure, lower structural operating costs, and increase liquidity. The Company expects that most of the actions related to the restructuring plan will be completed by the end of the first quarter of 2016. Depending on future market conditions and activity levels, further actions may be necessary to adjust operations, which may result in additional charges in 2015. Restructuring activity is included in the Company's Metals segment. There was not any restructuring activity in the Company's Plastic segment.

The Company incurred the following restructuring expense (income) during the three and nine months ended September 30, 2015 and 2014:



	Three months ended						Nine months ended
	September 30,						September 30,
	2015			2014			2015		2014
Employee termination and related benefits ^(a)	$	(987	)	$	67		$	13,265	$	937
Lease termination costs	364			186			364		186
Moving costs associated with plant consolidations	1,733			133			2,334		909
Professional fees	94			—			1,690		—
Gain on sale of fixed assets	—			(5,533		)	—		(5,533		)
Total	$	1,204		$	(5,147	)	$	17,653	$	(3,501	)

^(a) Employee termination and related benefits primarily consists of severance costs. Also included in the nine months ended September 30, 2015 was a pension curtailment charge of $3,080 and an estimated pension withdrawal liability charge of $5,500 associated with the Company’s withdrawal from a multi-employer plan.

In conjunction with the current restructuring plan announced in the second quarter of 2015, the Company recorded charges of $22,335 for inventory which was identified to be scrapped or reserved. Management decided it was more economically feasible to scrap aged material as opposed to expending the time and effort to sell such material in the normal course. The charge includes a provision for small pieces of inventory at closing branches which will not be moved, as well as, provisions for excess inventory levels based on estimates of current and future market demand. The inventory charge is reported in cost of materials in the Condensed Consolidated Statement of Operations and Comprehensive Loss for the nine months ended September 30, 2015.

Restructuring reserve activity for the nine months ended September 30, 2015 is summarized below:



			Period Activity
	Balance January, 1 2015		Charges (gains)		Cash receipts (payments)			Write-down of inventory			Balance September 30, 2015
Employee termination and related benefits ^(a)	$	—	$	13,265	$	(1,307	)	$	—		$	11,958
Lease termination costs^(b)	636		364		(305		)	—			695
Moving costs associated with plant consolidations	—		2,334		(2,334		)	—			—
Professional fees	—		1,690		(1,690		)	—			—
Inventory write-down	—		22,335		—			(22,335		)	—
Total	$	636	$	39,988	$	(5,636	)	$	(22,335	)	$	12,653

^(a)As of September 30, 2015, the short-term portion of employee termination and related benefits of 11,958 is included in accrued and other current liabilities in the Condensed Consolidated Balance Sheets.

^(b)Payments on certain of the lease obligations are scheduled to continue until 2016. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the consolidated financial statements of future periods. As of September 30, 2015, the short-term portion of the lease termination costs of $598 are included in accrued and other current liabilities and the long-term portion of the lease termination costs of $97 are included in other non-current liabilities in the Condensed Consolidated Balance Sheets.