Restructuring Activity

In April 2015 the Company announced a restructuring plan consisting of workforce reductions and the consolidation of more facilities in locations deemed to have redundant operations. In the three months ended March 31, 2016, the Company incurred additional costs associated with the April 2015 restructuring plan which consisted of moving costs, professional fees and losses on the disposal of fixed assets. In addition, the Company recorded charges of $452 for inventory moved from consolidated plants that was subsequently identified to be scrapped. The inventory charge is reported in cost of materials in the Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2016. All of the April 2015 announced restructuring activities are now complete.

In the first quarter of 2016, the Company closed its Houston and Edmonton facilities and sold all the equipment at these facilities to an unrelated third-party. Restructuring activities associated with the strategic decision to close these facilities included employee termination and related benefits, lease termination costs, moving costs associated with exit from the closed facilities, and professional fees at the closed facilities.

As a result of its restructuring activities, the Company incurred the following restructuring expense:



	Three Months Ended
	March 31,
	2016		2015
Employee termination and related benefits	$	553	$	—
Lease termination costs	6,145		—
Moving costs associated with plant consolidations	3,135		—
Professional fees ^(a)	678		831
Loss on disposal of fixed assets	1,207		—
Total	$	11,718	$	831

^(a) Professional fees for the three months ended March 31, 2015 were comprised of professional fees associated with the development of the restructuring plan announced in April 2015.

Restructuring reserve activity for the three months ended March 31, 2016 is summarized below:



			Period Activity
	Balance January, 1 2016		Charges (gains)		Cash receipts (payments)			Non-cash activity			Balance March 31, 2016
Employee termination and related benefits ^(a)	$	8,301	$	553	$	(3,204	)	$	—		$	5,650
Lease termination costs^(b)(c)	232		6,145		(71		)	(4,539		)	1,767
Moving costs associated with plant consolidations	—		3,135		(3,135		)	—			—
Professional fees	—		678		(678		)	—			—
Disposal of fixed assets	—		1,207		—			(1,207		)	—
Total	$	8,533	$	11,718	$	(7,088	)	$	(5,746	)	$	7,417

^(a)As of March 31, 2016, the short-term portion of employee termination and related benefits of $150 is included in accrued and other current liabilities in the Condensed Consolidated Balance Sheets and the long-term portion associated with the Company's withdrawal from a multi-employer pension plan of $5,500 is included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

^(b)Payments on certain of the lease obligations are scheduled to continue until 2020. 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 March 31, 2016, the short-term portion of the lease termination costs of $437 are included in accrued and other current liabilities and the long-term portion of the lease termination costs of $1,330 are included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

^(c)In connection with the closure of the Company's Houston and Edmonton facilities, the Company agreed to sell its fixed assets and to a reduction in future proceeds from the sale of inventory in exchange for the assignment of its remaining lease obligations at its Houston facility resulting in a non-cash charge of $4,539 being recorded during the three months ended March 31, 2016.