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 nine months ended September 30, 2016, the Company incurred additional costs associated with the April 2015 restructuring plan which consisted of employee termination and related benefits, 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 nine months ended September 30, 2016. Substantially all of the previously announced restructuring activities are 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 expenses:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015			2016		2015
Employee termination and related benefits	$	267	$	(987	)	$	945	$	13,265
Lease termination costs	—		364			6,706		364
Moving costs associated with plant consolidations	52		1,733			4,447		2,334
Professional fees	593		94			1,323		1,690
Loss on disposal of fixed assets	—		—			1,253		—
Total	$	912	$	1,204		$	14,674	$	17,653

Restructuring reserve activity for the nine months ended September 30, 2016 is summarized below:



			Period Activity
	Balance January 1, 2016		Charges (gains)		Cash receipts (payments)			Non-cash activity			Balance September 30, 2016
Employee termination and related benefits ^(a)	$	8,301	$	945	$	(3,646	)	$	—		$	5,600
Lease termination costs^(b)(c)	232		6,706		(566		)	(4,539		)	1,833
Moving costs associated with plant consolidations	—		4,447		(4,447		)	—			—
Professional fees	—		1,323		(1,323		)	—			—
Disposal of fixed assets	—		1,253		2,703			(3,956		)	—
Total	$	8,533	$	14,674	$	(7,279	)	$	(8,495	)	$	7,433

^(a)As of September 30, 2016, the short-term portion of employee termination and related benefits of $100 is included in accrued and other current liabilities in the Condensed Consolidated Balance Sheet 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 Sheet.

^(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 September 30, 2016, the short-term portion of the lease termination costs of $125 is included in accrued and other current liabilities and the long-term portion of the lease termination costs of $1,708 is included in other noncurrent liabilities in the Condensed Consolidated Balance Sheet.

^(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 during the nine months ended September 30, 2016.