Restructuring and Other Expense

Restructuring and other expense consists of the following:



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014

Restructuring costs included in cost of sales	$	1,534	$	1,358	$	3,863	$	2,306

Restructuring costs	$	2,284	$	494	$	8,464	$	1,207
Patent dispute and other matters	—		1,410		—		3,304
Shareholder activism costs	—		935		—		1,525
Restructuring and other expense included in selling and administrative expense	$	2,284	$	2,839	$	8,464	$	6,036

During the three and six months ended June 30, 2014, we incurred $0.0 million and $1.9 million, respectively, in legal fees associated with a patent infringement claim, including $0.9 million in settlement costs during the first quarter of 2014. In addition, the three and six months ended June 30, 2014 included $1.4 million in consulting fees and costs associated with a legal matter in which we prevailed at trial.

During the three and six months ended June 30, 2014, we incurred $0.9 million and $1.5 million, respectively, in consulting fees related to shareholder activism.

During 2015 and 2014, we continued our operational restructuring plan. In 2015, we continued the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. We expect our Centennial, Colorado consolidation to be completed over the next 6 months. During 2014 we completed the consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and the consolidation of our Westborough, Massachusetts manufacturing operations into our Largo, Florida and Chihuahua, Mexico facilities. We incurred $1.5 million and $1.4 million in costs associated with the operational restructuring during the three months ended June 30, 2015 and 2014, respectively, and $3.9 million and $2.3 million during the six months ended June 30, 2015 and 2014, respectively. These costs were charged to cost of sales and include severance and other charges associated with the consolidation of our Finland, Westborough, Massachusetts and Centennial, Colorado operations.

During 2015 and 2014, we restructured certain selling and administrative functions and incurred severance and other related costs in the amount of $2.3 million and $0.5 million for the three months ended June 30, 2015 and 2014, respectively, and $8.5 million and $1.2 million for the six months ended June 30, 2015 and 2014, respectively.

We have recorded an accrual in current and other long term liabilities of $7.7 million at June 30, 2015 mainly related to severance and lease impairment costs associated with the restructuring. Below is a rollforward of the accrual:




Balance as of January 1, 2015	$	8,254

Expenses incurred	3,979

Payments made	(4,549		)

Balance at June 30, 2015	$	7,684