Acquisition, Restructuring and Other Expense

Acquisition, restructuring and other expense for the year ended December 31, consists of the following:



	2016			2015		2014

Consolidation costs	$	3,066		$	8,016	$	5,612
Termination of a product offering	4,546			—		—
Restructuring costs included in cost of sales	$	7,612		$	8,016	$	5,612

Restructuring costs	$	6,873		$	13,655	$	3,354
Business and asset acquisition costs	20,599			2,543		722
Gain on sale of facility	(1,890		)	—		—
Management restructuring costs	—			—		12,546
Shareholder activism costs	—			—		3,966
Patent dispute and other matters	—			—		3,374
Acquisition, restructuring and other expense included in selling and administrative expense	$	25,582		$	16,198	$	23,962

Debt refinancing costs included in other expense	$	2,942		$	—	$	—

During 2016, we incurred $20.6 million in costs associated with the January 4, 2016 acquisition of SurgiQuest, Inc. as further described in Note 2. These costs include investment banking fees, consulting fees, legal fees associated with the acquisition as well as the Lexion case as further described in Note 11, costs associated with expensing of unvested options acquired and integration related costs. During 2015, we incurred $2.5 million in costs associated with the acquisition of SurgiQuest and other acquisitions during the year. During 2014, we incurred $0.7 million in costs associated with the purchase of a business.

During 2014, we incurred $4.0 million in professional fees related to shareholder activism.

During 2014, we incurred $3.4 million, in legal and settlement costs. The 2014 patent infringement claim costs totaled $1.9 million, including $0.9 million in settlement costs during the first quarter of 2014. The remaining $1.5 million in 2014 legal costs were associated with a legal matter in which we prevailed at trial, and consulting fees.

During 2016, we incurred a $2.7 million charge related to commitment fees paid to certain of our lenders, which provided a financing commitment for the SurgiQuest acquisition and recorded a loss on the early extinguishment of debt of $0.3 million in conjunction with the fifth amended and restated senior credit agreement as further described in Note 6.

During 2016, 2015 and 2014, we continued our operational restructuring plan. The consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities is complete. 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 $3.1 million, $8.0 million and $5.6 million in costs associated with the operational restructuring during the years ending December 31, 2016, 2015 and 2014, respectively. These costs were charged to cost of sales and include severance and other charges associated with the consolidation of operations.

During 2016, the Company discontinued our Altrus product offering as part of our ongoing restructuring and incurred $4.5 million in non-cash charges primarily related to inventory and fixed assets which were included in cost of sales during 2016.

During 2016, we sold our Centennial, Colorado facility. We received net cash proceeds of $5.2 million and recorded a gain of $1.9 million on the sale.

During 2016, 2015 and 2014, we restructured certain selling and administrative functions and incurred $6.9 million, $13.7 million and $3.4 million, respectively, in related costs consisting principally of severance charges.

During 2014, we incurred $12.5 million in costs associated with restructuring of executive management. These costs include severance payments, accelerated vesting of stock-based compensation awards, accrual of the present value of deferred compensation and other benefits to our then Chief Executive Officer as defined in his termination agreement; accelerated vesting of stock-based compensation awards to certain members of executive management, consulting fees and other benefits earned as further described in our Form 8-K filing on July 23, 2014.

We have recorded an accrual in current and other long term liabilities of $2.6 million at December 31, 2016 mainly related to severance costs associated with restructuring. Below is a rollforward of the costs incurred and cash expenditures associated with these activities during 2016, 2015 and 2014:



Balance as of January 1, 2014	$	3,128

Expenses incurred	21,512

Payments made	(16,386		)

Balance as of December 31, 2014	8,254

Expenses incurred	21,671

Payments made	(22,750		)

Balance as of December 31, 2015	7,175

Expenses incurred	9,939

Payments made	(14,471		)

Balance as of December 31, 2016	$	2,643

A significant portion of this accrual will be paid out in 2017.