In the prior year, the Company performed a strategic review of its business and decided to exit from certain non-core businesses or initiatives, which included closing its VR locations. In addition, as part of the Company’s ongoing efforts to decrease costs, the Company has reduced certain functions and realigned resources. In the current period, certain costs that did not meet the recognition criteria in 2018 were recognized, including finalization of certain estimated costs.

The Company recognized the following charges in its condensed consolidated statements of operations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Restructuring charges	$	—	$	—	$	628	$	1,158
Costs to exit lease and restore facilities		—		—		222		—
	$	—	$	—	$	850	$	1,158

Restructuring charges are comprised of employee severance costs including benefits and stock-based compensation, costs of consolidating facilities and contract termination costs. Restructuring charges are based upon plans that have been committed to by the Company but may be refined in subsequent periods. These charges are recognized pursuant to FASB ASC 420. A liability for a cost associated with an exit or disposal activity is recognized and measured at its fair value in the condensed consolidated statement of operations in the period in which the liability is incurred. When estimating the value of facility restructuring activities, assumptions are applied regarding estimated sub-lease payments to be received, which can differ from actual results.

In the current year, the Company incurred $nil and $0.6 million in restructuring charges for the three and nine months ended September 30, 2019, respectively (2018 —$nil and $1.2 million, respectively). A summary of the restructuring costs by reporting groups identified by nature of product sold, or service provided as disclosed in note 13 recognized are as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Corporate	$	—	$	—	$	628	$	332
IMAX DMR		—		—		—		611
Theater system maintenance		—		—		—		215
	$	—	$	—	$	628	$	1,158

At this time, the Company does not expect to recognize any additional restructuring charges during the remainder of 2019.

The following table sets forth a summary of restructuring accrual activities for the nine months ended September 30, 2019:

	Employee Severance and Benefits
Balance as at December 31, 2018	$	1,936
Restructuring charges		628
Cash payments		(1,573	)
Balance as at September 30, 2019	$	991

In the three and nine months ended September 30, 2019 and 2018, the Company did not recognize any associated impairments.