Note 11: Restructuring

During the first quarter of 2015, we recorded restructuring charges arising from the following activities:


•	Discontinuing our Redbox operations in Canada. The disposal was completed on March 31, 2015. See Note 12: Discontinued Operations for further information;


•	Reducing the size of our Redbox headquarters facility in Oakbrook Terrace, Illinois through early termination of operating leases for certain floors. We ceased using the office space on March 31, 2015 and the effective date of the early termination is July 31, 2016. Prior to exercising our early termination option, the leases had been scheduled to expire in July 2021; and


•	Implementing actions to further align costs with revenues in our continuing operations primarily through workforce reductions across the Company and subleasing a floor of a corporate facility.

There were no significant restructuring charges in the second quarter of 2015 or 2014. The total amount incurred for restructuring, exclusive of asset impairments incurred by reportable segment (on an allocated basis) and expense type is as follows:



	Six Months Ended
	June 30,
Dollars in thousands	2015		2014
Redbox
Severance	$	3,701	$	534
Lease termination costs (excluding related asset impairments)	4,567		—
Total Redbox restructuring costs	8,268		534
Coinstar
Severance	492		23
Lease termination costs (excluding related asset impairments)	24		—
Total Coinstar restructuring costs	516		23
ecoATM
Severance	127		—
Lease termination costs (excluding related asset impairments)	—		—
Total ecoATM restructuring costs	127		—
Total restructuring costs in continuing operations	8,911		557
Restructuring costs in discontinued operations	522		590
Total restructuring costs	$	9,433	$	1,147

During the six months ended June 30, 2015, we recognized $16.4 million in charges in connection with our restructuring and early lease termination including $6.9 million in impairments of lease related assets, and $9.4 million in restructuring costs, which include severance and net lease termination costs.



	Six Months Ended
	June 30,
Dollars in thousands	2015			2014
Restructuring costs	$	9,433		$	1,147
Impairment of lease related assets (see Note 5)	6,940			—
Total restructuring and lease termination costs	16,373			1,147
Less: restructuring costs included in discontinued operations	(522		)	(590		)
Restructuring and lease termination costs from continuing operations	$	15,851		$	557

A reconciliation of the beginning and ending liability balance by expense type is as follows:



Dollars in thousands	Severance Expense			Lease Termination Costs			Other
Beginning Balance - January 1, 2015	$	—		$	—		$	—
Costs charged to expense	4,451			4,669			313
Reclassification of deferred balances⁽¹⁾	—			5,260			—
Costs paid or otherwise settled	(4,174		)	(3,666		)	(231		)
Ending Balance - June 30, 2015	$	277		$	6,263		$	82


(1)	Deferred rent liabilities related to the early lease termination that were reclassified to present the outstanding liability related to the terminated leases.