Note 11: Restructuring

2015 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.

The restructuring liability for this workforce reduction was recorded in the first quarter of 2015 in accordance with ASC 420, consistent with management's approval and commitment to the restructuring plan in the first quarter of 2015, and the communication of those plan details to affected employees within that quarter.

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


•	Discontinuing our SAMPLEit concept, which is recorded in our All Other reporting category. See Note 14: Business Segments and Enterprise-Wide Information for additional information; and


•	Continuing to implement actions to further align costs with revenues in our continuing operations primarily through workforce reductions across the Company, a one-time payment to settle an outstanding purchase commitment, and vacating a floor of a corporate facility. See Note 16: Commitments and Contingencies for further information related to the purchase commitment.

We recorded the restructuring liabilities in the fourth quarter of 2015 under ASC 712, consistent with management's approval and commitment to the restructuring plan. We had a substantive plan in place, for purposes of ASC 712, based on the fact that the termination benefits to be paid to our employees were similar to the termination benefits historically paid by us, thereby enabling employees to determine the type and amount of benefits they would receive if they were involuntarily terminated. The restructuring liability represented our obligation related to our employees' rights to receive compensation attributable to services already rendered, which rights had already vested or accumulated. Due to the fact that management had approved and committed to the restructuring plan and based on historical experience, payment of the severance was probable and the amount was reasonably estimated.

We do not expect significant future restructuring charges related to our 2015 restructuring activities. The total amount incurred for restructuring, exclusive of asset impairments incurred by reportable segment (on an allocated basis) and expense type is as follows:



	Year Ended December 31,
Dollars in thousands	2015
Redbox
Severance	$	4,236
Lease termination and related costs (excluding related asset impairments)	4,958
Purchase commitment settlement costs	7,021
Total Redbox restructuring costs	16,215
Coinstar
Severance	492
Lease termination and related costs (excluding related asset impairments)	100
Purchase commitment settlement costs	1,369
Total Coinstar restructuring costs	1,961
ecoATM
Severance	602
Lease termination and related costs (excluding related asset impairments)	—
Purchase commitment settlement costs	85
Total ecoATM restructuring costs	687
All Other
Severance	822
Lease termination and related costs (excluding related asset impairments)	2
Purchase commitment settlement costs	26
Total All Other restructuring costs	850
Total restructuring costs in continuing operations	19,713
Restructuring costs in discontinued operations	522
Total restructuring costs	$	20,235

During 2015, we recognized $27.7 million in charges in connection with our restructuring and related costs including $7.4 million in impairments of lease related assets, and $20.2 million in restructuring costs, which include severance, net lease termination costs and a one-time payment to settle an outstanding purchase commitment.



	Year Ended December 31,
Dollars in thousands	2015
Restructuring costs	$	20,235
Impairment of lease related assets (see Note 5)	7,440
Total restructuring and related costs	27,675
Less: restructuring costs included in discontinued operations	(522		)
Restructuring and related costs from continuing operations	$	27,153

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⁽¹⁾	6,284			5,138			8,813
Reclassification of deferred balances⁽²⁾	—			5,260			—
Costs paid or otherwise settled	(4,899		)	(5,407		)	(8,813		)
Ending Balance - December 31, 2015	$	1,385		$	4,991		$	—


(1)	Other includes an $8.5 million one-time payment to settle an outstanding purchase commitment.


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

2013 Restructuring

During the fourth quarter of 2013, as a result of a comprehensive operational review, we committed to a restructuring plan intended to, among other things, better align our cost structure with revenue growth in our core businesses. As part of the plan, we discontinued the Rubi, Crisp Market, and Star Studio concepts (see Note 12: Discontinued Operations for further information). Also as part of the restructuring plan, we implemented actions to reduce costs in our continuing operations primarily through workforce reductions across the Company. The closure of all discontinued ventures and the workforce reductions were completed in 2014.

The restructuring liabilities for the workforce reductions were recorded in the fourth quarter of 2013 and in 2014 in accordance with ASC 420, consistent with management's approval and commitment to the restructuring plan, and the communication of plan details to affected employees.

The total amount incurred for restructuring, exclusive of asset impairments incurred by reportable segment (on an allocated basis) and expense type is as follows:



Dollars in thousands	Cumulative as of December 31, 2014		Year Ended December 31, 2014		Year Ended December 31, 2013
Redbox
Severance	$	4,305	$	534	$	3,771
Coinstar
Severance	747		23		724
Total restructuring costs in continuing operations	5,052		557		4,495
Restructuring costs in discontinued operations	2,899		590		2,309
Total restructuring costs	$	7,951	$	1,147	$	6,804