Restructuring Activity

The Company has implemented several restructuring plans over the last several years in an effort to adapt operations to market conditions. These restructuring plans included organizational changes, including workforce reductions, and the consolidation of facilities in locations deemed to have redundant operations. The organizational changes and consolidations were part of the Company's overall plan to streamline the organizational structure, lower structural operating costs, and increase liquidity.

The Company incurred the following restructuring expense (income) during the years ended December 31, 2016, 2015 and 2014:



	Year Ended December 31,
	2016			2015			2014
Employee termination and related benefits ^(a)	$	(854	)	$	17,012		$	937
Lease termination costs	6,038			444			186
Moving costs associated with plant consolidations	4,558			5,711			1,450
Professional fees	1,839			1,804			—
Loss (gain) on disposal of fixed assets	1,361			(15,963		)	(5,533		)
Total expense (income)	$	12,942		$	9,008		$	(2,960	)

^(a) Employee termination and related benefits primarily consists of severance and pension related costs. Included in the year ended December 31, 2016 was income of $(1,973), which resulted from a reduction in an estimated pension withdrawal liability of$5,500 recorded in 2015. Included in the year ended December 31, 2015 was a pension curtailment charge of $2,923, a pension settlement charge of $3,915, and an estimated pension withdrawal liability charge of $5,500 associated with the Company’s withdrawal from a multi-employer plan.

In the year ended December 31, 2016, the Company incurred additional costs associated with the April 2015 restructuring plan that consisted of employee termination and related benefits, moving costs, professional fees and losses on the disposal of fixed assets. In addition, the Company recorded charges of $452 for inventory moved from consolidated plants that was subsequently identified to be scrapped. The inventory charge is reported in cost of materials in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2016.

In the first quarter of 2016, the Company closed its Houston and Edmonton facilities and sold all the equipment at these facilities to an unrelated third party. Restructuring activities associated with the strategic decision to close these facilities included employee termination and related benefits, lease termination costs, moving costs associated with exit from the closed facilities, and professional fees at the closed facilities.

Restructuring activity during the year ended December 31, 2015 that was associated with the April 2015 restructuring plan included employee termination and related benefits related to workforce reductions, lease termination costs, moving costs associated with plant consolidations, a gain on the sale of buildings and equipment, and professional fees. Also, in conjunction with the April 2015 plan, the Company recorded charges of $25,656 for inventory that was identified to be scrapped or written down. Management decided it was more economically feasible to scrap aged material as opposed to expending the time and effort to sell such material in the normal course. The charge included a provision for small pieces of inventory at closing branches that would not be moved, as well as provisions for excess inventory levels based on estimates of market demand. The inventory charge is reported in cost of materials in the Consolidated Statement of Operations and Comprehensive Loss for the year ended December 31, 2015.

Restructuring activity during the year ended December 31, 2014 consisted of a gain on the sale of fixed assets in Houston where the Company completed a plant consolidation, partially offset by employee termination and related benefits for workforce reductions announced in June 2014, moving costs associated with plant consolidations announced in October 2013 and lease termination costs related to the restructuring activities announced in January 2013.

Substantially all of the previously announced restructuring activities are complete.

Restructuring reserve activity for the years ended December 31, 2016, 2015 and 2014 is summarized below:



			Period Activity
	Balance January 1		Charges (gains)			Cash (payments) receipts			Impairment and non-cash activity^(c)			Balance December 31 ^(a)
2016 Activity:
Employee termination and related benefits ^(a)	$	8,301	$	(854	)	$	(3,820	)	$	—		$	3,627
Lease termination costs^(b)(c)	232		6,038			(3,160		)	(2,287		)	823
Moving costs associated with plant consolidations	—		4,558			(4,558		)	—			—
Professional fees	—		1,839			(1,839		)	—			—
Disposal of fixed assets	—		1,361			2,703			(4,064		)	—
Inventory adjustment	—		452			—			(452		)	—
Total 2016 Activity	$	8,533	$	13,394		$	(10,674	)	$	(6,803	)	$	4,450
2015 Activity:
Employee termination and related benefits ^(d)	$	—	$	17,012		$	(1,873	)	$	(6,838	)	$	8,301
Lease termination costs	636		444			(848		)	—			232
Moving costs associated with plant consolidations	—		5,711			(5,711		)	—			—
Professional fees	—		1,804			(1,804		)	—			—
Disposal of fixed assets	—		(15,963		)	15,963			—			—
Inventory adjustment	—		25,656			—			(25,656		)	—
Total 2015 Activity	$	636	$	34,664		$	5,727		$	(32,494	)	$	8,533
2014 Activity:
Employee termination and related benefits	$	129	$	937		$	(1,066	)	$	—		$	—
Lease termination costs	921		186			(471		)	—			636
Moving costs associated with plant consolidations	—		1,450			(1,450		)	—			—
Disposal of fixed assets	—		(5,533		)	5,533			—			—
Total 2014 Activity	$	1,050	$	(2,960	)	$	2,546		$	—		$	636

^(a)Included in charges (gains) for 2016 is income of $(1,973) that resulted from a reduction in an estimated pension withdrawal liability of $5,500 recorded in 2015. As of December 31, 2016, the short-term employee termination and related benefits of $340 is included in accrued payroll and employee benefits in the Consolidated Balance Sheet and the long-term liability of $3,287 associated with the Company's withdrawal from a multi-employer pension plan is included in other non-current liabilities in the Consolidated Balance Sheet.

^(b)In connection with the closure of the Company's Houston and Edmonton facilities, the Company agreed to sell its fixed assets and to a reduction in future proceeds from the sale of inventory in exchange for the assignment of its remaining lease obligations at its Houston facility resulting in a non-cash charge of $2,287 during the year ended December 31, 2016.

^(c)Payments on certain of the lease obligations are scheduled to continue until 2020. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the consolidated financial statements of future periods. As of December 31, 2016, the short-term portion of the lease termination costs of $292 is included in accrued and other current liabilities and the long-term portion of the lease termination costs of $531 is included in other noncurrent liabilities in the Consolidated Balance Sheet.

^(d)Included in charges (gains) and non-cash activity for 2015 are charges for pension curtailment and pension settlement of $2,923 and $3,915, respectively. Also included in charges (gains) for 2015 is an estimated withdrawal liability charge of $5,500 associated with the Company’s withdrawal from a multi-employer pension plan.