RESTRUCTURING

In October 2015, the Company's tobacco segment commenced a restructuring by realigning its sales force and adjusting its business model to more efficiently serve its chain and independent accounts. In connection with the restructuring, the segment's workforce is expected to decline by approximately 95 employees (or approximately 17% of the tobacco segment's workforce).

The following table summarizes estimated restructuring charges and actual amounts expensed for the three and nine months ended September 30, 2015:



	Total Estimated Costs		Amounts expensed through September 30, 2015
Cash Charges
Employee severance and benefits	$	1,094	$	1,094
Lease termination costs	223		—
Other restructuring expenses	207		—
	1,524		1,094
Non-Cash:
Employee pension benefits	4,000		—
Point of Sale inventory impairment	454		454
	4,454		454

Total restructuring expenses	$	5,978	$	1,548

All amounts expensed through September 30, 2015 are included as Restructuring expenses in the Company’s condensed statements of operations and are all attributable to the Company’s Tobacco segment. The Company anticipates that the remaining restructuring expense will be recognized in the fourth quarter of 2015.

Severance and benefits expensed for the three and nine months ended September 30, 2015 relate entirely to a reduction in sales and administrative positions. Non-cash employee pension benefits costs relate to a reduction in manufacturing positions at Liggett’s plant in Mebane, NC.

The Company’s estimates of the restructuring expense and the timing of various events are based on a number of assumptions and actual results may differ materially from these estimates.

The following table presents the changes in the employee severance and benefits liability under the Tobacco segment restructuring plan:




Severance liability at July 1, 2015	$	—
Severance expense	1,094
Severance payments	—
Severance liability at September 30, 2015	$	1,094