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 was reduced by 95 employees (or approximately 17% of the Tobacco segment's workforce).

The following table summarizes amounts expensed for the year ended December 31, 2015:



	Amounts expensed through December 31, 2015
Cash Charges:
Employee severance and benefits	$	1,094
Lease termination costs	203
Other restructuring expenses	68
	1,365
Non-Cash:
Employee pension benefits	5,438
Point of sale inventory impairment	454
	5,892

Total restructuring	$	7,257

All amounts expensed through December 31, 2015 are included as Restructuring charges in the Company’s consolidated statements of operations and are all attributable to the Company’s Tobacco segment.

Severance and benefits expensed for the year ended December 31, 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.

Employee pension benefits consist of the costs associated with enhanced pension benefits due to employees under the terms of a voluntary termination program initiated in the third quarter of 2015. Pension plan participants electing to accept voluntary termination of employment were offered enhanced pension benefits including an increased payment as well as the option to receive a lump sum benefit instead of an annuity. The cost of the special termination benefit associated with the increased payments was $3,831 and the costs of settlements related to lump sum payments was $1,607.

The following table presents the activity under the Tobacco segment restructuring plan for the year ended December 31, 2015:



	Employee Severance and Benefits			Contract Termination/Exit Costs			Other			Non-Cash Pension Expense			Non-Cash Asset Impairment			Total
Accrual balance as of January 1, 2015	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring charges	1,094			203			68			5,438			454			7,257
Utilized	(672		)	(155		)	(48		)	(5,438		)	(454		)	(6,767		)
Accrual balance as of December 31, 2015	$	422		$	48		$	20		$	—		$	—		$	490