Restructuring and Other Expense

Restructuring and other expense consists of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014

Restructuring costs included in cost of sales	$	1,316	$	1,448	$	5,179	$	3,754

Restructuring costs	$	1,331	$	687	$	9,795	$	1,855
Management restructuring costs	—		11,022		—		11,022
Patent dispute and other matters	—		334		—		3,677
Shareholder activism costs	—		2,441		—		3,966
Restructuring and other expense included in selling and administrative expense	$	1,331	$	14,484	$	9,795	$	20,520

During the nine months ended September 30, 2014, we incurred $1.9 million in legal fees associated with a patent infringement claim, including $0.9 million in settlement costs during the first quarter of 2014. In addition, the nine months ended September 30, 2014 included $1.3 million in consulting fees and costs associated with a legal matter in which we prevailed at trial. Finally, the three and nine months ended September 30, 2014, included $0.3 million and $0.4 million, respectively, in costs associated with a business acquisition.

During the three and nine months ended September 30, 2014, we incurred $2.4 million and $4.0 million, respectively, in professional fees related to shareholder activism.

During 2015 and 2014, we continued our operational restructuring plan. In 2015, we continued the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. We expect our Centennial, Colorado consolidation to be completed over the next 3 months. During 2014, we completed the consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and the consolidation of our Westborough, Massachusetts manufacturing operations into our Largo, Florida and Chihuahua, Mexico facilities. We incurred $1.3 million and $1.4 million in costs associated with the operational restructuring during the three months ended September 30, 2015 and 2014, respectively, and $5.2 million and $3.8 million during the nine months ended September 30, 2015 and 2014, respectively. These costs were charged to cost of sales and include severance and other charges associated with the consolidation of our Finland, Westborough, Massachusetts and Centennial, Colorado operations.

During 2015 and 2014, we restructured certain selling and administrative functions and incurred severance and other related costs in the amount of $1.3 million and $0.7 million for the three months ended September 30, 2015 and 2014, respectively, and $9.8 million and $1.9 million for the nine months ended September 30, 2015 and 2014, respectively.

During the three and nine months ended September 30, 2014, we incurred $11.0 million in costs associated with restructuring of executive management. These costs include severance payments, accelerated vesting of stock-based compensation awards, accrual of the present value of deferred compensation and other benefits to our then Chief Executive Officer as defined in his termination agreement; accelerated vesting of stock-based compensation awards to certain members of executive management and other benefits earned as further described in our Form 8-K filing on July 23, 2014.

We have recorded an accrual in current and other long term liabilities of $5.2 million at September 30, 2015 mainly related to severance and lease impairment costs associated with the restructuring. Below is a rollforward of the accrual:




Balance as of January 1, 2015	$	8,254

Expenses incurred	4,449

Payments made	(7,516		)

Balance at September 30, 2015	$	5,187