11. Restructuring and Other

During the three and nine months ended September 30, 2015 and 2014, cost reduction actions were taken to lower our quarterly operating expense run rate as we analyze and re-align our cost structure following our business acquisitions. These charges primarily relate to cost reduction actions undertaken to integrate recently acquired businesses, consolidate facilities, and lower our quarterly operating expense run rate. Restructuring and other consists primarily of restructuring, severance, retention, facility downsizing and relocation, and acquisition integration expenses. Our restructuring and other plans are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations, ASC 712, Compensation – Non-Retirement Postemployment Benefits, and ASC 820.

Restructuring and other costs were $0.6 and $2.5 million for the three and nine months ended September 30, 2015, respectively, and $3.0 and $5.7 million for the three and nine months ended September 30, 2014, respectively. Restructuring and other costs include severance charges of $0.5 and $1.8 million related to 17 and 65 head count reductions for the three and nine months ended September 30, 2015, respectively, and $0.8 and $2.5 million related to 26 and 96 head count reductions for the three and nine months ended September 30, 2014, respectively. Severance costs include severance payments, related employee benefits, outplacement fees, and employee relocation costs.

Facilities relocation and downsizing expenses were $0.1 and $0.5 million for the three and nine months ended September 30, 2015, respectively, primarily due to the relocation of certain manufacturing and administrative locations to accommodate additional space requirements, and $1.8 and $2.0 million for the three and nine months ended September 30, 2014, respectively, primarily due to the consolidation of our German operations. Integration expenses of $0.1 and $0.2 million for the three and nine months ended September 30, 2015, respectively, and $0.4 and $1.2 million for the three and nine months ended September 30, 2014, respectively, were required to integrate our business acquisitions.

Restructuring and other reserve activities for the nine months ended September 30, 2015 and 2014 are summarized as follows (in thousands):


	2015			2014
Reserve balance at January 1,	$	2,102		$	873
Restructuring		1,554			3,794
Other		991			1,868
Non-cash restructuring and other costs		—			(27	)
Cash payments		(2,699	)		(4,029	)

Reserve balance at September 30,		1,948			2,479