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Restructuring and Other Charges | 9 Months Ended
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Sep. 30, 2017
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | 11. Restructuring and Other Charges As discussed in Note 3 (“Discontinued Operations”), we completed the Spin-off on the Distribution Date. During the three months ended September 30, 2017 and 2016, we incurred $0.4 million and $0.7 million, respectively, of costs associated with the Spin-off that were directly attributable to Archrock. During the nine months ended September 30, 2017 and 2016, we incurred $1.2 million and $2.5 million, respectively, of costs associated with the Spin-off. The restructuring charges associated with the Spin-off are not directly attributable to our reportable segments because they primarily represent costs incurred within the corporate function. As of September 30, 2017, we had an accrued liability of $0.5 million related to retention benefits incurred. We expect to incur an additional $0.1 million for the remainder of 2017. In the first quarter of 2016, we determined to undertake a cost reduction program to reduce our on-going operating expenses, including workforce reductions and closure of certain make-ready shops. These actions were a result of our review of our businesses and efforts to efficiently manage cost and maintain our businesses in line with then current and expected activity levels and anticipated make-ready demand in the U.S. market. During the three and nine months ended September 30, 2016, we incurred $4.0 million and $13.3 million, respectively, of restructuring and other charges as a result of this plan primarily related to severance benefits and consulting fees. These charges are reflected as restructuring and other charges in our condensed consolidated statement of operations. The cost reduction program under this plan was completed during the fourth quarter of 2016. The following table presents the expense incurred under this plan by reportable segment (in thousands):
| Contract Operations |  | Aftermarket Services |  | Other (1) |  | Total
Three months ended September 30, 2016 | $ | 508 |  |  | $ | 312 |  |  | $ | 3,210 |  |  | $ | 4,030 |
Nine months ended September 30, 2016 | 3,424 |  |  | 1,113 |  |  | 8,762 |  |  | 13,299 |
(1) | Represents expenses incurred under this plan that are not directly attributable to our reportable segments because it represents severance benefits and consulting fees incurred within the corporate function.
The following table summarizes the changes to our accrued liability balance related to restructuring and other charges for the nine months ended September 30, 2016 and 2017 (in thousands):
| Spin-off |  | Cost Reduction Plan |  | Total
Beginning balance at January 1, 2016 | $ | 855 |  |  | $ | — |  |  | $ | 855 |
Additions for costs expensed | 2,459 |  |  | 13,299 |  |  | 15,758 |
Less non-cash expense (1) | (1,492 | ) |  | — |  |  | (1,492 | )
Reductions for payments | (1,106 | ) |  | (13,235 | ) |  | (14,341 | )
Ending balance at September 30, 2016 | $ | 716 |  |  | $ | 64 |  |  | $ | 780 |
Beginning balance at January 1, 2017 | $ | 712 |  |  | $ | — |  |  | $ | 712 |
Additions for costs expensed | 1,245 |  |  | — |  |  | 1,245 |
Less non-cash expense(1) | (895 | ) |  | — |  |  | (895 | )
Reductions for payments | (606 | ) |  | — |  |  | (606 | )
Ending balance at September 30, 2017 | $ | 456 |  |  | $ | — |  |  | $ | 456 |
(1) | Represents non-cash retention benefits associated with the Spin-off to be settled in Archrock stock.
The following table summarizes the components of charges included in restructuring and other charges in our condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Retention and severance benefits | $ | 422 |  |  | $ | 4,297 |  |  | $ | 1,245 |  |  | $ | 11,692 |
Consulting services | — |  |  | 392 |  |  | — |  |  | 4,066 |
Total restructuring and other charges | $ | 422 |  |  | $ | 4,689 |  |  | $ | 1,245 |  |  | $ | 15,758 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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