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