Acquisition, Restructuring and Other Expense

Acquisition, restructuring and other expense for the year ended December 31, consists of the following:



	2017		2016			2015
Consolidation costs	$	2,903	$	3,066		$	8,016
Termination of a product offering	—		4,546			—
Restructuring costs included in cost of sales	$	2,903	$	7,612		$	8,016

Restructuring costs	$	1,347	$	6,670		$	13,655
Business acquisition costs	2,336		17,029			2,543
Legal matters	17,480		3,773			—
Gain on sale of facility	—		(1,890		)	—
Acquisition, restructuring and other expense included in selling and administrative expense	$	21,163	$	25,582		$	16,198

Debt refinancing costs included in other expense	$	—	$	2,942		$	—

During 2017 and 2016, we incurred $2.3 million and $17.0 million, respectively, in costs associated with the January 4, 2016 acquisition of SurgiQuest, Inc. as further described in Note 2. The costs incurred in 2017 consist of costs associated with expensing of unvested options acquired and integration related costs. The costs incurred in 2016 consist of investment banking fees, consulting fees, legal fees associated with the acquisition, costs associated with expensing of unvested options acquired and integration related costs. During 2015, we incurred $2.5 million in costs associated with the acquisition of SurgiQuest and other acquisitions during the year.

During 2017, we incurred $12.2 million in costs associated with the SurgiQuest, Inc. vs. Lexion Medical litigation verdict whereby SurgiQuest was found liable for $2.2 million in compensatory damages with an additional $10.0 million in punitive damages as further described in Note 11. These costs are accrued in other current liabilities at December 31, 2017. In addition, during the years ended December 31, 2017 and 2016, we incurred $5.3 million and $3.8 million, respectively, in costs associated with this litigation and other legal matters.

During 2016, we incurred a $2.7 million charge related to commitment fees paid to certain of our lenders, which provided a financing commitment for the SurgiQuest acquisition and recorded a loss on the early extinguishment of debt of $0.3 million in conjunction with the fifth amended and restated senior credit agreement as further described in Note 6.

For the years ending December 31, 2017, 2016 and 2015, we incurred $2.9 million, $3.1 million and $8.0 million, respectively, in costs associated with operational restructuring. These costs were charged to cost of sales and included severance, inventory and other charges. As part of this plan, we engaged a consulting firm to assist us in streamlining our product offering and improving our operational efficiency. As a result, we identified certain catalog numbers to be discontinued and consolidated into existing product offerings and recorded a $1.3 million charge in the year ended December 31, 2017 to write-off inventory which will no longer be offered for sale. This amount is included in the above total for 2017.

During 2016, the Company discontinued our Altrus product offering as part of our ongoing restructuring and incurred $4.5 million in non-cash charges primarily related to inventory and fixed assets which were included in cost of sales during 2016.

During 2016, we sold our Centennial, Colorado facility. We received net cash proceeds of $5.2 million and recorded a gain of $1.9 million on the sale.

During 2017, 2016 and 2015, we restructured certain selling and administrative functions and incurred $1.3 million, $6.7 million and $13.7 million, respectively, in related costs consisting principally of severance charges.

We have recorded a restructuring accrual in current and other long term liabilities of $1.3 million at December 31, 2017 mainly related to severance costs associated with restructuring. Below is a rollforward of the costs incurred and cash expenditures associated with these activities during 2017, 2016 and 2015:



Balance as of January 1, 2015	$	8,254

Expenses incurred	21,671

Payments made	(22,750		)

Balance as of December 31, 2015	7,175

Expenses incurred	9,736

Payments made	(14,268		)

Balance as of December 31, 2016	2,643

Expenses incurred	4,250

Payments made	(5,635		)

Balance as of December 31, 2017	$	1,258

A portion of this accrual will be paid out in 2018.