Acquisition, Restructuring and Other Expense

Acquisition, restructuring and other expense consists of the following:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Restructuring costs included in cost of sales	$	—	$	1,306	$	—	$	2,778

Business acquisition costs	$	1,073	$	128	$	1,073	$	1,020
Restructuring costs	—		—		—		1,347
Legal matters	—		327		—		17,041
Acquisition, restructuring and other expense included in selling and administrative expense	$	1,073	$	455	$	1,073	$	19,408

Impairment charges included in research and development expense	$	4,212	$	—	$	4,212	$	—

During the three and nine months ended September 30, 2018, we recorded a $1.1 million charge to selling and administrative expense associated with a vacant lease related to a prior acquisition. During the three and nine months ended September 30, 2017, we incurred $0.1 million and $1.0 million, respectively, in costs associated with the January 4, 2016 acquisition of SurgiQuest, Inc. The costs were associated with expensing of unvested options acquired and integration related costs.

During the three and nine months ended September 30, 2018, we recorded a net charge of $4.2 million to research and development expense mainly associated with the impairment of an in-process research and development asset, net of the release of previously accrued contingent consideration in other current and long-term liabilities, as further described in Note 13.

During 2017, we continued our operational restructuring plan. 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 during the three months ended September 30, 2017 to write-off inventory which no longer is offered for sale. For the nine months ended September 30, 2017 we incurred $2.8 million in costs associated with the operational restructuring. These costs were charged to cost of sales and included severance, inventory and other charges.

During the nine months ended September 30, 2017, we restructured certain selling and administrative functions and incurred $1.3 million in costs consisting principally of severance charges.

During the nine months ended September 30, 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 13. These costs were paid on July 10, 2018. In addition, during the three and nine months ended September 30, 2017, we incurred $0.3 million and $4.8 million, respectively, in costs associated with this litigation and other legal matters.