In the fourth quarter of 2017, we announced a restructuring plan to further streamline our operations, eliminate redundancies at certain divisions and address certain operational functions. As part of the restructuring, we (i) consolidated the operations of three divisions into one, (ii) consolidated sales, purchasing, bidding and proposal and accounting functions, (iii) expanded and refocused our marketing resources, including changes to key management positions at certain divisions, and (iv) exited certain product lines and related operations, including the eliminations of a number of warehouse locations.

In connection with this restructuring, we abandoned certain assets, including inventory of $9.2 million and certain discontinued customer accounts and other, totaling $15.0 million (net of expected recoveries), of which $9.2 million was recorded as part of “Cost of sales” in the Consolidated Statements of Operations. In addition, we recorded $1.9 million of accrued restructuring costs related to severance, outplacement and other employee costs, lease terminations and other relocation costs.

Restructuring charges have been recorded in accordance with ASC 420-10, “Exit or Disposal Cost Obligations.” We account for one-time termination benefits, contract terminations and/or costs to terminate lease obligations less assumed sublease income in accordance with ASC 420-10, which addresses financial accounting and reporting for costs associated with restructuring activities. Under ASC 420-10, we established a liability for costs associated with an exit or disposal activity, including severance and lease termination obligations, and other related costs. We will reassess the expected cost to complete the exit or disposal activities at the end of each reporting period and adjusted our remaining estimated liabilities, if necessary. It is expected that the actions taken for this restructuring will be substantially completed by the end of the second quarter of 2018.

The actions taken for this restructuring will be substantially completed by the end of the first quarter of 2018.