15.  CLOSURE COSTS

We generally recognize expenses related to closures and position eliminations at the time of announcement or notification.  Such costs include termination and other severance benefits, lease abandonment costs, and other transition costs.  Closure costs are reflected in our Consolidated Statements of Operations as selling, general, and administrative expense.  Accrued closure costs are reflected in our Consolidated Balance Sheets as accrued liabilities. 

   

In connection with the acquisition of USI, management performed an evaluation of the resources necessary to effectively operate the acquired business.  During the second quarter of 2018, management committed to a plan to close the USI corporate office in St. Paul, Minnesota, and consolidate certain administrative functions to our Daytona Beach, Florida, Branch Support Center.  As a result, the Company expects to incur an aggregate of approximately $6.9 million of closure costs in connection with this activity.  Closure costs pertaining to the USI acquisition are primarily included in general corporate expenses for segment reporting purposes.

The following table details our total estimated closure costs by cost type, of which $0.8 million were incurred during the three months ended December 31, 2018, pertaining to the above closure and transition related to the USI acquisition (in thousands):

 

 

We expect to pay the remaining accrued closure costs primarily in the first half of 2019. Non-cash adjustments in the table above relate to true-up of  estimates to actual amounts and other subsequent changes.

 

We continually evaluate our national footprint to ensure we are strategically located throughout the U.S. to serve our customers and position ourselves for continued growth.  As a result of this evaluation during 2017, management approved a plan to consolidate certain back-office support operations to our Daytona Beach, Florida, Branch Support Center.  All closure costs related to this consolidation were recorded in 2017.

 

The following table details our total closure costs, by cost type, related to the above closure and transition relating to the 2017 consolidation of certain back-office support operations (in thousands):