Restructuring Charges |
9 Months Ended |
|---|---|
Sep. 30, 2016 | |
| Restructuring Charges | |
| Restructuring Charges |
13.Restructuring Charges
In September 2016, we announced that we had reduced our workforce by 46 positions, mostly in the research area. We also announced that effective September 15, 2016, Donald G. Payan, M.D, has retired from the board of directors and from his position as Executive Vice President and President of Discovery and Research. We recorded restructuring charges during the three months ended September 30, 2016 of approximately $5.8 million within Restructuring Charges in the accompanying Statement of Operations, which included $5.0 million of severance costs paid or to be paid in cash, $319,000 impairment of certain property and equipment, and $499,000 of non-cash stock-based compensation expense as a result of the modification of our former executive’s stock options (see Note 6). At September 30, 2016, the remaining accrued restructuring costs, which will substantially be paid in the fourth quarter of 2016, consisted of $1.4 million related to severance, COBRA benefits and outplacement costs for certain employees that were affected by the reduction in workforce. This accrued liability is classified under Accrued Compensation on the Condensed Balance Sheet. |