11. Restructuring

6 Months Ended

Jun. 30, 2017

Restructuring and Related Activities [Abstract]

11. Restructuring

Note 11. Restructuring

On July 7, 2016, the Company announced a restructuring of its sales force and operations (2016 Restructuring). The 2016 Reorganization included (1) a reduction of 54 sales positions, primarily from the Company's Neurology sales team; (2) prioritization and reorganization of sales territories to reduce the inefficient time that sales representatives spent driving long distances between customers; (3) improvement of the Company's compensation plan to incentivize the field sales staff to increase the frequency of calls on the focused targets; and (4) consolidation of the Neurology and Pain sales forces under one sales management structure to eliminate redundancies. In addition, as part of this initiative, the Company reduced its administrative staff by 6 employees. The Company incurred $131,000 during the six months ended June 30, 2017 in contract termination costs associated with the 2016 Restructuring. To date the Company has incurred $2.4 million in costs related to the 2016 Restructuring, consisting of $1.4 million related to employee termination benefits and $1.0 million related to contract termination costs. All associated contract termination cost payments are expected to be paid by December 31, 2017.

A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets, is as follows (in thousands):

		December 31,								June 30,
		2016		Charges		Cash		Non-cash		2017
2016 Restructuring	$	618	$	131	$	(255)	$	-	$	494
(Contract termination costs)