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Restructuring Costs and Other Net
9 Months Ended
Sep. 30, 2011
Restructuring and Related Activities [Abstract] 
Restructuring Costs and Other, Net
Restructuring Costs and Other, Net

On September 22, 2011, the Company commenced the closure of its drug discovery research and development facility and operations in Leipzig, Germany and terminated ten employees at its Leipzig facility. The Company transferred active pre-clinical projects from Leipzig to its research and development facility in Montreal, Canada and the MDCO-2010 back-up compound to the clinical team in Parsippany, NJ. Upon signing release agreements, the terminated employees received severance and other benefits. The Company recorded, in the aggregate, charges of $2.1 million in the three and nine months ended September 30, 2011 associated with the 2011 Leipzig closure. These charges were recorded in research and development expenses in the Company's financial statements. Of the $2.1 million of charges related to the 2011 Leipzig closure, $0.3 million related to asset write-offs were noncash charges. The Company expects to pay out $1.0 million during the fourth quarter of 2011 and to pay out $0.8 million during 2012. The Company no longer has any research employees or research capabilities in Leipzig.

During the nine months ended September 30, 2011, the Company recorded a $0.1 million favorable adjustment to selling, general and administrative costs due to a reversal of costs associated with the 2010 workforce reductions, primarily due to the charges for employee severance and other employee-related termination costs being slightly lower than originally estimated. The 2010 workforce reductions were effected in two separate actions, which were designed to improve efficiencies and better align the Company's costs and structure for the future. The 2010 workforce reductions reduced office based personnel by 30 and field based personnel by 42. The Company did not record any adjustment to selling, general and administrative costs for the three months ended September 30, 2011.

For the nine months ended September 30, 2010, the Company recorded charges of $6.9 million associated with the 2010 workforce reductions. See note 13 "Restructuring Costs and Other, Net" of the notes to the consolidated financial statements in the Company's annual report on Form 10-K for the year ended December 31, 2010. The Company recorded a $0.2 million favorable adjustment to selling, general and administrative costs for the three months ended September 30, 2010 primarily due to the charges for employee severance and other employee-related termination costs being slightly lower than originally estimated.

Details of the activities described above and the movement in the accrual during the nine-month period ended September 30, 2011 are as follows:


 
Balance as of January 1, 2011
 
Expenses (Income), Net
 
Cash
 
Noncash
 
Balance as of September 30, 2011
 
(in thousands)
Employee severance and other personnel benefits:
 
 
 
 
 
 
 
 
 
2011 Leipzig closure
$
—

 
$
849

 
$
—

 
—

 
$
849

2010 workforce reductions
134

 
(119
)
 
(15
)
 
—

 
—

Leases and equipment write-offs
10

 
304

 
(10
)
 
(304
)
 
—

Other associated costs
—

 
918

 
—

 
—

 
918

Total
$
144

 
$
1,952

 
$
(25
)
 
$
(304
)
 
$
1,767