XML 88 R23.htm IDEA: XBRL DOCUMENT v2.4.1.9
Restructuring Costs and Other, Net
 12 Months Ended
Dec. 31, 2014
Restructuring and Related Activities [Abstract]  
Restructuring Costs and Other, Net
Restructuring Costs and Other, Net

On October 22, 2014, the Company commenced implementation of a reorganization of its European operations intended to improve efficiency and better align the Company's costs and employment structure with its strategic plans. The reorganization includes a workforce reduction and the consolidation of European sites into a single location in Zurich, Switzerland. As a result of the workforce reduction, the Company reduced its personnel by 46 employees. Upon signing release agreements, impacted employees were eligible to receive severance payments in specified amounts, and general benefits and outplacement services for specified periods in accordance with our policies and local requirements. The Company completed its reorganization of its European operations in December 2014.

In the year ended December 31, 2014, the Company recorded, in the aggregate, a one-time charge of approximately $9.0 million associated with this reorganization of its European operations. Of the approximately $9.0 million of charges related to the 2014 European reorganization, $0.5 million were non-cash charges. Lease charges were recorded in selling, general and administrative expenses.The Company recorded $8.7 million associated with the workforce reduction. The Company recorded these charges in research and development expense and selling general and administrative expense based on responsibilities of the impacted employees. Of the charges related to the 2014 workforce reduction, $0.3 million were non-cash charges. The Company paid $0.6 million during the 2014 fourth quarter and the Company expects to pay the remainder during 2015.

In February 2013, the Company commenced a workforce reduction to improve efficiency and better align its costs and employment structure with its strategic plans. As a result of the workforce reduction, the Company reduced its personnel by 66 employees. Upon signing release agreements, impacted employees received severance payments and fully paid health care coverage and outplacement services for specified periods. The Company completed this workforce reduction in March 2013.

The Company recorded, in the aggregate, one-time charges of $6.4 million associated with the workforce reduction. The Company recorded these charges in cost of revenue, research and development expense and selling general and administrative expense based on the responsibilities of the impacted employees.
In September 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. Upon signing release agreements, the terminated employees received severance and other benefits. The Company recorded, in the aggregate, charges of $2.2 million in 2012 associated with the 2011 Leipzig closure. These charges were recorded in research and development expenses in the Company's consolidated statement of income. Of these charges, $0.3 million related to asset write-offs were non-cash charges. The Company paid $0.3 million during 2011 and $0.8 million during 2012. During 2012, the Company recorded additional charges of $0.2 million relating to the 2011 Leipzig closure due to the Saxony government in Leipzig recalling subsidies higher than originally estimated that were received by the Company during past three years. In the second quarter of 2013, the Company received notification from the Saxony government that no additional liabilities were due for these subsidies.
The following table sets forth details regarding the activities described above during the year ended December 31, 2014 and 2013 are as follows:

 
Balance as
of January 1,
2014
 
Expenses,
Net
 
Cash
 
Noncash
 
Balance as of
December 31,
2014
 
(In thousands)
Employee severance and other personnel benefits:
 

 
 

 
 

 
 

 
 

2014 European workforce reduction
$
—

 
$
8,660

 
$
(632
)
 
$
(334
)
 
$
7,694

   2013 workforce reduction
370

 
—

 
—

 
(370
)
 
—

2014 European leases and equipment write-off
—

 
347

 
—

 
(147
)
 
200

Total
$
370

 
$
9,007

 
$
(632
)
 
$
(851
)
 
$
7,894




 
Balance as
of January 1,
2013
 
Expenses,
Net
 
Cash
 
Noncash
 
Balance as of
December 31,
2013
 
(In thousands)
Employee severance and other personnel benefits:
 

 
 

 
 

 
 

 
 

2011 Leipzig closure and other associated costs
$
1,009

 
$
—

 
$
—

 
$
(1,009
)
 
$
—

   2013 workforce reduction
—

 
6,358

 
(5,699
)
 
(289
)
 
370

Total
$
1,009

 
$
6,358

 
$
(5,699
)
 
$
(1,298
)
 
$
370