Restructuring

The Company announced its intention to commence a series of workforce reductions, independent of the divestiture of the Company’s infectious disease business (the Workforce Reductions), to improve efficiencies and better align its costs and structure. As a result of the Workforce Reductions and the infectious disease business divestiture, the Company reduced its personnel to less than 60 full time employees. Upon signing release agreements, affected employees received the Company’s severance package, including reduction payments and fully paid health care coverage and outplacement services for six months to a year.

The impacted employees were eligible to receive severance payments in specified amounts, health benefits and outplacement services. For the three months ended September 30, 2018, there were no material restructuring charges.

For the nine months ended September 30, 2018, the Company recorded $0.6 million, $3.6 million and $8.6 million in cost of revenue, research and development and selling, general and administrative expenses, respectively, in the accompanying condensed consolidated statement of operations based on responsibilities of the impacted employees.

The following table sets forth details regarding the activities described above during the nine months ended September 30, 2018:



	Balance as of January 1, 2018		Expenses, Net		Cash			Noncash			Balance as of September 30, 2018
	(in thousands)
2018 Restructuring Plan:	$	—	$	12,753	$	(8,223	)	$	(1,956	)	$	2,574

On June 1, 2017, the Company voluntarily discontinued and withdrew Ionsys from the market in the United States and ceased related commercialization activities, effective June 19, 2017, with the New Drug Application for Ionsys remaining open until the third quarter 2018. Concurrent with this market withdrawal, the Company commenced implementation of a workforce reduction, which resulted in the reduction of 57 employees, representing approximately 15% of the Company’s workforce. The Company recorded a pre-tax charge of approximately $276.9 million associated with the discontinuation and market withdrawal of Ionsys in the United States market, of which $268.1 million was a non-cash impairment charge (including a write-off of inventory), $5.8 million relates to cash severance and $3.0 million relates to other exit costs.