12. Restructuring Activities

On October 3, 2016, the Company announced a 22% reduction in headcount as part of a major corporate restructuring with the objective of prioritizing its research and development on a focused set of systems biology-derived oncology products and strengthening its financial runway. On this same date, the Company also announced the resignation of Robert Mulroy, the Company’s former President and Chief Executive Officer.

Under this corporate restructuring, the Company recognized total restructuring expenses of $5.7 million for the year ended December 31, 2016, which was related to stock-based compensation expense for certain terminated employees, contractual termination benefits for employees with pre-existing severance arrangements and one-time employee termination benefits. These one-time employee termination benefits were comprised of severance, benefits and related costs, all of which resulted in cash expenditures during the third and fourth quarters of 2016.

On January 8, 2017, the Company announced a reduction in headcount by approximately 30% in connection with the Asset Sale and the completion of its strategic pipeline review. Upon the closing of the Asset Sale and the completion of its strategic pipeline review, the Company had approximately 80 employees.

Under this corporate restructuring, the Company recognized total restructuring expenses of $9.5 million for the year ended December 31, 2017, which was related to contractual termination benefits for employees with pre-existing severance arrangements. These one-time employee termination benefits are comprised of severance, benefits and related costs, all of which are expected to result in cash expenditures. The majority of these payments were made during the second quarter of 2017. The remaining payments represent severance payments that will be paid over one year. The expense of $9.5 million was included as a component of income from discontinued operations, net of tax in the consolidated statements of operations and comprehensive income (loss), as the costs are directly associated with the Asset Sale.

The following table summarizes the charges related to the restructuring activities as of December 31, 2017 and 2016:

(in thousands)

Accrued

Restructuring

Expenses at

December 31,

2016

Expenses

Less: Payments

Accrued

Restructuring

Expenses at

December 31,

2017

Severance, benefits and related costs

due to workforce reduction

774

9,521

(9,667

)

628

Totals

774

9,521

(9,667

)

628


(in thousands)	Expenses		Less: Payments			Less: Non-Cash Expenses			Accrued Restructuring Expenses at December 31, 2016
Severance, benefits and related costs due to workforce reduction	$	5,710	$	(3,565	)	$	(1,371	)	$	774
Totals	$	5,710	$	(3,565	)	$	(1,371	)	$	774