Restructuring Charges

9 Months Ended

Sep. 30, 2015

RESTRUCTURING CHARGES

On December 18, 2014, the Company took steps to decrease operating expenses through a reduction in workforce and other cost-cutting measures (“2014 Restructuring Plan”). These targeted reductions are designed to enable the Company to achieve sustainable cash flow in the future.

A summary of the costs, which were recorded in Restructuring Charges in the condensed consolidated statements of operations, and remaining costs associated with the 2014 Restructuring Plan are as follows (in thousands):



	Total 2014 Restructuring Plan		Year Ended December 31, 2014		Nine Months Ended September 30, 2015			Remaining Costs to be Recognized
Employee termination costs	$	1,940	$	1,962	$	(22	)	$	—
Facility closure costs	12		—		12			—
Asset impairment	1,552		1,552		—			—
Accelerated depreciation	374		—		374			—
Other exit costs	8		—		8			—
Total	$	3,886	$	3,514	$	372		$	—

A summary of restructuring activity associated with the 2014 Restructuring Plan at September 30, 2015, and changes from the liability balance as of December 31, 2014, is as follows (in thousands):



	Balance at December 31, 2014		Additions/Adjustments			Payments			Balance at September 30, 2015
Employee termination costs	$	1,348	$	(22	)	$	(1,326	)	$	—
Facility closure costs	—		12			(12		)	—
Total	$	1,348	$	(10	)	$	(1,338	)	$	—

In October 2015, the Company made a strategic decision to terminate its current manufacturing agreements at the ADM Clinton and American Natural Processors ("ANP") Galva facilities to better align the Company's immediate production assets with its operating strategy while minimizing production costs. On October 29, 2015, the Company provided to ADM a notice of termination of the Operating Agreement entered into with ADM in November 2012 related to the production of products at the Clinton Facility (see Note 11). As a result of the termination of the Operating Agreement, the Strategic Collaboration Agreement with ADM will automatically terminate on February 26, 2016. The Company expects cash payments of approximately $3.0 million to $4.0 million to be paid out commencing in the fourth quarter of 2015 through the second quarter of 2016 associated with the ADM contract and will be reflected in the Company's Intermediates/Ingredients & Other reporting segment. The Company expects the restructuring charges associated with ADM and ANP contract terminations will be recorded in the fourth quarter of 2015 and will include contract termination payments, asset impairment charges and accelerated depreciation related to certain assets, partially offset by the reversal of deferred rent expense associated with the ADM facility. The Company may also incur other charges not currently contemplated.