RESTRUCTURING CHARGES

2014 Restructuring Plan

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 were designed to enable the Company to achieve sustainable cash flow in the future.

A summary of the costs, which were recorded to Restructuring Charges in the consolidated statements of operations during the years ended December 31, 2015 and 2014 associated with the 2014 Restructuring Plan are as follows (in thousands):



	Expensed in Year Ended December 31, 2014		Expensed in Year Ended December 31, 2015			Total
Employee termination costs	$	1,962	$	(22	)	$	1,940
Asset impairment	1,552		—			1,552
Other exit costs	—		394			394
Total	$	3,514	$	372		$	3,886

Costs associated with exit or disposal activities are recorded when the liability is incurred. Below is a roll forward of the liabilities recognized on the consolidated balance sheet as of December 31, 2015, related to the 2014 Restructuring Plan (in thousands):



	Liability at December 31, 2014		Additions/Adjustments			Payments			Liability at December 31, 2015
Employee termination costs	$	1,348	$	(22	)	$	(1,326	)	$	—
Other exit costs	—		12			(12		)	—
Total⁽¹⁾	$	1,348	$	(10	)	$	(1,338	)	$	—

⁽¹⁾ The accrued costs as of December 31, 2014 are recorded in the current portion of the consolidated balance sheets under “Accrued liabilities,” as they were paid in 2015.

2015 Exit Activities

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). On February 26, 2016, the Operated Agreement and the Strategic Collaboration Agreement with ADM terminated. In December 2015, the Company entered into a termination agreement with ADM ("ADM Termination Agreement"). In connection with this exit activity, the Company made cash payments of approximately $2.4 million and issued $3.1 million in the Company's common stock in December 2015. The Company will also make a combination of payments in cash and the Company's common stock in the amount of $3.4 million during the year ended December 31, 2016 associated with the ADM and ANP termination arrangements.

A summary of the costs, which were recorded to Restructuring Charges in the consolidated statements of operations during the year ended December 31, 2015 are as follows (in thousands):



	Expensed in Year Ended December 31, 2015
Facility closure costs	$	495
Asset impairment	4,931
Other exit costs⁽¹⁾	6,429
Reversal of deferred rent liabilities	(7,273		)
Total⁽²⁾	$	4,582

⁽¹⁾Other exit costs consists primarily of $3.1 million of the Company's common stock issued to ADM, a $2.5 million payment to be made to ADM in 2016 with a combination of cash and common stock, $0.6 million cash payment to be made to ANP during 2016 and a $0.3 million payment to be made in common stock to the principal of ANP in 2016.

⁽²⁾Reflected in the Company's Ingredients & Other reporting segment.

Costs associated with exit or disposal activities are recorded when the liability is incurred. Below is a roll forward of the 2015 Restructuring Plan expensed during the year ended December 31, 2015 to liabilities on the consolidated balance sheet as of December 31, 2015 (in thousands):



	2015 Expense			Deductions/Payments			Liability as of December 31, 2015
Facility closure costs	$	495		$	(495	)	$	—
Asset impairment	4,931			(4,931		)	—
Other exit costs	6,429			(3,029		)	3,400
Reversal of deferred rent liabilities	(7,273		)	7,273			—
Total⁽¹⁾	$	4,582		$	(1,182	)	$	3,400

⁽¹⁾ The accrued costs as of December 31, 2015 are recorded in the current portion of the consolidated balance sheets under “Accrued liabilities,” as the remaining balance is expected to be paid in 2016.

2016 Restructuring Plan

As part of the Company's continuing strategy to focus its operations on targeted, higher-value product categories, the Company streamlined operations by reducing workforce by approximately 20% in January 2016. As a result, the Company expects to record a restructuring charge of approximately $1.0 million to $1.5 million in the three months ended March 31, 2016.