Restructuring and Other Charges

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

During the six months ended June 30, 2018, in connection with the Combination, the Company committed to a restructuring plan to achieve cost savings. The Company expected to integrate its operations and reduce its combined cost structure through workforce reductions that eliminated duplicative positions and consolidated certain administrative, manufacturing and research and development facilities. In connection with this plan, the Company announced on May 10, 2018 that it intended to close its Hayward, California-based operations.

On July 10, 2019, the Company announced a plan to restructure its operations that was intended to reduce costs and optimize its organizational and manufacturing infrastructure. Pursuant to the restructuring plan as revised, the Company expects to reduce its headcount by approximately 300 to 350 employees through December 31, 2020, primarily by ceasing manufacturing at its Hauppauge, NY facility. Collectively these actions comprise the "Plans".

The following table sets forth the components of the Company's restructuring and other charges (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Employee restructuring separation charges ⁽¹⁾	$	—	$	516	$	46	$	2,420
Asset-related charges ⁽²⁾	—		900		—		1,314
Total employee and asset-related restructuring charges	—		1,416		46		3,734
Other employee severance charges ⁽³⁾	333		1,419		2,335		5,262
Total restructuring and other charges	$	333	$	2,835	$	2,381	$	8,996

(1)Employee restructuring separation charges include the cost of benefits provided pursuant to the Company's severance programs for employees impacted by the Plans at the Company's Hauppauge, NY, Hayward, CA and other facilities.

(2)Asset-related charges are primarily associated with the write-off of property, plant and equipment in connection with the closing of the Company's Hayward, CA facilities.

(3)Other employee severance charges are primarily associated with the cost of benefits for former senior executives.

The charges related to restructuring impacted segment earnings as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Generics	$	—	$	1,317	$	46	$	2,313
Specialty	—		—		—		178
Corporate	—		99		—		1,243
Total employee and asset-related restructuring charges	$	—	$	1,416	$	46	$	3,734

The following table shows the change in the employee separation-related liability associated with the Plans, which is included in accounts payable and accrued expenses (in thousands):


	Employee Restructuring
Balance at December 31, 2019	$	3,900
Charges to income	46
Payments	(2,185)
Balance at June 30, 2020	$	1,761