Restructuring Costs

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

In June 2016, the Company determined to wind-down its azficel-T operations at the Company’s Exton, PA facility and to reduce the workforce that supports such operations. This decision enables the Company to focus its resources towards development of its gene-therapy product candidates.

Restructuring-related charges for the year ended December 31, 2016 were comprised of approximately $0.3 million of employee severance and benefit-related charges and less than $0.1 million of asset impairments. No such charges were incurred during the year ended December 31, 2015.

The restructuring and asset impairment activity for the year ended December 31, 2016 was as follows:

($ in thousands)	Employee Severance and Benefits			Asset Impairments			Total
Accrued restructuring balance as of December 31, 2015	$	—		$	—		$	—
Additional accruals	301			34			335
Cash payments	(282		)	—			(282		)
Non-cash settlements	—			(34		)	(34		)
Accrued restructuring balance as of December 31, 2016	$	19		$	—		$	19

The restructuring-related charges incurred during the year ended December 31, 2016 related to employee severance and benefits resulting from the reduction-in-workforce and the impairment of property and equipment. In connection with the reduction-in-workforce, approximately 50% of the Company's employees were terminated, primarily in the areas of manufacturing and quality operations. The accrued restructuring balance as of December 31, 2016 relates to employee severance and benefits which are expected to be paid in the first quarter of 2017 and is recorded as a current liability within accrued expenses in the Company's Consolidated Balance Sheet. Additionally, the Company recognized inventory write-offs in cost of product sales related to the wind-down of its azficel-T (including LAVIV) operations as described in Note 4.

The Company may incur additional charges in the future for contract termination and wind-down costs, asset impairments and costs to decommission the Company’s azficel-T manufacturing facility, but cannot estimate them at this time.