Note 14 - Restructuring Costs

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

NOTE

1

4

.  

Restructuring Costs

Restructuring liabilities primarily consist of the estimated future obligations for contract suspension costs. These restructuring liabilities, all of which are expected to be paid in the year ending 

December 31, 2020,

are recorded in other accrued liabilities in the condensed consolidated balance sheets.

The Company approved a reduction-in-force during the year ended

December 31, 2019,

for which it accrued severance and benefits charges, all of which were paid in the

three

months ended

March 31, 2020.

The Company also accrued the maximum amount potentially payable under a manufacturing work order which it suspended. Following negotiations with the vendor, the Company paid

$2,252,000

in the

three

months ended

September 30, 2020,

in full settlement with the vendor, and reversed the remainder of the balance accrued. Further, the Company recorded impairment charges against property and equipment and right-of-use assets formerly used for manufacturing covering the period in which

no

benefits were expected to be derived, and incurred legal fees and accretion costs in connection with the restructuring. In the 

nine

months ended

September 30,

 

2020,

the Company recorded costs for legal fees and for accretion related to the manufacturing premises. The Company does

not

expect to incur any further charges related to this restructuring.

Cumulative restructuring costs incurred and a reconciliation of the change in related liabilities during the 

nine

months ended

September 30,

 

2020

, is as follows:

	Suspension			Severance			Impairment
	of Contract			Benefits			Charges		Other			Total
	(in thousands)
Cumulative cost incurred as of September 30, 2020	$	2,252		$	368		$	1,272	$	179		$	4,071
Reconciliation of liabilities:
Balance at December 31, 2019	$	3,223		$	368		$	—	$	57		$	3,648
Period charges		(971	)		—			—		122			(849	)
Payments and settlements		(2,252	)		(368	)		—		(165	)		(2,785	)
Balance at September 30, 2020	$	—		$	—		$	—	$	14		$	14