Restructuring Costs

9 Months Ended

Sep. 30, 2019

Note 10. Restructuring Costs

In July 2018, the Company determined to wind-down its discovery operations, reduce the workforce in Cambridge, Massachusetts that supported such operations, and close its Cambridge facility. In connection with the reduction-in-workforce, 18 positions were eliminated, primarily in the area of discovery, which represented approximately 40% of the Company’s employees. Of the 18 positions eliminated, 15 were effective July 31, 2018 with the remaining effective during the first half of 2019.

Total restructuring-related charges incurred through September 30, 2019 were $3.3 million and are comprised of (i) one-time termination costs in connection with the reduction in workforce, including severance, benefits and related costs, of approximately $2.8 million; (ii) contract termination costs of approximately $0.2 million in connection with the early lease termination for the Cambridge facility; and (iii) non-cash asset impairments of approximately $0.7 million, which includes $0.5 million of fixed asset impairments and $0.2 million in write-offs of facility-related prepaid expenses; offset by (iv) a non-cash gain of approximately $0.4 million related to the write-off of the remaining deferred rent liability associated with the Cambridge facility lease.

Note 10. Restructuring Costs (Continued)

The following summarizes restructuring-related activity for the nine months ended September 30, 2019:


(in thousands)	Employee Severance and Benefits		Contract Termination Costs		Asset Impairments		Total
Accrued restructuring balance as of December 31, 2018	$	1,147	$	—	$	—	$	1,147
Charges incurred		181		—		—		181
Cash payments		(1,119)		—		—		(1,119)
Accrued restructuring balance as of September 30, 2019	$	209	$	—	$	—	$	209

As of September 30, 2019, the accrued restructuring balance of $0.2 million is included in “Accrued expenses” in the accompanying condensed balance sheets. See Note 6.