7. RESTRUCTURINGS

December 2012 Restructuring

On December 3, 2012, we announced the decision to discontinue development of GRN1005 and reduce our workforce from 107 positions to 64 full-time positions. Of the 43 positions eliminated, as of February 1, 2013, ten employees were continuing to provide services through various dates in the first half of 2013.

In connection with the December 2012 restructuring, we expect to record an aggregate restructuring charge related to one-time termination benefits and impairment of various assets of approximately $2,850,000, of which $2,702,000 was recorded in the fourth quarter of 2012, which includes $2,431,000 related to one-time termination benefits, including $107,000 of non-cash stock-based compensation expense related to the extension of the post-termination exercise period for certain stock options previously granted to terminated employees through the end of December 2013, and $271,000 related to write-downs of GRN1005 manufacturing equipment. The remaining restructuring charge will be recorded in the first half of 2013. We plan to sell the GRN1005 manufacturing equipment, the net proceeds of which may offset some of these future charges. We expect the restructuring will result in aggregate cash expenditures of approximately $2,472,000, of which $375,000 related to one-time termination benefits paid as of December 31, 2012 and approximately $2,097,000 relates to one-time termination benefits expected to be paid during 2013.

The components relating to the December 2012 restructuring, including the outstanding restructuring liability which is included in accrued restructuring charges on our consolidated balance sheets as of December 31, 2012, are summarized in the following table:

(In thousands)	Employee Severance and Other Benefits			Excess Equipment			Stock-Based Compensation			Total

Restructuring charge	$	2,324		$	271		$	107		$	2,702
Cash payments		(375	)		—			—			(375	)
Adjustments or non-cash credits		—			(271	)		(107	)		(378	)

Ending accrual balance as of December 31, 2012	$	1,949		$	—		$	—		$	1,949

The restructuring charges that we expect to incur in connection with the December 2012 restructuring are subject to a number of assumptions, and actual results may materially differ. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or associated with, the December 2012 restructuring.

November 2011 Restructuring

On November 14, 2011, we announced the decision to discontinue further development of our stem cell programs. With this decision, a total of 66 full-time positions were eliminated. Of those, 14 employees continued to provide services through various dates in the first half of 2012. In connection with the restructuring, we recorded aggregate restructuring charges of $5,449,000 for the year ended December 31, 2011, of which $4,575,000 related to one-time termination benefits, including $174,000 of non-cash stock-based compensation expense relating to the extension of the post-termination exercise period for certain stock options previously granted to terminated employees through the end of June 2013 and December 2013, and $874,000 related to write-downs of excess lab equipment and leasehold improvements and other charges. As of December 31, 2012, the restructuring resulted in aggregate cash expenditures of approximately $4,142,000 after adjustments and non-cash credits, of which $3,471,000 and $671,000 related to one-time termination benefits that were paid during 2012 and 2011, respectively. As of December 31, 2012, we have received proceeds of $170,000 from the sale of excess lab equipment written-down as a result of the November 2011 restructuring. All actions associated with the November 2011 restructuring were completed in 2012, and we do not anticipate incurring any further charges under the November 2011 restructuring.

The outstanding restructuring liability for the November 2011 restructuring is included in accrued restructuring charges on our consolidated balance sheets as of December 31, 2012 and 2011 and the components are summarized in the following table:

(In thousands)	Employee Severance and Other Benefits

Beginning accrual balance as of December 31, 2011	$	3,730
Cash payments		(3,471	)
Adjustments or non-cash credits		(236	)

Ending accrual balance as of December 31, 2012	$	23