Note 4. Restructuring Charges

Cody Restructuring Program

On June 29, 2018, the Company announced a restructuring plan with respect to Cody Labs (the “Cody Restructuring Plan”). The plan focused on a more select set of opportunities which resulted in streamlined operations, improved efficiencies and a reduced cost structure. The Company incurred approximately $2.5 million of severance and employee-related costs under this plan. The restructuring activities under the Cody Restructuring Program were completed as of June 30, 2019.

The credits associated with the Cody Restructuring Plan included in restructuring credits during the three and nine months ended March 31, 2019 were as follows:


	Three Months Ended		Nine Months Ended
(In thousands)	March 31, 2019		March 31, 2019
Employee separation costs (credits)	$	(89)	$	(585)
Facility closure costs		—		—
Total	$	(89)	$	(585)

A reconciliation of the changes in restructuring liabilities associated with the Cody Restructuring Plan from June 30, 2019 through March 31, 2020 is set forth in the following table:


	Employee		Facility Closure
(In thousands)	Separation Costs		Costs		Total
Balance at June 30, 2019	$	108	$	—	$	108
Restructuring Charges		—		—		—
Payments		(108)		—		(108)
Balance at March 31, 2020	$	—		—	$	—

Cody API Restructuring Plan

In September 2018, the Company approved a plan to sell the active pharmaceutical ingredient manufacturing distribution business of Cody Labs (the “Cody API business”). The Company was unable to sell the Cody API business as an ongoing operation and decided to sell the equipment and real estate utilized by the Cody API business and to have Cody Labs cease all operations. In June 2019, the Company approved the Cody API Restructuring Plan. In connection with the Cody API Restructuring Plan, the Company eliminated approximately 70 positions at Cody Labs. The restructuring activities under the Cody API Restructuring Plan are substantially complete as of March 31, 2020. During the first nine months of Fiscal 2020, the Company completed the sale of the equipment associated with the Cody API business for $3.0 million. In the second quarter of Fiscal 2020, the Company signed a two-year agreement to lease a portion of the real estate to a third party.

The costs to implement the Cody API Restructuring Plan total approximately $6.0 million, including approximately $3.5 million of severance and employee-related costs and approximately $2.0 million of contract termination costs, as well as approximately $0.5 million of costs to be incurred in connection with moving equipment and other property to other Company-owned facilities that were originally anticipated to be incurred in connection with the Cody Restructuring Plan announced in June 2018.

The expenses associated with the Cody API Restructuring Plan included in restructuring expenses during the three and nine months ended March 31, 2020 were as follows:



	Three Months Ended		Nine Months Ended
(In thousands)	March 31, 2020		March 31, 2020
Employee separation costs	$	191	$	1,275
Facility closure costs		—		496
Total	$	191	$	1,771

A reconciliation of the changes in restructuring liabilities associated with the Cody API Restructuring Plan from June 30, 2019 through March 31, 2020 is set forth in the following table:


	Employee		Contract		Facility
	Separation		Termination		Closure
(In thousands)	Costs		Costs		Costs		Total
Balance at June 30, 2019	$	2,207	$	—	$	—	$	2,207
Restructuring Charges		1,275		—		496		1,771
Payments		(3,421)		—		(496)		(3,917)
Balance at March 31, 2020	$	61	$	—		—	$	61

2016 Restructuring Program

On February 1, 2016, in connection with the acquisition of Kremers Urban Pharmaceuticals Inc.("KUPI "), the Company announced a plan related to the future integration of KUPI and the Company’s operations (the “2016 Restructuring Program”). The plan focused on the closure of KUPI’s corporate functions and the consolidation of manufacturing, sales, research and development and distribution functions. The restructuring activities under the 2016 Restructuring Program were completed as of March 31, 2019. The Company incurred an aggregate of approximately $21.0 million in restructuring charges for actions that have been announced or communicated since the 2016 Restructuring Program began. Of this amount, approximately $11.0 million related to employee separation costs, approximately $1.0 million relates to contract termination costs and approximately $9.0 million related to facility closure costs and other actions.

The expenses associated with the restructuring program included in restructuring expenses during the three and nine months ended March 31, 2019 were as follows:



	Three Months Ended		Nine Months Ended
(In thousands)	March 31, 2019		March 31, 2019
Employee separation costs	$	377	$	1,084
Facility closure costs		164		1,188
Total	$	541	$	2,272