Note 8 - Restructuring Charges

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

( 8 ) Restructuring Charges

In late

October

2015,

the Board of Directors of the Company recommended that management evaluate strategic alternatives for Zenara Pharma due to a change in focus on higher growth initiatives as well as to reduce attention required by senior management to operate Zenara. The Company determined that the sale of Zenara was the best option for its shareholders. As such, Cambrex management, with Board authority, committed to a plan to sell Zenara. The immaterial assets and liabilities of Zenara are included in “Prepaid expenses and other current assets” and “Accrued expenses and other current liabilities” on the Company’s balance sheet for all periods presented.

A long-lived asset classified as held for sale must be measured at the lower of its carrying amount or fair value less cost to sell. Prior to this measurement the Company assessed Zenara’s assets and liabilities as well as performed a goodwill and long-lived asset impairment assessment. These assessments were based on level

3

inputs and resulted in writing off all of Zenara’s goodwill of

$8,542

and an amortizable intangible asset of

$3,625

which are included in restructuring expenses on the

2015

income statement. The Company then compared the carrying amounts of the assets held for sale to their fair values. Accordingly, the Company recorded a charge of

$1,269

in

2015

for the difference between the net carrying value of these assets and the estimated fair value less cost to sell. Fair value less cost to sell was determined using the most current sales information available.

All the charges mentioned above, as well as a portion of certain retention bonuses, resulted in restructuring expenses of

$15,573,

which are included in “Restructuring expenses” on the Company’s consolidated income statement for the year ended

December

31,

2015.

For the year ended

December

31,

2016,

the Company recorded

$1,158

as “Restructuring expenses” on the Company’s consolidated income statement related to the write down of Zenara to reflect a reduction in the sale price. 

The Company expects a sale to be completed during

2017.

Refer to Note

23

to the Company’s consolidated financial statements for further explanation.