14. RESTRUCTURING

In March 2016, the Company announced a long-term plan (“Corvallis plan”) to consolidate all of the Company’s operations to Massachusetts as part of a strategic plan to increase operational efficiency. As part of the consolidation, research activities and some employees transitioned to the Company’s facilities in Andover and Cambridge, Massachusetts. As of September 30, 2017, the relocations and terminations were completed.

The second floor and the first floor of the Corvallis facility were vacated and closed and made available for sub-leasing in December 2016 and April 2017, respectively. Using a discounted cash flow methodology and based on monthly rent payments as well as estimated sublease income, the Company recognized a total of approximately $1.5 million and $2.3 million, in restructuring expenses for the second and the first floor, respectively. As of September 30, 2017, the Company continues to be obligated to make $5.2 million of minimum lease payments and certain other contractual maintenance costs for the whole facility.

For the three months ended September 30, 2017, the restructuring expenses were de minimis. For the nine months ended September 30, 2017, the Company recorded $2.8 million of restructuring expenses, including $2.4 million related to the closure of Corvallis facility. For the three and nine months ended September 30, 2016, the Company recorded $1.3 million and $2.4 million of restructuring expenses, respectively, $1.0 million and $2.1 million, respectively, of which related to workforce reduction.

The following tables summarize the restructuring expenses by function for the periods indicated:

	For the Three Months Ended September 30, 2017						For the Three Months Ended September 30, 2016
	(in thousands)
	Cash		Non-cash		Total		Cash		Non-cash		Total
Research and development	$	10	$	—	$	10	$	628	$	143	$	771
Selling, general and administrative		3		—		3		367		126		493
Total restructuring expenses	$	13	$	—	$	13	$	995	$	269	$	1,264

	For the Nine Months Ended September 30, 2017						For the Nine Months Ended September 30, 2016
	(in thousands)
	Cash		Non-cash		Total		Cash		Non-cash		Total
Research and development	$	184	$	—	$	184	$	1,448	$	336	$	1,784
Selling, general and administrative		2,589		—		2,589		471		168		639
Total restructuring expenses	$	2,773	$	—	$	2,773	$	1,919	$	504	$	2,423

The following table summarizes the restructuring reserve for the periods indicated:

	As of September 30, 2017			As of December 31, 2016
	(in thousands)
Restructuring reserve beginning balance	$	1,588		$	—
Restructuring expenses incurred during the period		2,773			3,651
Amounts paid during the period		(1,318	)		(2,063	)
Restructuring reserve ending balance	$	3,043		$	1,588