11. RESTRUCTURING

In March 2016, the Company announced a long-term 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 December 31, 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. During the three month period ended June 30, 2018, the Corvallis facility was sold, and the Company entered into a rental termination agreement with the new landlord regarding the space made available for sub-lease. As a result, we relieved the remaining $2.2 million of cease-use liability related to this space in June 2018, which was recorded as a reduction to selling, general and administrative expenses.

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

	As of June 30, 2018			As of December 31, 2017
	(in thousands)
Restructuring reserve beginning balance	$	2,933		$	1,588
Restructuring expenses incurred during the period		—			3,020
Amounts paid during the period		(711	)		(1,675	)
Reversal of cease-use liability		(2,222	)		—
Restructuring reserve ending balance	$	—		$	2,933