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Restructurings
12 Months Ended
Dec. 31, 2015
Restructuring Charges [Abstract]  
Restructurings
RESTRUCTURINGS
2014 Restructuring
On September 2, 2014, as a consequence of the failure of COMET-1, one of our two phase 3 pivotal trials of cabozantinib in metastatic castration-resistant prostate cancer, we initiated a restructuring, which we refer to as the 2014 Restructuring, to reduce our workforce. The aggregate reduction in headcount from the 2014 Restructuring was 143 employees. The principal objective of the 2014 Restructuring was to enable us to focus our financial resources on the phase 3 pivotal trials of cabozantinib in advanced renal cell carcinoma and advanced hepatocellular carcinoma.
For the years ended December 31, 2015 and 2014, we recorded restructuring charges of $0.3 million and $6.1 million, respectively, for the 2014 Restructuring. The restructuring charge for the year ended December 31, 2015 included $1.6 million in additional charges due to the partial termination of one of our building leases and additional facility-related charges related to the decommissioning and exit of certain buildings. The restructuring charge for the year ended December 31, 2015 was partially offset by $1.0 million in recoveries recorded in connection with the sale of excess equipment and other assets that had previously been fully depreciated. The restructuring charge for the year ended December 31, 2014 includes $5.8 million of employee severance and other benefits that are recognized ratably during the period from the implementation date of the 2014 Restructuring through the employees’ termination dates. In addition, we recorded charges of $0.3 million for property and equipment write-downs and other charges, which were partially offset by recoveries recorded in connection with the sale of excess equipment and other assets that were previously fully impaired and the reversal of severance charges recorded in 2014 for employees that were recalled in 2015.
The restructuring liability related to the 2014 Restructuring is included in the current and long-term portion of restructuring liability on the accompanying Consolidated Balance Sheets. The components of and changes to these liabilities during the year ended December 31, 2015 are summarized in the following table (in thousands):
 
Employee
Severance
and Other Benefits
 
Facility
Charges
 
Asset
Impairment and Sales
 
Legal and
Other Fees
 
Total
Restructuring charge
$
5,775

 
$
65

 
$
188

 
$
59

 
$
6,087

Proceeds from sale of assets

 

 
100

 

 
100

Cash payments, net
(4,507
)
 
(65
)
 

 
(12
)
 
(4,584
)
Other items
22

 

 
(288
)
 

 
(266
)
Restructuring liability as of December 31, 2014
1,290

 

 

 
47

 
1,337

Restructuring charge (recovery)
(269
)
 
1,582

 
(981
)
 
(47
)
 
285

Proceeds from sale of assets

 

 
1,325

 

 
1,325

Cash payments, net
(1,021
)
 
(1,357
)
 

 

 
(2,378
)
Other items

 
278

 
(344
)
 

 
(66
)
Restructuring liability as of December 31, 2015
$

 
$
503

 
$

 
$

 
$
503


2010 Restructurings
Between March 2010 and May 2013, we implemented five restructurings (referred to collectively as the “2010 Restructurings”) to manage costs and as a consequence of our decision in 2010 to focus our proprietary resources and development efforts on the development and commercialization of cabozantinib. The aggregate reduction in headcount from the 2010 Restructurings was 429 employees. Charges and credits related to the 2010 Restructurings were recorded in periods other than those in which the 2010 Restructurings were implemented as a result of sublease activities for certain of our buildings in South San Francisco, California, changes in assumptions regarding anticipated sublease activities, the effect of the passage of time on our discounted cash flow computations, previously planned employee terminations, and sales of excess equipment and other assets.
For the years ended December 31, 2015, 2014 and 2013, we recorded restructuring charges of $0.8 million, $1.5 million and $1.2 million, respectively, for the 2010 Restructurings. The charges for the periods presented were related to the effect of the passage of time on our discounted cash flow computations for the exit, in prior periods, of certain of our South San Francisco buildings and changes in estimates regarding future subleases. During the year ended December 31, 2014, those charges were partially offset by $0.1 million in recoveries recorded in connection with the sale of excess equipment and other assets.
The total outstanding restructuring liability related to the 2010 Restructurings is included in the current and long-term portion of restructuring liability on the accompanying Consolidated Balance Sheets. The changes of these liabilities, all of which related to facility charges during the year ended December 31, 2015, are summarized in the following table (in thousands):
 
Facility
Charges
 
Other
 
Total
Restructuring liability as of December 31, 2012
$
19,202

 
$
20

 
$
19,222

Restructuring charge
662

 
569

 
1,231

Proceeds from sale of assets

 
95

 
95

Cash payments, net
(6,331
)
 
(434
)
 
(6,765
)
Other items
(73
)
 
(238
)
 
(311
)
Restructuring liability as of December 31, 2013
13,460

 
12

 
13,472

Restructuring charge (recovery)
1,626

 
(117
)
 
1,509

Proceeds from sale of assets

 
199

 
199

Cash payments, net
(5,644
)
 
(8
)
 
(5,652
)
Other items
12

 
(86
)
 
(74
)
Restructuring liability as of December 31, 2014
9,454

 

 
9,454

Restructuring charge
757

 

 
757

Cash payments, net
(6,449
)
 

 
(6,449
)
Other items
325

 

 
325

Restructuring liability as of December 31, 2015
$
4,087

 
$

 
$
4,087


We expect to pay the combined accrued facility charges for both the 2014 Restructuring and the 2010 Restructurings of $4.6 million, net of $6.1 million to be received from our subtenants, through the end of our lease terms of the buildings, the last of which ends in 2017. We expect to incur additional restructuring charges for both restructuring plans of approximately $0.3 million relating to the effect of the passage of time on our discounted cash flow computations used to determine the accrued facilities charges through the end of the building lease terms.