Restructuring

Restructuring charges

A restructuring charge of $12.5 million was recognized during the three months ended June 30, 2018 under a restructuring plan adopted a review following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilizations, resulting in a charge of $9.7 million and office consolidation resulting in the recognition of an onerous lease obligation of $2.8 million.

Details of the restructuring charge recognized in the three and six months ended June, 30 2018 are as follows:



	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	(in thousands)				(in thousands)
Restructuring charges	$	12,490	$	7,753	$	12,490	$	7,753

Total	$	12,490	$	7,753	$	12,490	$	7,753

Details of the movement in the restructuring charge recognized in the three and six months ended June 30, 2018 are as follows:



	Workforce reductions			Onerous Lease		Total
	(in thousands)
Initial restructuring charge recorded	$	9,684		$	2,806	$	12,490
Utilization	(490		)	—		$	(490	)
Foreign exchange movement	—			—		—
Provision at June 30, 2018	$	9,194		$	2,806	$	12,000

Prior Period Restructuring charges

A restructuring charge of $7.8 million was recognized during the year ended December 31, 2017 under a restructuring plan adopted following a review of operations. The restructuring plan reflected resource rationalization across the business to improve resource utilization.



	Workforce Reductions
(in thousands)
Total provision recognized	$	7,753
Utilized	(4,656		)
Provision at December 31, 2017	$	3,097
Utilized	(961		)
Provision at June 30, 2018	$	2,136

A restructuring charge of $8.2 million was recognized during the year ended December 31, 2016 under a restructuring plan adopted following a review by the Company of its operations. The restructuring plan includes resource rationalizations in certain areas of the business to improve resource utilization, resulting in a charge of $6.2 million and office consolidation resulting in the recognition of an onerous lease obligation of $2.0 million during the twelve months ended December 31, 2016.



	Workforce Reductions			Onerous Lease			Total
	(in thousands)
Total provision recognized	$	6,190		$	1,969		$	8,159
Utilized	(5,734		)	(571		)	(6,305		)
Foreign exchange	(63		)	—			(63		)
Provision at December 31, 2016	$	393		$	1,398		$	1,791
Utilized	(393		)	(1,081		)	(1,474		)
Provision at December 31, 2017	$	—		$	317		$	317
Utilized	—			(310		)	(310		)
Provision at June 30, 2018	$	—		$	7		$	7

A restructuring charge of $8.8 million was recognized during the year ended December 31, 2014. Following the closure of the Company’s European Phase 1 services in 2013, the Company recognized a charge in 2014 in relation to its Manchester, United Kingdom facility; $5.6 million in relation to asset impairments and $3.2 million in relation to an onerous lease charge associated with this facility. We expect this to be paid by 2024.



	Onerous Lease			Asset Impairment			Total
	(in thousands)
Total provision recognized	$	3,167		$	5,629		$	8,796
Asset write off	—			(5,629		)	(5,629		)
Provision at December 31, 2014	$	3,167		$	—		$	3,167
Utilized	(1,167		)	—			(1,167		)
Provision at December 31, 2015	$	2,000		$	—		$	2,000
Utilized	(1,359		)	—			(1,359		)
Provision at December 31, 2016	$	641		$	—		$	641
Utilized	(441		)	—			(441		)
Provision at December 31, 2017	$	200		$	—		$	200
Utilized	(92		)	—			(92		)
Provision at June 30, 2018	$	108		$	—		$	108

At June 30, 2018, $13.1 million is included within other liabilities and $1.1 million within non-current other liabilities.