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Streamlining and Restructuring Charges | 9 Months Ended
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Sep. 30, 2012
Streamlining and Restructuring Charges [Abstract] |
Streamlining and Restructuring Charges |
6. | Streamlining and Restructuring Charges
In January 2012, the Company implemented a streamlining of operations, which resulted in a restructuring plan designed to sharpen its focus on value-creating opportunities led by gevokizumab and its unique antibody discovery and development capabilities. The restructuring plan included a reduction of XOMA's personnel by 84 positions, or 34%, of which 52 were eliminated immediately and the remainder eliminated as of April 6, 2012. These staff reductions resulted primarily from the Company's decisions to utilize a contract manufacturing organization for Phase 3 and commercial antibody production, and to eliminate internal research functions that are non-differentiating or that can be obtained cost effectively by contract service providers. During the nine months ended September 30, 2012, in connection with this streamlining of operations, the Company recorded charges of $2.0 million, related to severance, other termination benefits and outplacement services. The Company does not expect to incur additional restructuring charges during the remainder of 2012 related to severance, other termination benefits and outplacement services. In 2012, the Company vacated and subleased leased facilities, which housed its large scale manufacturing operations and associated quality functions. During the three and nine months ended September 30, 2012, the Company recorded charges of $0.3 and $0.7 million, respectively, related to moving and other facility costs in connection with the exit of these buildings. The Company does not expect to incur any significant restructuring charges during the remainder of 2012 in connection with lease payments for these buildings as these payments will be offset by future sublease income. The Company performed an impairment analysis of property and equipment and leasehold improvements related to its manufacturing operations. Since the estimated undiscounted future cash inflows from a certain group of assets were less than the carrying value, the Company determined that these assets were impaired and recorded a restructuring charge of $0.8 million during the first quarter of 2012. Further, the Company changed the useful life of certain property and equipment and leasehold improvements impacted by its plans to vacate two leased buildings. As a result, the Company recorded accelerated depreciation of $1.3 million during the first half of 2012 as restructuring charges. In the third quarter of 2012, the Company entered into an agreement for the sublease of these buildings and sale of this property and equipment. Effective the date of the agreement, the Company changed the useful life of certain leasehold improvements to extend through the term of the agreement and recorded an additional $0.1 million restructuring charge relating to the loss on sale of these assets. The Company does not expect to incur additional restructuring charges during the remainder of 2012 related to the property and equipment and leasehold improvements. The current and long-term portions of the outstanding restructuring liabilities are included in accrued and other liabilities and other liabilities – long-term on the condensed consolidated balance sheets and are based upon restructuring charges recognized as of September 30, 2012 and December 31, 2011 in connection with the Company's restructuring plans. As of September 30, 2012, the components of these liabilities are shown below (in thousands):
|  | Employee Severance and Other Benefits |  |  | Facility Charges (1) |  |  | Asset Impairment and Accelerated Depreciation (2) |  |  | Total |
Balance at December 31, 2011 |  | $ | - |  |  | $ | 162 |  |  | $ | - |  |  | $ | 162 |
Restructuring charges |  |  | 2,028 |  |  |  | 667 |  |  |  | 2,241 |  |  |  | 4,936 |
Cash payments |  |  | (2,028 | ) |  |  | (742 | ) |  |  | - |  |  |  | (2,770 | )
Proceeds from sale of assets |  |  | - |  |  |  | - |  |  |  | 450 |  |  |  | 450 |
Adjustments |  |  | - |  |  |  | 3 |  |  |  | (2,691 | ) |  |  | (2,688 | )
Balance at September 30, 2012 |  | $ | - |  |  | $ | 90 |  |  | $ | - |  |  | $ | 90 |
(1) Includes moving and relocation costs, and lease payments offset by sublease payments. (2) Restructuring charges include non-cash impairments and accelerated depreciation of property and equipment and leasehold improvements; however, these amounts are not included in the restructuring accrual. The restructuring charges the Company expects to incur in connection with the 2012 streamlining of operations are subject to various assumptions, and actual results may differ.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 5 -Section P -Subsection 3, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 146 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747 + Details
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