Quarterly report pursuant to Section 13 or 15(d)

Restructuring Costs

v3.20.2
Restructuring Costs
9 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]  
Restructuring Costs

12. RESTRUCTURING COSTS

On August 4, 2020, we approved the advancement of our soybean products to a streamlined go-to-market strategy. The impact of the advancement included staffing adjustments related to soybean processing and product sales, as well as the gradual exit of all supply chain contractual commitments that are not associated with the ongoing soybean seed go-to-market strategy. In the three months ended September 30, 2020, we recorded $0.4 million of cash charges for severance and other related payments, and we also recorded a $0.9 million recapture benefit of non-cash stock compensation expense from the forfeiture or modification of unvested stock awards. We expect to record up to $0.3 million of severance and other related payments through the second quarter of 2021. We have not incurred any other material costs from the disposal of any assets or contractual terminations as of September 30, 2020. We expect to incur an additional $0.6 million of transitional expenses as we wind down the prior go-to-market strategy. Contracted grain purchases, subsequent sales of grain, and the wind down of other contractual obligations on-track to be completed in late 2021.

The following table presents the restructuring and severance cost liabilities as of September 30, 2020:

 

 

As of September 30,

 

In Thousands

2020

 

Balance at June 30, 2020

$

 

Charged to expense

 

436

 

Cash payments

 

(175

)

Balance as of September 30, 2020

$

261

 

 

The September 30, 2020, liability balance of $0.3 million as well as up to an additional $0.3 million of severance and other related expenses yet to be recorded are expected to be paid through the second quarter of fiscal 2021.