9. Restructuring Charges

In 2016 and 2017 the Board of Directors approved a series of restructurings of its business to prioritize out-licensing activities and curtail research and development spending. The restructuring included a reduction-in-force in which the Company terminated 62 employees in total. Charges related to both these initiatives were complete by the end of fiscal 2017.

Prior to 2017, the Company’s operations were located in two buildings in Berkeley, California. Due to the restructuring activity and reduction in headcount, the Company determined that it did not need the building space in Berkeley, California and consolidated all of its personnel in a new office facility in Emeryville, California. During the year ended December 31, 2018, the Company completely vacated both of its leased facilities in Berkeley, California and subleased the space to subtenants. In connection with vacating this space, the Company recorded a discounted lease-related restructuring liability, which was calculated as the present value of the estimated future facility costs for which the Company would obtain no future economic benefit over the term of the lease, net of estimated future sublease income, and adjusted for the remaining balance of deferred rent. In addition, in connection with a sublease agreement executed in April 2018, the Company recognized a loss on the sublease of $0.6 million during the second quarter of 2018 (Note 8).

As of December 31, 2018, the Company classified the current portion of the combined lease-related liabilities of $1.4 million within accrued and other liabilities and the non-current portion of $0.3 million within long-term other liabilities in its consolidated balance sheet. Upon adoption of ASC 842, the Company consolidated all its lease-related liabilities in the consolidated balance sheet as of January 1, 2019 and reported as operating lease liabilities (Note 2).

During the year ended December 31, 2019, no lease-related restructuring charges were recognized in the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2018, the Company recorded $1.9 million of restructuring costs in its consolidated statements of operations and comprehensive loss.