Note 8. Other accrued liabilities Other accrued liabilities consisted of the following (in thousands): Accrued employee costs $ 19,638 $ 7,989 Supply agreement - current portion 6,009 — Accrued supply chain costs 595 1,702 Accrued marketing and selling costs 3,237 1,114 Accrued research and development costs 1,998 678 Accrued restructuring charges 6,715 811 Accrued interest expense 1,413 1,527 Accrued Strongbridge transaction costs 1,839 — Accrued other costs 7,644 2,074 Other accrued liabilities $ 49,088 $ 15,895 December 31, 2021 December 31, 2020 Note 9. Restructuring costs In the third quarter of 2020, the Company commenced a plan to relocate the research and development laboratory from San Diego to Chicago. The costs associated with the plan include employee termination and relocation costs and other facility exit costs. The Company incurred total restructuring costs of approximately $2.0 million related to this plan. Costs of $0.3 million were incurred in the year ended December 31, 2021, all of which is included in research and development expenses in the consolidated statements of operations and comprehensive loss. The restructuring was materially completed in the fourth quarter of 2021. After the completion of the Acquisition on October 5, 2021, the Company undertook a strategic restructuring to streamline the organization and utilize the operating expense synergy. The costs associated with the restructuring include employee termination. The Company expects to incur total restructuring cost of approximately $11.1 million related to this plan. Costs of $9.7 million were incurred in the year ended December 31, 2021, of which $0.1 million is included in research and development expenses, $9.4 million is included in selling, general and administrative expenses, and $0.2 million is included in costs of goods sold in the consolidated statements of operations and comprehensive loss. The Company anticipates the restructuring related to the Strongbridge acquisition to be substantially complete by the end of the first quarter of 2022. The restructuring reserve is included in other accrued liabilities in the consolidated balance sheet. The following table summarizes the initial restructuring reserve in connection with the Strongbridge acquisition and the payments made during the year ended December 31, 2021 (in thousands): Employee Termination and Relocation Costs Restructuring costs $ 9,657 Payments (2,944) Balance accrued at December 31, 2021 $ 6,713 Note 10. Long-term debt Convertible Senior Notes In June 2020, Xeris Pharma completed a public offering of $86.3 million aggregate principal amount of Xeris Pharma's 5.00% Convertible Senior Notes due 2025 (the "Convertible Notes"), including $11.3 million pursuant to the underwriters' option to purchase additional notes which was exercised in full in July 2020. Xeris Pharma incurred debt issuance costs of $5.1 million in connection with the issuance of the Convertible Notes. Xeris Pharma used $20.0 million and $4.2 million of the net proceeds from the sale to prepay a portion of the principal amount on the Term A Loan (as defined below) and the remaining amount of borrowings outstanding under the PPP Loan (as defined below), respectively. The Convertible Notes are governed by the terms of a base indenture for senior debt securities dated June 30, 2020 (the “Base Indenture”), between Xeris Pharma and U.S. Bank National Association, as trustee, as supplemented by the first supplemental indenture thereto dated June 30, 2020, between U.S. Bank National Association, as trustee, and the second supplemental indenture XERIS BIOPHARMA HOLDINGS, INC. Notes to Consolidated Financial Statements 108
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