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Restructuring and Other Charges | 3 Months Ended
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Dec. 29, 2018
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges, net includes restructuring charges (credits) and headquarters relocation charges. Restructuring Charges (Credits) In October 2018, we initiated a restructuring plan to realign our workforce to shift investment to support Industrial Internet of Things and Augmented Reality strategic high growth opportunities. As this is a realignment of resources rather than a cost-savings initiative, we do not expect this realignment to result in significant cost savings. The restructuring plan was completed in the first quarter of 2019 and resulted in restructuring charges of $16.3 million for termination benefits associated with approximately 240 employees, substantially all of which we expect will be paid in fiscal 2019. We also recorded $0.3 million of charges related to prior restructuring actions. The following table summarizes restructuring accrual activity for the three months ended December 29, 2018:
| Employee severance and related benefits |  | Facility closures and related costs |  | Total
| (in thousands)
October 1, 2018 | $ | — |  |  | $ | 2,415 |  |  | $ | 2,415 |
Charges to operations, net | 16,343 |  |  | 243 |  |  | 16,586 |
Cash disbursements | (8,019 | ) |  | (264 | ) |  | (8,283 | )
Foreign exchange impact | 32 |  |  | (59 | ) |  | (27 | )
Accrual, December 29, 2018 | $ | 8,356 |  |  | $ | 2,335 |  |  | $ | 10,691 |
The following table summarizes restructuring accrual activity for the three months ended December 30, 2017:
| Employee severance and related benefits |  | Facility closures and related costs |  | Total
| (in thousands)
October 1, 2017 | $ | 1,736 |  |  | $ | 4,508 |  |  | $ | 6,244 |
Charges (credit) to operations, net | (212 | ) |  | 317 |  |  | 105 |
Cash disbursements | (198 | ) |  | (537 | ) |  | (735 | )
Foreign exchange impact | 17 |  |  | (18 | ) |  | (1 | )
Accrual, December 30, 2017 | $ | 1,343 |  |  | $ | 4,270 |  |  | $ | 5,613 |
Of the accrual for facility closures and related costs, as of December 29, 2018, $1.3 million is included in accrued expenses and other current liabilities and $1.0 million is included in other liabilities in the Consolidated Balance Sheets. The accrual for facility closures is net of assumed sublease income of $1.9 million. The accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets. Of the accrual for facility closures and related costs, as of December 30, 2017 $2.2 million is included in accrued expenses and other current liabilities and $2.1 million is included in other liabilities in the Consolidated Balance Sheets. Other - Headquarters Relocation Charges Headquarters relocation charges represent accelerated depreciation expense associated with exiting our Needham headquarters facility and relocating to our new worldwide headquarters in the Boston Seaport District, which occurred in January 2019. Because our prior headquarters lease will not expire until November 2022, we are seeking to sublease that space, but have not yet done so. As a result, we will bear overlapping rent obligations for those premises and, in the second quarter of 2019, we expect to incur a restructuring charge of approximately $24 million, based on the net present value of remaining lease commitments net of estimated sublease income. From a cash perspective, the free rent and estimated sublease income on the Seaport headquarters total approximately $30 million, as compared to the estimated cash outflows of $29 million on the prior headquarters (rent obligations and operating expenses net of estimated sublease income). Restructuring charges could increase and estimated cash outflows could increase if we are unable to sublease our prior headquarters as we expect. Additionally, we will incur other costs associated with the move which will be recorded as incurred. In the first quarter of 2019 we recorded $1.9 million of accelerated depreciation expense related to shortening the estimated useful lives of leasehold improvements related to the Needham location.

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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 FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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