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Restructuring and Other Charges | 6 Months Ended
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Mar. 30, 2019
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 million for termination benefits associated with approximately 240 employees, substantially all of which we expect will be paid in fiscal 2019. In the second quarter of 2019, we also recorded $0.3 million of charges related to prior facility restructuring actions. In January 2019, we relocated our worldwide headquarters to the Boston Seaport District. 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 incurred a restructuring charge of approximately $26.7 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 over the first 18 months on the Seaport headquarters total approximately $30 million, as compared to the estimated cash outflows of $34 million on the prior headquarters, which will be incurred over the next 44 months (rent obligations and operating expenses net of estimated sublease income). Restructuring charges and estimated cash outflows could increase if we are unable to sublease our prior headquarters as we expect. Other costs associated with the move were recorded as incurred. The following table summarizes restructuring accrual activity for the six months ended March 30, 2019:
| Employee severance and related benefits |  | Facility closures and related costs |  | Total
| (in thousands)
October 1, 2018 | $ | — |  |  | $ | 2,415 |  |  | $ | 2,415 |
Charges to operations, net | 16,034 |  |  | 26,937 |  |  | 42,971 |
Cash disbursements | (15,085 | ) |  | (2,847 | ) |  | (17,932 | )
Other non-cash charges | — |  |  | 4,812 |  |  | 4,812 |
Foreign exchange impact | 6 |  |  | (34 | ) |  | (28 | )
Accrual, March 30, 2019 | $ | 955 |  |  | $ | 31,283 |  |  | $ | 32,238 |
The following table summarizes restructuring accrual activity for the six months ended March 31, 2018:
| 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 | (395 | ) |  | (339 | ) |  | (734 | )
Cash disbursements | (1,120 | ) |  | (806 | ) |  | (1,926 | )
Foreign exchange impact | 22 |  |  | (47 | ) |  | (25 | )
Accrual, March 31, 2018 | $ | 243 |  |  | $ | 3,316 |  |  | $ | 3,559 |
Of the accrual for facility closures and related costs, as of March 30, 2019, $12.4 million is included in accrued expenses and other current liabilities and $18.9 million is included in other liabilities in the Consolidated Balance Sheets. The accrual for facility closures is net of assumed sublease income of $13.9 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 March 31, 2018, $1.9 million is included in accrued expenses and other current liabilities and $1.4 million is included in other liabilities in the Consolidated Balance Sheets. In determining the amount of the facilities accrual, we are required to estimate such factors as future vacancy rates, the time required to sublet properties and sublease rates. These estimates are reviewed quarterly based on known real estate market conditions and the credit-worthiness of subtenants, and may result in revisions to established facility reserves. The accrual is based on the net present value of remaining lease commitments net of estimated sublease income. We had $31.3 million accrued as of March 30, 2019 related to excess facilities (compared to $2.4 million at September 30, 2018), representing gross lease commitments with agreements expiring at various dates through 2023 of approximately $43.6 million, net of committed sublease income of approximately $1.0 million and uncommitted sublease income of approximately $11.3 million. Other - Headquarters Relocation Charges Headquarters relocation charges represent other expenses associated with exiting our Needham headquarters facility and relocating to our new worldwide headquarters in the Boston Seaport District. In the first six months 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. In January 2019, we made rental payments for both our new and previous headquarters. Headquarters relocation charges for the second quarter of 2019 include $0.6 million of rental expense for the Needham facility that overlapped with rental expense for the new Seaport headquarters.

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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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