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Restructuring and Other Charges | 3 Months Ended
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Dec. 28, 2019
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges Restructuring and other charges, net includes restructuring charges (credits), headquarters relocation charges and impairment charges related to the lease assets of exited facilities. For the three months ended December 28, 2019, restructuring charges and other charges, net totaled $14.0 million, of which $13.8 million is attributable to restructuring charges and $0.2 million is related to an impairment of an exited lease facility. For the three months ended December 29, 2018, restructuring and other charges totaled $18.5 million comprised of $16.6 million attributable to a workforce realignment and facility closures and $1.9 million attributable to headquarters relocation charges. Restructuring Charges During the first quarter of 2020, we initiated a voluntary restructuring program as part of a realignment associated with expected synergies and operational efficiencies related to the Onshape acquisition. During the three months ended December 28, 2019, we incurred $13.6 million of an estimated $21.0 million charge in connection with this restructuring plan for termination benefits associated with approximately 175 employees. We are estimating $30 million of total restructuring charges in 2020. During the first quarter of 2019, 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 was a realignment of resources rather than a cost-savings initiative, it did not 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 has been paid. The following table summarizes restructuring accrual activity for the three months ended December 28, 2019:
(in thousands) | Employee severance and related benefits |  | Facility closures and related costs |  | Total
September 30, 2019 | $ | 298 |  |  | $ | 30,788 |  |  | $ | 31,086 |
ASC 842 adoption | — |  |  | (16,462 | ) |  | (16,462 | )
Charges to operations, net | 13,631 |  |  | 127 |  |  | 13,758 |
Cash disbursements | (58 | ) |  | (873 | ) |  | (931 | )
Foreign exchange impact | 156 |  |  | (1 | ) |  | 155 |
Accrual, December 28, 2019 | $ | 14,027 |  |  | $ | 13,579 |  |  | $ | 27,606 |
The following table summarizes restructuring accrual activity for the three months ended December 29, 2018:
(in thousands) | Employee severance and related benefits |  | Facility closures and related costs |  | Total
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 accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets. Upon adoption of ASC 842, $16.5 million of accrued expenses and other current liabilities, representing the present value of lease commitments net of estimated sublease income, were reclassified to lease assets and obligations: $7.6 million to lease assets, $9.2 million to short-term lease obligations and $14.9 million to long-term lease obligations. In determining the amount of right-of-use assets and lease obligations for restructured facilities, we are required to estimate such factors as future vacancy rates, the time required to sublet properties and sublease rates. Updates to these estimates may result in revisions to the value of right of use assets recorded. The amounts recorded are based on the net present value of remaining lease commitments and estimated sublease income. As of December 28, 2019, we have net liabilities of $28.0 million related to excess facilities (compared to $30.8 million at September 30, 2019), representing discounted lease and non-lease commitments with agreements expiring at various dates through 2023 of approximately $35.1 million, net of committed sublease income of approximately $3.7 million and uncommitted sublease income of approximately $3.4 million. As a result of changes in our sublease income assumptions, in the three months ended December 28, 2019, we recorded a facility impairment charge of $0.2 million against the lease assets. For exited facilities we made $2.4 million in payments related to lease costs in the three months ended December 28, 2019. As of December 28, 2019, the remaining restructuring facility accrual of $13.6 million relates to variable non-lease costs not subject to ASC 842, of which, $4.7 million is included in accrued expenses and other current liabilities and $8.8 million is included in other liabilities in the Consolidated Balance Sheets. 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. Other - Headquarters Relocation Charges Headquarters relocation charges represent other expenses associated with exiting our prior Needham headquarters facility and relocating to our new worldwide headquarters in the Boston Seaport District. In the first three 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.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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