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Restructuring and Other Charges | 6 Months Ended
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Mar. 28, 2020
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 and accretion expense charges related to the lease assets of exited facilities. Refer to Note 14. Leases for additional information about exited facilities. For the second quarter and first six months ended March 28, 2020, restructuring charges and other charges, net totaled $18.2 million and $32.3 million, respectively, of which $13.2 million and $27.0 million is attributable to restructuring charges, respectively, and $4.7 million and $5.0 million is related to impairment and accretion expense related to exited lease facilities, respectively. The restructuring and other charges for the second quarter and first six months of 2020 also includes $0.3 million of accelerated depreciation related to the planned exit of a facility. For the second quarter and first six months ended March 30, 2019, restructuring and other charges totaled $27.0 million and $45.5 million, respectively, of which $26.4 million and $43.0 million is attributable to restructuring charges, respectively, and $0.6 million and $2.5 million is related to headquarters relocation charges, respectively. Restructuring Charges During the first quarter of 2020, we initiated a restructuring program as part of a realignment associated with expected synergies and operational efficiencies related to the Onshape acquisition. During the six months ended March 28, 2020, we incurred $31.5 million in connection with this restructuring plan for termination benefits associated with approximately 255 employees. 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 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. In the second quarter of 2020, we recorded $0.1 million of credits related to this restructuring plan. During the second quarter of 2019, we relocated our worldwide headquarters to the Boston Seaport District. We incurred a restructuring charge for the former headquarters lease, which will not expire until November 2022. During the first six months ended March 28, 2020, we reversed $4.4 million of accrued variable operating facility restructuring charges associated with the exit of a portion of our former headquarters lease. The following table summarizes restructuring accrual activity for the six months ended March 28, 2020:
(in thousands) | Employee severance and related benefits |  | Facility closures and related costs |  | Total
October 1, 2019 | $ | 298 |  |  | $ | 30,788 |  |  | $ | 31,086 |
ASC 842 adoption | — |  |  | (16,462 | ) |  | (16,462 | )
Charges to operations, net | 31,358 |  |  | (4,362 | ) |  | 26,996 |
Cash disbursements | (14,324 | ) |  | (2,495 | ) |  | (16,819 | )
Other non-cash | — |  |  | (281 | ) |  | (281 | )
Foreign exchange impact | 153 |  |  | (5 | ) |  | 148 |
Accrual, March 28, 2020 | $ | 17,485 |  |  | $ | 7,183 |  |  | $ | 24,668 |
The following table summarizes restructuring accrual activity for the six months ended March 30, 2019:
(in thousands) | Employee severance and related benefits |  | Facility closures and related costs |  | Total
October 1, 2018 | $ | — |  |  | $ | 2,415 |  |  | $ | 2,415 |
Charges to operations, net | 16,034 |  |  | 26,937 |  |  | 42,971 |
Cash disbursements | (15,085 | ) |  | (2,847 | ) |  | (17,932 | )
Foreign exchange impact | 6 |  |  | (34 | ) |  | (28 | )
Other non-cash charges | — |  |  | 4,812 |  |  | 4,812 |
Accrual, March 30, 2019 | $ | 955 |  |  | $ | 31,283 |  |  | $ | 32,238 |
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. As of March 28, 2020, the remaining restructuring facility accrual of $7.2 million relates to variable non-lease costs not subject to ASC 842, of which, $2.6 million is included in accrued expenses and other current liabilities and $4.6 million is included in other liabilities in the Consolidated Balance Sheets. 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. 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 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://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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