Restructuring Charges

The Company evaluates its operations for opportunities to improve operational effectiveness and efficiency, including facility and operations consolidation, and to better align expenses with revenues. In addition, the Company continually assesses its management and organizational structure. As a result of these assessments, the Company has undertaken various restructuring actions, which are described below. The following table displays charges related to these actions recorded in the fiscal 2018 year to date period (nine months ended June 30, 2018) and fiscal 2017 (the year ended September 30, 2017) and a rollforward of the accrued balances from September 30, 2017 to June 30, 2018:



	Fiscal 2018 Actions		Fiscal 2017 Actions		Fiscal 2016 Actions		Total
Restructuring Charges
Fiscal 2017 charges:
Workforce reductions	$	—	$	8.5	$	—	$	8.5
Facility closure costs	—		—		4.8		4.8
Fiscal 2017 restructuring charges	$	—	$	8.5	$	4.8	$	13.3
Fiscal 2018 charges:
Workforce reductions	$	8.9	$	—	$	—	$	8.9
Facility closure costs	0.9		—		1.6		2.5
Fiscal 2018 restructuring charges	$	9.8	$	—	$	1.6	$	11.4



	Fiscal 2018 Actions			Fiscal 2017 Actions			Fiscal 2016 Actions			Other			Total
Rollforward of Accrued Restructuring
Balance as of September 30, 2017	$	—		$	7.5		$	3.7		$	0.3		$	11.5
Fiscal 2018 charges	9.8			—			1.6			—			11.4
Stock-based compensation	(1.3		)	—			—			—			(1.3		)
Severance payments and adjustments	(3.5		)	(5.0		)	(0.2		)	—			(8.7		)
Other payments	—			—			(0.9		)	(0.2		)	(1.1		)
Balance as of June 30, 2018	$	5.0		$	2.5		$	4.2		$	0.1		$	11.8

Fiscal 2018 Actions

During the first, second and third quarters of fiscal 2018, the Company decided to terminate certain employees across the organization, including a corporate executive and primarily sales and marketing personnel in its Diagnostics and Medical Aesthetics reportable segments. The charges were recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits (ASC 712) or ASC 420, Exit or Disposal Cost Obligations (ASC 420) depending on the employee. As such, the Company recorded severance and benefits charges of $3.8 million, $1.8 million and $2.3 million in the first, second and third quarters, respectively. Included within the first quarter charge is $1.3 million related to the modification of equity awards.

During the third quarter of fiscal 2018, the Company finalized its decision and plan to consolidate its legacy international accounting and customer service organizations into its Manchester, UK location and will be eliminating these positions in Belgium, France, Italy, Spain and Germany. This transition is expected to take place through the first quarter of fiscal 2019 and upon completion these employees will be terminated. The Company has estimated the total charge for severance and benefits to be approximately $3.0 million and is recording severance and benefits pursuant to both ASC 712 and ASC 420 depending on the legal requirements on a country by country basis. During the third quarter of fiscal 2018, the Company recorded $0.8 million for severance and benefits.

During the third quarter of fiscal 2018, the Company announced the closure of its Hicksville, New York facility where it manufactures certain Cynosure products. The manufacturing will be transferred to existing Company facilities. In connection with this plan, certain employees, primarily in manufacturing, will be terminated. The employees were notified of termination and related severance benefits in the third quarter of fiscal 2018. The Company is recording the severance and benefits charges pursuant to ASC 420, which are expected to be approximately $1.0 million. Employees are required to remain employed during the transition period and severance and benefits will be recorded ratably over the required service period. The Company recorded $0.2 million for severance and benefits in the third quarter of fiscal 2018.

In the third quarter of fiscal 2018, the Company determined it will not use warehouse space located on Lyberty Way in Westford, Massachusetts. The Company met the cease use date criteria in the third quarter of fiscal 2018, and estimated the time period to sublet the space and related sublease rates resulting in a lease obligation charge of $0.9 million.

Fiscal 2017 Actions

In connection with its acquisition of Cynosure, the Company decided to terminate certain Cynosure executives in the second quarter of fiscal 2017 and recorded $1.5 million in severance and benefits charges. During the third and fourth quarters of fiscal 2017, the Company terminated additional executives and employees and recorded $4.3 million and $1.3 million, respectively, in severance and benefits charges.

Fiscal 2016 Actions

In connection with the closure of the Bedford, Massachusetts facility during the first quarter of fiscal 2017, the Company recorded $3.5 million for lease obligation charges related to the first floor of the facility as the Company determined it had met the cease-use date criteria. The Company made certain assumptions regarding the time period it would take to obtain a subtenant and the sublease rates it can obtain. During the third quarter of fiscal 2017, the Company updated its assumption regarding the time period it would take to obtain a subtenant at the Bedford location and as a result recorded an additional $1.3 million lease obligation charge. During the third quarter of fiscal 2018, the Company further adjusted its assumptions and lowered the estimate of the sublease income rate and extended the time period to obtain a sub-tenant. As a result, the Company recorded an additional charge of $1.6 million. These estimates may vary from the actual sublease agreements executed, if at all, resulting in an adjustment to the charge. The Company has vacated other portions of the building but not the entire facility, and at this time does not meet the cease-use date criteria to record additional restructuring charges for this facility.