Restructurings

12 Months Ended

Sep. 27, 2019

Restructuring and Related Activities [Abstract]

RESTRUCTURINGS

We have periodically implemented restructuring actions in connection with broader plans to reduce staffing, our internal manufacturing footprint and overall operating costs. The restructuring expenses are primarily comprised of direct and incremental costs related to headcount reductions including severance and outplacement fees for the terminated employees, as well as facility closure costs.

The following is a summary of the restructuring charges incurred for the periods presented (in thousands):



	Fiscal Years
	2019		2018		2017
Employee-related expenses	$	8,084	$	2,789	$	2,744
Facility-related expenses	11,459		3,476		—
Total restructuring expenses	$	19,543	$	6,265	$	2,744

The following is a summary of the costs incurred and remaining balances included in accrued expenses related to restructuring actions taken (in thousands):



	Employee-Related Expense⁽¹⁾			Facility-Related Expense⁽²⁾			Total
Balance - September 29, 2017	$	627		$	—		$	627
Charges	2,789			3,476			6,265
Charges paid/settled	(3,327		)	(3,476		)	(6,803		)
Balance - September 28, 2018	$	89		$	—		$	89
Charges	8,084			11,459			19,543
Charges paid/settled	(6,624		)	(10,481		)	(17,105		)
Balance - September 27, 2019	$	1,549		$	978		$	2,527

(1) Primarily includes severance charges associated with the reduction of our workforce in certain facilities.

(2) Primarily includes activities associated with the closure of certain facilities, including any associated asset impairments and contract termination costs.

Long Beach, Belfast and Sydney Plan

During the fiscal quarter ended December 29, 2017, we initiated plans to restructure and close our facilities in Long Beach, California, Belfast, United Kingdom and Sydney, Australia(the “Long Beach, Belfast and Sydney Plan”). The operations from the Long Beach facility were consolidated into our other California locations in order to achieve operational synergies. The Belfast and Sydney facilities were closed as we discontinued certain product development activities that were performed in those locations. During the fiscal year ended September 28, 2018, we incurred $6.3 million, including $2.8 million of employee-related costs and $3.5 million of facility-related costs and the charges paid were $6.2 million. During the fiscal year ended September 27, 2019 we incurred no charges for this plan. This action was complete in fiscal 2018 and no further costs will be incurred.

Details of the Long Beach, Belfast and Sydney Plan activities during fiscal years ended September 28, 2018 and September 27, 2019 are as follows:



	Employee-Related Expense			Facility-Related Expense			Total
Balance - September 29, 2017	$	—		$	—		$	—
Charges	2,789			3,476			6,265
Charges paid/settled	(2,700		)	(3,476		)	(6,176		)
Balance - September 28, 2018	$	89		$	—		$	89
Charges	—			—			—
Charges paid/settled	(89		)	—			(89		)
Balance - September 27, 2019	$	—		$	—		$	—

Ithaca Plan

During the fiscal quarter ended December 28, 2018, we commenced a plan to exit certain production and product lines, primarily related to certain production facilities located in Ithaca, New York (the "Ithaca Plan"). For these facilities, we incurred $5.5 million of restructuring charges in the fiscal year ended September 27, 2019, including $1.5 million of employee-related costs and $4.0 million of facility-related costs. This action was complete in fiscal 2019 and no further costs will be incurred. The remaining charges are expected to be paid in the first quarter of fiscal year 2020.

Details of the Ithaca Plan activities during fiscal year ended September 27, 2019 are as follows:



	Employee-Related Expense			Facility-Related Expense			Total
Balance - September 28, 2018	$	—		$	—		$	—
Charges	1,481			3,969			5,450
Charges paid/settled	(1,468		)	(3,899		)	(5,367		)
Balance - September 27, 2019	$	13		$	70		$	83

Design Facilities Plan

During the fiscal quarter ended March 29, 2019, we committed to a plan to exit certain design facilities and activities (the "Design Facilities Plan"). We incurred restructuring charges of $2.5 million in the fiscal year ended September 27, 2019, including $0.3 million of employee-related costs and $2.2 million of facility-related costs. This action was complete in fiscal 2019 and no further costs will be incurred. The remaining charges are expected to be paid in fiscal year 2020.

Details of the Design Facilities Plan activities during fiscal year ended September 27, 2019 are as follows:



	Employee-Related Expense			Facility-Related Expense			Total
Balance - September 28, 2018	$	—		$	—		$	—
Charges	338			2,190			2,528
Charges paid/settled	(338		)	(1,739		)	(2,077		)
Balance - September 27, 2019	$	—		$	451		$	451

2019 Plan

During the fiscal quarter ended June 28, 2019, we committed to a plan to strategically realign, streamline and improve certain of our business and operations, including reducing our workforce by approximately 250 employees and exiting seven development facilities in France, Japan, the Netherlands, Florida, Massachusetts, New Jersey and Rhode Island (the "2019 Plan"). We also committed to reducing certain development activities for one of our product lines. Additionally, we decided to no longer invest in the design and development of optical modules and subsystems for Data Center applications. Total restructuring charges expected to be incurred in connection with this plan are approximately $14.1 million to $15.0 million. We incurred restructuring charges of $11.6 million in the fiscal year ended September 27, 2019 under the 2019 Plan, including $6.3 million of employee-related costs, $4.0 million of impairment expense for fixed assets and $1.3 million of other facility-related costs. The remaining charges are expected to be paid in fiscal year 2020. We expect to incur restructuring costs of approximately $2.5 million to $3.4 million through fiscal year 2020 as we complete this restructuring action, including approximately $2.6 million of employee-related costs and $0.8 million of facility-related costs.

Details of the 2019 Plan activities during fiscal year ended September 27, 2019 are as follows:



	Employee-Related Expense			Facility-Related Expense			Total
Balance - September 28, 2018	$	—		$	—		$	—
Charges	6,265			5,300			11,565
Charges paid/settled	(4,729		)	(4,843		)	(9,572		)
Balance at September 27, 2019	$	1,536		$	457		$	1,993