Restructuring and Related Charges

3 Months Ended

Sep. 28, 2019

Restructuring and Related Activities [Abstract]

Note 13. Restructuring and Related Charges

The Company has initiated restructuring events primarily intended to reduce its costs, consolidate its operations, integrate various acquisitions, streamline product manufacturing and align its business to address market conditions. The Company’s restructuring charges primarily include severance and benefit costs to eliminate a specific number of positions, facilities and equipment costs to vacate facilities and consolidate operations, and lease termination costs. The timing of associated cash payments is dependent upon the type of restructuring charge and can extend over multiple periods.

As of September 28, 2019 and June 29, 2019, the Company’s total restructuring accrual was $7.5 million and $8.8 million, respectively. During the three months ended September 28, 2019 and September 29, 2018, the Company recorded restructuring and related charges of $0.3 million and $14.8 million, respectively.

Summary of Restructuring Plans

The following table presents the adjustments to the accrued restructuring expenses related to all of the Company’s restructuring plans described below for the three months ended September 28, 2019 (in millions):



	Balance June 29, 2019		Three Months Ended September 28, 2019 Charges		Cash Settlements			Non-cash Settlements and Other Adjustments⁽²⁾			Balance September 28, 2019
Fiscal 2019 Plan
NSE, including AW ⁽¹⁾	$	8.7	$	0.3	$	(1.0	)	$	(0.5	)	$	7.5
Plans Prior to Fiscal 2017
Other Plans ⁽¹⁾	0.1		—		—			(0.1		)	—
Total	$	8.8	$	0.3	$	(1.0	)	$	(0.6	)	$	7.5


⁽¹⁾	Plan type includes workforce reduction cost.


⁽²⁾	Other adjustments including $0.2 million lease liability reclassification to Operating lease liability upon ASC 842 adoption.

The long-term portion of our total restructuring liability for the September 28, 2019 and June 29, 2019 periods is $0.1 million and $0.2 million, respectively. The remaining portion has been included as a component of Other current liabilities on the Consolidated Balance Sheets.

Upon adoption of the new lease accounting standard in the first quarter of fiscal 2020, the remaining lease-related liabilities of $0.2 million associated with the NSE, Including AW Restructuring Plan and Other Plans were recognized as a reduction to the operating lease ROU assets.

Fiscal 2019 Plans

NSE, including AW Restructuring Plan

During the first quarter of fiscal 2019, Management approved restructuring and workforce reduction plans within its Network Service and Enablement (“NSE”) business, including actions related to the recently acquired AW business. These actions further drive the Company’s strategy for organizational alignment and consolidation as part of its continued commitment to a more cost effective and agile organization and to improve overall profitability in the Company’s NSE business. Included in these restructuring plans are specific actions to consolidate and integrate the newly acquired AW business within the NSE business segment. During the third quarter of fiscal 2019, the Company has updated the plan to include additional headcount primarily to transfer a portion of the manufacturing operations related to the recently acquired AW business to a contract manufacturer. A restructuring charge of $0.3 million was recorded in the three months ended September 28, 2019 for adjustments to severance and employee benefits. Payments related to the severance and benefits accrual are expected to be paid by the end of the fourth quarter of fiscal 2020.