Restructuring and Other Charges, net

9 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring and other charges, net include restructuring expenses together with other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business.

The following table represents the roll forward of restructuring liabilities for the nine months ended June 30, 2020 (dollars in thousands): 

	Personnel			Facilities			Total
Balance at September 30, 2019	$	3,587		$	3,622		$	7,209
ASC 842 implementation (a)	—			11,674			11,674
Restructuring charges, net	4,778			2,654			7,432
Non-cash adjustment	—			1,263			1,263
Cash payments	(7,214		)	(5,125		)	(12,339		)
Balance at June 30, 2020	$	1,151		$	14,088		$	15,239

(a) The amount represents a reclassification of estimated sublease income from restructuring accrual to reduce the costs of right-of-use assets upon the adoption of ASC 842 on October 1, 2019.

The table below presents the Restructuring and other charges, net associated with each segment, but excluded from calculation of each segment's profit (dollars in thousands):

	Three Months Ended June 30,
	2020													2019
	Personnel			Facilities		Total Restructuring			Other Charges		Total			Personnel			Facilities		Total Restructuring			Other Charges		Total
Healthcare	$	119		$	2	$	121		$	—	$	121		$	222		$	1	$	223		$	—	$	223
Enterprise	(121		)	76		(45		)	—		(45		)	(165		)	—		(165		)	—		(165		)
Other	—			34		34			—		34			529			15		544			239		783
Corporate	445			9		454			1,356		1,810			730			354		1,084			22		1,106
Total	$	443		$	121	$	564		$	1,356	$	1,920		$	1,316		$	370	$	1,686		$	261	$	1,947

	Nine Months Ended June 30,
	2020													2019
	Personnel		Facilities			Total Restructuring			Other Charges		Total			Personnel		Facilities		Total Restructuring		Other Charges		Total
Healthcare	$	1,901	$	1,777		$	3,678		$	—	$	3,678		$	4,672	$	142	$	4,814	$	—	$	4,814
Enterprise	1,416		794			2,210			—		2,210			5,086		13		5,099		—		5,099
Other	—		(277		)	(277		)	—		(277		)	1,443		15		1,458		3,306		4,764
Corporate	1,461		360			1,821			7,500		9,321			2,680		676		3,356		8,413		11,769
Total	$	4,778	$	2,654		$	7,432		$	7,500	$	14,932		$	13,881	$	846	$	14,727	$	11,719	$	26,446

Fiscal Year 2020

For the nine months ended June 30, 2020, we recorded restructuring charges of $7.4 million, which included $4.8 million related to the termination of approximately 186 employees and $2.7 million related to the shutdown of certain facilities. Of these amounts, $0.6 million was recorded for the three months ended June 30, 2020, which included $0.4 million related to the termination of approximately 111 employees and $0.1 million related to the shutdown of facilities. These actions were part of our strategic initiatives focused on investment rationalization, process optimization and cost reduction as we continue to evaluate the footprint of our offices and facilities. We expect the remaining outstanding severance of $1.2 million to be substantially paid during fiscal year 2020, and the remaining balance of $14.1 million related to facilities to be paid through fiscal year 2027, in accordance with the terms of the applicable leases.

Additionally, for the nine months ended June 30, 2020, we recorded $4.6 million expenses related to the separation of our Automotive business, a $2.0 million impairment charge a right-of-use asset due to the COVID-19 pandemic, and a $0.9 million expense related

to a malware incident that occurred in the third quarter of fiscal year 2017 (the "2017 Malware Incident"). Of these amounts, we recorded $0.4 million related to the separation of our Automotive business and $0.9 million related to the 2017 Malware Incident for the three months ended June 30, 2020.

Fiscal Year 2019

For the nine months ended June 30, 2019, we recorded restructuring charges of $14.7 million, which included $13.9 million related to the termination of approximately 305 employees and $0.8 million related to the shutdown of certain facilities. Of these amounts, $1.7 million was recorded for the three months ended June 30, 2019, which included $1.3 million related to the termination of approximately 31 employees and $0.4 million related to the shutdown of facilities. These actions were part of our strategic initiatives focused on investment rationalization, process optimization and cost reduction.

Additionally, for the nine months ended June 30, 2019, we recorded $9.2 million of professional services fees related to the execution of our corporate transformational efforts and $3.3 million of accelerated depreciation related to our Mobile Operator Services business, offset in part by a $0.7 million cash receipt from insurance claims related to the 2017 Malware Incident. Of these amounts, we recorded $0.4 million of professional services fees related to the execution of our corporate transformational efforts and $0.2 million of accelerated depreciation related to our Mobile Operator Services business, offset in part by a $0.4 million cash receipt related to the 2017 Malware Incident for the three months ended June 30, 2019.