Restructuring and Related Charges

9 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Charges

To better align its resources with its growth strategies and reduce the cost structure, the Company commits to various restructuring plans as necessary.

On October 30, 2018, the Company announced a transition from a three-segment structure to a two-segment operating model designed to better serve the needs of customers worldwide. This new structure was effective October 1, 2018 and combined the Municipal services business with the former Industrial segment into a new segment, Integrated Solutions and Services, a group entirely focused on engaging directly with end users. The former Products segment and Municipal products businesses have been combined into a new segment, Applied Product Technologies, which is focused on developing product platforms to be sold primarily through third-party channels. The Company expects to incur up to $1,500 of expense during the final phase of this transition.

Beginning in the second quarter of fiscal 2020, the Company undertook activities to reduce the cost structure and rationalize location footprint following the sale of the Memcor product line. The Company currently expects to incur approximately $3,000 to $5,000 of additional costs related to these initiatives through the remainder of fiscal 2020 and is currently evaluating additional actions that could extend to the following fiscal year.

The table below sets forth the amounts accrued for the restructuring components and related activity:



	Nine Months Ended June 30,
	2020			2019
Balance at beginning of the period	$	655		$	710
Restructuring charges following the sale of the Memcor product line	4,758			—
Restructuring charges related to two-segment realignment	1,866			9,274
Restructuring charges related to other initiatives	1,141			2,086
Write off charge and other non‑cash activity	(62		)	(520)
Cash payments	(7,314)			(9,830)
Other adjustments	—			(76)
Balance at end of the period	$	1,044		$	1,644

The balances for accrued restructuring liabilities at June 30, 2020 and September 30, 2019, are recorded in Accrued expenses and other liabilities on the Consolidated Balance Sheets. Restructuring charges primarily represent severance charges, certain non-cash charges and consulting fees. The Company expects to pay the remaining amounts accrued as of June 30, 2020 during the remainder of fiscal 2020.

The table below sets forth the location of amounts recorded above on the Unaudited Consolidated Statements of Operations:



	Nine Months Ended June 30,
	2020		2019
Cost of product sales and services	$	5,198	$	4,912
General and administrative expense	2,310		4,929
Sales and marketing expense	173		891
Research and development expense	22		108
	$	7,703	$	10,840

The Company continues to evaluate restructuring activities that may result in additional charges in the future.