XML 45 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Restructuring and Related Charges
 12 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]  
Restructuring and related charges Restructuring and Related Charges
To better align its resources with its growth strategies and reduce the cost structure, the Company commits to restructuring plans as necessary. The Company has undertaken various restructuring initiatives, including the wind-down of the Company’s operations in Italy, restructuring of the Company’s operations in Australia, consolidation of functional support structures on a global basis, and consolidation of the Singaporean research and development center.

Beginning in the second quarter of fiscal 2020, and following the sale of the Memcor product line, the Company undertook activities to reduce the cost structure and rationalize location footprint. The Company currently expects to incur approximately $3,000 to $5,000 of costs through the remainder of fiscal 2021 related to these initiatives.
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 currently expects to incur approximately $1,000 of cash costs through fiscal 2021 as a result of this transition related to other non-employee related business optimizations.
During the year ended September 30, 2017, the Company initiated a Voluntary Separation Plan (“VSP”) that continued throughout the year ended September 30, 2018 and concluded during the six months ended March 31, 2018. The VSP plan included severance payments to employees as a result of streamlining business operations for efficiency, elimination of redundancies, and reorganizing business processes.

The table below sets forth the amounts accrued for the restructuring components and related activity:
 
Year Ended September 30,
 
2020
 
2019
 
2018
Balance at beginning of the period
$
655

 
$
710

 
$
3,542

Restructuring charges following the sale of the Memcor product line
8,274

 
—

 
—

Restructuring charges related to two-segment realignment
2,092

 
11,090

 
—

Restructuring charges related to other initiatives (including VSP)
1,867

 
2,444

 
11,085

Release of prior reserves
(98
)
 
(541
)
 
(663
)
Write-off charges
(2,461
)
 
—

 
—

Cash payments
(9,367
)
 
(12,966
)
 
(13,280
)
Other adjustments
8

 
(82
)
 
26

Balance at end of the period
$
970

 
$
655

 
$
710


The balances for accrued restructuring liabilities at September 30, 2020 and 2019, are recorded in Accrued expenses and other liabilities on the Consolidated Balance Sheets. Restructuring charges represent severance charges, inventory write-offs and consulting fees.

The table below sets forth the location of amounts recorded above on the Consolidated Statements of Operations:
 
Year Ended September 30,
 
2020
 
2019
 
2018
Cost of product sales and services
$
8,305

 
$
6,257

 
$
3,897

General and administrative expense
3,053

 
5,531

 
4,775

Sales and marketing expense
305

 
1,082

 
908

Research and development expense
23

 
123

 
606

Other operating expense, net
449

 
—

 
236


$
12,135

 
$
12,993

 
$
10,422


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