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Restructuring and Other Costs, Net
12 Months Ended
Sep. 30, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Other Costs, Net

14. Restructuring and Other Costs, Net

Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business such as employee severance costs, costs for consolidating duplicate facilities, and separation costs directly attributable to the Cerence business becoming a standalone public company.

Restructuring and other costs, net related to personnel and facilities are included in accrued expenses and other current liabilities in the Consolidated and Combined Balance Sheets. Separation costs are included in accounts payable. The following table sets forth the year ended September 30, activity relating to restructuring charges (dollars in thousands):

 

 

 

Personnel

 

 

Facilities

 

 

Separation

 

 

Total

 

Balance at October 1, 2017

 

$

108

 

 

$

114

 

 

$

 

 

$

222

 

Restructuring and other costs, net

 

 

4,130

 

 

 

20

 

 

 

8,713

 

 

 

12,863

 

Cash payments

 

 

(1,969

)

 

 

(128

)

 

 

(7,936

)

 

 

(10,033

)

Balance at September 30, 2018

 

 

2,269

 

 

 

6

 

 

 

777

 

 

 

3,052

 

Restructuring and other costs, net

 

 

130

 

 

 

1,704

 

 

 

22,570

 

 

 

24,404

 

Cash payments

 

 

(1,910

)

 

 

(1,684

)

 

 

(19,471

)

 

 

(23,065

)

Balance at September 30, 2019

 

 

489

 

 

 

26

 

 

 

3,876

 

 

 

4,391

 

Restructuring and other costs, net

 

 

3,694

 

 

 

2,816

 

 

 

11,727

 

 

 

18,237

 

Non-cash adjustment

 

 

 

 

 

(1,031

)

 

 

 

 

 

(1,031

)

Cash payments

 

 

(3,420

)

 

 

(26

)

 

 

(13,675

)

 

 

(17,121

)

Foreign exchange impact on ending balance

 

 

1

 

 

 

(40

)

 

 

 

 

 

(39

)

Balance at September 30, 2020

 

$

764

 

 

$

1,745

 

 

$

1,928

 

 

$

4,437

 

 

Fiscal Year 2020

For the year ended September 30, 2020, we recorded restructuring charges of $18.2 million, which included a $3.7 million severance charge related to the elimination of personnel across multiple functions, $2.8 million resulting from the restructuring of facilities that will no longer be utilized, and $11.7 million related to costs incurred to establish the Cerence business as a standalone public company.

Fiscal Year 2019

For the year ended September 30, 2019, we recorded restructuring charges of $24.4 million, which included $0.1 million severance charge related to the elimination of personnel across multiple functions, $1.7 million primarily resulting from the restructuring of facilities that will no longer be utilized, and $22.6 million related to professional service fees incurred to establish Cerence business as a standalone public company.

Fiscal Year 2018

For the year ended September 30, 2018, we recorded restructuring charges of $12.9 million, which included a $4.1 million severance charge related to the elimination of personnel across multiple functions, $20 thousand primarily resulting from the restructuring of facilities that will no longer be utilized, and $8.7 million related to professional services fees incurred to establish the Cerence business as a standalone public company.