Restructuring Costs

9 Months Ended

Jun. 30, 2016

Restructuring Costs

Restructuring Costs

Note 14 — Restructuring Costs

In 2015 and 2016 we conducted a number of restructuring initiatives. In February 2015, we incurred restructuring costs of $5.4 million in connection with the combination of our defense services and defense systems businesses into a single business called Cubic Global Defense to better align our defense business organizational structure with customer requirements, increase operational efficiencies and improve collaboration and innovation across the Company.In the third quarter of fiscal 2016 our CGD-Systems and CGD-Services segments incurred cumulative restructuring costs of $0.9 million in connection with the formalization of Cubic Mission Solutions (CMS), a business division within our CGD Systems segment that includes our C4ISR subsidiaries and product offerings. In addition, during the third quarter of fiscal 2016, our CTS business implemented a restructuring plan to reduce headcount by approximately 20 in order to rebalance our resources with work levels. CTS incurred resulting restructuring charges of $0.8 million in connection with this initiative. The total costs of each of these restructuring plans are not expected to be significantly greater than the charges incurred to date.  Restructuring charges (reversals) incurred by business segment were as follows (in millions):

	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Restructuring costs (reversals):
Cubic Transportation Systems	$	1.0	$	0.5	$	0.8	$	0.1
Cubic Global Defense Systems		0.1		4.0		0.5		(0.2)
Cubic Global Defense Services		0.5		0.3		0.4		0.1
Unallocated corporate expenses and other		—		0.6		—		0.1
Total restructuring costs (reversals)	$	1.6	$	5.4	$	1.7	$	0.1

The following table presents a rollforward of our restructuring liability as of June 30, 2016, which is included within accrued compensation and other current liabilities within our Condensed Consolidated Balance Sheets (in millions):

	Employee Separation
Liability as of September 30, 2015	$	1.9
Accrued costs		1.6
Cash payments		(1.6)
Liability as of June 30, 2016	$	1.9

Certain restructuring costs are based upon estimates. Actual amounts paid may ultimately differ from these estimates. If additional costs are incurred or recognized amounts exceed costs, such changes in estimates will be recognized when incurred.