Restructuring and Related Costs

9 Months Ended

Jun. 27, 2020

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED COSTS

Fiscal Year 2020 Restructuring

In the second quarter of fiscal year 2020, we initiated a series of global workforce reductions and facility closures, including the reorganization of our European operations within Test & Simulation intended to increase organizational effectiveness, gain operational efficiencies and provide cost savings that can be reinvested in our growth initiatives. As a result, during the three and nine months ended June 27, 2020, we recorded $734 and $6,872, respectively, of pre-tax severance and related expense, respectively. We expect to incur a total of approximately $7,000 to $10,000 of pre-tax severance and related expense and facility closure costs related to these actions throughout fiscal year 2020 and 2021. The majority of the expenses are expected to be paid in the second half of fiscal year 2021.

In the third quarter of fiscal year 2020, we initiated an additional workforce reduction within Test & Simulation to reduce the overall cost structure in response to COVID-19. As a result, during the three and nine months ended June 27, 2020, we recorded $2,011 of pre-tax severance and related expense. As of June 27, 2020, substantially all expenses have been paid.

Restructuring expenses included in the Consolidated Statements of Income are as follows:



	Three Months Ended			Nine Months Ended
	June 27, 2020
	Test & Simulation
Cost of sales	$	2,192		$	6,060
Selling and marketing	686			686
General and administrative	(183		)	2,087
Research and development	50			50
Total restructuring expense	$	2,745		$	8,883

Restructuring expense accruals included in accrued payroll and related costs in the Consolidated Balance Sheets for the above restructuring action are as follows:



	Test & Simulation
Balance, September 28, 2019	$	—
Restructuring expense	8,883
Payments	(2,332		)
Other adjustments	187
Currency translation	—
Balance, June 27, 2020	$	6,738