Restructuring Charges

6 Months Ended

Apr. 02, 2016

On October 23, 2015, we initiated a plan to restructure our workforce and consolidate select facilities in order to reduce our cost structure and to realign our investments with what we believe to be our higher growth opportunities. The restructuring is expected to result in a charge of up to $50 million, which is primarily attributable to termination benefits. In the first and second quarter of 2016, we recorded charges of $37.0 million and $4.4 million respectively, attributable to termination benefits associated with 481 employees. The remaining termination charges are expected to be recorded in the third and fourth quarters of 2016. Additionally, in the first and second quarter of 2016, we recorded charges of $0.2 million and $0.2 million respectively related to the closure of excess facilities.

On April 4, 2015, we committed to a plan to restructure our workforce and consolidate select facilities to realign our global workforce to increase investment in our Internet of Things business and to reduce our cost structure through organizational efficiencies in the face of significant foreign currency depreciation relative to the U.S. Dollar and a more cautious outlook on global macroeconomic conditions. In the second quarter of 2015, we recorded a charge of $38.5 million attributable to termination benefits associated with 411 employees.

The following table summarizes restructuring accrual activity for the six months ended April 2, 2016:



	Employee Severance and Related Benefits			Facility Closures and Related Costs			Total
	(in thousands)
October 1, 2015	$	14,086		$	1,168		$	15,254
Charge to operations	41,362			364			41,726
Cash disbursements	(41,183		)	(585		)	(41,768		)
Foreign exchange impact	252			10			262
Accrual, April 2, 2016	$	14,517		$	957		$	15,474

The accrual for facility closures and related costs is included in accrued expenses and other liabilities in the Consolidated Balance Sheets, and the accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets.