Restructuring and Other Charges

Restructuring Charges (Credits)

In fiscal 2016, we initiated a plan to restructure our workforce and consolidate select facilities to reduce our cost structure and to realign our investments with what we believe to be our higher growth opportunities. The actions resulted in total restructuring charges of $84.5 million, primarily associated with termination benefits associated with approximately 800 employees. This restructuring plan was substantially completed in 2017.

In fiscal 2015, we committed to a plan to restructure our workforce and consolidate select facilities to realign our global workforce to increase investment in our IoT 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. The actions resulted in total restructuring charges of $42.1 million, primarily associated with termination benefits associated with 411 employees. This restructuring plan was substantially completed in 2016.

In 2018, we recorded restructuring credits of $1.0 million ($0.2 million related to the 2016 restructuring and $0.8 million related to the 2015 restructuring). We made cash payments related to restructuring charges of $2.8 million ($2.6 million related to the 2016 restructuring and $0.2 million related to the 2015 restructuring). At September 30, 2018, accrued restructuring totaled $2.4 million related to the 2016 restructuring.

In 2017, we recorded restructuring charges of $7.9 million ($8.2 million of which related to the 2016 restructuring offset by $0.3 million related to the 2015 restructuring). We made cash payments related to restructuring charges of $37.1 million ($36.4 million of which related to the 2016 restructuring and $0.7 million related to the 2015 restructuring).

In 2016, we recorded restructuring charges of $76.3 million ($77.1 million of which related to the 2016 restructuring offset by $0.8 million credit related to the 2015 restructuring). We made cash payments related to restructuring charges of $55.0 million ($42.1 million of which related to the 2016 restructuring, $12.1 million related to the 2015 restructuring and $0.8 million related to prior restructuring plans).

The following table summarizes restructuring charges reserve activity for the three years ended September 30, 2018:



	Employee Severance and Related Benefits			Facility Closures and Other Costs			Consolidated Total
	(in thousands)
Balance, October 1, 2015	$	14,086		$	1,168		$	15,254
Charges to operations	74,929			1,344			76,273
Cash disbursements	(53,966		)	(1,053		)	(55,019		)
Foreign currency impact	128			(28		)	100
Balance, September 30, 2016	35,177			1,431			36,608
Charges to operations	2,373			5,569			7,942
Cash disbursements	(35,069		)	(2,005		)	(37,074		)
Other non-cash charges	—			(704		)	(704		)
Foreign currency impact	(745		)	217			(528		)
Balance, September 30, 2017	1,736			4,508			6,244
Charges (credits) to operations	(509		)	(494		)	(1,003		)
Cash disbursements	(1,247		)	(1,509		)	(2,756		)
Foreign currency impact	20			(90		)	(70		)
Balance, September 30, 2018	$	—		$	2,415		$	2,415

Of the accrual for facility closures and related costs, as of September 30, 2018, $1.5 million is included in accrued expenses and other current liabilities and $0.9 million is included in other liabilities in the Consolidated Balance Sheets. The accrual for facility closures is net of assumed sublease income of $2.8 million. The accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets.

Other - Headquarters relocation charges

Headquarters relocation charges represent accelerated depreciation expense recorded in anticipation of exiting our current headquarters facility. In 2019, we will be moving into a new worldwide headquarters in the Boston Seaport District, and we will be vacating our current headquarters space. Because our current headquarters lease will not expire until November 2022, we are seeking to sublease that space, but have not yet done so. If we are unable to sublease our current headquarters space for an amount at least equal to our rent obligations under the current headquarters lease (approximately $12 million per year), we will bear overlapping rent obligations for those premises and will be required to record additional headquarters relocation charges related to any rent shortfall. A charge for such shortfall will be recorded in the earlier of the period that we cease using the space (which will likely occur in the second quarter of our fiscal 2019) or the period we sign sublease contracts. Additionally, we will incur other costs associated with the move which will be recorded as incurred. In 2018, we recorded $4.8 million of accelerated depreciation expense related to shortening the estimated useful lives of leasehold improvements in our current facility.