Restructuring and Other Charges (Credits), Net

12 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges (Credits), Net

4. Restructuring and Other Charges (Credits), Net

Restructuring and other charges (credits), net includes restructuring charges (credits) and impairment and accretion expense charges related to the lease assets of exited facilities.

In 2023, Restructuring and other charges (credits), net and related payments were immaterial.

In 2022, Restructuring and other charges (credits), net totaled $36.2 million, of which $32.4 million is attributable to restructuring charges primarily related to employee termination benefits, $5.1 million is attributable to other charges for professional fees included in restructuring related to our SaaS transformation, offset by a $1.3 million credit attributable to sublease income and the reversal of lease liabilities related to exited lease facilities. These charges substantially relate to a plan to restructure our workforce and consolidate select facilities to align our customer facing and product-related functions with SaaS industry best practices and accelerate the opportunity for our on-premises customers to move to the cloud. We made cash payments related to restructuring charges of $40.8 million ($34.0 million related to employee charges, $2.5 million in payments for other professional fees, and $4.3 million in net payments for variable costs related to restructured facilities).

In 2021, Restructuring and other charges (credits), net totaled $2.2 million, of which $2.1 million was attributable to restructuring charges and $0.1 million was attributable to impairment and accretion expense related to exited lease facilities. We made cash payments related to restructuring charges of $6.7 million ($3.9 million related to the 2020 restructuring and $2.8 million in rent payments for the restructured facilities).

The following table summarizes restructuring accrual activity for the three years ended September 30, 2023:

(in thousands)	Employee severance and related benefits			Facility closures and other costs			Consolidated total
Balance, September 30, 2020	$	3,992		$	5,995		$	9,987
Charges to operations, net		1,887			249			2,136
Cash disbursements		(3,925	)		(2,756	)		(6,681	)
Foreign exchange impact		27			17			44
Balance, September 30, 2021		1,981			3,505			5,486
Charges (credits) to operations, net		32,971			(561	)		32,410
Cash disbursements		(34,023	)		(2,355	)		(36,378	)
Foreign exchange impact		(583	)		—			(583	)
Balance, September 30, 2022		346			589			935
Credits to operations, net		(143	)		(281	)		(424	)
Cash disbursements		(121	)		(304	)		(425	)
Foreign exchange impact		21			—			21
Balance, September 30, 2023	$	103		$	4		$	107

As of September 30, 2023 and 2022, the accrual for employee severance and related benefits was included in Accrued compensation and benefits in the Consolidated Balance Sheets.

As of September 30, 2023 and 2022, the accrual for facility closures and related costs was included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.