Restructuring Charges

The Company evaluates its operations for opportunities to improve operational effectiveness and efficiency, including facility and operations consolidation, and to better align expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions which are described below. The following table displays charges taken related to restructuring actions in fiscal 2018, 2017 and 2016 and a rollforward of the charges to the accrued balances as of September 29, 2018:



	Fiscal 2018 Actions		Fiscal 2017 Actions		Fiscal 2016 Actions		Total
Restructuring Charges
Fiscal 2016 charges:
Workforce reductions	$	—	$	—	$	10.5	$	10.5
Fiscal 2016 restructuring charges	$	—	$	—	$	10.5	$	10.5
Fiscal 2017 charges:
Workforce reductions	$	—	$	8.5	$	—	$	8.5
Facility closure costs	—		—		4.8		4.8
Fiscal 2017 restructuring charges	$	—	$	8.5	$	4.8	$	13.3
Fiscal 2018 charges:
Workforce reductions	$	11.7	$	—	$	—	$	11.7
Facility closure costs	0.9		—		1.6		2.5
Fiscal 2018 restructuring charges	$	12.6	$	—	$	1.6	$14.2



	Fiscal 2018 Actions			Fiscal 2017 Actions			Fiscal 2016 Actions			Previous Other Charges			Total
Rollforward of Accrued Restructuring
Balance as of September 26, 2015	$	—		$	—		$	—		$	5.7		$	5.7

Fiscal 2016 restructuring charges	$	—		$	—		$	10.5		$	—		$	10.5
Stock-based compensation	—			—			(0.4		)	—			(0.4		)
Severance payments	—			—			(4.6		)	(4.4		)	(9.0		)
Other payments	—			—			—			(0.5		)	(0.5		)
Balance as of September 24, 2016	$	—		$	—		$	5.5		$	0.8		$	6.3

Fiscal 2017 restructuring charges	$	—		$	8.5		$	4.8		$	—		$	13.3
Severance payments	—			(1.0		)	(5.4		)	(0.2		)	(6.6		)
Other payments	—			—			(1.2		)	(0.3		)	(1.5		)
Balance as of September 30, 2017	$	—		$	7.5		$	3.7		$	0.3		$	11.5

Fiscal 2018 restructuring charges	$	12.6		$	—		$	1.6		$	—		$	14.2
Stock-based compensation	(1.3		)	—			—			—			(1.3		)
Severance payments and adjustments	(6.8		)	(6.7		)	(0.2		)	—			(13.7		)
Other payments	(0.2		)	—			(1.2		)	(0.2		)	(1.6		)
Balance as of September 29, 2018	$	4.3		$	0.8		$	3.9		$	0.1		$	9.1

Fiscal 2018 Actions

During the first, second and third quarters of fiscal 2018, the Company decided to terminate certain employees across the organization, including a corporate executive and primarily sales and marketing personnel in its Diagnostics and Medical Aesthetics reportable segments. The charges were recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits (ASC 712) or ASC 420, Exit or Disposal Cost Obligations (ASC 420) depending on the employee. As such, the Company recorded severance and benefits charges of $9.0 million in fiscal 2018. Included within the charge is $1.3 million related to the modification of equity awards.

During fiscal 2018, the Company finalized its decision and plan to consolidate its legacy international accounting and customer service organizations into its Manchester, UK location and will be eliminating these positions in Belgium, France, Italy, Spain and Germany. This transition is expected to be completed in the first quarter of fiscal 2019 and upon completion these employees will be terminated. During fiscal 2018, the Company recorded $2.2 million for severance and benefits pursuant to both ASC 712 and ASC 420 depending on the legal requirements on a country by country basis. The Company expects to record an additional $0.6 million in the first quarter of fiscal 2019 for the remaining pro-rata charges.

During the third quarter of fiscal 2018, the Company decided to close its Hicksville, New York facility where it manufactured the Cynosure element products. In connection with this plan, certain employees, primarily in manufacturing, were terminated. The employees were notified of termination and related benefits in the third quarter of fiscal 2018, and the Company recorded these charges pursuant to ASC 420. Employees were required to remain employed during this transition period and charges were recorded ratably over the required service period, which is expected to continue through the first quarter of fiscal 2019. The Company recorded a total of $0.5 million in severance and benefits charges in fiscal 2018. The Company expects to record an additional $0.3 million in the first quarter of fiscal 2019 for the remaining pro-rata charges.

Fiscal 2017 Actions

During the second quarter of fiscal 2017, the Company completed its acquisition of Cynosure. In connection with the acquisition, the Company decided to terminate certain Cynosure executives in the second quarter of fiscal 2017 and recorded $1.5 million in severance and benefits charges. During the third and fourth quarters of fiscal 2017, the Company terminated additional executives and employees and recorded $4.3 million and $1.3 million, respectively, in severance and benefits charges. The charges were recorded pursuant to ASC 712 and ASC 420 depending on the executive.

During the fourth quarter of fiscal 2017, the decision was made to reduce headcount and related costs in R&D within Breast Health and to eliminate certain manufacturing personnel, primarily in Diagnostics. The majority of employees were notified of termination and related benefits in the fourth quarter of fiscal 2017, and the Company recorded these charges pursuant to ASC 420 as the benefits qualify as one-time termination benefits. As such, the Company recorded a charge for severance and benefits for these employees of $1.4 million in the fourth quarter.

Fiscal 2016 Actions

During the third quarter of fiscal 2015, the Company decided to close its Bedford, Massachusetts facility where it manufactured its Skeletal Health products and provided certain support manufacturing services for its Breast Health segment. The manufacturing of the Skeletal Health products was outsourced to a third-party, and the Breast Health manufacturing services were moved to the Company's Danbury, Connecticut and Marlborough, Massachusetts facilities. In addition, research and development, sales and services support and administrative functions were moved to both Marlborough and Danbury. The transition was substantially completed by the end of calendar year 2016. In connection with this plan, certain employees, primarily in manufacturing, were terminated. The employees were notified of termination and related benefits in the first quarter of fiscal 2016, and the Company recorded these charges pursuant to ASC 420. Employees were required to remain employed during this transition period and charges were recorded ratably over the required service period. The Company recorded $1.7 million in severance and benefits charges related to this action in fiscal 2016. This action was completed in the first quarter of fiscal 2017.

In connection with the closure of the Bedford location, during the first quarter of fiscal 2017 the Company recorded $3.5 million for lease obligation charges related to the first floor of the facility as the Company determined it had met the cease-use date criteria. The Company made certain assumptions regarding the time period it would take to obtain a subtenant and the sublease rates it could obtain. During the third quarter of fiscal 2017, the Company updated its assumption regarding the time period it would take to obtain a subtenant at the Bedford location and as a result recorded an additional $1.3 million lease obligation charge. During the third quarter of fiscal 2018, the Company further adjusted its assumptions and lowered the estimate of the sublease income rate and extended the time period to obtain a sub-tenant. As a result, the Company recorded an additional charge of $1.6 million. These estimates may vary from the actual sublease agreements executed, if at all, resulting in an adjustment to the charge. The Company has vacated other portions of the building but not the entire facility, and at this time does not meet the cease-use date criteria to record additional restructuring charges.

During the first quarter of fiscal 2016, the Company began implementing a second plan to consolidate and improve operational efficiency of its international sales and marketing and field services operations and certain support functions. As a result, the Company identified and terminated certain employees during each quarter in fiscal 2016. Severance and benefits under this action were recorded pursuant to ASC 712, and ASC 420 depending on the circumstances. The Company recorded severance and benefit charges of $7.9 million in fiscal 2016 related to this plan.