Restructuring and Other Charges

Restructuring charges in the three and nine months ended June 30, 2014 consisted primarily of severance and other workforce-related costs and result from the consolidation of production facilities and certain functions in the Brooks Life Science Systems segment resulting from the Company's decision to discontinue certain product lines. In addition, in the third quarter of fiscal year 2014, the Company eliminated certain engineering positions that were connected to support of a discontinued product in the Brooks Product Solutions segment. The remaining restructuring charges consist of severance and other workforce-related costs related to the on-going transition of manufacturing certain of the Company’s line of Polycold cryochillers and compressors to a third party contract manufacturer and other global programs designed to improve the Company’s cost structure.

Since the inception of our programs to discontinue production of certain product lines, we have recorded a total of $0.3 million of inventory write-offs. Inventory write-offs are included in cost of revenue in our Consolidated Statements of Operations.

Total severance charges related to the outsourcing of the Polycold manufacturing operation are expected to be $1.1 million, including severance and retention fees. This charge is being recorded ratably over the period from notification of the closing in October 2012 to the actual service end date, or September 2014. The Company has expensed $0.9 million of the total charge as of June 30, 2014, and will expense the balance in the fourth quarter of fiscal year 2014.

Restructuring charges in the three and nine months ended June 30, 2013 consisted of severance costs for workforce reductions implemented to consolidate the operations of Crossing and the Company, to transition the Polycold product line to a third party contract manufacturer and other programs designed to improve the Company’s cost structure. Restructuring charges also included costs to consolidate two of the Company's facilities in California. In addition, the Company incurred other charges of $0.1 million related to a partial settlement of a defined benefit pension plan that covers substantially all of the Company’s employees in its Swiss office.

The activity for the three and nine months ended June 30, 2014 and 2013 related to the Company's restructuring-related accruals, excluding amounts related to the discontinued operations, is summarized below (in thousands):



	Activity — Three Months Ended June 30, 2014
	Balance at March 31, 2014		Expense		Utilization			Balance at June 30, 2014
Facilities and other	$	—	$	150	$	(58	)	$	92
Workforce-related	1,552		2,972		(665		)	3,859
	$	1,552	$	3,122	$	(723	)	$	3,951

	Activity — Three Months Ended June 30, 2013
	Balance at March 31, 2013		Expense		Utilization			Balance at June 30, 2013
Facilities and other	$	233	$	54	$	(80	)	$	207
Workforce-related	2,331		506		(1,242		)	1,595
	$	2,564	$	560	$	(1,322	)	$	1,802

	Activity — Nine Months Ended June 30, 2014
	Balance at September 30, 2013		Expense		Utilization			Balance at June 30, 2014
Facilities and other	$	155	$	163	$	(226	)	$	92
Workforce-related	1,257		4,478		(1,876		)	3,859
	$	1,412	$	4,641	$	(2,102	)	$	3,951

	Activity — Nine Months Ended June 30, 2013
	Balance at September 30, 2012		Expense		Utilization			Balance at June 30, 2013
Facilities and other	$	—	$	744	$	(537	)	$	207
Workforce-related	2,021		5,170		(5,596		)	1,595
	$	2,021	$	5,914	$	(6,133	)	$	1,802

The Company anticipates that the accrued restructuring costs at June 30, 2014 will be paid in the next twelve months.