Restructuring and Other Costs, Net

12 Months Ended

Sep. 30, 2022

Restructuring And Related Activities [Abstract]

Restructuring and Other Costs, Net

10. Restructuring and Other Costs, Net

Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business such as employee severance costs, costs for consolidating duplicate facilities, and separation costs directly attributable to the Cerence business becoming a standalone public company.

The following table sets forth the fiscal year ended September 30, activity relating to restructuring charges (dollars in thousands):

	Personnel			Facilities			Restructuring Subtotal			Other			Total
Balance at October 1, 2019	$	489		$	26		$	515		$	3,876		$	4,391
Restructuring and other costs, net		3,694			1,037			4,731			11,727			16,458
Non-cash adjustment		—			(1,031	)		(1,031	)		—			(1,031	)
Cash payments		(3,420	)		(26	)		(3,446	)		(13,675	)		(17,121	)
Foreign exchange impact on ending balance		1			4			5			—			5
Balance at September 30, 2020		764			10			774			1,928			2,702
Restructuring and other costs, net		1,689			1,394			3,083			2,009			5,092
Non-cash adjustment		—			1,809			1,809			—			1,809
Cash payments		(839	)		(1,265	)		(2,104	)		(2,403	)		(4,507	)
Foreign exchange impact on ending balance		6			(67	)		(61	)		—			(61	)
Balance at September 30, 2021		1,620			1,881			3,501			1,534			5,035
Restructuring and other costs, net		1,676			673			2,349			6,616			8,965
Non-cash adjustment		—			(708	)		(708	)		(4,000	)		(4,708	)
Cash payments		(2,021	)		(188	)		(2,209	)		(1,873	)		(4,082	)
Foreign exchange impact on ending balance		2			(58	)		(56	)		—			(56	)
Balance at September 30, 2022	$	1,277		$	1,600		$	2,877		$	2,277		$	5,154

Fiscal Year 2022

For the fiscal year ended September 30, 2022, we recorded restructuring and other costs, net of $9.0 million, which included $4.0 million, net of $5.0 million in forfeitures, in stock-based compensation due to the resignation of our former CEO and the resulting modification of certain stock-based awards, $2.6 million other one-time charges, $1.7 million severance charge related to the elimination of personnel, and $0.7 million charge resulting from the closure of facilities that will no longer be utilized.

Fiscal Year 2021

For the fiscal year ended September 30, 2021, we recorded restructuring and other costs, net of $5.1 million, which included a $1.7 million severance charge related to the elimination of personnel across multiple functions, $1.4 million charge resulting from the closure of facilities that will no longer be utilized, and $2.0 million related to other one-time charges.

Fiscal Year 2020

For the fiscal year ended September 30, 2020, we recorded restructuring and other costs, net of $16.5 million, which included a $3.7 million severance charge related to the elimination of personnel across multiple functions, $1.0 million resulting from the restructuring of facilities that will no longer be utilized, and $11.7 million related to costs incurred to establish the Cerence business as a standalone public company.