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Restructuring and Other Costs, Net
6 Months Ended
Mar. 31, 2020
Restructuring And Related Activities [Abstract]  
Restructuring and Other Costs, Net

Note 8. 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 accrual activity relating to restructuring reserves for the six months ended March 31, 2020 (dollars in thousands):

 

 

 

Personnel

 

 

Facilities

 

 

Separation

 

 

Total

 

Balance at October 1, 2019

 

$

489

 

 

$

26

 

 

$

3,876

 

 

$

4,391

 

Restructuring and other costs, net

 

 

681

 

 

 

 

 

 

9,743

 

 

 

10,424

 

Cash payments

 

 

(657

)

 

 

(10

)

 

 

(9,719

)

 

 

(10,386

)

Foreign exchange impact on ending balance

 

 

(7

)

 

 

 

 

 

 

 

 

(7

)

Balance at March 31, 2020

 

$

506

 

 

$

16

 

 

$

3,900

 

 

$

4,422

 

 

The following table sets forth restructuring expenses recognized for the three and six months ended March 31, 2020 and 2019 (dollars in thousands):

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Personnel

 

$

321

 

 

$

220

 

 

$

681

 

 

$

(443

)

Facilities

 

 

 

 

 

(381

)

 

 

 

 

 

1,674

 

Separation

 

 

2,549

 

 

 

4,490

 

 

 

9,743

 

 

 

6,225

 

Restructuring and other costs, net

 

$

2,870

 

 

$

4,329

 

 

$

10,424

 

 

$

7,456

 

 

Fiscal Year 2020

 

For the three months ended March 31, 2020, we recorded restructuring charges of $2.9 million, which included a $0.3 million severance charge related to the elimination of personnel, and $2.5 million related to the costs incurred to establish the Cerence business as a standalone public company.

 

For the six months ended March 31, 2020, we recorded restructuring charges of $10.4 million, which included a $0.7 million severance charge related to the elimination of personnel, and $9.7 million related to costs incurred to establish the Cerence business as a standalone public company.

 

Fiscal Year 2019

For the three months ended March 31, 2019, we recorded restructuring charges of $4.3 million, which included a $0.2 million severance charge related to the elimination of personnel across multiple functions, $0.4 million restructuring charge reversal related to facilities that will no longer be utilized, and $4.5 million related to professional services fees incurred to establish the Cerence business as a standalone public company.

For the six months ended March 31, 2019, we recorded restructuring charges of $7.5 million, which included a $0.4 million severance charge reversal related to the elimination of personnel across multiple functions, $1.7 million primarily resulting from the restructuring of facilities that will no longer be utilized, and $6.2 million related to professional services fees incurred to establish the Cerence business as a standalone public company.