Restructuring Charges

3 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

In the fourth quarter of fiscal 2020, we began a restructuring program in our ILS segment which includes management reorganizations, the planned closure of certain manufacturing sites, and the right-sizing of global sales, service, order admin, marketing communication and certain administrative functions, among others. In the first quarter of fiscal 2022 and 2021, we incurred costs of $0.0 million and $5.4 million, respectively, primarily related to write-offs of excess inventory and accruals for vendor commitments, which are recorded in cost of sales, estimated severance and accelerated depreciation. The project is substantially complete as of January 1, 2022.

The following table presents our current liability as accrued on our balance sheets for restructuring charges. The table sets forth an analysis of the components of the restructuring charges and payments and other deductions made against the accrual for the first quarters of fiscal 2022 and 2021 (in thousands):


	Severance Related		Asset Write-Offs		Other		Total
Balances, October 2, 2021	$	1,127	$	—	$	281	$	1,408
Provision	—		(14)		4		(10)
Payments and other	(884)		14		(90)		(960)
Balances, January 1, 2022	$	243	$	—	$	195	$	438


	Severance Related		Asset Write-Offs		Other		Total
Balances, October 3, 2020	$	2,611	$	—	$	230	$	2,841
Provision	819		3,509		1,055		5,383
Payments and other	(555)		(3,509)		(281)		(4,345)
Balances, January 2, 2021	$	2,875	$	—	$	1,004	$	3,879

At January 1, 2022, $0.4 million of accrued severance related and other costs were included in other current liabilities. The asset write-offs for inventory, severance, accruals for vendor commitments, accelerated depreciation and other costs in the first quarter of fiscal 2021 primarily related to the restructuring program that began in the fourth quarter of fiscal 2020.

In the three months ended January 2, 2021, $5.4 million of the restructuring costs were incurred in the ILS segment. Restructuring charges are recorded in cost of sales, research and development and selling, general and administrative expenses in our condensed consolidated statements of operations.