Restructuring and Related Activities

12 Months Ended

Oct. 03, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

RESTRUCTURING AND RELATED COSTS

Fiscal Year 2020 Restructuring

In the second quarter of fiscal year 2020, we initiated a series of global workforce reductions and facility closures, including the reorganization of our European operations within Test & Simulation intended to increase organizational effectiveness, gain operational efficiencies and provide cost savings that can be reinvested in our growth initiatives. As a result, during fiscal year 2020, we recorded $5,555 of pre-tax severance and related expense. We expect to incur a total of approximately $6,000 to $7,000 of pre-tax severance and related expense and facility closure costs related to these actions through fiscal year 2021. The majority of the expenses are expected to be paid in the second half of fiscal year 2021.

In the third quarter of fiscal year 2020, we initiated an additional workforce reduction within Test & Simulation to reduce the overall cost structure in response to COVID-19. As a result, during fiscal year 2020, we recorded $2,028 of pre-tax severance and related expense. As of October 3, 2020, substantially all expenses have been paid.

In the fourth quarter of fiscal year 2020, we initiated further global workforce reductions within Test & Simulation, including a product rationalization of certain product lines in China designed to increase organizational effectiveness, gain operational efficiencies, improve profitability and provide permanent cost savings in response to COVID-19. As a result, during fiscal year 2020, we recorded $4,265 of pre-tax severance and related expense. We expect to incur a total of approximately $4,500 of pre-tax and related expense through the first half of fiscal year 2021. The majority of the expenses are expected to be paid in the first half of fiscal year 2021.

Restructuring expenses included in the Consolidated Statements of Income are as follows:

	2020
	Test & Simulation
Cost of sales	$	6,951
Selling and marketing	3,809
General and administrative	950
Research and development	138
Total restructuring expense	$	11,848

Restructuring expense accruals included in accrued payroll and related costs in the Consolidated Balance Sheets for the above restructuring action are as follows:

	Test & Simulation
Balance, September 28, 2019	$	—
Restructuring expense	11,848
Payments	(3,722)
Other adjustments	390
Balance, October 3, 2020	$	8,516