Restructuring and Related Costs

3 Months Ended

Jan. 02, 2021

Restructuring and Related Activities [Abstract]

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 the three months ended January 2, 2021, we recorded $672 of pre-tax severance and related expense. As of January 2, 2021, we have incurred a total of $6,227 of pre-tax severance and related expense since this action was initiated. In fiscal year 2021, we expect to incur approximately $700 to $1,100 of additional pre-tax severance and related expense and facility closure costs related to these actions. The majority of the remaining unpaid expenses are expected to be paid in the second and third quarters 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. These restructuring activities resulted in severance and related pre-tax expense of $2,028 in fiscal year 2020. As of January 2, 2021, 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 the three months ended January 2, 2021, we recorded $306 of pre-tax severance and related expense. As of January 2, 2021, we have incurred a total of $4,571 of pre-tax severance and related expense since this action was initiated. We expect to incur approximately $50 of additional pre-tax and related expense in the second quarter of fiscal year 2021. The majority of the remaining unpaid 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:


	Three Months Ended
	January 2, 2021
	Test & Simulation
Cost of sales	$	594
Selling and marketing	257
General and administrative	127
Research and development	—
Total restructuring expense	$	978

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, October 3, 2020	$	8,516
Restructuring expense	978
Payments	(4,390)
Other adjustments	—
Currency translation	—
Balance, January 2, 2021	$	5,104