RESTRUCTURING

Below is a summary of the restructuring charges and other activity within the restructuring accrual all of which is included in our IoT Products & Services segment (in thousands):



	Manufacturing Transition			2017 Restructuring						2016 Restructuring
	Employee Termination Costs			Employee Termination Costs			Other			Employee Termination Costs			Other			Total
Balance at September 30, 2015	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring charge	—			—			—			558			195			753
Payments	—			—			—			(559		)	(195		)	(754		)
Reversals	—			—			—			(6		)	—			(6		)
Foreign currency fluctuation	—			—			—			7			—			7
Balance at September 30, 2016	$	—		$	—		$	—		$	—		$	—		$	—
Restructuring charge	—			2,258			257			—			—			2,515
Payments	—			(845		)	(141		)	—			—			(986		)
Foreign currency fluctuation	—			115			12			—			—			127
Balance at September 30, 2017	$	—		$	1,528		$	128		$	—		$	—		$	1,656
Restructuring charge	504			—			—			—			—			504
Payments	(357		)	(1,035		)	(161		)	—			—			(1,553		)
Reversals	—			(244		)	42			—			—			(202		)
Foreign currency fluctuation	—			44			4			—			—			48
Balance at September 30, 2018	$	147		$	293		$	13		$	—		$	—		$	453

Manufacturing Transition

As announced on April 3, 2018, Digi will transfer the manufacturing functions of its Eden Prairie, Minnesota operations facility to existing contract manufacture suppliers. As a result, 51 positions in total have been eliminated, resulting in restructuring charges amounting to approximately $0.5 million related to employee costs during the third and fourth quarters of fiscal 2018. The payments associated with these charges are expected to be completed by December 31, 2018. This manufacturing transition is expected to result in total annualized savings of approximately $3.0 million to $5.0 million.

2017 Restructuring

In May 2017, we approved a restructuring plan primarily impacting our France location. We also eliminated certain employee costs in the U.S. The restructuring is a result of a decision to consolidate our France operations to our Europe, Middle East and Africa (EMEA) headquarters in Munich. The total restructuring charges amounted to $2.5 million that included $2.3 million of employee costs and $0.2 million of contract termination costs during the third quarter of fiscal 2017. These actions resulted in an elimination of 10 positions in the U.S. and 8 positions in France. The payments associated with these charges are expected to be completed during the first half of fiscal 2019.

2016 Restructuring

On January 19, 2016, we approved a restructuring plan for our Digi Wireless Design Services group. This plan resulted in an elimination of 5 positions. We recorded a restructuring charge of $0.1 million related to severance during the second quarter of fiscal 2016 and paid the majority of the severance during that same quarter.

On November 19, 2015, we approved a restructuring plan impacting our corporate staff. The plan closed our Dortmund, Germany office and relocated certain employees to our Munich office. We also recorded a contract termination charge as we relocated employees in our Minneapolis, Minnesota office to our World Headquarters in Minnetonka, Minnesota in December 2015. We recorded a restructuring charge of $0.7 million that included $0.5 million of severance and $0.2 million of contract termination costs during the first quarter of fiscal 2016. This restructuring resulted in an elimination of 10 positions. The payments associated with these charges were completed in the third quarter of fiscal 2016.