Restructuring Charges

9 Months Ended

Jul. 04, 2015

Restructuring [Abstract]

Restructuring Charges

Restructuring Charges

On April 4, 2015, we committed to a plan to restructure our workforce and consolidate select facilities to realign our global workforce to increase investment in our Internet of Things business and to reduce our cost structure through organizational efficiencies in the face of significant foreign currency depreciation relative to the U.S. Dollar and a more cautious outlook on global macroeconomic conditions. The restructuring actions are expected to result in restructuring charges of up to $45 million, primarily attributable to termination benefits. In the second and third quarters of 2015, we recorded charges of $38.5 million and $3.3 million respectively, attributable to termination benefits associated with 443 employees. Additionally, in the third quarter of 2015, we recorded a charge of $1.1 million related to the closure of excess facilities. The facility charge reflects estimated costs including gross lease commitments of approximately $2.0 million, net of estimated sublease income of $0.9 million.

In September 2014, in support of integrating businesses acquired in 2014 and the continued evolution of our business model, we committed to a plan to restructure our workforce. As a result, we recorded a restructuring charge of $26.8 million in the fourth quarter of 2014 associated with severance and related costs associated with 283 employees.

The following table summarizes restructuring accrual activity for the nine months ended July 4, 2015:

	Employee Severance and Related Benefits			Facility Closures and Related Costs			Total
	(in thousands)
October 1, 2014	$	25,835		$	535		$	26,370
Charge to operations	41,483			1,142			42,625
Cash disbursements	(47,249		)	(528		)	(47,777		)
Foreign exchange impact	(938		)	(30		)	(968		)
Accrual, July 4, 2015	$	19,131		$	1,119		$	20,250

The accrual for facility closures and related costs is included in accrued expenses and other liabilities in the Consolidated Balance Sheets, and the accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets.