XML 21 R10.htm IDEA: XBRL DOCUMENT v3.6.0.2
Restructuring Charges
 3 Months Ended
Dec. 31, 2016
Restructuring [Abstract]  
Restructuring Charges
Restructuring Charges
On October 23, 2015, we initiated a plan to restructure our workforce and consolidate select facilities in order to reduce our cost structure and to realign our investments with what we believe to be our higher growth opportunities. The actions resulted in total restructuring charges of $83.3 million, primarily associated with termination benefits associated with 795 employees. In the four quarters of 2016, we recorded charges of $36.8 million, $5.0 million, $3.4 million and $31.8 million respectively. In the first quarter of 2017, we recorded additional charges of $6.3 million, of which $3.9 million related to the closure of excess facilities. As of December 31, 2016, this restructuring plan was substantially complete.
Additionally, in 2016 and the first three months of 2017, we recorded a credit of $0.6 million and $0.1 million, respectively, related to prior restructuring actions included in charge to operations.
In the four quarters of 2016, we made cash disbursements of $16.7 million, $25.1 million, $8.1 million and $5.1 million respectively, associated with restructuring charges.
The following table summarizes restructuring accrual activity for the three months ended December 31, 2016:
 
Employee severance and related benefits
 
Facility closures and related costs
 
Total
 
(in thousands)
October 1, 2016
$
35,177

 
$
1,431

 
$
36,608

Charge to operations, net
2,399

 
3,886

 
6,285

Cash disbursements
(15,537
)
 
(278
)
 
(15,815
)
Other non-cash charges
—

 
(260
)
 
(260
)
Foreign exchange impact
(1,143
)
 
(26
)
 
(1,169
)
Accrual, December 31, 2016
$
20,896

 
$
4,753

 
$
25,649


Of the accrual for facility closures and related costs, $2.4 million is included in accrued expenses and other current liabilities and $2.4 million is included in other liabilities in the Consolidated Balance Sheets. The accrual for facility closures assumes sublease income of $2.2 million over the remaining lease periods. The accrual for employee severance and related benefits is included in accrued compensation and benefits in the Consolidated Balance Sheets.