Restructuring Charges

12 Months Ended

Sep. 30, 2013

Restructuring And Related Activities [Abstract]

Restructuring Charges

7. Restructuring Charges

The restructuring charges for fiscal 2013 and 2011 described below have been presented separately as restructuring charges in the consolidated statements of operations. During the fiscal year ended September 30, 2012, the Company did not incur any restructuring charges. In addition, all restructuring costs related to SurModics Pharmaceuticals are included in discontinued operations and totaled $0.6 million in fiscal 2011. The following information in this footnote pertains to continuing operation restructuring charges.

In September 2013 (fiscal 2013), the Company announced a realignment of its business to enhance focus on key growth initiatives. As a result of the organizational change, the Company eliminated approximately 6% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of fiscal 2013. The Company recorded total pre-tax restructuring charges of $0.5 million in the fourth quarter of fiscal 2013, which consisted of severance pay and benefits expenses.

In August 2011 (fiscal 2011), the Company announced a realignment of its business to optimize the Company’s resources according to its strategic plan. As a result of the organizational change, the Company eliminated approximately 10% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of fiscal 2011. The Company recorded total pre-tax restructuring charges of $1.0 million in the fourth quarter of fiscal 2011, which consisted of severance pay and benefits expenses.

In October 2010 (fiscal 2011), the Company announced initiatives to reduce its cost structure and renew its focus on business units to more closely match operations and cost structure with its customer environment. As a result of the organizational change, the Company eliminated approximately 8% of its workforce. These employee terminations occurred across various functions, and the reorganization plan was completed by the end of fiscal 2011. The Company recorded total pre-tax restructuring charges of $0.6 million in the first quarter of fiscal 2011, which consisted of severance pay and benefits expenses.

Cash payments associated with the fiscal 2013 restructuring event, the two fiscal 2011 restructuring events and the fiscal 2010 restructuring event totaled $0.3 million during the year ended September 30, 2013, leaving a restructuring accrual balance of $0.4 million at September 30, 2013.

The following table summarizes the restructuring accrual activity (in thousands):

	Employee Severance and Benefits			Facility- Related Costs			Total
Balance at September 30, 2010	$	4		$	1,179		$	1,183
Accruals during the year		1,616			—			1,616
Cash payments		(890	)		(929	)		(1,819	)
Balance at September 30, 2011		730			250			980
Accruals during the year		—			—			—
Cash payments		(720	)		(68	)		(788	)
Balance at September 30, 2012		10			182			192
Accrual/(reversal) during the year		534			(58	)		476
Cash payments		(145	)		(107	)		(252	)
Balance at September 30, 2013	$	399		$	17		$	416

The remaining restructuring accrual balance relates to the fiscal 2013 and 2010 restructurings and is expected to be paid within the next 12 months. As such, the total balance is recorded as a current liability within other current liabilities on the consolidated balance sheet as of September 30, 2013.