Restructuring and Other Charges

Three Months Ended March 31, 2016

The Company recorded restructuring charges of $7.3 million during the three months ended March 31, 2016, which included severance costs of $7.2 million and facility-related costs of $0.2 million. The charges consisted of $5.2 million attributable to actions initiated during the three months ended March 31, 2016 and $2.1 million attributable to actions initiated in prior periods.

The Company’s restructuring action initiated during the three months ended March 31, 2016 included streamlining business operations as part of a company-wide initiative to improve profitability and competitiveness. This action resulted in $5.2 million of severance costs, which was attributable to the elimination of positions across the Company, including certain senior management positions. The restructuring action is expected to be substantially completed by June 30, 2016, and result in additional restructuring charges in future periods of $0.5 million. Restructuring charges incurred during the period from this action are $5.2 million and expected to benefit all segments. Total severance costs expected to be incurred in connection with the action are $5.7 million.

The Company’s restructuring actions initiated in prior periods resulted in $1.6 million of costs attributable to Brooks Life Science Systems and $0.4 million of costs attributable to Brooks Product Solutions during the three months ended March 31, 2016. The Brooks Life Science Systems actions were primarily related to streamlining the management structure of this segment, integrating BioStorage, and the closure of the segment’s Spokane, Washington facility in March 2016. These restructuring actions are expected to be substantially completed by June 30, 2016 and not expected to result in any additional restructuring charges in future periods. Total severance costs expected to be incurred in connection with these actions are $2.4 million, of which $0.8 million was recognized prior to the second quarter of fiscal year 2016 and $1.6 million was recognized during the three months ended March 31, 2016. The restructuring actions related to Brooks Product Solutions were primarily related to the integration of Contact, as well as the closure and transfer of our Mistelgau, Germany manufacturing operations to a contract manufacturer. These restructuring actions were substantially completed as of March 31, 2016. Total severance costs incurred in connection with these actions are $5.0 million, of which $4.6 million was recognized prior to the second quarter of fiscal year 2016 and $0.4 million was recognized during the three months ended March 31, 2016.

Six Months Ended March 31, 2016

The Company recorded restructuring charges of $8.8 million during the six months ended March 31, 2016 related to severance costs which included of $5.2 million of charges related to restructuring actions initiated during the six months ended March 31, 2016 that benefited all segments. Additional charges of $3.6 million were related to restructuring actions initiated in prior periods, as described above, and consisted of $1.2 million of costs attributable to Brooks Product Solutions segment and $2.4 million of costs attributable to Brooks Life Science Systems segment.

Three Months Ended March 31, 2015

The Company recorded restructuring charges of $0.7 million during the three months ended March 31, 2015 related to severance costs. Such costs were attributable to Brooks Product Solutions segment for the integration of Dynamic Micro Systems Semiconductor Equipment GmbH, or DMS, with the Company's operations and the transition of manufacturing of certain products from the Company's facility in Mistelgau, Germany to a third party contract manufacturer. Total cumulative severance costs incurred in connection with these restructuring plans were $1.9 million and were substantially completed on December 31, 2015.

Six Months Ended March 31, 2015

The Company recorded restructuring charges of $3.4 million during the six months ended March 31, 2015, which included severance costs of $2.1 million and facility-related costs of $1.2 million.

Severance costs of $2.1 million were attributable to Brooks Product Solutions segment in connection with the restructuring actions described above. Total cumulative severance costs incurred in connection with these restructuring actions were $5.0 million.

Facility exit costs of $1.2 million attributable to Brooks Product Solutions segment were related to the outsourcing of manufacturing certain of the Company’s line of Polycold cryochillers and compressors within the United States to a third party contract manufacturer. The facility exit costs represented future lease payments and expected operating costs to be paid until the termination of the facility lease. The Company terminated the lease on October 27, 2015 and fully paid the related restructuring liability during the first quarter of fiscal year 2016.

The following is a summary of activity related to the Company’s restructuring and other charges for the three and six months ended March 31, 2016 and 2015 (in thousands):



	Activity — Three Months Ended March 31, 2016
	Balance at December 31, 2015		Expenses		Payments			Balance at March 31, 2016
Facilities and other contract termination costs	$	—	$	160	$	(64	)	$	96
Workforce-related termination benefits	1,654		7,176		(1,537		)	7,293
Total restructuring liabilities	$	1,654	$	7,336	$	(1,601	)	$	7,389

	Activity — Three Months Ended March 31, 2015
	Balance at December 31, 2014		Expenses		Payments			Balance at March 31, 2015
Facilities and other contract termination costs	$	1,175	$	—	$	(271	)	$	904
Workforce-related termination benefits	2,753		685		(1,045		)	2,393
Total restructuring liabilities	$	3,928	$	685	$	(1,316	)	$	3,297



	Activity — Six Months Ended March 31, 2016
	Balance at September 30, 2015		Expenses		Payments			Balance at March 31, 2016
Facilities and other contract termination costs	$	433	$	25	$	(362	)	$	96
Workforce-related termination benefits	1,640		8,786		(3,133		)	7,293
Total restructuring liabilities	$	2,073	$	8,811	$	(3,495	)	$	7,389

	Activity — Six Months Ended March 31, 2015
	Balance at September 30, 2014		Expenses		Payments			Balance at March 31, 2015
Facilities and other contract termination costs	$	71	$	1,205	$	(372	)	$	904
Workforce-related termination benefits	3,404		2,148		(3,159		)	2,393
Total restructuring liabilities	$	3,475	$	3,353	$	(3,531	)	$	3,297

Accrued restructuring costs of $7.4 million at March 31, 2016 are expected to be paid within the next twelve months.