Restructuring and Other Charges

Three Months Ended June 30, 2016

The Company recorded restructuring charges of $1.0 million during the three months ended June 30, 2016 related to severance costs which were attributable to actions initiated in prior periods and comprised primarily of $0.3 million of costs attributable to the Brooks Life Science Systems segment and $0.6 million of costs related to the company-wide restructuring action initiated during the second quarter of fiscal year 2016. The Brooks Life Science Systems actions were primarily related to streamlining the management structure, consolidating positions within the segment due to integration of BioStorage and the closure of the segment’s Spokane, Washington facility in March 2016. These restructuring actions were substantially completed as of June 30, 2016 and are not expected to result in any additional restructuring charges in future periods. Total severance costs incurred in connection with these actions are $2.8 million, of which $2.4 million was recognized prior to the third quarter of fiscal year 2016 and $0.3 million was recognized during the three months ended June 30, 2016. During the second quarter of fiscal year 2016, the Company initiated a restructuring action to streamline its business operations as part of a company-wide initiative to improve profitability and competitiveness which is expected to benefit all segments. Total severance costs incurred in connection with this action were $5.9 million, of which $5.2 million was recognized prior to the third quarter of fiscal year 2016 and $0.6 million was recognized during the three months ended June 30, 2016. Severance costs were attributable to the elimination of positions across the Company, including certain senior management positions. This restructuring action is expected to be substantially completed by September 30, 2016 and result in additional restructuring charges of $0.1 million in future periods.

Nine Months Ended June 30, 2016

The Company recorded restructuring charges of $9.8 million during the nine months ended June 30, 2016 related to severance costs which included of $8.5 million of charges related to restructuring actions initiated during the nine months ended June 30, 2016 and $1.2 million of charges related to restructuring actions initiated in prior periods.

The Company’s restructuring actions initiated during the nine months ended June 30, 2016 resulted in total charges of $8.5 million, which included $5.8 million of charges related to the restructuring action that benefited all segments and $2.8 million of costs attributable to the Brooks Life Science Systems segment, as described above. The Company's restructuring actions initiated in prior periods resulted in $1.2 million of costs attributable to the Brooks Semiconductor Solutions segment. These restructuring actions were primarily related to the integration of Contact, as well as the closure and transfer of the Mistelgau, Germany manufacturing operations to a contract manufacturer. These actions were substantially completed as of June 30, 2016. Total severance costs incurred in connection with these actions were $4.8 million, of which $3.6 million was recognized prior to fiscal year 2016 and $1.2 million was recognized during the nine months ended June 30, 2016.

Three Months Ended June 30, 2015

The Company recorded restructuring charges of $0.4 million during the three months ended June 30, 2015 related to severance costs. Such costs were attributable to Brooks Semiconductor Solutions Group 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.

Nine Months Ended June 30, 2015

The Company recorded restructuring charges of $3.7 million during the nine months ended June 30, 2015, which included severance costs of $2.5 million and facility-related costs of $1.2 million.

Severance costs of $2.5 million were attributable to Brooks Semiconductor Solutions Group segment in connection with the restructuring actions described above. Total cumulative severance costs incurred in connection with these restructuring actions were $4.8 million.

Facility exit costs of $1.2 million attributable to Brooks Semiconductor Solutions Group 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 nine months ended June 30, 2016 and 2015 (in thousands):



	Activity — Three Months Ended June 30, 2016
	Balance at March 31, 2016		Expenses		Payments			Balance at June 30, 2016
Facilities and other contract termination costs	$	96	$	—	$	(96	)	$	—
Workforce-related termination benefits	7,293		996		(2,500		)	5,789
Total restructuring liabilities	$	7,389	$	996	$	(2,596	)	$	5,789

	Activity — Three Months Ended June 30, 2015
	Balance at March 31, 2015		Expenses		Payments			Balance at June 30, 2015
Facilities and other contract termination costs	$	904	$	—	$	(241	)	$	663
Workforce-related termination benefits	2,393		358		(753		)	1,998
Total restructuring liabilities	$	3,297	$	358	$	(994	)	$	2,661



	Activity — Nine Months Ended June 30, 2016
	Balance at September 30, 2015		Expenses		Payments			Balance at June 30, 2016
Facilities and other contract termination costs	$	433	$	25	$	(458	)	$	—
Workforce-related termination benefits	1,640		9,782		(5,633		)	5,789
Total restructuring liabilities	$	2,073	$	9,807	$	(6,091	)	$	5,789

	Activity — Nine Months Ended June 30, 2015
	Balance at September 30, 2014		Expenses		Payments			Balance at June 30, 2015
Facilities and other contract termination costs	$	71	$	1,205	$	(613	)	$	663
Workforce-related termination benefits	3,404		2,506		(3,912		)	1,998
Total restructuring liabilities	$	3,475	$	3,711	$	(4,525	)	$	2,661

Accrued restructuring costs of $5.8 million at June 30, 2016 are expected to be paid within the next twelve months.