Restructuring and Other Charges

Three Months Ended December 31, 2016

The Company recorded restructuring charges of $1.0 million during the three months ended December 31, 2016. These charges consisted primarily of severance costs, of which $0.7 million were attributable to the company-wide restructuring action initiated prior to fiscal year 2017, $0.2 million were attributable to the Brooks Semiconductor Solutions Group segment for actions initiated prior to fiscal year 2017 and $0.1 million of costs attributable to the Brooks Life Science Systems segment for the action initiated during the current period.

Prior to fiscal year 2017, 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 $6.5 million, of which $5.8 million were recognized prior to the first quarter of fiscal year 2017 and $0.7 million were recognized during the three months ended December 31, 2016 as a result of a change in the restructuring liability estimate. Severance costs were attributable to the elimination of positions across the Company, including certain senior management positions. This restructuring action was substantially completed by December 31, 2016 and is not expected to result in any additional restructuring charges in future periods. Accrued restructuring costs of $1.3 million at December 31, 2016 from these actions are expected to be paid within the next twelve months with cash flows generated from operating activities.

Prior to fiscal year 2017, the Company also initiated a restructuring action within the Brooks Semiconductor Solutions Group segment which was related to the integration of Contact Co., Ltd. ("Contact") after its acquisition by the Company, the closure and transfer of the Mistelgau, Germany manufacturing operations to a contract manufacturer, as well as other cost reductions to improve profitability and competitiveness. Total restructuring costs incurred in connection with this action are approximately $3.1 million, of which approximately $3.0 million were recognized prior to the first quarter of fiscal year 2017 and $0.2 million were recognized during the three months ended December 31, 2016. This restructuring action was substantially completed as of December 31, 2016 and is not expected to result in any significant additional restructuring charges in future periods. Accrued restructuring costs of $0.2 million at December 31, 2016 from these actions are expected to be paid within the next twelve months with cash flows generated from operating activities.

Restructuring initiatives within the Brooks Life Science Systems segment are primarily related to streamlining the segment's management structure, integrating acquisitions and improving profitability. During the first quarter of fiscal year 2017, the Company initiated an action within the Brooks Life Science Systems segment to consolidate certain positions in order to further streamline the management structure, reduce costs and improve profitability. The restructuring initiatives within the Brooks Life Science Systems segment included several actions initiated prior to fiscal year 2017 and during the three months ended December 31, 2016. These actions were completed by the end of the first quarter of fiscal year 2017 and are not expected to result in additional restructuring charges in future periods. Total severance costs incurred in connection with these initiatives are $3.2 million, of which $3.1 million were recognized prior to the first quarter of fiscal year 2017 and $0.1 million were recognized during the three months ended December 31, 2016. Accrued restructuring costs of $0.1 million at December 31, 2016 from these initiatives are expected to be paid within the next twelve months with cash flows generated from operating activities.

At December 31, 2016, accrued restructuring costs included $1.7 million related to a restructuring action initiated within the Brooks Semiconductor Solutions Group segment prior to fiscal year 2017 to consolidate the Company's Jena, Germany repair facility into the Chelmsford, Massachusetts repair operation as a part of the Company's strategy to reduce global footprint and streamline the cost structure. Total severance costs incurred in connection with this action are $1.8 million which were recognized prior to the first quarter of fiscal year 2017. No restructuring charges related to this initiative were incurred during the three months ended December 31, 2016. Accrued restructuring costs related to this initiative are expected to be paid within the next twelve months with cash flows generated from operating activities. Please refer to Note 17, "Restructuring and Other Charges" to the Company's consolidated financial statements included in the 2016 Annual Report in the Form 10-K for further information on this restructuring initiative.

Three Months Ended December 31, 2015

The Company recorded restructuring charges of $1.5 million during the three months ended December 31, 2015, which included severance costs of $1.6 million and reductions of facility-related costs of $0.1 million. The charges consisted of $0.9 million attributable to actions initiated during the three months ended December 31, 2015 and $0.7 million attributable to actions initiated in prior periods.

Severance costs of $1.6 million consisted of $0.7 million of charges incurred within the Brooks Semiconductor Solutions Group segment and $0.9 million of charges incurred within the Brooks Life Science Systems segment. The restructuring action within the Brooks Semiconductor Solutions Group segment was initiated prior to the first quarter of fiscal year 2016, as described above. The restructuring action within the Brooks Life Science Systems segment initiated during the first quarter of fiscal year 2016 was attributable to the restructuring initiatives described above and related primarily to integrating BioStorage with the Company's operations. Total restructuring costs incurred in connection with this action were $0.9 million which were recognized entirely during fiscal year 2016.

Facility-related cost reductions of $0.1 million were primarily attributable to lower operating costs paid throughout the termination of the facility lease on October 27, 2015.

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



	Activity — Three Months Ended December 31, 2016
	Balance at September 30, 2016		Expenses			Payments			Balance at December 31, 2016
Total restructuring liabilities related to workforce termination benefits	$	5,939	$	975		$	(3,687	)	$	3,227

	Activity — Three Months Ended December 31, 2015
	Balance at September 30, 2015		Expenses			Payments			Balance at December 31, 2015
Facilities and other contract termination costs	$	433	$	(135	)	$	(298	)	$	—
Workforce-related termination benefits	1,640		1,610			(1,596		)	1,654
Total restructuring liabilities	$	2,073	$	1,475		$	(1,894	)	$	1,654

Accrued restructuring costs of $3.2 million at December 31, 2016 are expected to be paid within the next twelve months.