Restructuring charges recorded as operating expenses in our unaudited interim condensed consolidated statements of operations represent costs associated with separate individual restructuring plans implemented in various fiscal periods. The extent of our costs arising as a result of these actions, including fluctuations in related balances between fiscal periods, is based on the nature of activities under the various plans.

In June 2026, we initiated restructuring actions with the purpose of reorganizing and consolidating certain activities and positions within our global business infrastructure. In connection with this plan, we recorded expense in the third quarter of fiscal 2026 of $4.0 million in severance and other related benefits. These activities are expected to result in estimated gross pre-tax operating income savings of approximately $2 million in fiscal 2026 and $12 million in fiscal 2027, due to estimated savings in compensation and benefits of impacted employees. The impact of these estimated savings on our operating expenses will be mostly offset by increased investment in our strategic priorities and the effects of inflation on our remaining expenses. Cash payment of the severance and other termination benefits are expected to be substantially completed by the end of the first quarter of fiscal 2027. We estimate that we will incur additional employee-related restructuring costs during fiscal 2026 and the first quarter of fiscal 2027; however, we cannot estimate the total amount expected to be incurred as cost reduction actions continue to be evaluated.

In September 2025, we initiated restructuring actions in order to centralize teams into fewer locations, relocate certain roles to provide better access to talent pools, encourage multi-disciplinary collaboration, and simplify operations. In continuation with this plan, we recorded expense in the fiscal year-to-date period ended June 26, 2026 of $12.7 million consisting primarily of severance and other related benefits. The majority of the remaining components of this plan were substantially completed by the end of the second quarter of fiscal 2026. Cash payment of the severance and other termination benefits were substantially completed by the end of the third quarter of fiscal 2026. These activities are expected to result in estimated gross pre-tax operating income savings of approximately $20 million in fiscal 2026, due to estimated savings in compensation and benefits of impacted employees. The impact of these estimated savings on our operating expenses will be mostly offset by increased investment in our strategic priorities and the effects of inflation on our remaining expenses.

In November 2024, we initiated restructuring actions with the purpose of aligning our R&D resources, and to a lesser extent our S&M resources, with our highest strategic priorities. In connection with this plan, we recorded expense in the fiscal year-to-date period ended June 27, 2025 of $9.2 million in severance and other related benefits. Cash payment of the severance and other termination benefits were substantially completed by the end of fiscal 2025. These activities resulted in gross pre-tax operating income savings of approximately $20 million in fiscal 2025, due to savings in compensation and benefits of impacted employees, which was consistent with our expectations. The impact of these savings on our operating expenses was mostly offset by increased investment in our strategic priorities and the effects of inflation on our remaining expenses.

In April 2024, we initiated restructuring actions with the purpose of focusing our resources on our highest strategic priorities. These activities resulted in gross pre-tax operating income savings of approximately $11 million within fiscal 2025, which was consistent with our expectations. The impact of these savings on our operating expenses was mostly offset by increased investment in our strategic priorities and the effects of inflation on our remaining expenses.

The table presented below summarizes the changes in our restructuring accruals (in thousands):


	Severance		Leased facility exit costs and other costs		Total
Balance at September 27, 2024	$	2,765	$	—	$	2,765
Restructuring charges	11,624		3,383		15,007
Cash payments and adjustments	(9,724)		(3,383)		(13,107)

Balance at September 26, 2025	4,665		—		4,665
Restructuring charges	11,676		4,929		16,605
Cash payments and adjustments	(6,604)		(4,929)		(11,533)

Balance at June 26, 2026	$	9,737	$	—	$	9,737

Accruals for restructuring charges/(credits) incurred for the restructuring plans described above are included within accrued liabilities in our unaudited interim condensed consolidated balance sheets, while restructuring charges are included within restructuring charges in our unaudited interim condensed consolidated statements of operations.