Item 2.05 Costs Associated with Exit or Disposal Activities

On September 23, 2020, MTS Systems Corporation (the "Company") announced global workforce reductions in the Company's Test & Simulation segment, including a product rationalization of certain product lines in China. These changes are designed to increase organizational effectiveness, gain operational efficiencies, improve profitability, and provide permanent cost savings in response to the COIVD-19 global pandemic.

The Company estimates that it will incur a total of approximately $4.0 to $5.0 million of pre-tax severance and related expenses related to this action, all of which will require a cash outlay. Based on notice period requirements, expenses are expected to be recognized throughout the first half of fiscal year 2021 with the majority of the expense recognized in the fourth quarter of fiscal year 2020. The Company anticipates this action to be completed within the next six months with the majority of cash paid in the first half of fiscal year 2021.

Forward-looking Statements This Item 2.05 contains "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. Statements made using words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are intended to identify forward-looking statements. Such statements include, but are not limited to, statements about anticipating timing and expenses for the restructuring and other statements that are not historical facts. These statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Risks, uncertainties and assumptions that could cause the Company's actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those described in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") and updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. The reports referenced above are available on the Company's website at www.mts.com or on the SEC's website at www.sec.gov. Forward-looking statements speak only as of the date on which statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made to reflect the occurrence of unanticipated events or circumstances.

Item 9.01 Financial Statements and Exhibits




(d)   Exhibits

The following exhibit is being furnished herewith:

104 Cover Page Interactive Data File (embedded within the Inline XBRL document).








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