Restructuring and Related Costs

3 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND RELATED COSTS

During the fourth quarter of fiscal year 2016, we initiated plans to close our Machida, Japan facility and eliminate 35 positions in our Sensors segment by the third quarter of fiscal year 2017. We incurred severance and related pre-tax expense of $563 in the first quarter of fiscal year 2017. We have incurred $1,491 of pre-tax expense since the fourth quarter of fiscal year 2016, including $971 and $520 related to severance and facility closure costs, respectively. We expect to incur approximately $500 of additional expenses through the third quarter of fiscal year 2017 related to the Machida facility closing. The severance and facility closing costs are expected to be paid during the third quarter of fiscal year 2017.

During the third quarter of fiscal year 2016, we initiated restructuring actions to further reduce our cost structure by eliminating 61 positions, primarily in our Corporate area and Test segment, through terminations, elimination of certain open positions as a result of employees leaving voluntarily throughout fiscal year 2016 and reductions in contractors. There were no restructuring costs incurred during the three months ended December 31, 2016. The remaining severance and related costs are expected to be paid by the first quarter of fiscal year 2018.

The following table summarizes the restructuring expenses included in our Consolidated Statements of Income for the three months ended December 31, 2016. There was no restructuring expense incurred during the three months ended January 2, 2016.



	Three Months Ended
	December 31, 2016
(in thousands)	Test		Sensors		Total
Cost of sales	$	—	$	326	$	326
Selling and marketing	—		81		81
General and administrative	—		156		156
Research and development	—		—		—
Total restructuring expense	$	—	$	563	$	563

During the third quarter of fiscal year 2014, we initiated workforce and other cost reduction actions at certain locations in the U.S. and Europe. No restructuring expenses were recognized during the three months ended December 31, 2016 or January 2, 2016 related to these restructuring actions.

The following table summarizes the change in our restructuring expense accruals during the three months ended December 31, 2016 for all restructuring actions.



	2016						2014
(in thousands)	Q3 Restructuring			Q4 Restructuring			Restructuring			Total
Balance, October 1, 2016	$	308		$	935		$	1,053		$	2,296
Restructuring expense	—			563			—			563
Payments	(149		)	(30		)	(87		)	(266		)
Other adjustments	—			—			12			12
Currency translation	(19		)	(165		)	(68		)	(252		)
Balance, December 31, 2016	$	140		$	1,303		$	910		$	2,353

The following table summarizes the location of the restructuring expense accruals included in our Consolidated Balance Sheets.



(in thousands)	December 31, 2016		October 1, 2016
Accrued payroll and related costs	$	1,315	$	1,066
Other accrued liabilities	451		520
Other long-term liabilities	587		710
Total severance and related costs	$	2,353	$	2,296