Restructuring and Related Costs

6 Months Ended

Apr. 01, 2017

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 $381 and $944 in the three and six months ended April 1, 2017, respectively. We have incurred a total of $1,872 of pre-tax expense, including $1,352 and $520 related to severance and facility closure costs, respectively. We expect to incur approximately $100 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 expenses incurred during the three or six months ended April 1, 2017. 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 and six month periods ended April 1, 2017. There were no restructuring expenses incurred during the three and six months ended April 2, 2016.



	Three Months Ended						Six Months Ended
	April 1, 2017
(in thousands)	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	—	$	254	$	254	$	—	$	580	$	580
Selling and marketing	—		45		45		—		126		126
General and administrative	—		82		82		—		238		238
Research and development	—		—		—		—		—		—
Total restructuring expense	$	—	$	381	$	381	$	—	$	944	$	944

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 or six months ended April 1, 2017 or April 2, 2016 related to these restructuring actions.

The following table summarizes the change in our restructuring expense accruals during the six months ended April 1, 2017 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	—			944			—			944
Payments	(157		)	(600		)	(167		)	(924		)
Other adjustments	—			—			12			12
Currency translation	(13		)	(105		)	(51		)	(169		)
Balance, April 1, 2017	$	138		$	1,174		$	847		$	2,159

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



(in thousands)	April 1, 2017		October 1, 2016
Accrued payroll and related costs	$	1,171	$	1,066
Other accrued liabilities	471		520
Other long-term liabilities	517		710
Total severance and related costs	$	2,159	$	2,296