Restructuring and Related Costs

9 Months Ended

Jul. 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 in the third quarter of fiscal year 2017. We incurred severance and related pre-tax expense of $92 and $1,036 in the three and nine months ended July 1, 2017, respectively. As of July 1, 2017, we have incurred a total of $1,964 of pre-tax expense, including $1,444 and $520 related to severance and facility closure costs, respectively. The remaining severance and facility closing costs are expected to be paid during the first quarter of fiscal year 2018.

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 nine months ended July 1, 2017. The remaining severance and related costs are expected to be paid during the first quarter of fiscal year 2018.

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 nine months ended July 1, 2017 or July 2, 2016 related to these restructuring actions.

The following table summarizes the restructuring expenses included in our Consolidated Statements of Income for all restructuring actions.



	Three Months Ended						Nine Months Ended
	July 1, 2017
(in thousands)	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	—	$	67	$	67	$	—	$	647	$	647
Selling and marketing	—		10		10		—		136		136
General and administrative	—		15		15		—		253		253
Research and development	—		—		—		—		—		—
Total restructuring expense	$	—	$	92	$	92	$	—	$	1,036	$	1,036



	Three Months Ended						Nine Months Ended
	July 2, 2016
(in thousands)	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	299	$	—	$	299	$	299	$	—	$	299
Selling and marketing	129		98		227		129		98		227
General and administrative	414		292		706		414		292		706
Research and development	5		—		5		5		—		5
Total restructuring expense	$	847	$	390	$	1,237	$	847	$	390	$	1,237

The following table summarizes the change in our restructuring expense accruals in the Consolidated Balance Sheets 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	—			1,036			—			1,036
Payments	(221		)	(1,652		)	(262		)	(2,135		)
Other adjustments	—			—			13			13
Currency translation	(8		)	(110		)	7			(111		)
Balance, July 1, 2017	$	79		$	209		$	811		$	1,099

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



(in thousands)	July 1, 2017		October 1, 2016
Accrued payroll and related costs	$	546	$	1,066
Other accrued liabilities	98		520
Other long-term liabilities	455		710
Total severance and related costs	$	1,099	$	2,296