RESTRUCTURING AND RELATED COSTS

Fiscal Year 2017 Restructuring

During the fourth quarter of fiscal year 2017, we initiated a series of Test workforce reductions and facility closures intended to increase organizational effectiveness, gain manufacturing efficiencies and provide cost savings that can be reinvested in our growth initiatives. These actions include the transfer of certain production operations in China to a contract manufacturing partner in fiscal year 2018. As a result, in the three and six months ended March 31, 2018, we recorded $321 and $414 of pre-tax severance and related expense, respectively, and $25 and $187 of pre-tax facility closure costs, respectively. As of March 31, 2018, we have incurred a total of $3,523 of pre-tax expense, including $3,313 and $210 of pre-tax expense related to severance and facility closure costs, respectively. For our fiscal year ending September 29, 2018, we expect to incur total expense of approximately $1,000 to $2,000 related to these restructuring actions. The majority of the expenses are expected to be paid in the first half of fiscal year 2019.

During the fourth quarter of fiscal year 2017, in an effort to reduce costs and create economic efficiencies in Sensors, we initiated plans to close our Machida, Japan sales office in the second quarter of fiscal year 2018. In the three and six months ended March 31, 2018, we recorded $16 and $7 of pre-tax severance and related expense. As of March 31, 2018, we have incurred a total of $137 of pre-tax severance and related expense. We expect to incur additional pre-tax severance and related expense of approximately $60. The majority of the expenses are expected to be paid in fiscal year 2018.

Fiscal Year 2016 Restructuring

During fiscal year 2016, we initiated plans to reduce costs in Sensors by closing our Machida, Japan manufacturing facility in the third quarter of fiscal year 2017. We recorded no restructuring expenses in the three and six months ended March 31, 2018 and $381 and $944 in the three and six months ended April 1, 2017, respectively. As of March 31, 2018, 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 third quarter of fiscal year 2018.

Fiscal Year 2014 Restructuring

During fiscal year 2014, we initiated workforce and other cost reduction actions at certain of our Test locations in the U.S. and Europe. No restructuring expenses were recognized during the three or six months ended March 31, 2018 or April 1, 2017 related to these restructuring actions.

Restructuring expense included in our Consolidated Statements of Income for all restructuring actions are as follows:



	Three Months Ended
	March 31, 2018						April 1, 2017
	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	304	$	—	$	304	$	—	$	254	$	254
Selling and marketing	—		16		16		—		45		45
General and administrative	42		—		42		—		82		82
Total restructuring expense	$	346	$	16	$	362	$	—	$	381	$	381



	Six Months Ended
	March 31, 2018						April 1, 2017
	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	424	$	—	$	424	$	—	$	580	$	580
Selling and marketing	—		7		7		—		126		126
General and administrative	177		—		177		—		238		238
Total restructuring expense	$	601	$	7	$	608	$	—	$	944	$	944

Restructuring expense accruals included in the Consolidated Balance Sheets for all restructuring actions are as follows:



	2017						2016			2014
	Test			Sensors			Sensors			Test			Total
Balance, September 30, 2017	$	2,899		$	120		$	209		$	734		$	3,962
Restructuring expense	601			7			—			—			608
Payments	(1,002		)	(95		)	(62		)	(192		)	(1,351		)
Other adjustments	(32		)	—			—			—			(32		)
Currency translation	—			6			10			28			44
Balance, March 31, 2018	$	2,466		$	38		$	157		$	570		$	3,231

Restructuring expense accruals included in the Consolidated Balance Sheets are as follows:



	March 31, 2018		September 30, 2017
Accrued payroll and related costs	$	2,925	$	3,485
Other accrued liabilities	103		98
Other long-term liabilities	203		379
Total severance and related costs	$	3,231	$	3,962