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 nine months ended June 30, 2018, we recorded $715 and $1,129 of pre-tax severance and related expense, respectively, and $24 and $211 of pre-tax facility closure costs, respectively. As of June 30, 2018, we have incurred a total of $4,262 of pre-tax expense, including $4,028 and $234 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 $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 months ended June 30, 2018, we recorded an immaterial adjustment to the severance and related expense reported in previous periods. In the nine months ended June 30, 2018, we recorded $3 of pre-tax severance and related expense. As of June 30, 2018, we have incurred a total of $133 of pre-tax severance and related expense. We expect to incur additional pre-tax severance and related expense of approximately $40. The majority of the expenses are expected to be paid in fiscal year 2018 and the first half of fiscal year 2019.

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 nine months ended June 30, 2018 and $92 and $1,036 in the three and nine months ended July 1, 2017, respectively. As of June 30, 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 fourth 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 nine months ended June 30, 2018 or July 1, 2017 related to these restructuring actions.

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



	Three Months Ended
	June 30, 2018							July 1, 2017
	Test		Sensors			Total		Test		Sensors		Total
Cost of sales	$	386	$	—		$	386	$	—	$	67	$	67
Selling and marketing	158		(4		)	154		—		10		10
General and administrative	52		—			52		—		15		15
Research and development	143		—			143		—		—		—
Total restructuring expense	$	739	$	(4	)	$	735	$	—	$	92	$	92



	Nine Months Ended
	June 30, 2018						July 1, 2017
	Test		Sensors		Total		Test		Sensors		Total
Cost of sales	$	810	$	—	$	810	$	—	$	647	$	647
Selling and marketing	158		3		161		—		136		136
General and administrative	229		—		229		—		253		253
Research and development	143		—		143		—		—		—
Total restructuring expense	$	1,340	$	3	$	1,343	$	—	$	1,036	$	1,036

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	1,340			3			—			—			1,343
Payments	(1,451		)	(92		)	(62		)	(202		)	(1,807		)
Other adjustments	74			—			—			—			74
Currency translation	—			—			5			(98		)	(93		)
Balance, June 30, 2018	$	2,862		$	31		$	152		$	434		$	3,479

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



	June 30, 2018		September 30, 2017
Accrued payroll and related costs	$	3,257	$	3,485
Other accrued liabilities	99		98
Other long-term liabilities	123		379
Total severance and related costs	$	3,479	$	3,962