RESTRUCTURING AND RELATED COSTS

Fiscal Year 2018 Restructuring

During the fourth quarter of fiscal year 2018, we initiated a Test & Simulation workforce reduction intended to simplify the organization and reduce the overall cost structure. No restructuring expenses were recognized in the three months ended December 29, 2018 or December 30, 2017 related to this restructuring action. As of December 29, 2018, we have incurred a total of $880 of pre-tax severance and related expense. Remaining expenses are expected to be paid in the second quarter of fiscal year 2019.

Fiscal Year 2017 Restructuring

During the fourth quarter of fiscal year 2017, we initiated a series of Test & Simulation 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 throughout fiscal years 2018 and 2019. As a result, during the three months ended December 29, 2018 and December 30, 2017, we recorded $130 and $93 of pre-tax severance and related expense, respectively, and $0 and $162 of pre-tax facility closure costs, respectively. As of December 29, 2018, we have incurred a total of $4,871 of pre-tax expense, including $4,579 and $292 of pre-tax expense related to severance and facility closure costs, respectively. Remaining expenses are expected to be paid in the second quarter of fiscal year 2019.

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



	Three Months Ended
	December 29, 2018		December 30, 2017
	Test & Simulation		Test & Simulation
Cost of sales	$	117	$	120
Selling and marketing	—		—
General and administrative	13		135
Research and development	—		—
Total restructuring expense	$	130	$	255

Restructuring expense accruals included in payroll and related costs in the Consolidated Balance Sheets for the above restructuring actions are as follows:



	2018		2017
	Test and Simulation		Test and Simulation
Balance, September 29, 2018	1,051		$	2,933
Restructuring expense	—		130
Payments	(1,010	)	(2,789		)
Other adjustments	—		—
Currency translation	—		—
Balance, December 29, 2018	41		$	274