12. Severance and Related Costs:

During fiscal year 2014, the Company announced that it expects to realize productivity improvements in Test segment business processes gained through investments in infrastructure and IT technology. Associated with these savings, the Company initiated workforce and other cost reduction actions at certain of its locations in the U.S. and Europe during fiscal year 2014. As a result of these cost reduction actions, the Company incurred severance and related costs of $6.3 million and $3.4 million of the severance cost was unpaid as of September 27, 2014.

The following table summarizes the severance and related costs included in the Company’s Consolidated Statements of Income for the fiscal year ended September 27, 2014:


		2014
	(expressed in thousands)

Cost of sales	$	3,507
Selling and marketing		1,805
General and administrative		1,024
Total severance and related costs	$	6,336

The following table summarizes the severance and related costs included in the Company’s June 27, 2014 Consolidated Balance Sheet:


	2014
	(expressed in thousands)

Accrued payroll and related costs	$	1,690
Defined benefit pension plan obligation		26
Other long-term liabilities		1,783
Total severance and related costs	$	3,499