On July 26, 2023, we adopted a restructuring plan for our Product Identification segment. As part of the restructuring plan, we transitioned a portion of the printer manufacturing within our Product Identification segment from our facilities in Rhode Island to our Astro Machine, Inc. facility located in Illinois. In addition, we ceased selling certain of our older, lower-margin or low-volume Product Identification segment products. As part of the restructuring plan, we consolidated certain of our international Product Identification sales and distribution facilities, streamlined our channel partner network, and also made targeted reductions to our workforce. As of January 31, 2024, we completed this plan.

As a result of the adoption and implementation of our Product Identification segment restructuring plan, in the second quarter of our fiscal year 2024 we recognized pre-tax restructuring charge of $2.7 million, comprised primarily of non-cash charges related to inventory write-offs associated with product curtailment and discontinuation and facility exit related costs, and cash charges related to severance-related costs. Below is a summary of the restructuring costs and liability by type as of October 28, 2023.


(in thousands)	Restructuring Costs		Amounts paid in quarter ended July 29, 2023			Amounts paid in quarter ended October 28, 2023			Restructuring Liability
Severance and Employee Related Costs	$	611	$	(40	)	$	(320	)	$	251
Inventory Write-Off		1,991		—			—			—
Facility Exit and Other Restructuring Costs	49			—			—			—
Total	$	2,651	$	(40	)	$	(320	)	$	251

The restructuring liability was included in other accrued expenses in the condensed consolidated balance sheet as of October 28, 2023, and was paid by the end of fiscal 2024.

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income for the nine months ended October 28, 2023:



(in thousands)
Cost of Revenue	$	2,096
Operating Expenses:
Selling & Marketing	443
Research & Development	29
General & Administrative	83
Total	$	2,651

In connection with our fiscal 2024 restructuring plan, we identified the need to address quality and reliability issues in certain models of our PI printers as a result of faulty ink provided by one of our larger suppliers. In order to remedy these issues and maintain solid customer relationships, during the second quarter of fiscal 2024, we initiated a program to retrofit all of the printers sold to our customers that were affected by the faulty ink.

Upon initiating this program, we identified approximately 150 printers sold to our customers that were affected by the faulty ink. We began to work with our customers to either repair or replace the affected printers and did this on a gradual basis beginning in the second quarter of fiscal 2024 through March 2024. The initial estimated costs associated with this program at July 29, 2023 were $0.9 million, which included the cost of parts, labor and travel. Those costs were recognized and recorded in the second quarter of fiscal 2024 and are included in cost of revenue in the accompanying consolidated statement of income for the three and nine months ended October 28, 2023.

This program was concluded by the end of fiscal 2024 and there was no balance in the related liability for this program at January 31, 2024.