RESTRUCTURING AND RELATED COSTS

During the third quarter of fiscal year 2016, we initiated restructuring actions to further reduce our cost structure by eliminating 61 positions, primarily in our Corporate area and Test segment, through terminations, elimination of certain open positions as a result of employees leaving voluntarily throughout fiscal year 2016 and reductions in contractors. The restructuring activities resulted in severance and related pre-tax expense of $1,237 in fiscal year 2016. The remaining severance and related costs are expected to be paid by the first quarter of fiscal year 2018.

During the fourth quarter of fiscal year 2016, we initiated plans to close our Machida, Japan facility and eliminate 35 positions in our Sensors segment by the third quarter of fiscal year 2017. We incurred severance and related pre-tax expense of $408 in fiscal year 2016. We also incurred $520 of pre-tax expense related to facility closure costs. We expect to incur approximately $1,200 of additional expenses through the third quarter of fiscal year 2017 related to the Machida facility closing. The severance and facility closing costs are expected to be paid during the third quarter of fiscal year 2017.

During fiscal year 2014, we initiated workforce and other cost reduction actions at certain of our locations in the U.S. and Europe. As a result of these cost reduction actions, we incurred severance and related costs of $6,336 in fiscal year 2014.

The following table summarizes the restructuring expenses included in our Consolidated Statements of Income for fiscal years 2016 and 2014. There was no restructuring expense in fiscal year 2015.



(in thousands)	Test		Sensors		Total
Fiscal year 2016
Cost of sales	$	299	$	762	$	1,061
Selling and marketing	129		155		284
General and administrative	414		401		815
Research and development	5		—		5
Total restructuring expense for fiscal year 2016	$	847	$	1,318	$	2,165

Fiscal year 2014
Cost of sales	$	3,507	$	—	$	3,507
Selling and marketing	1,805		—		1,805
General and administrative	1,024		—		1,024
Total restructuring expense for fiscal year 2014	$	6,336	$	—	$	6,336

The following table summarizes the change in our restructuring expense accruals included in our Consolidated Balance Sheet for the fiscal years ended October 1, 2016 and October 3, 2015.



	2016					2014
(in thousands)	Q3 Restructuring			Q4 Restructuring		Restructuring			Total
Balance at September 27, 2014	$	—		$	—	$	2,573		$	2,573
Payments	—			—		(726		)	(726		)
Other adjustments	—			—		(16		)	(16		)
Currency translation	—			—		(283		)	(283		)
Balance at October 3, 2015	$	—		$	—	$	1,548		$	1,548
Restructuring expense	1,237			928		—			2,165
Payments	(1,238		)	—		(498		)	(1,736		)
Other adjustments	336			—		—			336
Currency translation	(27		)	7		3			(17		)
Balance at October 1, 2016	$	308		$	935	$	1,053		$	2,296

The following table summarizes the severance and related costs included in our Consolidated Balance Sheet as of October 1, 2016 and October 3, 2015.



(in thousands)	2016		2015
Accrued payroll and related costs	$	1,066	$	497
Other accrued liabilities	520		—
Other long-term liabilities	710		1,051
Total severance and related costs	$	2,296	$	1,548