13. Severance and Related Costs

During the first quarter of 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 the three and nine fiscal months ended June 28, 2014. As a result of these cost reduction actions, the Company incurred severance and related costs of $1.5 million and $6.3 million during the three and nine fiscal months ended June 28, 2014, respectively, and $4.8 million of the severance cost was unpaid as of June 28, 2014.

The following table summarizes the severance and related costs included in the Company’s Consolidated Statements of Income for the three and nine fiscal months ended June 28, 2014:


	Three Fiscal		Nine Fiscal
	Months Ended		Months Ended
		June 28,		June 28,
		2014		2014
	(expressed in thousands)

Cost of sales	$	550	$	3,507
Selling and marketing		866		1,805
General and administrative		76		1,024
Total severance and related costs	$	1,492	$	6,336

The following table summarizes the severance and related costs included in the Company’s June 28, 2014 Consolidated Balance Sheet:


		June 28,
		2014
	(expressed in thousands)

Accrued payroll and related costs	$	3,015
Other accrued liabilities		19
Defined benefit pension plan obligation		27
Other long-term liabilities		1,783
Total severance and related costs	$	4,844