Additional Financial Statement Information

The caption “Other” on the consolidated statements of operations consists of the following (in thousands):



	Years ended December 31,
	2018			2017			2016
Foreign exchange gain (loss)	$	(279	)	$	(724	)	$	449
Interest income	506			167			179
Pension expense	(1,682		)	(863		)	(556		)
Other	(41		)	1,337			(246		)
	$	(1,496	)	$	(83	)	$	(174	)

Foreign currency exchange gains and losses represent the impact of changes in foreign currency exchange rates. The change in foreign exchange gains/(losses) during the period, as compared to the prior year period, is primarily due to fluctuations in the Israeli shekel, the Euro, and the Canadian dollar.

Pension expense represents the net periodic benefit cost excluding the service cost. Additionally in 2018, the Company recognized a settlement loss of $0.7 million related to measures taken to de-risk the UK pension schemes as discussed in Note 9 to the consolidated financial statements.

Included within Other, for the year ended December 31, 2017, is net proceeds of $1.5 million related to a lease termination payment at the Company's Tianjin, People's Republic of China location. The relocation of operation in Tianjin has been completed and the majority of the expenses associated with the move have been incurred.

Other accrued expenses consist of the following (in thousands):



	December 31,
	2018		2017
Customer advance payments	$	5,328	$	3,229
Accrued restructuring	159		254
Goods received, not yet invoiced	1,819		4,060
Accrued taxes, other than income taxes	2,293		1,680
Accrued commissions	2,203		1,694
Accrued professional fees	1,775		1,731
Other	3,454		3,304
	$	17,031	$	15,952

Israeli Severance Pay

The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees of our Israeli subsidiary are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof.

Part of the subsidiary's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the subsidiary from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet.

For the subsidiary's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company recorded as expenses the increase in the severance liability, net of earnings (losses) from the related investment fund. The subsidiary's liability was partially funded by monthly payments deposited with insurers and the value of these deposits is recorded as an asset on the Company's balance sheet. Any unfunded amounts would be paid from operating funds and are covered by a provision established by the subsidiary. The accompanying consolidated balance sheets at December 31, 2018 and December 31, 2017 include a $7.7 million and $7.8 million liability, respectively, associated with Israeli severance requirements in other liabilities.

Sale Leaseback

In the fourth quarter of 2016, the Company sold its Karmiel, Israel facility for $3.7 million and entered into a five year lease for a portion of the building. The Company recorded a $1.7 million gain on the sale of the facility, of which $0.8 million was recognized immediately in earnings, with the remaining $0.9 million ratably recognized in earnings over the five year lease term.