On July 26, 2023, we adopted a restructuring plan for our Product Identification segment that transitioned a portion of the printer manufacturing within our Product Identification segment from our facilities in Asia and Rhode Island to our Astro Machine, Inc. facility located in Illinois. Additionally, we ceased selling certain of our older, lower-margin or low-volume Product Identification segment products and made targeted reductions to our workforce. As part of the restructuring plan, we also intend to consolidate certain of our international Product Identification sales and distribution facilities and streamline our channel partner network. We expect to substantially complete this plan during fiscal year 2024.

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 a 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 is included in other accrued expenses in the accompanying condensed consolidated balance sheet as of October 28, 2023, and the majority of the balance is expected to be paid by the end of our fiscal 2024.

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of

income:


	Nine Months Ended
(in thousands)	October 28, 2023
Cost of Revenue	$	2,096
Operating Expenses:
Selling & Marketing	443
Research & Development	29
General & Administrative	83
Total	$	2,651

In connection with our 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 the current year 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 are working with our customers to either repair or replace the affected printers and will do this on a gradual basis through March 2024. The estimated costs associated with this program are $0.9 million, which includes the cost of parts, labor and travel. Those costs were recognized and recorded in the second quarter of the current year and are included in cost of revenue in the accompanying consolidated statement of income for the nine month period ended October 28, 2023. The balance in the related liability, which is included in other accrued expenses in the accompanying condensed consolidated balance sheet at October 28, 2023, is as follows:


(in thousands)
Provision for Product Retrofit Program	$	852
Cost of Repairs and Replacements incurred through October 28, 2023		(387	)
Balance at October 28, 2023	$	465