Property, Plant and Equipment

12 Months Ended

Jul. 31, 2012

Property, Plant and Equipment

Note 4—Property, Plant and Equipment

Property, plant and equipment consist of the following:

July 31 (in thousands)	2012			2011
Equipment	$	431,709		$	434,929
Land and buildings		55,397			55,727
Computer software		96,750			92,636
Leasehold improvements		45,109			45,118
Furniture and fixtures		6,404			6,524
		635,369			634,934
Less accumulated depreciation and amortization		(549,802	)		(544,463	)
Property, plant and equipment, net	$	85,567		$	90,471

At July 31, 2012, the carrying value of the land, building and improvements that the Company owns at 520 Broad Street, Newark, New Jersey was $43.3 million and the mortgage payable balance was $22.9 million. At April 30, 2012 and 2011, the Company evaluated the recoverability of the land, building and improvements at 520 Broad Street and determined that the carrying value was recoverable. The Company is considering a range of options as to the future use or disposition of 520 Broad Street, some of which could result in a loss from a reduction in the carrying value of the land, building and improvements and such loss could be material. In fiscal 2011 and fiscal 2010, the Company received proceeds from insurance of $3.5 million and $0.5 million, respectively, related to water damage to portions of the building and improvements at 520 Broad Street (see Note 7). The damaged portion of the building and improvements had an estimated carrying value of $1.1 million. In fiscal 2011, the Company recorded a gain of $2.6 million from this insurance claim which is included in “Other operating (losses) gains, net” in the accompanying consolidated statement of income.

On October 23, 2009, the Company sold its land and building in San Juan, Puerto Rico that was used for the Company’s domestic call center operations. The sales price was cash of $7.4 million. The proceeds from the sale after payment of the mortgage debt secured by the property and transaction expenses were $0.8 million. The Company recorded a nominal loss on the sale in fiscal 2010.

On July 28, 2010, the Company sold land and a building in Piscataway, New Jersey for cash of $3.1 million. The Company was required to use $2.7 million of the proceeds to repay a portion of the mortgage payable secured by the property (see Note 7). The Company recorded a gain of $0.7 million on the sale in fiscal 2010, which is included in “Other operating (losses) gains, net” in the accompanying consolidated statement of income.

At July 31, 2012, there was no property, plant and equipment under capital leases. At July 31, 2011, property, plant and equipment under capital leases and the accumulated depreciation related to these assets was $25.1 million and $25.1 million, respectively. Depreciation of property, plant and equipment under capital leases was included in depreciation and amortization expense in the accompanying consolidated statements of income.

Depreciation and amortization expense of property, plant and equipment was $15.9 million, $20.1 million and $30.6 million in fiscal 2012, fiscal 2011 and fiscal 2010, respectively.