NOTE 17: Restructuring

2013 Restructuring

Due to the continued decline in the Computer Systems business both domestically and internationally in fiscal 2013, the Company made a decision to pursue cost saving alternatives which included reducing headcount in the United States, the United Kingdom and German locations. As a result of this decision, the Company reduced its workforce throughout fiscal 2013 and incurred approximately $3.9 million in severance related restructuring costs.

The Staffing Services segment committed to focus during fiscal 2013 on achieving acceptable operating income from our traditional time and materials staffing services in North America and exiting or reducing business levels with customers where profitability or business terms are unfavorable. In order to achieve this plan, the Company committed to a plan to reduce workforce across various North America locations.

The Company does not currently anticipate further material charges in the future relating to this program.

The following table displays a roll forward of the fiscal 2013 restructuring costs and related liability balances:


	Total		Staffing Services		Computer Systems
Accrual at October 28, 2012	$	-	$	-	$	-
Workforce reductions		4,726		781		3,945
Cash payments		(2,186)		(781)		(1,405)

Accrual at November 3, 2013	$	2,540	$	-	$	2,540