(10) Cost Reduction Actions

Fiscal 2011 and Fiscal 2012 Cost Reduction Actions

During the three months ended October 31, 2011, we continued to implement certain cost reduction actions that we initiated in prior periods in all of our reportable operating segments.

Costs (almost all of which have been for severance) for each respective period are included in our Condensed Consolidated Statement of Operations and have not been material in the aggregate.

Fiscal 2009 Radyne Acquisition-Related Restructuring Plan

In connection with our August 1, 2008 acquisition of Radyne, we immediately adopted a restructuring plan to achieve operating synergies for which we recorded $2,713,000 of estimated restructuring costs. Of this amount, $613,000 relates to severance for Radyne employees which was paid in fiscal 2009. The remaining estimated amounts relate to facility exit costs and were determined as follows:

	At August 1, 2008
Total non-cancelable lease obligations	$ 12,741,000
Less: Estimated sublease income	(8,600,000)
Total net estimated facility exit costs	4,141,000
Less: Interest expense to be accreted	(2,041,000)
Present value of estimated facility exit costs	$ 2,100,000

Our total non-cancelable lease obligations were based on the actual lease term which runs from November 1, 2008 through October 31, 2018. We estimated sublease income based on (i) the terms of a fully executed sublease agreement, whose lease term runs from November 1, 2008 through October 31, 2015 and (ii) our assessment of future uncertainties relating to the commercial real estate market. Based on our assessment of commercial real estate market conditions, we currently believe that it is not probable that we will be able to sublease the facility beyond the current sublease terms. As such, in accordance with grandfathered accounting standards that were not incorporated into the FASB's ASC, we recorded these costs, at fair value, as assumed liabilities as of August 1, 2008, with a corresponding increase to goodwill.

As of October 31, 2011, the amount of the acquisition-related restructuring reserve is as follows:

	Cumulative Activity Through October 31, 2011
Present value of estimated facility exit costs at August 1, 2008	$ 2,100,000
Cash payments made	(3,544,000)
Cash payments received	3,586,000
Accreted interest recorded	475,000
Net liability as of October 31, 2011	2,617,000
Amount recorded as prepaid expenses in the Condensed Consolidated Balance Sheet	402,000
Amount recorded as other liabilities in the Condensed Consolidated Balance Sheet	$ 3,019,000

As of July 31, 2011, the present value of the estimated facility exit costs was $2,518,000. During the three months ended October 31, 2011, we made cash payments of $248,000 and we received cash payments of $302,000. Interest accreted for the three months ended October 31, 2011 and 2010 was $45,000 and $38,000, respectively, and is included in interest expense for each respective fiscal period.

As of October 31, 2011, future cash payments associated with our restructuring plan are summarized below:

	As of October 31, 2011
Future lease payments to be made in excess of anticipated sublease payments	$ 3,019,000
Less net cash to be received in next twelve months	(402,000)
Interest expense to be accreted in future periods	1,566,000
Total remaining net cash payments	$ 4,183,000