Restructuring

During the six months ended January 31, 2014, the Company’s Board of Directors approved a restructuring plan to consolidate facilities in North America, Europe and Asia. The Company implemented this restructuring plan to enhance customer service, improve efficiency of operations and reduce operating expenses. The Company expects to incur pre-tax charges of approximately $22 million in fiscal 2014 due primarily to facility consolidation activities. Facility consolidation activities will extend into fiscal 2015.

As a result of these restructuring plans, the Company incurred restructuring charges of $4,324 and $11,163 in continuing operations during the three and six months ended January 31, 2014, respectively. The three month restructuring charges of $4,324 consisted of $1,274 of employee separation costs, $97 of fixed asset write-offs, $2,335 of facility closure related costs, and $618 of contract termination costs. Of the $4,324 of restructuring charges recorded during the quarter, $2,458 was incurred within IDS and $1,866 within WPS.

The year-to date restructuring charges of $11,163 consisted of $7,765 of employee separation costs, $97 of fixed asset write-offs, $2,683 of facility closure related costs, and $618 of contract termination costs. Of the $11,163 of restructuring charges recorded year-to date, $6,434 was incurred within IDS and $4,729 within WPS.

In fiscal 2013, the Company implemented a restructuring plan to reduce its global workforce to address its cost structure. During the three and six months ended January 31, 2013, the Company recorded restructuring charges of $1,933 in continuing operations which consisted of employee separation costs. Of the $1,933 of restructuring charges recorded during the three and six months ended January 31, 2013, $1,725 was incurred within IDS and $208 within WPS.

The charges for employee separation costs in fiscal 2014 and 2013 consisted of severance pay, outplacement services, medical and other benefits. The costs related to these restructuring activities were recorded on the condensed consolidated statements of earnings as restructuring charges. The Company expects the majority of the remaining cash payments to be made during the next twelve months.

A reconciliation of the Company’s restructuring liability is as follows:



	Employee Related			Asset Write-offs			Other			Total
Beginning balance, July 31, 2013	$	11,475		—			$	2,731		$	14,206
Restructuring charges in continuing operations	7,765			97			3,301			11,163
Restructuring charges in discontinued operations	112			—			—			112
Non-cash write-offs	—			(97		)	—			(97		)
Cash payments	(13,002		)	—			(3,328		)	(16,330		)
Ending balance, January 31, 2014	$	6,350		$	—		$	2,704		$	9,054