Restructuring Charges

2012 Restructuring

In the second quarter of fiscal year 2012, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities. In addition, as part of the Plan, we have divested the product lines not considered core to our business. Our restructuring actions include both our cost reduction efforts and qualifying costs associated with our divestitures.

Restructuring expenses primarily relate to employee costs, including severance, health benefits, outplacement services and transition divestiture incentives, but excluding stock-based compensation. Facilities costs include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2012 restructuring, we incurred expenses in the first quarter of fiscal year 2013 totaling $1.4 million, of which $1.0 million represents excess facilities and other costs and $0.4 million represents employee severances and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.4 million included in income (loss) from discontinued operations. Cumulative expenses of the 2012 restructuring through the first quarter of fiscal year 2013 are $20.4 million, of which $3.6 million represents excess facilities and other costs and $16.8 million represents employee severances and related benefits.

We expect to incur additional costs through the remainder of fiscal year 2013. The total cost of the 2012 restructuring is expected to be approximately $5.1 million for excess facilities and other costs and approximately $19.7 million for employee severance and related benefits. The estimated costs not yet recorded in the condensed consolidated statement of income relate to excess facilities costs, net of sublease assumptions, and employee severance-related costs as we transition away from our divested product lines (Note 6).

A summary of activity for the 2012 restructuring action during the three months ended February 28, 2013, is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	962			413			1,375
Cash disbursements	(290		)	(5,474		)	(5,764		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	(3		)	23			20
Balance, February 28, 2013	$	1,161		$	1,391		$	2,552

Cash disbursements under the 2012 restructuring are expected to be made through fiscal year 2016. The short-term portion of the restructuring reserve of $2.3 million is included in other accrued liabilities and the long-term portion of $0.3 million is included in other noncurrent liabilities on the condensed consolidated balance sheet at February 28, 2013.

2010 Restructuring

During the first and third quarters of fiscal year 2010, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of certain management and organizational changes and acquisitions. We reduced our global workforce primarily within the development, sales and administrative organizations. This workforce reduction was conducted across all geographies and also resulted in a consolidation of offices in certain locations. The total costs of the 2010 restructurings primarily relate to employee severance and excess facilities expenses. The excess facilities and other costs represent facilities costs for unused space and termination costs for automobile leases of employees included in the workforce reduction.

As part of the 2010 restructuring activities, we recorded cumulative expenses totaling $43.3 million, of which $8.0 million represents excess facilities and other costs and $35.3 million represents employee severances and related benefits. There were no charges to restructuring expense in the first quarter of fiscal year 2013 related to the 2010 activities and we do not expect to incur additional expenses related to these activities.

As of February 28, 2013 and November 30, 2012, we had a remaining reserve related to severance payments of $0.2 million and $0.3 million, respectively, which is included in other accrued liabilities on the condensed consolidated balance sheets. The decrease in the reserve relates to cash disbursements and we expect to pay the remaining benefits over a period of time ending in June 2013.