Commitments and Contingencies

12 Months Ended

Jul. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

In May 2017, Cantel Medical (UK) Limited and Cantel (UK) Limited filed a lawsuit in the U.K. High Court of Justice against ARC Medical Design Limited (“ARC”) seeking a judgment of invalidity on two of ARC’s patents and additionally/alternatively a declaration of non-infringement of our AmplifEYE^TM Endoscopic device. ARC filed counterclaims alleging that the AmplifEYE^TM device infringed the two patents as well as registered community design marks and unregistered design rights that ARC had in its Endocuff^TM and Endocuff Vision^TM devices. In February 2018, the trial judge entered a judgment in favor of ARC, and we decided not to appeal the decision. We entered into a settlement agreement with ARC in March 2018 under which we agreed not to make, use, sell or offer to sell the AmplifEYE^TM device in the European Union until ARC’s rights expire, and reimbursed ARC for a portion of their legal costs. During fiscal 2018, we recorded $2,608 of litigation costs within selling, general and administrative expenses associated with this matter.

In the normal course of business, we are subject to pending and threatened legal actions. It is our policy to accrue for amounts related to these legal matters if it is probable that a liability has been incurred and an amount of anticipated exposure can be reasonably estimated. We do not believe that any of these pending claims or legal actions will have a material effect on our business, financial condition, results of operations or cash flows.

Restructuring Matters

In connection with our ongoing efforts to streamline and consolidate our global operations and integrate the Hu-Friedy acquisition with our legacy Dental business, we have incurred approximately $17,937, $22,097 and $5,001 of restructuring-related charges in each of the years ended July 31, 2020, 2019, and 2018, respectively. The majority of these charges consisted of one-time benefit related costs (severance, accelerated stock-based compensation costs and other benefit costs) associated with actions taken to reduce headcount. As of July 31, 2020, $7,887 was included in compensation payable on our consolidated balance sheets. Any remaining unpaid severance at July 31, 2020, will be paid out ratably during fiscal 2021 and fiscal 2022 in accordance with our employee separation policy.