Restructuring and Other Charges

6 Months Ended

Jan. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Other Charges

Note 19. Restructuring and Other Charges

During the first two quarters of fiscal 2025, the Company continued the global footprint and cost optimization actions which began in fiscal 2024. These activities resulted in restructuring expense of $2.2 million and $5.5 million for the three and six months ended January 31, 2025, respectively, primarily related to continued global footprint optimization and cost reduction actions. Charges of $0.6 million and $1.7 million were included in cost of sales and $1.6 million and $3.8 million were included in operating expense in the Condensed Consolidated Statement of Earnings for the three and six months ended January 31, 2025, respectively.

During fiscal 2024, the Company initiated global footprint and cost optimization actions to further improve its operating and manufacturing cost structure, primarily in EMEA. These activities resulted in restructuring expenses, primarily related to severance, of $6.4 million. Charges of $3.8 million were included in cost of sales and $2.6 million were included in operating expenses in the Consolidated Statement of Earnings for the year ended July 31, 2024.

As of January 31, 2025 and July 31, 2024, respectively, $6.2 million and $6.4 million of accrued expenses were included in accrued employee compensation and related taxes in the Condensed Consolidated Balance Sheet. Estimated future costs associated with actions related to this restructuring initiative are not included due to the Company’s inability to reasonably quantify the anticipated restructuring charges.