4. RESTRUCTURING

In accordance with the provisions of Topic 420, Exit or Disposal Cost Obligation, to the FASB ASC, the Company recognizes certain costs associated with headcount reductions, office vacancies and other costs to move or relocate operations or employees as restructuring costs in the period in which such actions are initiated and approved by management or the obligations are incurred, as applicable. The following table sets forth the Company’s restructuring accrual activity for the six months ended January 31, 2013 and January 31, 2012 (in thousands):


	Severance Costs			Facility Leases			Total
Balance July 31, 2012	$	364		$	3,697		$	4,061
Additions to expense		231			69			300
Accretion		—			107			107
Stock based compensation		(48	)		—			(48	)
Cash paid		(302	)		(759	)		(1,061	)

Balance January 31, 2013	$	245		$	3,114		$	3,359

Included in the Company’s Consolidated Balance Sheet:
Accrued expenses	$	245		$	938		$	1,183
Other long-term liabilities	$	—		$	2,176		$	2,176

	Severance Costs			Facility Leases			Total
Balance July 31, 2011	$	6		$	4,761		$	4,767
Additions to expense		107			80			187
Accretion		—			82			82
Cash paid		(6	)		(749	)		(755	)

Balance January 31, 2012	$	107		$	4,174		$	4,281

Included in the Company’s Consolidated Balance Sheet:
Accrued expenses	$	107		$	1,229		$	1,336
Other long-term liabilities	$	—		$	2,945		$	2,945

During the three months ending January 31, 2013, the Company recognized $0.1 million of restructuring expense related to certain costs associated with relocating some of the Company’s repair function from North American locations to subsidiary offices in Singapore and the Philippines. Within the Philippines, the Company relocated a portion of its employees from its current offices to a new location where the repair center will reside. Severance and post-employment obligation liabilities of $0.2 million related to headcount reductions resulting from this change in the service organization were recorded during the quarter ending October 31, 2012.

The cash paid for the six months ending January 31, 2013 represents lease payments for the Company’s previously restructured facilities and severance paid.

During the three months ending January 31, 2012, the Company exercised an early termination clause in one of its North American facility leases and vacated the facility. Consequently, the Company recorded a liability for severance costs for headcount reductions, as well as for its remaining obligation under the lease, including a termination fee for triggering the early termination clause. The total restructuring expense recorded related to this action was $0.1 million.