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 three months ended October 31, 2013 and October 31, 2012:


	Severance Costs			Facility Leases			Total
	(in thousands)
Balance July 31, 2013	$	2		$	2,772		$	2,774
Additions to expense		—			—			—
Accretion		—			62			62
Cash paid		(2	)		(310	)		(312	)

Balance October 31, 2013	$	—		$	2,524		$	2,524

Included in the Company’s Consolidated Balance Sheet:
Accrued expenses	$	—		$	960		$	960
Other long-term liabilities		—			1,564			1,564

Balance at October 31, 2013	$	—		$	2,524		$	2,524


	Severance Costs			Facility Leases			Total
	(in thousands)
Balance July 31, 2012	$	364		$	3,704		$	4,068
Additions to expense		231			—			231
Accretion		—			50			50
Stock based compensation		(48	)		—			(48	)
Cash paid		(195	)		(399	)		(594	)

Balance October 31, 2012	$	352		$	3,355		$	3,707

Included in the Company’s Consolidated Balance Sheet:
Accrued expenses	$	352		$	982		$	1,334
Other long-term liabilities		—		$	2,373		$	2,373

Balance at October 31, 2012	$	352		$	3,355		$	3,707

During the three months ended October 31, 2013, there were no restructuring actions or adjustments to previously recognized liabilities.

As of October 31, 2013, the Company’s restructuring accrual represented obligations related to remaining lease and property tax payments associated with the Company’s decision to vacate a facility during the year ended July 31, 2009, as well as severance obligations payable related to headcount reductions from actions undertaken during the fiscal year ended July 31, 2013.

During the three months ended October 31, 2012 the Company announced changes to its service organization to move certain board repair functions and other roles from North America locations to subsidiary offices in Singapore and the Philippines. As a result of this decision, the Company made certain headcount reductions and recorded the estimated severance and post-employment obligations related to those headcount reductions during the quarter, the impact of which was $0.2 million.