Special Charges

The Company monitors global macroeconomic conditions on an ongoing basis and continues to assess opportunities for improved operational effectiveness and efficiency, as well as a better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions over the past several years. These actions are described below.

The following tables display the special charges taken for ongoing actions and a roll-forward from November 2, 2013 to May 3, 2014 of the employee separation and exit cost accruals established related to these actions.



	Reduction of Operating Costs
Statements of Income	2014		2013		2012
Workforce reductions	$	2,685	$	29,848	$	7,966
Facility closure costs	—		—		186
Non-cash impairment charge	—		—		219
Other items	—		—		60
Total Charges	$	2,685	$	29,848	$	8,431



Accrued Restructuring	Reduction of Operating Costs
Balance at November 2, 2013	$	19,955
First quarter 2014 special charge	2,685
Severance payments	(4,171		)
Effect of foreign currency on accrual	(4		)
Balance at February 1, 2014	18,465
Severance payments	(6,469		)
Effect of foreign currency on accrual	36
Balance at May 3, 2014	$	12,032

Reduction of Operating Costs

During fiscal 2012, the Company recorded special charges of approximately $8.4 million. These special charges included: $8.0 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 95 manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees; $0.2 million for lease obligation costs for facilities that the Company ceased using during the third quarter of fiscal 2012; $0.1 million for contract termination costs; and $0.2 million for the write-off of property, plant and equipment. The Company terminated the employment of all employees associated with these actions.

During fiscal 2013, the Company recorded special charges of approximately $29.8 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 235 engineering and SMG&A employees. As of May 3, 2014, the Company employed 19 of the 235 employees included in these cost reduction actions. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefit.

During the first quarter of fiscal 2014, the Company recorded a special charge of approximately $2.7 million for severance and fringe benefit costs in accordance with its ongoing benefit plan or statutory requirements at foreign locations for 30 engineering and SMG&A employees. As of May 3, 2014, the Company employed 4 of the 30 employees included in this cost reduction action. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefit.