12. Restructuring Charges

Fiscal Year 2014 Restructuring Plan

During the fourth quarter of fiscal year 2014, we implemented our fiscal year 2014 restructuring plan to improve our operational effectiveness in Peabody, Massachusetts and leverage core competencies better across the business. We incurred pre-tax charges of $2.6 million from the time that we implemented the plan during the fourth quarter of fiscal year 2014 through April 30, 2015, primarily relating to severance and personnel related costs for involuntarily terminated employees. We expect that the restructuring plan will be substantially completed during fiscal year 2015. During the nine months ended April 30, 2015, we recorded a reduction of $0.2 million in our restructuring costs.

Fiscal Year 2013 Restructuring Plan

In May 2013, we announced our fiscal year ended July 31, 2013, or fiscal year 2013, restructuring plan and incurred pre-tax charges of $4.0 million through April 30, 2015, primarily relating to severance and personnel related costs of terminated employees, facility exit costs for the closure of the Ultrasonix sales subsidiary in Paris, France, and the closure of our ultrasound transducer operation in Englewood, Colorado as we consolidate our transducer operations in State College, Pennsylvania. This plan also includes activities to consolidate manufacturing and certain support functions currently conducted in our Ultrasonix facility in Vancouver, Canada with our other facilities, as well as optimization of our operations in Montreal, Canada and Peabody, Massachusetts. During the nine months ended April 30, 2015, we incurred $(0.1) million related to the Englewood, Colorado facility. We expect that the restructuring plan will be completed in fiscal year 2017 when the lease on the Englewood, Colorado facility ends.

Current Period Activity

The following table summarizes accrued restructuring activities for the three months ended April 30, 2015:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)			Total
Balance at January 31, 2015	$	1.1		$	0.5		$	1.6
Adjustments		(0.1	)		-			(0.1	)
Cash payments		(0.5	)		(0.1	)		(0.6	)
Balance at April 30, 2015	$	0.5		$	0.4		$	0.9

The following table summarizes accrued restructuring activities for the nine months ended April 30, 2015:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)			Acquisition Related Charges (B)			Total
Balance at July 31, 2014	$	2.9		$	0.8		$	0.1		$	3.8
Adjustments		(0.2	)		(0.1	)		-			(0.3	)
Cash payments		(2.2	)		(0.3	)		(0.1	)		(2.6	)
Balance at April 30, 2015	$	0.5		$	0.4		$	-		$	0.9

(A)	All activity during the period pertains to the 2014 Restructuring Plan.

(B)	All activity during the period pertains to the 2013 Restructuring Plan.

Restructuring and related charges, including actions associated with acquisitions, by segment are as follows:


	Three Months Ended						Nine Months Ended
	April 30,						April 30,
(in millions)	2015			2014			2015			2014
Medical Imaging	$	(0.1	)	$	-		$	(0.2	)	$	(0.2	)
Ultrasound		-			(0.1	)		(0.1	)		0.4
Total restructuring and related charges	$	(0.1	)	$	(0.1	)	$	(0.3	)	$	0.2

Accrued restructuring charges are classified on the Consolidated Balance Sheets in the following location:


(in millions)	As of April 30, 2015		As of July 31, 2014
Accrued restructuring charges	$	0.8	$	3.4
Other long-term liabilities		0.1		0.4
Total restructuring and related charges	$	0.9	$	3.8