4. 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 $2.9 million, primarily relating to severance and personnel related costs for 48 involuntarily terminated employees associated with restructuring activities, including improving our operational effectiveness in Peabody Massachusetts to better leverage core competencies across the business, which are recognized in our Consolidated Statement of Operations under restructuring. The $2.9 million charge was recorded in the operating results of our Medical Imaging, Ultrasound, and Security and Detection segments, with charges of $1.9 million, $0.5 million and $0.5 million, respectively. We expect that the restructuring plan will be completed during fiscal year 2016.

Fiscal Year 2013 Restructuring Plan

In May 2013, we announced a restructuring plan and incurred pre-tax charges of $4.1 million, primarily relating to severance and personnel related costs of 115 terminated employees, as well as for facility exit costs closure of the Ultrasonix sales subsidiary in Paris, France as well as the closure of our ultrasound transducer operation in Englewood, Colorado as we consolidate our transducer operations in State College, Pennsylvania. This plan also include 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. Our pre-tax charges were included in our operating results of our Medical Imaging segment, Ultrasound segment and Security and Detection segment.

We expect that the restructuring plan will be completed in fiscal year 2017 when the lease on the Englewood, Colorado facility ends.

The following table summarizes accrued restructuring costs activity from July 31, 2013 through July 31, 2015:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)			Acquisition Related Charges			Total (C) (D)
Balance at July 31, 2013	$	1.8		$	0.2		$	0.8		$	2.8
Restructuring Charge		2.6			0.8			0.1			3.5
Cash payments		(1.5	)		(0.2	)		(0.8	)		(2.5	)

Balance at July 31, 2014	$	2.9		$	0.8		$	0.1		$	3.8

Adjustments		(0.3	)		(0.1	)		—			(0.4	)
Cash payments		(2.4	)		(0.3	)		(0.1	)		(2.8	)

Balance at July 31, 2015	$	0.2		$	0.4		$	—		$	0.6

(A)	Restructuring charges in fiscal year 2014, include $2.9 million with respect to the Fiscal Year 2014 Restructuring Plan. All other activity pertains to the Fiscal Year 2013 Restructuring Plan.

(B)

Restructuring charges in fiscal year 2014 pertains to the Fiscal Year 2013 Restructuring Plan with respect to the closure of the Englewood Colorado facility. Cash payments in fiscal year 2014 pertain to both the closure of the Englewood Colorado facility and the Ultrasonix sales subsidiary in Paris, France. Cash payments in fiscal year 2015 pertain only to the closure of the Englewood Colorado facility.

(C)

Activity in fiscal year 2014 pertains to both the Fiscal Year 2014 Restructuring Plan and the 2013 Restructuring Plan. In fiscal year 2014, the restructuring charges of $2.9 million relate to the Fiscal Year 2014 Restructuring Plan, while restructuring charges of $0.6 million and cash payments of ($2.5) million relate to the Fiscal Year 2013 Restructuring Plan.

(D)

Activity in fiscal year 2015 pertains to both the Fiscal Year 2014 Restructuring Plan and the 2013 Restructuring Plan. In fiscal year 2015, the restructuring adjustments of ($0.3) million and cash payments of ($2.4) million relate to the Fiscal Year 2014 Restructuring Plan, while restructuring adjustments of ($0.1) million and cash payments of ($0.5) million relate to the Fiscal Year 2013 Restructuring Plan.

Restructuring charges are comprised on the Balance Sheet in the following location:


(in millions)	As of July 31, 2015		As of July 31, 2014
Accrued restructuring charges	$	0.6	$	3.4
Other long-term liabilities		—		0.4

Total restructuring and related charges	$	0.6	$	3.8

The cash expenditures remaining to be paid as of July 31, 2015 will be paid within the next twelve months.

Restructuring costs, including actions associated with acquisitions, by segment for fiscal years 2015, 2014 and 2013 are as follows:


	For the Year ended July 31,
(in millions)	2015			2014		2013
Medical Imaging	$	(0.2	)	$	1.7	$	1.1
Ultrasound		(0.1	)		1.4		2.2
Security and Detection		(0.1	)		0.4		0.2

Total restructuring and related charges	$	(0.4	)	$	3.5	$	3.5

Net restructuring and related charges are comprised of the following:


	For the Year ended July 31,
(in millions)	2015			2014			2013
Fiscal Year 2014 Restructuring Plan	$	(0.3	)	$	2.9		$	—
Fiscal Year 2013 Acquisition Related Charges		—			0.8			1.0
Fiscal Year 2013 Restructuring Plan		(0.1	)		(0.2	)		2.5

Restructuring and related charges	$	(0.4	)	$	3.5		$	3.5