12. Restructuring Charges

Fiscal Year 2016 Restructuring Plan

On September 16, 2015, we announced our fiscal year 2016 restructuring plan. This plan includes the transition of certain manufacturing activities from our Peabody, Massachusetts location to our existing facility in Shanghai, China, and a reduction in force in order to align our research and development investment with expected customer funding. We expect to incur a restructuring charge of approximately $9.9 million under this plan in fiscal year 2016. Restructuring costs are primarily attributable to employee related costs, with other costs attributable to the relocation of existing equipment and project management costs. We incurred pre-tax charges of $8.3 million during the nine months ended April 30, 2016, primarily relating to severance and personnel related costs for terminated employees. We expect that the restructuring plan will be substantially completed during fiscal year 2017.

Fiscal Year 2014 Restructuring Plan

During the fourth quarter of our fiscal year ended July 31, 2014, or 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 from the time that we implemented the plan during the fourth quarter of fiscal year 2014 through April 30, 2016, primarily relating to severance and personnel related costs for involuntarily terminated employees. We expect that the restructuring plan will be completed during fiscal year 2016.

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 $4.1 million through April 30, 2016, primarily relating to severance and personnel related costs of terminated employees, facility exit costs for the closure of our Ultrasonix sales subsidiary in Paris, France, and the closure of our ultrasound transducer operation in Englewood, Colorado as we consolidated our transducer operations in State College, Pennsylvania. This plan also included 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. The lease on the Englewood, Colorado facility was settled in January 2016 and the restructuring plan was completed in the third quarter of fiscal year 2016.

Current Period Activity

The following table summarizes accrued restructuring activities for the three months ended April 30, 2016:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)		Other Restructuring Costs (A)		Total
Balance at January 31, 2016	$	4.7		$	—	$	—	$	4.7
Restructuring charge		1.8			—		—		1.8
Cash payments		(1.1	)		—		—		(1.1	)

Balance at April 30, 2016	$	5.4		$	—	$	—	$	5.4

(A)	Activity during the period pertains to the 2014 and 2016 Restructuring Plans.

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

The following table summarizes accrued restructuring activities for the nine months ended April 30, 2016:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)			Other Restructuring Costs (A)			Total
Balance at July 31, 2015	$	0.2		$	0.4		$	—		$	0.6
Restructuring charge		8.2			—			0.1			8.3
Cash payments		(3.0	)		(0.4	)		(0.1	)		(3.5	)

Balance at April 30, 2016	$	5.4		$	—		$	—		$	5.4

(A)	All activity during the period pertains to the 2014 and 2016 Restructuring Plans.

(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 April 30,					Nine Months Ended April 30,
(in millions)	2016		2015			2016		2015
Medical Imaging	$	1.1	$	(0.1	)	$	5.1	$	(0.2	)
Ultrasound		0.4		—			1.7		(0.1	)
Security and Detection		0.3		—			1.5		—

Total restructuring and related charges	$	1.8	$	(0.1	)	$	8.3	$	(0.3	)

Accrued restructuring charges are classified on the Consolidated Balance Sheets in the Current Liabilities section.