4. 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 incurred pre-tax charges of $9.6 million during the fiscal year 2016, primarily relating to severance and personnel related costs for 117 terminated employees, with other costs attributable to the relocation of existing equipment and project management costs, which are recognized in our Consolidated Statement of Operations under restructuring. The $9.6 million charge was recorded in the operating results of our Medical Imaging, Ultrasound, and Security and Detection segments, with charges of $6.0 million, $1.9 million, and $1.7 million, respectively. We expect that the restructuring plan will be substantially completed during fiscal year 2017.

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 during the fiscal year 2014, 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. The restructuring plan was completed in the fourth quarter of 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. 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.

The following table summarizes accrued restructuring costs activity from July 31, 2014 through July 31, 2016:


(in millions)	Employee Severance and Benefits (A)			Facility Exit Costs (B)			Acquisition Related Charges (A)			Other Restructuring Cost			Total (C) (D)
Balance at July 31, 2014	$	2.9		$	0.8		$	0.1		$	—		$	3.8
Restructuring Charge		(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

Restructuring Charge		9.4			—			—			0.2			9.6
Cash payments		(4.4	)		(0.4	)		—			(0.2	)		(5.0	)

Balance at July 31, 2016	$	5.2		$	(0.0	)	$	—		$	—		$	5.2

(A)	Restructuring charges in fiscal year 2016, include $9.6 million with respect to the Fiscal Year 2016 Restructuring Plan.

(B)	Cash payments in fiscal year 2015 & 2016 pertain only to the closure of the Englewood Colorado facility.

(C)

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.

(D)

Activity in fiscal year 2016 pertains to the Fiscal Year 2016 Restructuring Plan, the Fiscal Year 2014 Restructuring Plan and the 2013 Restructuring Plan. In fiscal year 2016, there were restructuring charges of $9.6 million and cash payments of ($4.4) million related to the Fiscal Year 2016 Restructuring Plan, while there were cash payments of ($0.2) million and ($0.4) million related to the Fiscal Year 2014 Restructuring Plan and Fiscal Year 2013 Restructuring Plan, respectively.

Restructuring charges are comprised on the Balance Sheet within accrued restructuring charges. The cash expenditures remaining to be paid as of July 31, 2016 will be paid within the next twelve months.

Restructuring costs, including actions associated with acquisitions, by segment for fiscal years 2016, 2015 and 2014 are as follows:


	For the Year ended July 31,
(in millions)	2016		2015			2014
Medical Imaging	$	6.0	$	(0.2	)	$	1.7
Ultrasound		1.9		(0.1	)		1.4
Security and Detection		1.7		(0.1	)		0.4

Total restructuring and related charges	$	9.6	$	(0.4	)	$	3.5

Net restructuring and related charges are comprised of the following:


	For the Year ended July 31,
(in millions)	2016		2015			2014
Fiscal Year 2016 Restructuring Plan	$	9.6	$	—		$	—
Fiscal Year 2014 Restructuring Plan		—		(0.3	)		2.9
Fiscal Year 2013 Acquisition Related Charges		—		—			0.8
Fiscal Year 2013 Restructuring Plan		—		(0.1	)		(0.2	)

Restructuring and related charges	$	9.6	$	(0.4	)	$	3.5