4. Restructuring charges

Fiscal Year 2017 Restructuring Plan

On March 6, 2017, the Company announced the 2017 Restructuring Plan, which primarily focused on the restructuring of the Ultrasound business, designed to improve profitability and provide consistent long term growth. As part of the 2017 Restructuring Plan, the Company will consolidate the activities currently conducted in Vancouver, British Columbia with its existing operations in Copenhagen, Denmark and Peabody, Massachusetts and the Company was substantially out of the Vancouver facility at the end fiscal 2017. The Company intends to re-size its U.S. sales, global marketing as well as general and administration organizations in-line with its objectives. These activities will result in a workforce reduction of approximately 130 employees. We incurred pre-tax charges of $7.2 million during the fiscal year 2017, this cost consisted of severance and personnel related cost for 130 terminated employees as well as cost for the relocation of existing equipment and project management cost, which are recognized in our Consolidated Statement of Operations under restructuring. The $7.2 million charge was recorded in the operating results of our Medical Imaging, Ultrasound, and Security and Detection segments, with charges of $1.4 million, $5.5 million, and $0.3 million, respectively. We expect that the restructuring plan will be substantially completed during fiscal year 2018.

Fiscal Year 2016 Restructuring Plan

On September 16, 2015, the Company announced our fiscal year 2016 restructuring plan, or 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. The 2016 Restructuring Plan was completed during the fourth quarter of fiscal year 2017.

The following table summarizes accrued restructuring costs activity from July 31, 2015 through July 31, 2017:

	Employee
	Severance			Facility			Other
	and			Exit			Restructuring
(in millions)	Benefits (A)			Costs (B)			Cost (C)			Total (D) (E)
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
Restructuring Charge		5.1			0.1			2.0			7.2
Cash payments		(7.6	)		-			(0.1	)		(7.7	)
Non-cash adjustments					-			(1.9	)		(1.9	)
Balance at July 31, 2017	$	2.7		$	0.1		$	-		$	2.8

(A)	Restructuring charges in fiscal year 2017, include $5.1 million with respect to the Fiscal Year 2017 Restructuring Plan.

(B)	Cash payments in fiscal year 2016 pertain only to the closure of the Englewood Colorado facility. In fiscal 2017 there were $0.1 million of restructuring charges associated to the exit of the Charlottesville facility as part of our strategic strategy to reorganize the business cost.

(C)	In fiscal year 2017, there were non-cash adjustments of ($1.9) million related to fixed asset write-offs that were incurred due to strategic changes in the Oncura, Sonic Window and Ultrasound portfolio.

(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.

(E)

Activity in fiscal year 2017 pertains to the Fiscal Year 2017 Restructuring Plan and the Fiscal Year 2016 Restructuring Plan. In fiscal year 2017, there were restructuring charges of $7.2 million and cash payments of ($2.5) million related to the Fiscal Year 2017 Restructuring Plan, while there were cash payments of ($5.2) million related to the Fiscal Year 2016 Restructuring.

Restructuring costs, including actions associated with acquisitions, by segment for fiscal years 2017, 2016 and 2015 are as follows:

	For the Year ended
	July 31,
(in millions)	2017		2016		2015
Medical Imaging	$	1.4	$	6.0	$	(0.2	)
Ultrasound		5.5		1.9	$	(0.1	)
Security and Detection		0.3		1.7	$	(0.1	)
Total restructuring and related charges	$	7.2	$	9.6	$	(0.4	)

Net restructuring and related charges are comprised of the following:

	For the Year ended
	July 31,
(in millions)	2017		2016		2015
Fiscal Year 2017 Restructuring Plan	$	7.2	$	-	$	-
Fiscal Year 2016 Restructuring Plan		-		9.6		-
Fiscal Year 2014 Restructuring Plan		-		-		(0.3	)
Fiscal Year 2013 Restructuring Plan		-		-		(0.1	)
Restructuring and related charges	$	7.2	$	9.6	$	(0.4	)