Restructuring

During the three months ended April 30, 2013, the Company announced a restructuring action to reduce approximately 5-7% of its global workforce in order to address its cost structure. In connection with this restructuring action, the Company incurred restructuring charges of $8,540 and $10,487 in continuing operations during the three and nine months ended April 30, 2013, respectively. Of the $10,487 recognized in continuing operations during the nine months ended April 30, 2013, $1,947 was incurred during the second quarter ended January 31, 2013, and related primarily to restructuring costs incurred as part of the acquisition of PDC.

The three months restructuring charges of $8,540 consisted of $2,863 of employee separation costs, $3,423 of long-lived asset write-offs, and $2,254 of other facility closure related costs. Of the $8,540 of restructuring charges recorded during the quarter, $5,067 was incurred in the Americas and $3,473 was incurred in EMEA.

The year-to-date restructuring charges of $10,487 consisted of $4,829 of employee separation costs, $3,423 of long-lived asset write-offs, and $2,235 of other facility closure related costs. Of the $10,487 of restructuring charges recorded during fiscal 2013, $6,534 was incurred in the Americas, $3,816 was incurred in EMEA, and $137 was incurred in Asia-Pacific. The Company expects to incur approximately an additional $13-$16 million in restructuring in the fourth quarter of fiscal 2013 associated with this plan, which includes tradename write-offs in conjunction with brand consolidation. The charges for employee separation costs consisted of severance pay, outplacement services, medical and other benefits. The costs related to these restructuring activities were recorded on the condensed consolidated statements of earnings as restructuring charges. The Company expects the majority of the remaining cash payments to be made during the next twelve months.

During the three months ended April 30, 2012, the Company took various measures to address its cost structure in response to weaker sales forecasts across the Company. As a result of these actions, the Company recorded restructuring charges of $1,977, which consisted of $1,006 of employee separation costs, $458 of fixed asset write-offs, and $513 of other facility closure related costs. Of the $1,977 of restructuring charges recorded during the three months ended April 30, 2012, $1,709 was incurred in the Americas, $258 was incurred in EMEA, and $10 was incurred in Asia-Pacific.

A reconciliation of the Company’s restructuring liability is as follows:



	Employee Related			Asset Write-offs			Other			Total
Beginning balance, July 31, 2012	$	8,809		$	—		$	265		$	9,074
Restructuring charges in continuing operations	4,829			3,423			2,235			10,487
Restructuring charges in discontinued operations	1,337			283			1,344			2,964
Non-cash write-offs	—			(3,706		)	—			(3,706		)
Cash payments	(10,239		)	—			(1,946		)	(12,185		)
Ending balance, April 30, 2013	$	4,736		$	—		$	1,898		$	6,634