11. Restructuring

In fiscal 2011, the Company continued executing its restructuring actions initiated in the prior periods and recorded restructuring charges of $6,451 in continuing operations. The fiscal 2011 restructuring charges consisted of $4,338 of employee separation costs, $1,577 of non-cash fixed asset write-offs, $293 of other facility closure related costs, and $243 of contract termination costs. Of the $6,451 of restructuring charges recorded during the fiscal year ended July 31, 2011, $2,896 was incurred within IDS and $3,555 within WPS. The costs related to these restructuring activities have been recorded on the consolidated statements of earnings as restructuring charges.

During fiscal 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 in continuing operations of $6,084, which consisted of $4,947 of employee separation costs, $458 of fixed asset write-offs, $653 of other facility closure related costs, and $26 of contract termination costs. Of the $6,084 of restructuring charges recorded during fiscal 2012, $4,254 was incurred within IDS and $1,830 within WPS.

In fiscal 2013, the Company announced a restructuring action to reduce its global workforce by approximately 5-7% in order to address its cost structure. In connection with this restructuring action, the Company incurred restructuring charges of $26,046 in continuing operations. These charges consisted of $18,350 of employee separation costs, $4,125 of fixed asset write-offs and $3,571 of other facility closure related costs. Of the $26,046 of restructuring charges recorded during fiscal 2013, $15,870 was incurred within IDS and $10,176 within WPS. The charges for employee separation costs consisted of severance pay, outplacement services, medical and other benefits. Long-lived asset write-offs include both the net book value of property, plant and equipment written off in conjunction with facility consolidations, as well as indefinite-lived tradenames written off in conjunction with brand consolidations within the WPS segment.

The costs related to these restructuring activities were recorded on the 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. The liability is included in wages and amounts withheld from employees on the consolidated balance sheet.

A roll-forward of the Company’s restructuring activity for fiscal 2011, 2012 and 2013 is below.



	Employee Related			Asset Write-offs			Other			Total
Restructuring liability ending balance, July 31, 2010	$	6,055		$	—		$	106		$	6,161
Restructuring charges in continuing operations	4,338			1,577			536			6,451
Restructuring charges in discontinued operations	2,003			578			157			2,738
Non-cash write-offs	—			(2,155		)	—			(2,155		)
Cash payments	(10,189		)	—			(749		)	(10,938		)
Restructuring liability ending balance, July 31, 2011	$	2,207		$	—		$	50		$	2,257
Restructuring charges in continuing operations	$	4,947		$	458		$	679		$	6,084
Restructuring charges in discontinued operations	5,997			—			29			6,026
Non-cash write-offs	—			(458		)	—			(458		)
Cash payments	(4,342		)	—			(492		)	(4,834		)
Restructuring liability ending balance, July 31, 2012	$	8,809		$	—		$	266		$	9,075
Restructuring charges in continuing operations	$	18,350		$	4,125		$	3,571		$	26,046
Restructuring charges in discontinued operations	2,811			362			1,376			4,549
Non-cash write-offs	—			(4,487		)	—			(4,487		)
Cash payments	(18,495		)	—			(2,482		)	(20,977		)
Restructuring liability ending balance, July 31, 2013	$	11,475		$	—		$	2,731		$	14,206