Restructuring

During the quarter ended October 31, 2013, the Company’s Board of Directors approved a restructuring plan to consolidate facilities in North America, Europe and Asia. The Company is implementing the restructuring plan to enhance customer service, improve efficiency of operations and reduce operating expenses. The Company expects to incur pre-tax charges of approximately $30 million in fiscal 2014 due primarily to facility consolidation activities. While it is expected the majority of this restructuring will be complete by the end of fiscal 2014, the timing of facility consolidations could change, which could impact the amount of restructuring charges recorded in fiscal 2014. The Company expects approximately $10 million in annualized, pre-tax operational savings from these restructuring activities.

In fiscal 2013, the Company implemented a restructuring plan to reduce its global workforce to address its cost structure, with annual savings of approximately $25 million exclusive of reinvestments into ongoing business initiatives.

As a result of these restructuring plans, the Company incurred restructuring charges during the three months ended October 31, 2013 of $6,840 in continuing operations. These restructuring charges consisted of $6,492 of employee separation costs, which included $883 of separation costs related to the former CEO, and $348 of other facility closure related costs. Of the $6,840 of restructuring charges recorded during the quarter, $3,977 was incurred within IDS and $2,863 within WPS.

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.

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



	Employee Related			Other			Total
Beginning balance, July 31, 2013	$	11,475		$	2,731		$	14,206
Restructuring charges in continuing operations	6,492			348			6,840
Restructuring charges in discontinued operations	93			—			93
Cash payments	(6,911		)	(1,765		)	(8,676		)
Ending balance, October 31, 2013	$	11,149		$	1,314		$	12,463