13. Restructuring

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.

In fiscal 2014, the Company announced a restructuring plan to consolidate facilities in North America, Europe and Asia. The Company implemented this restructuring plan to enhance customer service, improve efficiency of operations and reduce operating expenses. In connection with this restructuring plan, the Company incurred restructuring charges of $15,012 in continuing operations in fiscal 2014. These charges consisted of $9,328 of employee separation costs, $4,374 of facility closure related costs, $1,043 of contract termination costs, and $267 of non-cash asset write-offs. Of the $15,012 of restructuring charges recorded during fiscal 2014, $9,013 was incurred within IDS and $5,999 was incurred within WPS. The charges for employee separation costs consisted of severance pay, outplacement services, medical and other benefits. Non-cash asset write-offs consist mainly of fixed assets written off in conjunction with facility consolidations. Facility consolidation activities will extend into fiscal 2015 and will result in approximately $15 million of additional restructuring charges.

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 sheets.

A roll-forward of the Company’s restructuring activity for fiscal 2014, 2013 and 2012 is below.



	Employee Related			Asset Write-offs			Other Facility Closure/Lease Termination Costs			Total
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
Restructuring charges in continuing operations	$	9,328		$	267		$	5,417		$	15,012
Restructuring charges in discontinued operations	6,615			299			75			6,989
Non-cash write-offs	—			(566		)	—			(566		)
Cash payments	(24,029		)	—			(6,617		)	(30,646		)
Restructuring liability ending balance, July 31, 2014	$	3,389		$	—		$	1,606		$	4,995