13. Restructuring

In fiscal 2013, the Company announced a restructuring action to reduce its global workforce 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. 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 the Americas, Europe, and Asia to enhance customer service, improve efficiency of operations and reduce operating expenses. The restructuring charges of $15,012 in continuing operations in fiscal 2014 related to the fiscal 2013 and fiscal 2014 restructuring plans and 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. Non-cash asset write-offs consist mainly of fixed assets written off in conjunction with facility consolidations.

Facility consolidation activities extended into fiscal 2015. In connection with this restructuring plan, the Company incurred restructuring charges of $16,821 in continuing operations in fiscal 2015. These charges consisted of $5,465 of employee separation costs, $5,209 of facility closure related costs, $1,979 of contract termination costs, and $4,168 of non-cash asset write-offs. Of the $16,821 of restructuring charges recorded during fiscal 2015, $12,104 was incurred within IDS and $4,717 was incurred within WPS. Non-cash asset write-offs consist mainly of fixed assets written off in conjunction with facility consolidations.

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 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 2015, 2014 and 2013 is below.



	Employee Related			Asset Write-offs			Other Facility Closure/Lease Termination Costs			Total
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
Restructuring charges in continuing operations	$	5,465		$	4,168		$	7,188		$	16,821
Restructuring charges in discontinued operations	—			(4		)	245			241
Non-cash write-offs	—			(4,164		)	—			(4,164		)
Cash payments	(7,696		)	—			(6,681		)	(14,377		)
Restructuring liability ending balance, July 31, 2015	$	1,158		$	—		$	2,358		$	3,516