Restructuring

12 Months Ended

Jul. 31, 2011

11. Restructuring

In fiscal 2009, in response to the global economic downturn, the Company took several measures to address its cost structure. In addition to a company-wide salary freeze and decreased discretionary spending, the Company reduced its workforce by 25%. The Company reduced its workforce through voluntary and involuntary separation programs, voluntary retirement programs, and facility consolidations. As a result of these actions, the Company recorded restructuring charges of $25,849 in fiscal 2009. The restructuring charges included $21,279 of employee separation costs, $2,101 of non-cash fixed asset write-offs, $1,194 of other facility closure related costs, and $1,275 of contract termination costs. Of the $25,849 of restructuring charges recorded during the year ended July 31, 2009, $13,928 was incurred in the Americas, $7,730 was incurred in Europe, and $4,191 was incurred in Asia-Pacific.

In fiscal 2010, the Company continued the execution of its restructuring actions announced in fiscal 2009. As a result of these actions, the Company recorded restructuring charges of $15,314 in fiscal 2010. The restructuring charges included $10,850 of employee separation costs, $2,260 of non-cash fixed asset write-offs, $1,493 of other facility closure related costs, and $711 of contract termination costs. Of the $15,314 of restructuring charges recorded during the fiscal year ended July 31, 2010, $7,158 was incurred in the Americas, $5,350 was incurred in Europe, and $2,806 was incurred in Asia-Pacific.

In fiscal 2011, the Company continued executing its restructuring actions initiated in the prior periods and recorded restructuring charges of $9,188. The fiscal 2011 restructuring charges consisted of $6,341 of employee separation costs, $2,155 of non-cash fixed asset write-offs, $449 of other facility closure related costs, and $243 of contract termination costs. Of the $9,188 of restructuring charges recorded during the fiscal year ended July 31, 2011, $5,445 was incurred in the Americas, $3,340 was incurred in Europe, and $403 was incurred in Asia-Pacific. The costs related to these restructuring activities have been recorded on the consolidated statements of income as restructuring charges. The Company expects the majority of the remaining cash payments to be made within the next twelve months.

A reconciliation of the Company’s restructuring activity for fiscal 2009, 2010 and 2011 is as follows:


	Employee			Asset
	Related			Write-offs			Other			Total
Beginning balance, July 31, 2008	$	—		$	—		$	—		$	—
Restructuring charge		21,279			2,101			2,469			25,849
Non-cash write-offs		(368	)		(2,101	)					(2,469	)
Other separation benefits		(1,178	)								(1,178	)
Cash payments		(15,288	)		—			(1,592	)		(16,880	)

Ending balance, July 31, 2009	$	4,445		$	—		$	877		$	5,322

Restructuring charge		10,850			2,260			2,204			15,314
Non-cash write-offs		—			(2,260	)		—			(2,260	)
Cash payments		(9,240	)		—			(2,975	)		(12,215	)

Ending balance, July 31, 2010	$	6,055		$	—		$	106		$	6,161

Restructuring charge		6,341			2,155			692			9,188
Non-cash write-offs		—			(2,155	)		—			(2,155	)
Cash payments		(10,189	)		—			(749	)		(10,938	)

Ending balance, July 31, 2011	$	2,207		$	—		$	49		$	2,256