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Restructuring

12 Months Ended

Jul. 31, 2012

11. Restructuring

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 EMEA, 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 EMEA, 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.

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 of $12,110, which consisted of $10,944 of employee separation costs, $458 of fixed asset write-offs, $521 of other facility closure related costs, and $187 of contract termination costs. Of the $12,110 of restructuring charges recorded during fiscal 2012, $3,531 was incurred in the Americas, $6,898 was incurred in EMEA, and $1,681 was incurred in Asia-Pacific. The increase in restructuring charges in EMEA during fiscal 2012 compared to fiscal 2011 was related to the die-cut facility in Sweden. 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 during the next twelve months.

A reconciliation of the Company’s restructuring activity for fiscal 2010, 2011 and 2012 is as follows:


	Employee Related			Asset Write-offs			Other			Total
Beginning 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

Restructuring charge	$	10,944		$	458		$	708		$	12,110
Non-cash write-offs		—			(458	)		—			(458	)
Cash payments		(4,342	)		—			(492	)		(4,834	)

Ending balance, July 31, 2012	$	8,809		$	—		$	265		$	9,074

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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