RESTRUCTURING AND OTHER CHARGES, NET

The following tables summarize the restructuring and other charges (“ROTC”) recorded in the three and six months ended January 31, 2014 and January 31, 2013:



	Three Months Ended Jan 31, 2014									Six Months Ended Jan 31, 2014
	Restructuring (1)			Other (Gains)/ Charges (2)			Total			Restructuring (1)			Other (Gains)/ Charges (2)			Total
Severance benefits and other employment contract obligations	$	7,347		$	(844	)	$	6,503		$	10,462		$	(402	)	$	10,060
Professional fees and other costs, net of receipt of insurance claim payments	894			2,053			2,947			2,137			2,195			4,332
(Gain)/loss on sale and impairment of assets, net	—			—			—			—			160			160
Environmental matters	—			—			—			—			4,440			4,440
Reversal of excess restructuring reserves	(280		)	—			(280		)	(624		)	—			(624		)
	$	7,961		$	1,209		$	9,170		$	11,975		$	6,393		$	18,368

Cash	$	7,961		$	1,209		$	9,170		$	11,975		$	6,233		$	18,208
Non-cash	—			—			—			—			160			160
	$	7,961		$	1,209		$	9,170		$	11,975		$	6,393		$	18,368



	Three Months Ended Jan 31, 2013								Six Months Ended Jan 31, 2013
	Restructuring (1)			Other (Gains)/ Charges (2)		Total			Restructuring (1)			Other (Gains)/ Charges (2)		Total
Severance benefits and other employment contract obligations	$	1,916		$	1,451	$	3,367		$	5,195		$	1,451	$	6,646
Professional fees and other costs, net of receipt of insurance claim payments	345			887		1,232			788			1,586		2,374
(Gain)/loss on sale and impairment of assets, net	(49		)	—		(49		)	(6		)	—		(6		)
Reversal of excess restructuring reserves	(151		)	—		(151		)	(341		)	—		(341		)
	$	2,061		$	2,338	$	4,399		$	5,636		$	3,037	$	8,673

Cash	$	1,705		$	1,825	$	3,530		$	5,237		$	2,524	$	7,761
Non-cash	356			513		869			399			513		912
	$	2,061		$	2,338	$	4,399		$	5,636		$	3,037	$	8,673

(1) Restructuring:

In fiscal year 2012, the Company announced a multi-year strategic cost reduction initiative (“structural cost improvement initiative”). This initiative impacts both segments as well as the Corporate Services Group. The goal of this initiative is to properly position the Company’s cost structure globally to perform in the current economic environment without adversely impacting its growth or innovation potential.

Key components of the structural cost improvement initiative include:


•	the strategic alignment of manufacturing, sales and R&D facilities to cost-effectively deliver high-quality products and superior service to the Company’s customers worldwide,


•	creation of regional shared financial services centers for the handling of accounting transaction processing and other accounting functions,


•	reorganization of sales functions, to more cost-efficiently deliver superior service to the Company’s customers globally, and


•	reductions in headcount across all functional areas, enabled by efficiencies gained through the Company’s ERP systems, as well as in order to align to economic conditions.

Restructuring charges recorded in the three and six months ended January 31, 2014 and January 31, 2013 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above.

(2) Other (Gains)/Charges:

Severance benefits and other employment contract obligations: In the three months ended January 31, 2013, the Company recorded charges related to certain employment contract obligations.

Professional fees and other: In the three months ended January 31, 2014, the Company recorded acquisition related legal and other professional fees. In the three and six months ended January 31, 2013, the Company recorded settlement related costs as well as legal and other professional fees, related to the Federal Securities Class Actions, Shareholder Derivative Lawsuits and Other Proceedings (see Note 14, Contingencies and Commitments, in the 2013 Form 10-K). The receipt of insurance claim payments partly offset these costs for the six months ended January 31, 2013.

Environmental matters: As discussed in Note 5, Contingencies and Commitments, in the six months ended January 31, 2014, the Company increased its previously established environmental reserve related to a matter in Pinellas Park, Florida.

The following table summarizes the activity related to restructuring liabilities recorded for the Company’s structural cost improvement initiative which began in fiscal year 2012:



	Severance			Other			Total
Original charge	$	61,852		$	3,448		$	65,300
Utilized	(27,365		)	(2,798		)	(30,163		)
Translation	(123		)	(47		)	(170		)
Balance at Jul 31, 2012	$	34,364		$	603		$	34,967
Additions	21,637			2,840			24,477
Utilized	(29,574		)	(1,936		)	(31,510		)
Reversal of excess reserves	(500		)	(57		)	(557		)
Translation	313			23			336
Balance at Jul 31, 2013	$	26,240		$	1,473		$	27,713
Additions	10,462			2,137			12,599
Utilized	(12,787		)	(1,592		)	(14,379		)
Reversal of excess reserves	(506		)	(118		)	(624		)
Translation	306			36			342
Balance at Jan 31, 2014	$	23,715		$	1,936		$	25,651

Excluded from the table above are restructuring liabilities relating to restructuring plans initiated in fiscal year 2010. At January 31, 2014, the balance of these liabilities was $216.