XML 37 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
RESTRUCTURING AND OTHER CHARGES, NET (Tables)
 9 Months Ended
Apr. 30, 2014
Restructuring and Related Activities [Abstract]  
Summary of Restructuring and Other Charges
The following tables summarize the restructuring and other charges (“ROTC”) recorded in the three and nine months ended April 30, 2014 and April 30, 2013:
 
Three Months Ended Apr 30, 2014
 
Nine Months Ended Apr 30, 2014
 
Restructuring
(1)
 
Other
(Gains)/
Charges
(2)
 
Total
 
Restructuring
(1)
 
Other
(Gains)/
Charges
(2)
 
Total
Severance benefits and other employment contract obligations
$
8,289

 
$
—

 
$
8,289

 
$
18,751

 
$
(402
)
 
$
18,349

Professional fees and other costs, net of receipt of insurance claim payments
567

 
1,498

 
2,065

 
2,704

 
3,693

 
6,397

(Gain)/loss on sale and impairment of assets, net
3,986

 
(1,640
)
 
2,346

 
3,986

 
(1,480
)
 
2,506

Environmental matters
—

 
—

 
—

 
—

 
4,440

 
4,440

Reversal of excess restructuring reserves
(1,158
)
 
—

 
(1,158
)
 
(1,782
)
 
—

 
(1,782
)
 
$
11,684

 
$
(142
)
 
$
11,542

 
$
23,659

 
$
6,251

 
$
29,910

 
 
 
 
 
 
 
 
 
 
 
 
Cash
$
7,698

 
$
(142
)
 
$
7,556

 
$
19,673

 
$
6,091

 
$
25,764

Non-cash
3,986

 
—

 
3,986

 
3,986

 
160

 
4,146

 
$
11,684

 
$
(142
)
 
$
11,542

 
$
23,659

 
$
6,251

 
$
29,910

 
Three Months Ended Apr 30, 2013
 
Nine Months Ended Apr 30, 2013
 
Restructuring
(1)
 
Other
(Gains)/
Charges
(2)
 
Total
 
Restructuring
(1)
 
Other
(Gains)/
Charges
(2)
 
Total
Severance benefits and other employment contract obligations
$
5,701

 
$
1,452

 
$
7,153

 
$
10,896

 
$
2,903

 
$
13,799

Professional fees and other costs, net of receipt of insurance claim payments
361

 
531

 
892

 
1,149

 
2,117

 
3,266

(Gain)/loss on sale and impairment of assets, net
999

 
1,357

 
2,356

 
993

 
1,357

 
2,350

Environmental matters
—

 
2,715

 
2,715

 
—

 
2,715

 
2,715

Reversal of excess restructuring reserves
(292
)
 
—

 
(292
)
 
(633
)
 
—

 
(633
)
 
$
6,769

 
$
6,055

 
$
12,824

 
$
12,405

 
$
9,092

 
$
21,497

 
 
 
 
 
 
 
 
 
 
 
 
Cash
$
5,770

 
$
4,185

 
$
9,955

 
$
11,007

 
$
6,709

 
$
17,716

Non-cash
999

 
1,870

 
2,869

 
1,398

 
2,383

 
3,781

 
$
6,769

 
$
6,055

 
$
12,824

 
$
12,405

 
$
9,092

 
$
21,497


(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 nine months ended April 30, 2014 and April 30, 2013 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above.
Restructuring charges in the three and nine months ended April 30, 2014 also includes the impairment of assets of $3,986 related to the discontinuance of a specific manufacturing line due to excess capacity as a result of recent acquisitions.
(2) Other (Gains)/Charges:
Severance benefits and other employment contract obligations: In the three and nine months ended April 30, 2013, the Company recorded charges related to certain employment contract obligations.
Professional fees and other: In the three months ended April 30, 2014, the Company recorded costs related to the settlement of a legal matter. Furthermore, in the three and nine months ended April 30, 2014, the Company recorded acquisition related legal and other professional fees. In the three and nine months ended April 30, 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).
Gain on sale and impairment of assets: In the three months ended April 30, 2014, the Company recorded a gain on the sale of a building in Europe. In the three months ended April 30, 2013, the Company recorded an impairment related to a software project.
Environmental matters: As discussed in Note 5, Contingencies and Commitments, in the nine months ended April 30, 2014, the Company increased its previously established environmental reserve related to a matter in Pinellas Park, Florida. In the three months ended April 30, 2013, the Company increased its previously established environmental reserve related to a matter in Glen Cove, New York.
Schedule of Summarized Activity Relating to Restructuring
he 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
18,751

 
2,704

 
21,455

Utilized
(18,996
)
 
(2,533
)
 
(21,529
)
Reversal of excess reserves
(1,682
)
 
(100
)
 
(1,782
)
Translation
628

 
63

 
691

Balance at Apr 30, 2014
$
24,941

 
$
1,607

 
$
26,548

Excluded from the table above are restructuring liabilities relating to restructuring plans initiated in fiscal year 2010. At April 30, 2014, the balance of these liabilities was $213.