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RESTRUCTURING AND OTHER CHARGES, NET (Tables)
 12 Months Ended
Jul. 31, 2014
Restructuring and Related Activities [Abstract]  
Summary of Restructuring and Other Charges
The following tables summarize the restructuring and other charges (“ROTC”) recorded in fiscal years 2014, 2013 and 2012:
2014
 
Restructuring (1)
 
Other
Charges/(Gains) (2)
 
Total
Severance benefits and other employment contract obligations
 
$
27,803

 
$
(402
)
 
$
27,401

Professional fees and other costs, net of receipt of insurance claim payments
 
4,419

 
3,402

 
7,821

(Gain)/loss on sale and impairment of assets, net
 
4,002

 
(1,480
)
 
2,522

Environmental matters
 
—

 
4,440

 
4,440

Reversal of excess restructuring reserves
 
(2,030
)
 
—

 
(2,030
)
 

$
34,194

 
$
5,960

 
$
40,154

 
 
 
 
 
 
 
Cash
 
$
30,192

 
$
6,102

 
$
36,294

Non-cash
 
4,002

 
(142
)
 
3,860

 
 
$
34,194

 
$
5,960

 
$
40,154

2013
 
Restructuring (1)
 
Other
Charges/(Gains)(2)
 
Total
Severance benefits and other employment contract obligations
 
$
22,526

 
$
3,316

 
$
25,842

Professional fees and other costs, net of receipt of insurance claim payments
 
2,840

 
1,396

 
4,236

(Gain)/loss on sale and impairment of assets, net
 
993

 
1,358

 
2,351

Environmental matters
 
—

 
8,415

 
8,415

Reversal of excess restructuring reserves
 
(662
)
 
—

 
(662
)
 
 
$
25,697

 
$
14,485

 
$
40,182

 
 
 
 
 
 
 
Cash
 
$
23,410

 
$
12,102

 
$
35,512

Non-cash
 
2,287

 
2,383

 
4,670

 
 
$
25,697

 
$
14,485

 
$
40,182

2012
 
Restructuring (1)
 
Other
Charges/(Gains) (2)
 
Total
Severance benefits and other employment contract obligations
 
$
61,852

 
$
11,436

 
$
73,288

Professional fees and other costs, net of receipt of insurance claim payments
 
3,448

 
187

 
3,635

(Gain)/loss on sale and impairment of assets, net
 
766

 
(10,754
)
 
(9,988
)
Reversal of excess restructuring reserves
 
(77
)
 
—

 
(77
)
 
 
$
65,989

 
$
869

 
$
66,858

 
 
 
 
 
 
 
Cash
 
$
63,717

 
$
(3,064
)
 
$
60,653

Non-cash
 
2,272

 
3,933

 
6,205

 
 
$
65,989

 
$
869

 
$
66,858


(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 fiscal year 2014 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above. Restructuring charges in fiscal year 2014 also includes the impairment of assets of $4,002 related to the discontinuance of a specific manufacturing line due to excess capacity as a result of recent acquisitions.
Restructuring charges recorded in fiscal year 2013 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above.
Restructuring charges recorded in fiscal year 2012 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above. Restructuring charges in fiscal year 2012 also include asset impairment charges related to the above mentioned initiative, partly offset by a gain on the divestiture of a non-strategic asset group.
(2) Other Charges/(Gains):
Severance benefits and other employment contract obligations: In fiscal years 2013 and 2012, the Company recorded charges related to certain employment contract obligations. In fiscal year 2014, the Company recorded an adjustment related to these employment contract obligations.
Professional fees and other: In fiscal year 2014, the Company recorded costs related to the settlement of a legal matter, as well as acquisition-related legal and other professional fees.
In fiscal years 2014 and 2013, the Company recorded costs related to the demolition of a vacant facility.
In fiscal years 2013 and 2012, the Company recorded legal and other professional fees related to the Federal Securities Class Actions, Shareholder Derivative Lawsuits and Other Proceedings which pertain to matters that had been under audit committee inquiry (see Note 2, Audit Committee Inquiry and Restatement, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2007). Furthermore, in fiscal years 2013 and 2012, the Company recorded costs and reserve adjustments related to the settlement of the Federal Securities Class Actions and Shareholder Derivative Lawsuits and Other Proceedings. The receipt of insurance claim payments partly offset such costs in fiscal years 2013 and 2012. Refer to Note 14, Contingencies and Commitments, for further discussion of this matter.
Gain on sale and impairment of assets: In fiscal year 2014 , the Company recorded a gain on the sale of a building in Europe. In fiscal year 2013, the Company recorded an impairment related to a software project. In fiscal year 2012, the Company recorded a gain on the sale of assets related to a sale of a building in Europe as well as a gain of $9,196 on the sale of the Company’s investment in Satair A/S.
Environmental matters: In fiscal year 2014, the Company increased its previously established environmental reserve related to a matter in Pinellas Park, Florida. In fiscal year 2013, the Company increased its previously established environmental reserves primarily related to matters at its Ann Arbor, Michigan and Glen Cove, New York sites. Refer to Note 14, Contingencies and Commitments, for further discussion of these matters.
Schedule of Summarized Activity Relating to Restructuring
The following table summarizes the activity related to restructuring liabilities that were recorded for the Company’s structural cost improvement initiatives that 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 July 31, 2012
$
34,364

 
$
603

 
$
34,967

Additions (a)
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 July 31, 2013
$
26,240

 
$
1,473

 
$
27,713

Additions
27,803

 
4,419

 
32,222

Utilized
(26,178
)
 
(4,596
)
 
(30,774
)
Reversal of excess reserves
(1,923
)
 
(107
)
 
(2,030
)
Translation
230

 
39

 
269

Balance at July 31, 2014
$
26,172

 
$
1,228

 
$
27,400

(a)
Excludes pension plan settlement charge of $889.