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, 2015 and January 31, 2014:



	Three Months Ended Jan 31, 2015								Six Months Ended Jan 31, 2015
	Restructuring (1)			Other Charges/(Gains) (2)		Total			Restructuring (1)			Other Charges/(Gains) (2)		Total
Severance benefits and other employment contract obligations	$	6,271		$	—	$	6,271		$	15,021		$	—	$	15,021
Professional fees and other costs, net of receipt of insurance claim payments	438			197		635			990			245		1,235
Impairment of assets	4,334			1,620		5,954			4,334			1,620		5,954
Reversal of excess restructuring reserves	(1,326		)	—		(1,326		)	(1,436		)	—		(1,436		)
	$	9,717		$	1,817	$	11,534		$	18,909		$	1,865	$	20,774
Cash	$	5,383		$	197	$	5,580		$	14,575		$	245	$	14,820
Non-cash	4,334			1,620		5,954			4,334			1,620		5,954
	$	9,717		$	1,817	$	11,534		$	18,909		$	1,865	$	20,774



	Three Months Ended Jan 31, 2014									Six Months Ended Jan 31, 2014
	Restructuring (1)			Other Charges/(Gains) (2)			Total			Restructuring (1)			Other Charges/(Gains) (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
Impairment of assets	—			—			—			—			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

(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 and global 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, 2015 and January 31, 2014 primarily reflect the expenses incurred in connection with the Company’s structural cost improvement initiative as discussed above. Restructuring charges recorded in the three and six months ended January 31, 2015 also include the impairment of assets related to the exit of an immaterial product line.

(2) Other Charges/(Gains):

Severance benefits and other employment contract obligations: In the three and six months ended January 31, 2014, the Company recorded adjustments 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.

Impairment of assets: In the three months ended January 31, 2015, the Company recorded an impairment related to a redundant software project.

Environmental matters: 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 July 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 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
Additions	15,021			990			16,011
Utilized	(17,997		)	(1,207		)	(19,204		)
Reversal of excess reserves	(1,429		)	(7		)	(1,436		)
Translation	(2,563		)	(103		)	(2,666		)
Balance at January 31, 2015	$	19,204		$	901		$	20,105