NOTE 7 - RESTRUCTURING AND OTHER CHARGES, NET

The following tables summarize the restructuring and other charges (“ROTC”) recorded for the three and nine months ended April 30, 2011 and April 30, 2010:

	Three Months Ended Apr. 30, 2011								Nine Months Ended Apr. 30, 2011
				Other								Other
				Charges/								Charges/
	Restructuring			(Income)					Restructuring			(Income)
	(1)			(2)		Total			(1)			(2)			Total
Employment contract	$	716		$	4,631	$	5,347		$	4,169		$	4,631		$	8,800
obligations and other
severance benefits
Professional fees and
other costs, net of
receipt of insurance
claim payments		1,431			891		2,322			4,151			272			4,423
Environmental matters,
net of receipt of
insurance claim
payment		–			59		59			–			709			709
Reversal of excess
restructuring reserves		(5	)		–		(5	)		(11	)		–			(11	)
	$	2,142		$	5,581	$	7,723		$	8,309		$	5,612		$	13,921

Cash	$	2,142		$	3,241	$	5,383		$	8,309		$	3,272		$	11,581
Non-cash		–			2,340		2,340			–			2,340			2,340
	$	2,142		$	5,581	$	7,723		$	8,309		$	5,612		$	13,921

	Three Months Ended Apr. 30, 2010								Nine Months Ended Apr. 30, 2010
				Other								Other
				Charges/								Charges/
	Restructuring			(Income)					Restructuring			(Income)
	(1)			(2)		Total			(1)			(2)			Total
Severance	$	218		$	–	$	218		$	2,510		$	–		$	2,510
Professional fees and
other costs, net of
receipt of insurance
claim payments		1,382			406		1,788			4,570			(799	)		3,771
Environmental matters		–			50		50			–			991			991
Asset impairment/gain on
sale		(26	)		–		(26	)		237			(774	)		(537	)
Reversal of excess
restructuring reserves		–			–		–			(76	)		–			(76	)
	$	1,574		$	456	$	2,030		$	7,241		$	(582	)	$	6,659

Cash	$	1,600		$	456	$	2,056		$	6,265		$	(582	)	$	5,683
Non-cash		(26	)		–		(26	)		976			–			976
	$	1,574		$	456	$	2,030		$	7,241		$	(582	)	$	6,659

(1) Restructuring:

Restructuring charges reflect the expenses incurred in connection with the Company’s cost reduction initiatives. Severance costs recorded in the quarter and nine months of fiscal year 2011 relate to the planned closure of a manufacturing facility in Europe.

(2) Other Charges:

Employment contract obligations and other severance benefits :

In the three months ended April 30, 2011, the Company recorded charges related to certain employment contract obligations.

Professional fees and other costs :

In the three and nine months ended April 30, 2011 and April 30, 2010, the Company recorded legal and other professional fees related to the Federal Securities Class Actions, Shareholder Derivative Lawsuits and Other Proceedings (see Note 6, Contingencies and Commitments) which pertain to matters that had been under audit committee inquiry as discussed in 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 (“2007 Form 10-K”). The receipt of insurance claim payments recorded in the nine months ended April 30, 2011 and April 30, 2010, partly offset such costs in the nine months ended April 30, 2011 and more than offset such costs in the nine months ended April 30, 2010.

Environmental matters :

In the three months and nine months ended April 30, 2011, the Company increased its previously established environmental reserve related to matters in Ann Arbor, Michigan. In the three and nine months ended April 30, 2010, the Company increased its previously established environmental reserve related to matters in Pinellas Park, Florida and Ann Arbor, Michigan.

The following table summarizes the activity related to restructuring liabilities that were recorded in the nine months ended April 30, 2011 and in fiscal years 2010 and 2009.

	Severance			Other			Total
2011
Original charge	$	4,169		$	4,151		$	8,320
Utilized		(447	)		(3,844	)		(4,291	)
Translation		412			60			472
Balance at Apr. 30, 2011	$	4,134		$	367		$	4,501

2010
Original charge	$	6,034		$	5,581		$	11,615
Utilized		(2,031	)		(5,441	)		(7,472	)
Translation		1			(9	)		(8	)
Balance at Jul. 31, 2010		4,004			131			4,135
Utilized		(1,038	)		(135	)		(1,173	)
Translation		3			4			7
Balance at Apr. 30, 2011	$	2,969		$	–		$	2,969

	Severance			Other			Total
2009
Original charge	$	18,938		$	4,734		$	23,672
Utilized		(12,757	)		(4,133	)		(16,890	)
Translation		412			20			432
Balance at Jul. 31, 2009		6,593			621			7,214
Utilized		(4,902	)		(588	)		(5,490	)
Reversal of excess reserves		(143	)		–			(143	)
Translation		(86	)		(27	)		(113	)
Balance at Jul. 31, 2010		1,462			6			1,468
Utilized		(726	)		(6	)		(732	)
Reversal of excess reserves		(6	)		–			(6	)
Translation		144			–			144
Balance at Apr. 30, 2011	$	874		$	–		$	874