NOTE 2 – RESTRUCTURING AND OTHER CHARGES, NET

The following tables summarize the restructuring and other charges (“ROTC”) recorded in fiscal years 2011, 2010 and 2009:

				Other
				Charges/(Gains)
2011	Restructuring (1)			(2)			Total
Employment contract obligations and
other severance benefits	$	4,863		$	7,519		$	12,382
Professional fees and other costs, net of
receipt of insurance claim payments		5,507			2,293			7,800
Asset impairment		7,336			–			7,336
Environmental matters, net of receipt of
insurance claim payment		–			6,349			6,349
Reversal of excess restructuring reserves		(26	)		–			(26	)
	$	17,680		$	16,161		$	33,841

Cash	$	10,344		$	13,226		$	23,570
Non-cash (a)		7,336			2,935			10,271
	$	17,680		$	16,161		$	33,841

2010
Severance	$	6,637		$	–		$	6,637
Environmental matters		–			6,911			6,911
Professional fees and other costs, net of
receipt of insurance claim payments		5,581			(691	)		4,890
Asset impairment/(gain) on disposal		237			(774	)		(537	)
Reversal of excess restructuring reserves		(237	)		–			(237	)
	$	12,218		$	5,446		$	17,664

Cash	$	10,639		$	5,446		$	16,085
Non-cash (a)		1,579			–			1,579
	$	12,218		$	5,446		$	17,664

				Other
				Charges/(Gains)
2009	Restructuring (1)			(2 )		Total
Severance	$	18,938		$	–	$	18,938
Professional fees and other costs, net of
receipt of insurance claim payments		4,734			13		4,747
Environmental matters, net of receipt of
insurance claim payment		–			1,808		1,808
Asset Impairment/loss on disposal		174			3,477		3,651
In-process research and development		–			1,743		1,743
Reversal of excess restructuring reserves		(164	)		–		(164	)
	$	23,682		$	7,041	$	30,723

Cash	$	24,585		$	1,821	$	26,406
Non-cash		(903	)		5,220		4,317
	$	23,682		$	7,041	$	30,723

(a)

Includes $2,935 and $603 of non-cash stock based compensation costs in fiscal year 2011 and fiscal year 2010, respectively.

(1) Restructuring:

Restructuring charges reflect the expenses incurred in connection with the Company’s cost reduction initiatives. Severance costs and asset impairment charges recorded in fiscal year 2011 relate to the planned closure of manufacturing facilities.

(2) Other Charges/(Gains):

Employment contract obligations and other severance benefits :

In fiscal year 2011, the Company recorded charges related to certain employment contract obligations.

Professional fees and other :

In fiscal years 2011, 2010 and 2009, the Company recorded legal and other professional fees related to the Federal Securities Class Actions, Shareholder Derivative Lawsuits and Other Proceedings (see Note 14, Commitments and Contingencies) 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 more than offset such costs in fiscal year 2010 and partly offset such costs in fiscal year 2011.

Environmental matters :

In fiscal years 2011, 2010 and 2009, the Company increased its previously established environmental reserve primarily related to matters in Pinellas Park, Florida and Ann Arbor, Michigan. Such costs in fiscal years 2009 and 2011 were partly offset by the receipt of insurance claim payments.

Asset impairment and gain on sale of assets :

In fiscal year 2009, the Company recorded a charge of $1,977 for the deemed to be other-than-temporary diminution in value of certain equity and debt investment securities held by its benefits protection trust and a charge of $1,500 for the impairment of capitalized software development costs related to discontinued projects.

In fiscal year 2010, the Company recorded a gain of $774 on the sale of certain equity and debt investment securities held by its benefits protection trust.

In-process research and development :

In fiscal year 2009, the Company recorded a charge of $1,743 to write off in-process research and development acquired in the acquisition of GeneSystems, SA.

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

	Severance			Other			Total
2011
Original charge	$	4,863		$	5,507		$	10,370
Utilized		(1,817	)		(5,225	)		(7,042	)
Translation		272			68			340
Balance at Jul. 31, 2011	$	3,318		$	350		$	3,668

2010
Original charge (a)	$	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		(1,356	)		(135	)		(1,491	)
Translation		2			4			6
Balance at Jul. 31, 2011	$	2,650		$	–		$	2,650

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 (b)		(143	)		–			(143	)
Translation		(86	)		(27	)		(113	)
Balance at Jul. 31, 2010	$	1,462		$	6		$	1,468
Utilized		(845	)		(6	)		(851	)
Reversal of excess reserves (b)		(6	)		–			(6	)
Translation		120			–			120
Balance at Jul. 31, 2011	$	731		$	–		$	731

	(a)		Excludes stock-based compensation expense of $603

	(b)		Reflects the reversal of excess restructuring reserves originally recorded in fiscal year 2009.