Restructuring Costs Restructuring Costs Disclosure

6 Months Ended

Jul. 31, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING COSTS

At July 31, 2016, there are no ongoing restructuring plans or unpaid restructuring costs. No restructuring costs were incurred in the three- or six-month periods ended July 31, 2016.

In the fiscal 2015 fourth quarter, the Company announced and implemented a restructuring plan to lower Applied Technology’s cost structure. In the same period, Engineered Films implemented a preemptive restructuring plan to address the decline in demand in the energy sector as the result of falling oil prices. The Company also initiated the exit of Applied Technology’s non-strategic St. Louis, Missouri contract manufacturing facility.

Exit activities related to this sale and transfer of these contract manufacturing operations were substantially completed during the fiscal 2016 first quarter. Gains of $247 and $611 were recorded for the three- and six-month periods ended July 31, 2015 as a result of the exit activity. Receivables for inventory and estimated future royalties pursuant to the sale agreements of $827 were included in "Other current assets" in the Consolidated Balance Sheet at July 31, 2015. At July 31, 2016, such receivables were $103.

In the fiscal 2017 second quarter, the land, building, and remaining equipment in St. Louis that was owned and held for sale was sold. The selling price, net of all selling expenses, exceeded the net book value of the assets held for sale. A gain of $161 was recorded on this sale.

In the fiscal 2016 first quarter, the Company announced and implemented a restructuring plan to further lower its cost structure. The cost reductions covered all divisions and included the corporate offices, but were weighted to Applied Technology as a result of the decline in this business and the expectation of continued end-market weakness for this division.

The Company incurred restructuring costs for severance benefits of $111 and $588 in the three- and six-month periods ended July 31, 2015. The Company reported $14 and $407 of these restructuring costs in "Cost of sales" in the Consolidated Statements of Income and Comprehensive Income for the three- and six-month periods ended July 31, 2015, respectively, while $97 and $181 of these restructuring costs were reported in "Selling, general, and administrative expenses" in these periods. There were no unpaid costs at July 31, 2015. Substantially all of these restructuring costs related to the Applied Technology Division.

This restructuring plan was completed during fiscal 2016 second quarter.