Restructuring

2013 Restructuring

During the third quarter of fiscal year 2013, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of the sale of the Apama product line and the divestitures completed during the fourth quarter of fiscal year 2012 and the first quarter of fiscal year 2013. We reduced our global workforce primarily within the administrative and sales organizations. This workforce reduction was conducted across all geographies and also resulted in the closing of certain facilities.

Restructuring expenses relate to employee costs, including severance, health benefits, outplacement services and transition divestiture arrangements, but excluding stock-based compensation, and facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions. Other costs include costs to terminate automobile leases of employees included in the workforce reduction, asset impairment charges for assets no longer deployed as part of cost reduction strategies, costs for unused software licenses as part of the workforce reduction and other costs directly associated with the restructuring actions taken.

As part of the 2013 restructuring, we incurred expenses in the fiscal year 2013 totaling $8.7 million, of which $1.1 million represents excess facilities and other costs and $7.6 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.4 million included in income (loss) from discontinued operations. We do not expect to incur additional material costs with respect to the 2013 restructuring.

A summary of activity for the 2013 restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	—		$	—		$	—
Costs incurred	1,126			7,594			8,720
Cash disbursements	(510		)	(6,577		)	(7,087		)
Translation adjustments and other	(47		)	60			13
Balance, November 30, 2013	$	569		$	1,077		$	1,646

Cash disbursements under the 2013 restructuring are expected to be made through fiscal year 2017. The short-term portion of the restructuring reserve of 1.4 million is included in other accrued liabilities and the long-term portion of $0.2 million is included in other noncurrent liabilities on the consolidated balance sheet at November 30, 2013.

2012 Restructuring

In the second quarter of fiscal 2012, as part of the Plan, our management approved, committed to and initiated certain operational restructuring initiatives to reduce annual costs, including the simplification of our organizational structure and the consolidation of facilities. In addition, as part of the Plan, we divested our non-Core product lines. Our restructuring actions include both our cost reduction efforts and qualifying costs associated with our divestitures.

As part of the 2012 restructuring, we incurred expenses in the fiscal year 2013 totaling $4.3 million, of which $1.5 million represents excess facilities and other costs and $2.8 million represents employee severance and related benefits. The expenses are recorded as restructuring expenses in the condensed consolidated statements of income, with the exception of $0.6 million as income (loss) from discontinued operations in the consolidated statement of income. Cumulative expenses of the 2012 restructuring through the end of fiscal year 2013 are $23.3 million, of which $4.2 million represents excess facilities and other costs and $19.1 million represents employee severance and related benefits. We do not expect to incur additional material costs for the 2012 restructuring.

A summary of activity for the 2012 restructuring actions is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	603		$	6,429		$	7,032
Costs incurred	1,545			2,752			4,297
Cash disbursements	(1,423		)	(8,941		)	(10,364		)
Asset impairment	(111		)	—			(111		)
Translation adjustments and other	1			51			52
Balance, November 30, 2013	$	615		$	291		$	906

Cash disbursements under the 2012 restructuring are expected to be made through fiscal year 2016. The short-term portion of the restructuring reserve of $0.7 million is included in other accrued liabilities and the long-term portion of $0.2 million is included in other noncurrent liabilities on the consolidated balance sheet at November 30, 2013.

2010 Restructuring

During the first and third quarters of fiscal year 2010, our management approved, committed to and initiated plans to restructure and improve efficiencies in our operations as a result of certain management and organizational changes and acquisitions. We reduced our global workforce primarily within the development, sales and administrative organizations. This workforce reduction was conducted across all geographies and also resulted in a consolidation of offices in certain locations. The total costs of the fiscal year 2010 restructurings primarily relate to employee severance and excess facilities expenses. The excess facilities and other costs represent facilities costs for unused space and termination costs for automobile leases of employees included in the workforce reduction.

As part of the 2010 restructuring activities, we recorded cumulative expenses totaling $43.3 million, of which $8.0 million represented excess facilities and other costs and $35.3 million represented employee severances and related benefits. We did not incur any expenses related to the 2010 restructuring in fiscal year 2013 and there are no remaining cash disbursements due as of November 30, 2013.

A summary of activity for the 2010 restructuring actions is as follows (in thousands):



	Excess Facilities and Other Costs		Employee Severance and Related Benefits			Total
Balance, December 1, 2012	$	—	$	275		$	275
Costs incurred	—		—			—
Cash disbursements	—		(275		)	(275		)
Translation adjustments and other	—		—			—
Balance, November 30, 2013	$	—	$	—		$	—