(9) RESTRUCTURING, NET

The following table summarizes the activity in the restructuring accrual for the three and nine months ended April 30, 2012:


	Employee Related Expenses			Contractual Obligations			Asset Impairments		Total
	(In thousands)
Accrued restructuring balance at July 31, 2011	$	296		$	1,168		$	—	$	1,464

Restructuring charges		633			138			—		771
Restructuring adjustments		(174	)		158			—		(16	)
Cash paid		(9	)		(271	)		—		(280	)
Non-cash adjustments		—			6			—		6

Accrued restructuring balance at October 31, 2011	$	746		$	1,199		$	—	$	1,945

Restructuring charges		4,119			487			—		4,606
Restructuring adjustments		(9	)		—			—		(9	)
Cash paid		(1,034	)		(534	)		—		(1,568	)
Non-cash adjustments		53			60			—		113

Accrued restructuring balance at January 31, 2012	$	3,875		$	1,212		$	—	$	5,087

Restructuring charges		592			2			—		594
Restructuring adjustments		(99	)		—			—		(99	)
Cash paid		(3,272	)		(492	)		—		(3,764	)
Non-cash adjustments		12			(11	)		—		1

Accrued restructuring balance at April 30, 2012	$	1,108		$	711		$	—	$	1,819

It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ending July 31, 2013. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that contractual obligations will be substantially fulfilled by May 2013.

The net restructuring charges for the three and nine months ended April 30, 2012 and 2011 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities:


	Three Months Ended April 30,				Nine Months Ended April 30,
	2012		2011		2012		2011
	(In thousands)
Cost of revenue	$	120	$	—	$	4,321	$	1,022
Selling, general and administrative		375		—		1,526		179

	$	495	$	—	$	5,847	$	1,201

During the three and nine months ended April 30, 2012, the Company recorded a net restructuring charge of approximately $0.5 million and $5.8 million, respectively. For the three months ended April 30, 2012, approximately $0.5 million related to a workforce reduction of 87 employees within TFL and $0.1 million related to a workforce reduction of 4 employees within e-Business. These costs were partially offset by a $0.1 million reversal of restructuring costs associated with employee termination benefits within the Europe region.

In addition, for the nine months ended April 30, 2012, approximately $3.7 million related to a workforce reduction of 48 employees in Europe, $0.5 million related to a workforce reduction of 144 employees in China, $0.4 million related to a workforce reduction of 5 employees within the Company’s IT organization, and $0.4 million related to certain contractual obligations in connection with the restructuring of a facility in the ModusLink PTS business.

During the nine months ended April 30, 2011, the Company recorded a net restructuring charge of approximately $1.2 million. Of this amount, approximately $1.1 million related to the workforce reduction of 55 employees in the Americas and Asia and approximately $0.1 million of the recorded net restructuring charge related to changes in estimates for previously recorded facilities lease obligations primarily based on changes to the underlying assumptions.

The following table summarizes the restructuring accrual by reportable segment and the Corporate-level activity for the three and nine months ended April 30, 2012:


	Americas			Asia			Europe			TFL			All Other			Corporate-level Activity		Consolidated Total
	(In thousands)
Accrued restructuring balance at July 31, 2011	$	1,346		$	—		$	118		$	—		$	—		$	—	$	1,464

Restructuring charges		276			495			—			—			—			—		771
Restructuring adjustments		(16	)		—			—			—			—			—		(16	)
Cash paid		(280	)		—			—			—			—			—		(280	)
Non-cash adjustments		6			—			—			—			—			—		6

Accrued restructuring balance at October 31, 2011	$	1,332		$	495		$	118		$	—		$	—		$	—	$	1,945

Restructuring charges		488			190			3,776			133			19			—		4,606
Restructuring adjustments		—			(9	)		—			—			—			—		(9	)
Cash paid		(596	)		(567	)		(272	)		(133	)		—			—		(1,568	)
Non-cash adjustments		72			—			41			—			—			—		113

Accrued restructuring balance at January 31, 2012	$	1,296		$	109		$	3,663		$	—		$	19		$	—	$	5,087
Restructuring charges		4			4			—			517			69			—		594
Restructuring adjustments		—			—			(99	)		—			—			—		(99	)
Cash paid		(505	)		(70	)		(2,702	)		(466	)		(21	)		—		(3,764	)
Non-cash adjustments		(11	)		—			12			—			—			—		1

Accrued restructuring balance at April 30, 2012	$	784		$	43		$	874		$	51		$	67		$	—	$	1,819