RESTRUCTURING, NET

3 Months Ended

Oct. 31, 2012

(9) RESTRUCTURING, NET

The following table summarizes the activity in the restructuring accrual for the three and nine months ended October 31, 2012:


	Employee Related Expenses			Contractual Obligations			Asset Impairments		Total
	(in thousands)
Accrued restructuring balance at July 31, 2012	$	626		$	1,098		$	—	$	1,724

Restructuring charges		1,492			—			—		1,492
Restructuring adjustments		32			(45	)		—		(13	)
Cash paid		(1,148	)		(309	)		—		(1,457	)
Non-cash adjustments		15			(10	)		—		5

Accrued restructuring balance at October 31, 2012	$	1,017		$	734		$	—	$	1,751

It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ended 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 April 2013.

The net restructuring charges for the three months ended October 31, 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 October 31,
	2012		2011
Cost of revenue	$	769	$	427
Selling, general and administrative		710		328

	$	1,479	$	755

The $1.5 million restructuring charge recorded during the three months ended October 31, 2012 primarily consisted of approximately $0.3 million, $0.7 million, and $0.5 million of employee-related costs in Americas, Asia, and Europe, respectively, related to the workforce reduction of 62 employees in our global supply chain operations.

The $0.8 million restructuring charge recorded during the three months ended October 31, 2011 consisted of approximately $0.2 million related to the workforce reduction of 9 employees in Raleigh, North Carolina and $0.5 million for the workforce reduction of 144 employees in China. Also, approximately $0.1 million of the restructuring charge related to certain contractual obligations in connection with the restructuring of facilities in Raleigh, North Carolina.

The following table summarizes the restructuring accrual by reportable segment and the Corporate-level activity for the three months ended October 31, 2012:


	Americas			Asia			Europe			TFL			All Other			Corporate-level Activity		Consolidated Total
	(in thousands)
Accrued restructuring balance at July 31, 2012	$	1,086		$	—		$	51		$	244		$	343		$	—	$	1,724

Restructuring charges		306			664			486			9			27			—		1,492
Restructuring adjustments		20			—			(32	)		—			(1	)		—		(13	)
Cash paid		(400	)		(474	)		(343	)		(157	)		(83	)		—		(1,457	)
Non-cash adjustments		—			—			5			—			—			—		5

Accrued restructuring balance at October 31, 2012	$	1,012		$	190		$	167		$	96		$	286		$	—	$	1,751

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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