(10) RESTRUCTURING, NET

The following table summarizes the activity in the restructuring accrual for the three and six months ended January 31, 2013:


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

Restructuring charges		1,483			—			1,483
Restructuring adjustments		32			(45	)		(13	)
Cash paid		(991	)		(309	)		(1,300	)
Non-cash adjustments		15			(10	)		5
Restructuring charges, discontinued operations		9			—			9
Cash paid, discontinued operations		(157	)		—			(157	)

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

Restructuring charges		4,838			—			4,838
Restructuring adjustments		(34	)		(6	)		(40	)
Cash paid		(1,587	)		(313	)		(1,900	)
Non-cash adjustments		22			—			22
Restructuring charges, discontinued operations		34			112			146
Cash paid, discontinued operations		—			(97	)		(97	)
Reclassification of restructuring charges of discontinued operations		(130	)		(15	)		(145	)

Accrued restructuring balance at January 31, 2013	$	4,160		$	415		$	4,575

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 January 31, 2013 and 2012 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 January 31,				Six Months Ended January 31,
	2013		2012		2013		2012
	(In thousands)
Cost of revenue	$	3,529	$	3,710	$	4,298	$	4,139
Selling, general and administrative		1,269		753		1,970		1,080

	$	4,798	$	4,463	$	6,268	$	5,219

The $4.8 million restructuring charge recorded during the three months ended January 31, 2013 primarily consisted of approximately $1.0 million, $1.3 million, and $1.7 million of employee-related costs in Americas, Asia, and Europe, respectively, related to the workforce reduction of 140 employees in our global supply chain operations. In addition, the Company recorded $0.8 million of employee-related costs related to the workforce reduction of 15 employees in e-Business.

During the first quarter of fiscal 2013, the Company recorded restructuring charges of approximately $1.5 million, primarily consisting of $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.

During the three and six months ended January 31, 2012, the Company recorded net restructuring charges of approximately $4.5 million and $5.2 million, respectively. For the three months ended January 31, 2012, approximately $3.7 million related to a workforce reduction of 48 employees in Europe, $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.

In addition, during the first quarter of fiscal 2012, the Company recorded restructuring charges 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 restructuring charges 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 and six months ended January 31, 2013:


	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			—			27			—		1,483
Restructuring adjustments		20			—			(32	)		—			(1	)		—		(13	)
Cash paid		(400	)		(474	)		(343	)		—			(83	)		—		(1,300	)
Non-cash adjustments		—			—			5			—			—			—		5
Restructuring charges, discontinued operations		—			—			—			9			—			—		9
Cash paid, discontinued operations		—			—			—			(157	)		—			—		(157	)

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

Restructuring charges		1,046			1,288			1,677			—			827			—		4,838
Restructuring adjustments		(6	)		(34	)		—			—			—			—		(40	)
Cash paid		(601	)		(678	)		(208	)		—			(413	)		—		(1,900	)
Non-cash adjustments		—			(8	)		30			—			—			—		22
Restructuring charges, discontinued operations		—			—			—			146			—			—		146
Cash paid, discontinued operations		—			—			—			(97	)		—			—		(97	)
Reclassification of restructuring charges of discontinued operations		—			—			—			(145	)		—			—		(145	)

Accrued restructuring balance at January 31, 2013	$	1,451		$	758		$	1,666		$	—		$	700		$	—	$	4,575