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Restructuring

9 Months Ended

Apr. 30, 2014

NOTE 12 – Restructuring

The Company relocated its corporate headquarters to Dallas, Texas in 2012. The restructuring costs were as follows:

	Three Months Ended April 30,					Nine Months Ended April 30,
(In thousands)	2014			2013		2014		2013
General and Administrative
Severance	$	(676	)	$	286	$	4,096	$	859
Relocation		268			13		350		520
Total general and administrative	$	(408	)	$	299	$	4,446	$	1,379

Severance for the three months ended April 30, 2014 included a benefit for the reversal of previously accrued costs as a result of adjusting the severance accrual based upon the Company’s reassessment of its strategy of utilizing a third-party enterprise operating system. See Impairmentin Note 1 – Description of Business and Summary of Significant Accounting Policies.

The movements in the severance accrual were as follows:

(In thousands)			Balance as of July 31, 2013				Expense				Payments				Balance as of April 30, 2014
Severance		$	2,224			$	4,096			$	4,043			$	2,277

The Company started transitioning its data center to a third-party managed data center during the year ended July 31, 2013. The Company reviewed the useful life of certain assets related to its data centers and determined they should be revised from an average of 60 months to an average of 45 months to reflect the shorter useful lives of these assets. Additionally, facility depreciation related to the Company’s information technology operations, previously located in the Company’s offices in Fairfield, California, was accelerated as the department relocated to the Dallas, Texas corporate headquarters. These changes in estimates are accounted for on a prospective basis, resulting in increased depreciation expense over the revised useful lives. These changes resulted in additional depreciation expense of $2.8 million and $4.7 million during the nine months ended April 30, 2014 and 2013, respectively.

- 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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