Quarterly report pursuant to Section 13 or 15(d)

Severance and Other Restructuring Costs

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Severance and Other Restructuring Costs
3 Months Ended
Apr. 30, 2018
Restructuring And Related Activities [Abstract]  
Severance and Other Restructuring Costs

7.

Severance and Other Restructuring Costs

Restructuring Costs

During the three months ended April 30, 2018, we incurred some immaterial restructuring charges primarily for employee-related benefits for terminated employees.  

The following table shows the activity in accrued restructuring reported as a component of other accrued expenses on the consolidated balance sheet as of April 30, 2018 (amounts in thousands):

 

 

 

Employee-Related

 

 

Closure of Leased

 

 

Other

 

 

 

 

 

 

 

Benefits

 

 

Facilities

 

 

Restructuring

 

 

Total

 

Accrual balance as of January 31, 2018

 

$

61

 

 

$

135

 

 

$

29

 

 

$

225

 

Restructuring charges incurred

 

 

12

 

 

 

(7

)

 

 

(29

)

 

 

(24

)

Cash payments

 

 

(73

)

 

 

(130

)

 

 

 

 

 

(203

)

Other charges

 

 

 

 

 

 

 

 

 

 

 

 

Accrual balance as of April 30, 2018 (1)

 

$

 

 

$

(2

)

 

$

 

 

$

(2

)

 

(1)

Balance represents the combination of the remaining lease obligation for our former San Francisco facility, which we vacated in fiscal 2017, offset by the remaining sublease payments due to the Company as of April 30, 2018.

During the third quarter of fiscal 2017, we implemented a restructuring program (“Restructuring Plan”) with the purpose of reducing costs and assisting in restoring SeaChange to profitability and positive cash flow. This program included measures intended to allow the Company to more efficiently operate in a leaner, more direct cost structure. These measures included reductions in workforce, consolidation of facilities, transfers of certain business processes to lower cost regions and reduction in third-party service costs. The Restructuring Plan was substantially complete as of January 31, 2018. However, we incurred a small charge for employee-related benefits during the first quarter of fiscal 2019 and reversed any remaining estimates to severance and other restructuring charges in our consolidated statements of operations and comprehensive loss in April 2018. Since its implementation, we recognized $7.1 million in restructuring charges related to the Restructuring Plan.

 

Severance Costs

During the three months ended April 30, 2018, we incurred additional severance charges not related to a restructuring plan of $0.1 million, primarily from the departure of four employees. Severance costs during the three months ended April 30, 2017 were not material.