Annual report pursuant to Section 13 and 15(d)

Severance and Other Restructuring Costs

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Severance and Other Restructuring Costs
 12 Months Ended
Jan. 31, 2014
Restructuring And Related Activities [Abstract]  
Severance and Other Restructuring Costs

7. Severance and Other Restructuring Costs

During fiscal 2014, we continued to take actions to lower our cost structure as we strive to improve our financial performance and incurred restructuring charges totaling $0.9 million. These charges were primarily due to severance costs from a reduction of 20 employees during fiscal 2014.

 

During fiscal 2013, we incurred restructuring charges totaling $3.1 million. These charges included severance costs of $1.9 million and other restructuring costs of $1.2 million. Severance costs were primarily a result of a reduction of the finance and manufacturing departments and the termination of two senior executives during fiscal 2013. The other restructuring costs included:

 

  •   $0.8 million for the write off of leasehold improvements for the reduction of space and certain fixed assets in our leased facility in the Philippines;

 

  •   $0.2 million for a sign-on bonus, relocation expenses and recruitment fees relating to the hiring and appointment of a permanent Chief Executive Officer on May 1, 2012; and

 

  •   $0.2 million reduction in the carrying value of our facility in New Hampshire in the third quarter of fiscal 2013.

The following table shows the change in balances of our severance liability for the fiscal year ended January 31, 2014. These amounts are reported as a component of other accrued expenses on the consolidated balance sheets as of January 31, 2014 (amounts in thousands):

 

Accrual balance as of January 31, 2013

    $ 330   

Severance charges accrued

      880   

Severance costs paid

      (1,005 ) 
  

 

 

  

Accrual balance as of January 31, 2014

    $ 205