Annual report pursuant to Section 13 and 15(d)

Severance and Other Restructuring Costs

v3.3.1.900
Severance and Other Restructuring Costs
12 Months Ended
Jan. 31, 2016
Restructuring and Related Activities [Abstract]  
Severance and Other Restructuring Costs

7. Severance and Other Restructuring Costs

During fiscal 2016, we incurred restructuring charges totaling $1.1 million. These charges included $1.0 million of severance costs for terminated employees. In addition, we incurred $0.1 million of other restructuring charges primarily due to the write off of leasehold improvements.

The following table shows the change in balances of our accrued severance reported as a component of other accrued expenses on the consolidated balance sheet as of January 31, 2016 (amounts in thousands):

 

Accrual balance as of January 31, 2015

   $ 2,021   

Restructuring charges incurred

     1,061   

Severance costs paid

     (2,903

Other charges

     (132
  

 

 

 

Accrual balance as of January 31, 2016

   $ 47   
  

 

 

 

As a result of the decision to undertake restructuring activities relating to our Timeline Labs operation, we incurred $0.7 million in severance and restructuring charges in February 2016. In addition, effective April 6, 2016, Jay Samit, our former Chief Executive Officer (“CEO”), was terminated without cause and has resigned from our Board of Directors. In connection with his termination, Mr. Samit and SeaChange entered into a Separation Agreement and Release of Claims (“Separation Agreement”). Under the terms of the Separation Agreement and consistent with its pre-existing obligations to Mr. Samit in connection with the termination without cause, we incurred a charge of $1.4 million in the first quarter of fiscal 2017 that included $0.6 million for satisfaction of his fiscal 2016 and 2017 annual bonuses and $0.8 million payable in twelve equal monthly installments. Payment of these obligations to Mr. Samit will be completed in the first quarter of fiscal 2018.