Restructuring Costs

During fiscal 2018, we incurred restructuring charges totaling $4.2 million primarily from employee-related benefits for terminated employees and costs to close facilities.    

The following table shows the change in balances of our accrued restructuring reported as a component of other accrued expenses on the consolidated balance sheet as of January 31, 2018 (amounts in thousands):  

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 total estimated restructuring costs associated with the Restructuring Plan are anticipated to be approximately $7.5 million and will be recorded in severance and other restructuring costs in our consolidated statements of operations and comprehensive income (loss) as they are incurred. We recorded $4.1 million of restructuring expense in connection with this plan during fiscal 2018, which was primarily made up of employee-related costs and facility closings. Since its implementation, we have recognized $7.2 million in restructuring charges related to the Restructuring Plan. We do not expect to incur any more significant restructuring charges related to this plan.

During the second quarter of fiscal 2017, we restructured our operations in connection with the acquisition of DCC Labs. This restructuring resulted in a workforce reduction within our engineering and services organization and in the closing of our facility in Portland, Oregon and a substantial reduction to our facility in Milpitas, California. We recorded $0.1 million of restructuring expense in connection with this action during fiscal 2018, which was primarily made up of facility and other costs not related to employees. We incurred charges totaling $2.0 million in severance and other restructuring costs from the second quarter of fiscal 2017 through the end of fiscal 2018 related to the acquisition. We do not expect to incur any further material restructuring charges related to this acquisition.

Severance Costs

During fiscal 2018, we incurred additional severance charges not related to a restructuring plan of $0.5 million, primarily from the departure of 14 former employees including a Senior Vice President and a Vice President. During fiscal 2017, we incurred severance charges of $1.5 million, primarily from the departure of our former Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) during the first half of fiscal 2017 as well as the termination of 13 other former employees.