Quarterly report pursuant to Section 13 or 15(d)

Severance and Restructuring Costs

v3.19.3
Severance and Restructuring Costs
9 Months Ended
Oct. 31, 2019
Restructuring And Related Activities [Abstract]  
Severance and Restructuring Costs

9.

Severance and Restructuring Costs

During the three and nine months ended October 31, 2019, we incurred severance and restructuring costs of $2.3 million and $3.2 million, respectively, primarily for employee-related benefits for terminated employees, partially offset by the reversal of operating lease liabilities. In September 2018, we announced that we implemented cost-savings actions during the third quarter of fiscal 2019 (the “2019 Restructuring Program”). The primary element of this restructuring program was staff reductions across all of our functions and geographic areas and the program was substantially completed at the end of the first six months of fiscal 2020. In addition, as we continue to streamline our operations, in October 2019, we closed our service organizations in Ireland and the Netherlands resulting in restructuring charges of $1.9 million.

The following table shows the change in accrued restructuring balances since January 31, 2019 primarily related to our 2019 Restructuring Program, reported as a component of other accrued expenses on the consolidated balance sheets:

 

 

 

Employee-

Related

Benefits

 

 

Closure of

Leased

Facilities

 

 

Other

Restructuring

 

 

Total

 

 

 

(Amounts in thousands)

 

Accrued balance as of January 31, 2019

 

$

653

 

 

$

 

 

$

 

 

$

653

 

Restructuring charges incurred

 

 

2,713

 

 

 

107

 

 

 

211

 

 

 

3,031

 

Cash payments

 

 

(1,401

)

 

 

 

 

 

(211

)

 

 

(1,612

)

Other charges

 

 

(6

)

 

 

(107

)

 

 

 

 

 

(113

)

Accrued balance as of October 31, 2019

 

$

1,959

 

 

$

 

 

$

 

 

$

1,959