Accrued Restructuring And Excess Facilities Costs

9 Months Ended

Aug. 31, 2011

Accrued Restructuring And Excess Facilities Costs

Accrued Restructuring and Excess Facilities Costs

7. ACCRUED RESTRUCTURING AND EXCESS FACILITIES COSTS

Fiscal 2010 Restructuring Plan

In order to achieve cost efficiencies and realign our resources and operations, our Board of Directors approved a restructuring plan initiated by management during the second quarter of fiscal year 2010. The restructuring charges were primarily related to corporate actions and excess facilities arising from the acquisition of Kabira. As of August 31, 2011, the total estimated restructuring costs associated with the restructuring plan were approximately $7.2 million, and consisted of costs associated with employee terminations and exit of excess facilities. These costs are recognized in accordance with the current guidance on accounting for exit activities and are presented as restructuring charges in our Condensed Consolidated Statements of Operations. We recognized $7.0 million of restructuring charges during fiscal year 2010, and expect to recognize remaining expenses related to the restructuring plan in fiscal year 2011. Changes in estimates, if any, will be reflected in our future results of operations as required by the current accounting guidance. We expect to fulfill our remaining cash obligations associated with this restructuring no later than fiscal year 2013.

The following is a summary of activities in accrued restructuring and excess facilities costs for the nine months ended August 31, 2011 (in thousands):

	Accrued Excess Facilities												Accrued Severance and Other
	Headquarter Facilities			Acquisition Integration			Restructuring			Subtotal			Acquisition Integration			Restructuring			Subtotal			Total
As of November 30, 2010	$	138		$	56		$	924		$	1,118		$	11		$	2,098		$	2,109		$	3,227
Adjustment to acquisition integration costs		—			—			—			—			—			(33	)		(33	)		(33	)
Restructuring charge		—			—			—			—			—			143			143			143
Cash utilized		(69	)		(12	)		(319	)		(400	)		(11	)		(1,522	)		(1,533	)		(1,933	)
As of August 31, 2011	$	69		$	44		$	605		$	718		$	—		$	686		$	686		$	1,404

The remaining accrued excess facilities costs represent the estimated loss on abandoned excess facilities, net of estimated sublease income, which is expected to be paid over the next two years. As of August 31, 2011, $0.2 million of the $1.4 million accrued restructuring and excess facilities costs were classified as long-term liabilities.