RESTRUCTURING CHARGES

12 Months Ended

Feb. 28, 2023

Restructuring and Related Activities [Abstract]

NOTE 11 – RESTRUCTURING CHARGES

In the fourth quarter of Fiscal 2023, to further progress our strategy of driving growth in our software and subscription services business, we implemented certain cost savings and cost efficiency measures to reduce our expense structure, better align our personnel to a subscription services business model, and terminate non-core initiatives not deemed to be key towards our strategic direction. The implementation of these measures resulted in a restructuring charge of $4.6 million for the fiscal year ended February 28, 2023, which was comprised of $1.5 million of severance and employee related costs and the write-off of $3.1 million of amounts previously capitalized in connection with technology initiatives that were determined would no longer provide future benefit. $2.3 million of these restructuring charges were attributable to the Telematics Products reportable segment, and $2.3 million of these restructuring charges were attributable to the Software & Subscription Services reportable segment.

In Fiscal 2019, we commenced a plan to capture certain synergies and cost savings related to streamlining our global operations and sales organization, as well as rationalize certain leased properties that were not fully occupied. This plan was aligned with our strategy to integrate the global sales organization and further outsource manufacturing functions in order to drive operational efficiency, increase supplier geographic diversity, and reduce operating expenses. Through Fiscal 2022, total restructuring charges related to this plan aggregated $17.9 million, and were comprised primarily of $11.1 million in severance and employee related costs, and $6.8 million for vacant office and manufacturing facilities as well as terminated tower infrastructure leases. Substantially all charges related to severance and employee costs were under the Telematics Products reportable segment.

The following table summarizes restructuring charges for the fiscal years ended February 28, 2023, 2022 and 2021 (in thousands):


	Year Ended February 28,
	2023								2022						2021
	Personnel		Facilities		Software		Total		Personnel		Facilities		Total		Personnel		Facilities		Total
Cost of revenue	$	127	$	-	$	-	$	127	$	218	$	376	$	594	$	530	$	850	$	1,380
Research and development		235		-		-		235		57		-		57		33		-		33
Selling and marketing		548		-		412		960		247		-		247		820		-		820
General and administrative		589		-		2,675		3,264		100		6		106		2,521		-		2,521
Total	$	1,499	$	-	$	3,087	$	4,586	$	622	$	382	$	1,004	$	3,904	$	850	$	4,754

Restructuring charges of $0.4 million, and $2.2 million for fiscal years ended February 28, 2022, and 2021 were included within discontinued operations, respectively.

The following table summarizes changes in restructuring liabilities, which are reported within other current and non-current liabilities (in thousands):


	Personnel			Facilities			Total
Restructuring liabilities as of February 28, 2021	$	2,637		$	891		$	3,528
Charges		622			382			1,004
Payments		(3,129	)		(424	)		(3,553	)
Restructuring liabilities as of February 28, 2022	$	130		$	849		$	979
Charges		1,499			-			1,499
Payments		(582	)		(376	)		(958	)
Restructuring liabilities as of February 28, 2023	$	1,047		$	473		$	1,520

The restructuring liabilities related to personnel were included in accrued payroll and employee benefits in our consolidated balance sheets as of February 28, 2023 and 2022.