XML 34 R17.htm IDEA: XBRL DOCUMENT v3.19.1
RESTRUCTURING CHARGES
12 Months Ended
Feb. 28, 2019
Restructuring And Related Activities [Abstract]  
RESTRUCTURING CHARGES

NOTE 11 – RESTRUCTURING CHARGES

 

Beginning in the first quarter of fiscal 2019, we commenced a plan (the “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 are not fully occupied. Our Plan is 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. On February 28, 2019, we gave notice to all employees located in our leased facility in Oxnard, California, which stated that effective August 31, 2019, we will cease operations and employees will experience layoffs. With respect to the closing of the Oxnard facility, we expect to incur a pre-tax restructuring charge of approximately $1 million, consisting primarily of cash severance and other benefits expected to be paid to terminated employees. For fiscal year ended February 28, 2019, total restructuring charges were $8.0 million, comprised of $4.3 million in severance and employee related costs, and $3.7 million for vacant office and manufacturing facility space. Restructuring charges related to vacant office and manufacturing facility space was due primarily to the vacancy in Canton, Massachusetts of $3.3 million.

 

The anticipated rent payments for the vacant portion of leased facilities will be made through December 2025. There is no guarantee that the termination and cease use charges will not exceed the estimates or that the impact of future net costs reduction will be achieved. The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities:

 

 

 

Personnel

 

 

Facilities

 

 

Total

 

Restructuring liabilities as of February 28, 2018

 

$

 

 

$

 

 

$

 

Charges

 

 

4,275

 

 

 

3,740

 

 

 

8,015

 

(Payments)

 

 

(1,496

)

 

 

(763

)

 

 

(2,259

)

Restructuring liabilities as of February 28, 2019

 

$

2,779

 

 

$

2,977

 

 

$

5,756