Restructuring

12 Months Ended

Nov. 30, 2019

The following table provides a summary of activity for all of the restructuring actions, which are detailed further below (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, November 30, 2016	$	107		$	1,443		$	1,550
Costs incurred	2,655			19,555			22,210
Cash disbursements	(1,456		)	(17,778		)	(19,234		)
Asset impairment	(762		)	—			(762		)
Translation adjustments and other	26			336			362
Balance, November 30, 2017	$	570		$	3,556		$	4,126
Costs incurred	1,011			1,240			2,251
Cash disbursements	(1,309		)	(4,802		)	(6,111		)
Translation adjustments and other	35			10			45
Balance, November 30, 2018	$	307		$	4		$	311
Costs incurred	740			5,591			6,331
Cash disbursements	(760		)	(3,647		)	(4,407		)
Translation adjustments and other	(91		)	59			(32		)
Balance, November 30, 2019	$	196		$	2,007		$	2,203

2019 Restructurings

During the fourth quarter of fiscal year 2019, we announced the reduction of our current and ongoing spending level within our cognitive application product lines, which consist primarily of our DataRPM and Kinvey products. This restructuring resulted in a reduction in positions primarily within the product development function. In connection with this restructuring action, during the fourth quarter of fiscal year 2019, we evaluated the ongoing value of the intangible assets primarily associated with the technologies and trade names obtained in the acquisitions of DataRPM and Kinvey. As a result, we wrote down these assets to fair value, which resulted in a $22.7 million asset impairment charge (Note 4).

Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation).

For the fiscal year ended November 30, 2019, we incurred expenses of $2.5 million relating to this restructuring. The expenses are recorded as restructuring expenses in the consolidated statements of operations.

A summary of activity for this restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs		Employee Severance and Related Benefits			Total
Balance, December 1, 2018	$	—	$	—		$	—
Costs incurred	—		2,494			2,494
Cash disbursements	—		(1,035		)	(1,035		)
Translation adjustments and other	—		1			1
Balance, November 30, 2019	$	—	$	1,460		$	1,460

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2020. Accordingly, the balance of the restructuring reserve of $1.5 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2019. We do not expect to incur additional material costs with respect to this restructuring.

During the second quarter of fiscal year 2019, we restructured our operations in connection with the acquisition of Ipswitch (Note 7). This restructuring resulted in a reduction in redundant positions, primarily within administrative functions of Ipswitch. We expect to incur additional expenses as part of this action related to employee costs and facility closures as we consolidate offices in various locations during fiscal year 2020, but we do not expect these costs to be material.

For the fiscal year ended November 30, 2019, we incurred expenses of $3.1 million relating to this restructuring. The expenses are recorded as restructuring expenses in the consolidated statements of operations.

A summary of activity for this restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs		Employee Severance and Related Benefits			Total
Balance, December 1, 2018	$	—	$	—		$	—
Costs incurred	5		3,093			3,098
Cash disbursements	—		(2,604		)	(2,604		)
Translation adjustments and other	—		58			58
Balance, November 30, 2019	$	5	$	547		$	552

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2020. Accordingly, the balance of the restructuring reserve of $0.6 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2019.

2017 Restructuring

During the first quarter of fiscal year 2017, we undertook certain operational restructuring initiatives intended to significantly reduce annual costs. As part of this action, management committed to a new strategic plan highlighted by a new product strategy and a streamlined operating approach. To execute these operational restructuring initiatives, we reduced our global workforce by over 20%. These workforce reductions occurred in substantially all functional units and across all geographies in which we operate. During the fourth quarter of fiscal year 2017, we incurred additional costs with respect to this restructuring, including reduction in redundant positions primarily within the product development and sales functions. We also consolidated offices in various locations during fiscal years 2017 and 2018. We expect to incur additional expenses related to facility closures as part of this restructuring action through fiscal year 2020, but we do not expect these additional costs to be material.

Restructuring expenses are related to employee costs, including severance, health benefits and outplacement services (but excluding stock-based compensation), facilities costs, which include fees to terminate lease agreements and costs for unused space, net of sublease assumptions, and other costs, which include asset impairment charges.

As part of this fiscal year 2017 restructuring, for the fiscal years ended November 30, 2019 and 2018, we incurred expenses of $0.7 million and $2.3 million, respectively, which are recorded as restructuring expenses in the consolidated statements of operations.

A summary of activity for this restructuring action is as follows (in thousands):



	Excess Facilities and Other Costs			Employee Severance and Related Benefits			Total
Balance, December 1, 2016	$	—		$	—		$	—
Costs incurred	2,570			19,555			22,125
Cash disbursements	(1,294		)	(16,335		)	(17,629		)
Asset impairment	(762		)	—			(762		)
Translation adjustments and other	26			336			362
Balance, November 30, 2017	$	540		$	3,556		$	4,096
Costs incurred	1,011			1,240			2,251
Cash disbursements	(1,279		)	(4,802		)	(6,081		)
Translation adjustments and other	35			10			45
Balance, November 30, 2018	$	307		$	4		$	311
Costs incurred	735			4			739
Cash disbursements	(760		)	(8		)	(768		)
Asset impairment	(89		)	—			(89		)
Translation adjustments and other	(2		)	—			(2		)
Balance, November 30, 2019	$	191		$	—		$	191

Cash disbursements for expenses incurred to date under this restructuring are expected to be made through fiscal year 2020. Accordingly, the balance of the restructuring reserve of $0.2 million is included in other accrued liabilities on the consolidated balance sheet at November 30, 2019.