Restructuring Charges

9 Months Ended

Aug. 31, 2020

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


	Excess Facilities and Other Costs		Employee Severance and Related Benefits		Total
Balance, December 1, 2019	$	196	$	2,007	$	2,203
Costs incurred	1,678		148		1,826
Cash disbursements	(1,148)		(1,983)		(3,131)
Translation adjustments and other	(16)		—		(16)
Balance, August 31, 2020	$	710	$	172	$	882

During the fourth quarter of fiscal year 2019, we announced the reduction of our 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.

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

We did not incur any expenses related to this restructuring in the three months ended August 31, 2020. For the nine months ended August 31, 2020, we incurred expenses of $0.1 million related to this restructuring. The expenses are recorded as restructuring expenses in the condensed 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, 2019	$	—	$	1,460	$	1,460
Costs incurred	—		109		109
Cash disbursements	—		(1,404)		(1,404)
Balance, August 31, 2020	$	—	$	165	$	165

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 condensed

consolidated balance sheet at August 31, 2020. 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 6). 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.

Costs incurred related to this restructuring event were minimal during the three months ended August 31, 2020. For the nine months ended August 31, 2020, we incurred expenses of $1.4 million related to this restructuring. The expenses are recorded in restructuring expense on the condensed consolidated statements of operations and include charges for the impairment of operating lease right-of-use assets of $1.2 million for the nine months ended August 31, 2020 (Note 8).

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, 2019	$	5	$	547	$	552
Costs incurred	1,409		39		1,448
Cash disbursements	(747)		(579)		(1,326)
Translation adjustments and other	(15)		—		(15)
Balance, August 31, 2020	$	652	$	7	$	659

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 $0.7 million is included in short-term operating lease liabilities on the condensed consolidated balance sheet at August 31, 2020.