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Restructuring, Net
9 Months Ended
Apr. 30, 2016
Restructuring, Net

(7) RESTRUCTURING, NET

Restructuring and other costs for the three and nine months ended April 30, 2016 primarily included continuing charges for personnel reductions and facility consolidations in an effort to streamline operations across our global supply chain operations. Furthermore, restructuring and other process-driven initiatives are intended to lower the Company’s future operating expenses and improve efficiencies across its global footprint. It is expected that the payments of past employee-related charges will be substantially completed during the fiscal year ended July 31, 2016. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that these contractual obligations will be substantially fulfilled by the end of July 2016.

 

The $0.2 million restructuring charge recorded during the three months ended April 30, 2016 primarily consisted of $0.2 million of employee-related costs in Asia, related to the workforce reduction of 17 employees in our global supply chain operations. The $0.2 million restructuring charge recorded during the three months ended January 31, 2016 primarily consisted of $0.1 million and $0.1 million of contractual charges in the Americas and Europe, respectively. The $1.0 million restructuring charge recorded during the three months ended October 31, 2015 primarily consisted of $0.8 million and $0.3 million employee-related costs in the Americas and Asia, respectively, related to the workforce reduction of 55 employees in our global supply chain operations.

The $2.0 million restructuring charge recorded during the three months ended April 30, 2015 primarily consisted of $0.3 million and $1.7 million of employee-related costs in Asia and Europe, respectively, related to the workforce reduction of 63 employees in our global supply chain operations. The $1.0 million restructuring charge recorded during the three months ended January 31, 2015 primarily consisted of $0.4 million, $0.1 million and $0.5 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 72 employees in our global supply chain operations. The $1.9 million restructuring charge recorded during the three months ended October 31, 2014 primarily consisted of $0.4 million, $0.5 million and $1.0 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 93 employees in our global supply chain operations.

The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the nine months ended April 30, 2016:

 

     Employee
Related
Expenses
     Contractual
Obligations
     Total  
     (In thousands)  

Accrued restructuring balance at July 31, 2015

   $ 1,437       $ 91       $ 1,528   
  

 

 

    

 

 

    

 

 

 

Restructuring charges

     1,274         281         1,555   

Restructuring adjustments

     (125      (1      (126

Cash paid

     (2,167      (354      (2,521

Non-cash adjustments

     15         3         18   
  

 

 

    

 

 

    

 

 

 

Accrued restructuring balance at April 30, 2016

   $ 434       $ 20       $ 454   
  

 

 

    

 

 

    

 

 

 

 

     Americas     Asia     Europe     e - Business     Consolidated
Total
 
     (In thousands)  

Accrued restructuring balance at July 31, 2015

   $ 235      $ 253      $ 1,026      $ 14      $ 1,528   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Restructuring charges

     920        535        96        4        1,555   

Restructuring adjustments

     —          (46     (80     —          (126

Cash paid

     (831     (669     (1,017     (4     (2,521

Non-cash adjustments

     —          (8     26        —          18   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accrued restructuring balance at April 30, 2016

   $ 324      $ 65      $ 51      $ 14      $ 454   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The net restructuring charges for the three and nine months ended April 30, 2016 and 2015 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities:

 

     Three Months Ended
April 30,
     Nine Months Ended
April 30,
 
     
     2016      2015      2016      2 0 15  
     (In thousands)  

Cost of revenue

   $ 182       $ 1,873       $ 1,080       $ 4,524   

Selling, general and administrative

     —           121         349         412   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 182       $ 1,994       $ 1,429       $ 4,936