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RESTRUCTURING, NET
6 Months Ended
Jan. 31, 2017
RESTRUCTURING, NET

(7) RESTRUCTURING, NET

Restructuring and other costs for the three and six months ended January 31, 2017 primarily included continuing charges for personnel reductions and facility consolidations in an effort to streamline operations across our global supply chain operations. It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ended July 31, 2017. 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 December 2017.

The $0.8 million restructuring charge recorded during the three months ended January 31, 2017 primarily consisted of $0.2 million, $0.3 million $0.1 million and $0.1 million of employee-related costs in the Americas, Asia, Europe and e-Business, respectively, related to the workforce reduction of 18 employees in our global supply chain operations. Of this amount, $0.1 million related to contractual obligations. The $1.4 million restructuring charge recorded during the three months ended October 31, 2016 primarily consisted of $0.2 million, $0.4 million and $0.5 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 50 employees in our global supply chain. Of this amount, $0.3 million related to contractual obligations.

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.

The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the six months ended January 31, 2017:

 

     Employee
Related
Expenses
     Contractual
Obligations
     Total  
     (In thousands)  

Accrued restructuring balance at July 31, 2016

   $ 2,074      $ 955      $ 3,029  
  

 

 

    

 

 

    

 

 

 

Restructuring charges

     1,723        397        2,120  

Restructuring adjustments

     42        (12      30  

Cash paid

     (2,997      (1,019      (4,016

Non-cash adjustments

     (18      6        (12
  

 

 

    

 

 

    

 

 

 

Accrued restructuring balance at January 31, 2017

   $ 824      $ 327      $ 1,151  
  

 

 

    

 

 

    

 

 

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

Accrued restructuring balance at July 31, 2016

   $ 862     $ 894     $ 398     $ 875     $ 3,029  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Restructuring charges

     480       854       668       118       2,120  

Restructuring adjustments

     6       —         25       (1     30  

Cash paid

     (907     (1,464     (854     (791     (4,016

Non-cash adjustments

     —         (4     (8     —         (12
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accrued restructuring balance at January 31, 2017

   $ 441     $ 280     $ 229     $ 201     $ 1,151  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The net restructuring charges for the three and six months ended January 31, 2017 and 2016 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
January 31,
     Six Months Ended
January 31,
 
     2017      2016      2017      2016  
     (In thousands)  

Cost of revenue

   $ 154      $ 83      $ 735      $ 898  

Selling, general and administrative

     622        157        1,415        349  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 776      $ 240      $ 2,150      $ 1,247