RESTRUCTURING

6 Months Ended

Jan. 31, 2023

Restructuring and Related Activities [Abstract]

ModusLink Restructuring Activities

During the fiscal year ended July 31, 2021, ModusLink implemented a strategic plan to reorganize its sales function and the e-Business operations. The restructuring charges associated with this plan were primarily composed of employee termination costs. In November 2021, ModusLink amended its strategic plan to include reorganizing its supply chain operations and recorded a restructuring charge of approximately $0.9 million during the three months ended January 31, 2022. In July 2022, ModusLink reorganized its supply chain operations in Ireland and recorded a restructuring charge of approximately $0.6 million during the three months ended July 31, 2022, which reduced the restructuring liability at January 31, 2023. The restructuring charges recorded in fiscal year ended July 31, 2022 were primarily composed of employee termination costs.

The table below summarizes restructuring charges in the statements of operations for employee termination costs:


	Three months ended January 31,				Six months ended January 31,
	2023		2022		2023		2022
	(In thousands)
Cost of revenue	$	—	$	646	$	—	$	646
Selling, general and administrative	—		210		—		210
	$	—	$	856	$	—	$	856

Changes to the restructuring liability during the six months ended January 31, 2023 were as follows:


	(in thousands)
Balance as of July 31, 2022	$	892
Costs incurred	—
Cash payments	(722)
Non-cash relief of accrual	—
Change in estimates	(2)
Balance as of January 31, 2023	$	168

The restructuring liability is recorded as a component of accrued expenses in the condensed consolidated balance sheets.