RESTRUCTURING

9 Months Ended

Apr. 30, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURINGModusLink 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 $0.1 million and $0.9 million during the three and nine months ended April 30, 2022. In February 2023, ModusLink reorganized its call center operations in the United States and recorded a restructuring charge of approximately $0.1 million during the three and nine months ended April 30, 2023. The restructuring charges recorded in three and nine months ended April 30, 2023 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 April 30,				Nine months ended April 30,
	2023		2022		2023		2022
	(In thousands)
Cost of revenue	$	97	$	(16)	$	97	$	664
Selling, general and administrative	—		134		—		310
	$	97	$	118	$	97	$	974

Changes to the restructuring liability during the nine months ended April 30, 2023 were as follows:


	(in thousands)
Balance as of July 31, 2022	$	892
Costs incurred	97
Cash payments	(733)
Non-cash relief of accrual	—
Change in estimates	—
Balance as of April 30, 2023	$	256

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