RESTRUCTURING ACTIVITIES

12 Months Ended

Jul. 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. The restructuring charges recorded in fiscal year ended July 31, 2022 were primarily composed of employee termination costs.

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 months ended April 30, 2023. The restructuring charges recorded in three months ended April 30, 2023 were primarily composed of employee termination costs. In the three months ended July 2023, ModusLink completed its Ireland and United States strategic reorganization plan and reversed approximately $0.1 million of restructuring accrual. The reversal of unused restructuring charges recorded in the three months ended July 31, 2023 were primarily related to employee termination costs.

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


	Successor	Predecessor
	May 1 to July 31,	August 1, 2022 to April 30,	Fiscal Year Ended July 31,
(in thousands)	2023	2023	2022
Cost of revenue	(62)	97	$	1,200
Selling, general and administrative	—	—	313
	(62)	97	$	1,513

Changes to the restructuring liability during the fiscal year ended July 31, 2023 were as follows:


	(in thousands)
Balance as of July 31, 2022	$	892
Costs incurred	35
Cash payments	(925)
Change in estimates	(2)
Balance as of July 31, 2023	$	—