(4) Accrued Expenses

(a) Total Accrued Expenses

Total accrued expenses consisted of the following (in thousands):


	As of January 31,
	2011		2012
Management incentive bonuses and commissions	$	6,054	$	5,056
Payroll-related items		4,771		4,911
Royalties		405		52
Restructuring charges and accruals (Note 4(b))		1,810		230
Other		9,251		8,667

	$	22,291	$	18,916

(b) Restructuring Charges and Accruals:

In March 2010 and again in February 2011, in response to the general weakening of the worldwide economy, an expected continued slowdown in IT spending and a decline in the Company's license revenue, the Company announced and began to execute plans to reduce its workforce by approximately 5%, or 33 positions, and 5%, or 28 positions, respectively, affecting all parts of the organization. The Company has realized and expects to continue to realize cost savings going forward as a result of these restructurings and other cost saving initiatives. These restructurings are substantially complete, and in connection with these actions, the Company recorded restructuring charges in the fiscal years ended January 31, 2011 and 2012 consisting principally of severance, payroll taxes and other employee benefits totaling $2.0 million and $0.0 million, respectively, and facilities closures, legal and other miscellaneous costs totaling $0.6 million and $0.2 million, respectively. The nature of the restructuring charges and the amounts paid and accrued as of January 31, 2011 and 2012 are summarized as follows (in thousands):


	Severance, payroll taxes and other employee benefits (1)			Facilities closures, legal and other miscellaneous (2)			Total restructuring charges and accruals
Balances as of January 31, 2010	$	84		$	1,682		$	1,766
Accrued		1,998			600			2,598
Paid		(735	)		(1,493	)		(2,228	)
Adjustments (3)		—			(326	)		(326	)

Balances as of January 31, 2011		1,347			463			1,810
Accrued		—			163			163
Paid		(1,347	)		(565	)		(1,912	)

Balances as of January 31, 2012	$	—		$	61		$	61

(1)

The February 2011 reduction in workforce plan was substantially in place and committed to by management prior to the beginning of the first fiscal quarter ended April 30, 2011. Accordingly, severance, payroll taxes and other employee benefits associated with this plan totaling $1.3 million were accrued in the fourth fiscal quarter ended January 31, 2011.

(2)

For the fiscal years ended January 31, 2011 and 2012, contract termination costs accrued related to abandoned facility leases totaled $0.4 million and $0.2 million, respectively, and legal and other miscellaneous costs accrued totaled $0.2 million and $0.0 million, respectively. As of January 31, 2012, contract termination costs accrued related to abandoned facility leases will be paid out over the remaining lease terms ranging from 1 month to 6 months.

(3)	The adjustment in fiscal year 2011 was the result of actual sub-lease income on an abandoned facility being higher than originally estimated.

Restructuring accruals at January 31, 2011 and 2012 totaling $1.8 million and $0.1 million, respectively, are reflected in accrued expenses in the Company's consolidated balance sheets.

The agreements underlying the Company's senior subordinated notes and the Credit Facility include financial covenants based on Adjusted EBITDA and restructuring, acquisition and other charges are a component of that computation. These charges have been included as a separate line within operating expenses in the Company's consolidated statements of operations and are categorized as follows for the fiscal years ended January 31, 2010, 2011 and 2012 (in thousands):


	Fiscal Years Ended January 31,
	2010		2011		2012
Sponsor fees, administration fees and other costs related to the Merger and the issuance of debt	$	1,226	$	1,238	$	1,240
Restructuring charges consisting principally of severance, payroll taxes and other employee benefits, facilities closures and legal and other miscellaneous costs		5,579		2,272		163
Other redundancy costs not related to our restructuring plans including severance and other employee related costs, costs to establish or liquidate entities, and other miscellaneous costs not part of ongoing operations		991		1,822		1,571

Total restructuring, acquisition and other charges	$	7,796	$	5,332	$	2,974