Restructuring, Acquisition and Other Charges

12 Months Ended

Jan. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring, Acquisition and Other Charges

8.    Restructuring, Acquisition and Other Charges

The agreements underlying the Company’s senior subordinated notes and the Credit Facility include financial covenants based on Adjusted EBITDA. Restructuring, acquisition and other charges are a component of the Adjusted EBITDA and are recorded as a separate line within the consolidated statements of comprehensive income (loss).

Restructuring, acquisition and other charges consisted of the following (in thousands):

	Fiscal Years Ended January 31,
	2013			2012		2011
Restructuring	$	(61	)	$	163	$	2,272
Acquisition and Other Charges:
Acquisitions and costs related to issuance of debt		126			115		113
Sponsor and administration fees paid to Silver Lake, a related party		1,125			1,125		1,125
Severance, facility and other charges not part of restructuring and not part of ongoing operations		3,380			1,571		1,822
Total	$	4,570		$	2,974	$	5,332

Restructuring charges are based on the Company’s restructuring plans that were committed to by management. These restructuring charges are restructuring, acquisition and other charges in the consolidated statements of comprehensive income (loss), as applicable. Any changes in the estimates of executing the approved plans will be reflected in the results of operations. Restructuring liabilities are reported within other accrued expenses in the consolidated balance sheets.

During 2011, the Company initiated a restructuring plan (the “2011 Restructuring Plan”) in an effort to better align its business operations with market and macroeconomic conditions. The 2011 Restructuring Plan consisted of certain workforce reductions and facility closures. Restructuring charges were based on the Company’s restructuring plans that were committed by management. Any changes in the estimates of executing the approved plans are reflected in the Company’s results of operations. Restructuring liabilities are reported within other accrued expenses in the condensed consolidated balance sheets.

The following table summarizes restructuring charges (in thousands):

	Severance, payroll taxes and other employee benefits			Facilities closures, legal and other miscellaneous			Total restructuring charges  and accruals
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
Accrued or Adjusted		—			(61	)		(61	)
Balances as of January 31, 2013	$	—		$	—		$	—

In February 2013, the Company initiated a restructuring plan (the “2013 Restructuring Plan”) in response to a decline in revenues and to better align its business operations to market opportunities. As part of the 2013 Restructuring Plan, the Company began to reduce its workforce by approximately 8% affecting all parts of the organization. These restructuring charges are estimated to be approximately $2.5 million and will be recorded in fiscal year 2014. The Company is also expecting to close certain offices throughout the world in which details would be finalized in fiscal year 2014.