Restructuring, Acquisition and Other Charges

3 Months Ended

Apr. 30, 2013

Restructuring, Acquisition and Other Charges [Abstract]

RESTRUCTURING, ACQUISITION AND OTHER CHARGES

5. RESTRUCTURING, ACQUISITION AND OTHER CHARGES

The agreements underlying the Company’s debt 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 condensed consolidated statements of comprehensive loss.

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

	Three Months Ended April 30,
	2013		2012
Restructuring	$	3,132	$	—
Acquisition and Other Charges:
Acquisitions and costs related to issuance of debt		17		38
Sponsor and administration fees paid to Silver Lake		198		281
Severance, facility and other charges not part of restructuring and not part of ongoing operations		261		73
Total	$	3,608	$	392

In February 2013, the Company initiated a restructuring plan (the “February 2013 Restructuring Plan”) in response to a decline in revenues and to better align its business operations to market opportunities. As part of the February 2013 Restructuring Plan, the Company reduced its workforce by approximately 8% (55 employees) in the three months ended April 30, 2013 affecting all parts of the organization. The February 2013 Restructuring Plan consisted of certain workforce reductions world-wide, and facility closures in the North America and Europe regions. During the three months ended April 30, 2013, the Company recorded net restructuring charges of $3.1 million. 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 on the February 2013 Restructuring Plan (in thousands):

	Severance, payroll taxes employee benefits and other  miscellaneous			Facilities closures			Total restructuring charges and accruals
Accrued	$	3,038		$	94		$	3,132
Paid/Written-off		(2,267	)		(89	)		(2,356	)
Balances as of April 30, 2013	$	771		$	5		$	776