Restructuring Charges

12 Months Ended

Jul. 31, 2014

10.

Restructuring Charges

During the first quarter of fiscal 2013, the Company implemented cost-reduction actions associated with the IQstream Business, including workforce reductions and other cost containment measures. The Company recorded a workforce reduction restructuring charge of $1.58 million primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs. The Company also recorded a restructuring charge of $0.41 million related to certain purchase commitments for the IQstream Business that have no future benefit.

During the second quarter of fiscal 2013, the Company halted further development and marketing of the IQstream Business. The Company took further cost reduction actions associated with the IQstream Business and recorded a workforce reduction restructuring charge of $0.26 million primarily related to employee separation packages and change of control agreements, which included severance pay, benefits continuation and outplacement costs.

During the third quarter of fiscal 2013, the Company continued its cost reduction actions associated with the IQstream Business and terminated all of its remaining IQstream employees. The Company also implemented certain cost reduction actions with respect to its general and administrative functions. In connection with these actions, the Company recorded a workforce reduction restructuring charge of $4.0 million primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs.

The Company completed its cash restructuring payments in fiscal year 2013. A roll-forward of the restructuring accrual since July 31, 2012 is summarized below (in thousands):


	Accrual Balance at July 31, 2012		Additions		Adjustments			Payments		Accrual Balance at July 31, 2013
Workforce reduction	$	—	$	5,844	$	(94	)	$	5,750	$	—
Contract termination costs		—		411		(67	)		344		—

Total	$	—	$	6,255	$	(161	)	$	6,094	$	—

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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