XML 91 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
RESTRUCTURING CHARGES
9 Months Ended
Nov. 30, 2019
Restructuring And Related Activities [Abstract]  
RESTRUCTURING CHARGES

NOTE 8 – RESTRUCTURING CHARGES

Beginning in the first quarter of fiscal 2019, we commenced a plan to capture certain synergies and cost savings related to streamlining our global operations and sales organization, as well as rationalize certain leased properties that are not fully occupied. Our plan is aligned with our strategy to integrate the global sales organization and further outsource manufacturing functions in order to drive operational efficiency, increase supplier geographic diversity, and reduce operating expenses. To date, total restructuring charges were $11.1 million, comprised of $6.2 million in severance and employee related costs, and $5.0 million for vacant office and manufacturing facility space. Restructuring charges related to vacant office and manufacturing facility space was due primarily to the vacancy in Canton, Massachusetts of $4.5 million. Substantially all charges related to severance and employee costs were under the Telematics Systems reportable segment. As a result of the adoption of ASC 842, effective March 1, 2019, the balance of the restructuring liability related to certain facility leases have been reclassified as a reduction of the Operating lease right-of-use assets in our condensed consolidated balance sheet.

For the three months ended November 30, 2019, total restructuring charges were $0.8 million, all of which were related to severance and employee costs. For the nine months ended November 30, 2019, total restructuring charges were $3.1 million, which was comprised of $1.9 million in severance and employee related costs, and $1.2 million for vacant office space. Substantially all charges were recorded under the Telematics Systems reportable segment. The impairment of $1.2 million for the vacant office space was recorded as a reduction of Operating lease right-of-use assets in our condensed consolidated balance sheet as of November 30, 2019. The restructuring liabilities related to personnel were included in Accrued payroll and employee benefits in our condensed consolidated balance sheets as of November 30, 2019 and February 28, 2019.

The anticipated rent payments for the vacant portion of leased facilities will be made through December 2025. There is no guarantee that the termination and cease use charges will not exceed the estimates or that the impact of any future potential sub-lease rentals will be realized. The following table summarizes the activity resulting from the implementation of the restructuring plan within other current and non-current liabilities (in thousands):

 

 

 

 

Personnel

 

 

Facilities

 

 

Total

 

Restructuring liabilities as of February 28, 2019

 

$

2,779

 

 

$

2,977

 

 

$

5,756

 

Cease-use liability reclassified as reduction of Operating lease right-of-use assets

 

 

-

 

 

 

(2,977

)

 

 

(2,977

)

Charges

 

 

1,924

 

 

 

-

 

 

 

1,924

 

Payments

 

 

(1,975

)

 

 

-

 

 

 

(1,975

)

Restructuring liabilities as of November 30, 2019

 

$

2,728

 

 

$

-

 

 

$

2,728