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Restructuring
6 Months Ended
Jul. 31, 2010
Restructuring  
Restructuring

8. RESTRUCTURING

The Company reviews its business, manages costs and aligns resources with market demand and in conjunction with various acquisitions. As a result, the Company has taken several actions to reduce fixed costs, eliminate redundancies, strengthen operational focus and better position itself to respond to market pressures or unfavorable economic conditions. In addition to existing restructuring initiatives, Comverse's management had approved one restructuring initiative during the six months ended July 31, 2010.

First Quarter 2010 Restructuring Initiatives

During the three months ended April 30, 2010, Comverse's management approved a restructuring plan to eliminate staff positions and close certain facilities in order to more appropriately streamline Comverse's activities. The aggregate cost of the plan was $7.0 million, of which severance-related and facilities-related costs of $5.8 million and $1.0 million, respectively, were recorded during the six months ended July 31, 2010 with the remaining $0.2 million of charges recorded during the remainder of the fiscal year ended January 31, 2011. Severance-related and facilities-related costs of $5.4 million and $0.5 million, respectively, were paid during the six months ended July 31, 2010. Severance-related and facilities-related costs of $0.6 million and $0.4 million, respectively, were paid during the remainder of the fiscal year ended January 31, 2011, with the remaining costs of $0.1 million expected to be substantially paid by January 31, 2012.

 

The rollforward of the workforce reduction and restructuring activities under various plans is presented below:

 

     Comverse First
Quarter 2010
Initiative
    Comverse  2009
Initiative
    Pre 2009 Initiatives     Verint Initiatives         
     Severance
Related
    Facilities
Related
    Severance
Related
    Facilities
Related
    Severance
Related
    Facilities
Related
    Severance
Related
    Facilities
Related
     Total  
     (In thousands)  

For the Six Months Ended
July 31, 2010

                   

January 31, 2010

   $ —        $ —        $ 342      $ 423      $ 357      $ 4,064      $ 116      $ —         $ 5,302   

Charges

     5,779        1,006        38        12        (31     172        —          —           6,976   

Paid or utilized

     (5,366     (530     (368     (360     12        (2,357     (116     —           (9,085
                                                                         

July 31, 2010

   $ 413      $ 476      $ 12      $ 75      $ 338      $ 1,879      $ —        $ —         $ 3,193   
                                                                         

 

     Comverse 2009
Initiative
    Pre 2009 Initiatives     Verint Initiatives               
     Severance
Related
    Facilities
Related
    Severance
Related
    Facilities
Related
    Severance
Related
    Facilities
Related
     Other (1)
initiatives
    Total  
     (In thousands)  

For the Six Months Ended
July 31, 2009

                 

January 31, 2009

   $ —        $ —        $ 1,746      $ 8,670      $ 537      $ —         $ 4      $ 10,957   

Charges

     11,558        986        93        933        24        —           128        13,722   

Change in assumptions

     —          —          (47     (243     —          —           —          (290

Paid or utilized

     (9,341     (254     (1,379     (2,648     (543     —           (132     (14,297
                                                                 

July 31, 2009

   $ 2,217      $ 732      $ 413      $ 6,712      $ 18      $ —         $ —        $ 10,092   
                                                                 

(1) Includes costs and payments associated with initiatives implemented at Starhome.