Accrued Restructuring Charges

9 Months Ended

Jan. 31, 2014

Accrued Restructuring Charges [Abstract]

6. Accrued Restructuring Charge

On December 3, 2013, we announced the completion of our organizational alignment in which the Archive and eDiscovery businesses were combined. The alignment included movement of our operations, workforce reductions, abandonment of excess facilities and other charges in the Archive and eDiscovery reportable segment.

To determine the loss on abandonment of the lease, which is the net present value of our future lease payments reduced by expected sublease income, certain estimates were made related to the (1) time period over which the relevant facility would remain vacant, (2) sublease terms, and (3) sublease rates, including common area charges. If market rates continue to decrease in these markets or if it takes longer than expected to sublease these facilities, the actual loss could exceed this estimate.

A summary of the restructuring and other costs recognized for the three months ended January 31, 2014 are as follows:.


								Deferred
				Lease		Asset		Rent		Other
		Severance		Abandonment		Impairment		Liability		Costs		Total


Amounts expected to be incurred	$	428	$	482	$	127	$	(356)	$	67	$	748

Amounts incurred for the three months ended
January 31, 2014	$	347	$	482	$	127	$	(356)	$	67	$	667

At January 31, 2014, the accrued liability associated with the realignment consisted of the following:


				Lease
		Severance		Abandonment		Total


Charges	$	347	$	482	$	829
Payments		(170)		(130)		(300)
Accrued liability at January 31, 2014	$	177	$	352	$	529

The remaining accrual as of January 31, 2014 consists of $0.3 million that is expected to be paid during the fourth quarter of fiscal 2014 and $0.2 million expected to be paid through various dates by May 2016.

The restructuring and other related charges are included in the selling, general administrative expense line item in the Consolidated Statements of Operations.

- 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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