RESTRUCTURING

9 Months Ended

Apr. 30, 2022

Restructuring and Related Activities [Abstract]

ModusLink Restructuring Activities

During the fiscal year ended July 31, 2021, ModusLink implemented a strategic plan to reorganize its sales function and the e-Business operations. The restructuring charges associated with this plan were incurred during the fiscal year ended July 31, 2021 and were composed of employee termination costs. In November 2021, ModusLink amended its strategic plan to include

reorganizing its supply chain operations and recorded a restructuring charge of approximately $0.9 million during the three months ended January 31, 2022.

The table below summarizes restructuring charges in the statements of operations for employee termination costs:


	Three Months Ended April 30,				Nine Months Ended April 30,
	2022		2021		2022		2021
	(In thousands)
Cost of revenue	$	(16)	$	22	$	664	$	22
Selling, general and administrative	134		(322)		310		896
	$	118	$	(300)	$	974	$	918

IWCO Direct's restructuring charges have been reclassified to discontinued operations as a result of the IWCO Direct Disposal.

Changes to the restructuring liability during the nine months ended April 30, 2022 were as follows:



	(In thousands)
Balance as of July 31, 2021	$	1,059
Costs incurred	974
Cash payments	(1,385)

Change in estimates	(88)
Balance as of April 30, 2022	$	560