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Restructuring Charges
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Jan. 31, 2015
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Charges | Restructuring Charges In August 2014, the Company announced a restructuring plan to optimize its administrative and operational costs by realigning its workforce to better reflect the Company's operations and scaling the Company with a global infrastructure. While the Company has reduced its workforce and relocated certain personnel functions to lower cost regions, the Company continues hiring to support the expansion of its global go-to-market strategy as well as to support continued product innovation. At the time of the announcement, the Company expected a reduction of up to 66 positions, or 3.7% of its global workforce, and the relocation of up to 75 positions, or 4.2% of its global workforce, to the Company’s facilities located in Portland, Oregon, Bangalore, India, and Cork, Ireland. At the time of the announcement, the Company projected pre-tax restructuring charges of between approximately $6.0 million and $8.0 million, consisting primarily of severance, other termination benefits and other associated costs. During the first half of fiscal 2015, the Company has recognized $6.1 million in restructuring charges. As of January 31, 2015, the Company expects pre-tax restructuring charges to be in the low end of the range, with the majority of the charges recognized during the first half of fiscal 2015. During the second quarter of fiscal 2015, the restructuring plan resulted in a net reduction to the restructuring reserve of $0.5 million, primarily as a result of savings of $0.4 million related to unpaid employee severance benefits due to changes in planned terminations (e.g., role reassignment) and savings of $0.3 million related to unused insurance and outplacement costs, as impacted employees integrated into the job market faster than anticipated. These savings were partially offset by additional charges of $0.2 million related to third party professional services directly associated with the restructuring. The following table summarizes the restructuring activities through January 31, 2015:
The balance of restructuring charges accrued at January 31, 2015 totaled $0.6 million and is included in accrued liabilities in the Condensed Consolidated Balance Sheet as of January 31, 2015. Other One-time Charges In connection with the restructuring plan, the Company has also incurred certain other one-time charges, consisting primarily of redundant salaries, recruiting services and travel related expenses, and other related charges. Under U.S. GAAP, these charges do not qualify for presentation in the restructuring charges line of the Condensed Consolidated Statements of Operations. Thus, such expenses are reflected in their related functional departments. At the time of the announcement, the Company projected these other one-time charges would be between approximately $2.3 million and $4.3 million. Through January 31, 2015, the Company has recognized $1.5 million in other one-time charges related to restructuring actions, of which $1.1 million was recognized in the second quarter of fiscal 2015. As of January 31, 2015, the Company expects these other one-time charges to be in the low end of the range, with the majority of the charges to be recognized during the first nine months of fiscal 2015. The following table summarizes other one-time charges recorded in the Condensed Consolidated Statements of Operations:
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