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Restructuring and Related Charges (Credits) | 9 Months Ended
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Jan. 31, 2023
Restructuring and Related Activities [Abstract] |
Restructuring and Related Charges (Credits) | Restructuring and Related Charges (Credits) Fiscal Year 2023 Restructuring Program In May 2022, the Company initiated a global program to restructure and align our cost base with current and anticipated future market conditions (Fiscal Year 2023 Restructuring Program). This program includes severance related charges for the elimination of certain positions, the exit of certain leased office space, and the reduction of our occupancy at other facilities. We are reducing our real estate square footage occupancy by approximately 22%. The following tables summarize the pretax restructuring charges related to this program:
| Three Months Ended January 31, | Nine Months Ended January 31,
| 2023 |  | 2023
Charges by Segment: |  |  |
Research | $ | 319 |  |  | $ | 1,579 |
Academic | 1,823 |  |  | 10,060 |
Talent | 178 |  |  | 2,514 |
Corporate Expenses | 6,540 |  |  | 30,129 |
Total Restructuring and Related Charges | $ | 8,860 |  |  | $ | 44,282 |
Charges by Activity: |  |  |
Severance and termination benefits | $ | 7,049 |  |  | $ | 24,613 |
Impairment of operating lease ROU assets and property and equipment | — |  |  | 12,696 |
Acceleration of expense related to operating lease ROU assets and property and equipment | 152 |  |  | 1,992 |
Facility related charges, net | 706 |  |  | 3,403 |
Consulting costs | 167 |  |  | 597 |
Other activities | 786 |  |  | 981 |
Total Restructuring and Related Charges | $ | 8,860 |  |  | $ | 44,282 |
The impairment charges of $12.7 million for the nine months ended January 31, 2023 included the impairment of operating lease ROU assets of $7.6 million related to certain leases that will be subleased, and the related property and equipment of $5.1 million described further below. These charges were recorded in corporate expenses. The acceleration of expense of $2.0 million for the nine months ended January 31, 2023 included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated, and the related depreciation and amortization of property and equipment of $1.1 million. Due to the actions taken above, we tested the operating lease ROU assets and the related property and equipment for those being subleased for recoverability by comparing the carrying value of the asset group to an estimate of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset group. Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset groups were below the carrying values. Therefore, there was an indication of impairment. We then determined the fair value of the asset groups by utilizing the present value of the estimated future cash flows attributable to the assets. The fair value of these operating lease ROU assets and the property and equipment immediately subsequent to the impairment was $12.1 million and was categorized as Level 3 within the FASB ASC Topic 820, “Fair Value Measurements” fair value hierarchy. In addition, we also incurred ongoing facility-related costs associated with certain properties that resulted in additional restructuring charges of $0.7 million and $3.4 million in the three and nine months ended January 31, 2023, respectively. We also incurred consulting costs of $0.2 million and $0.6 million and other activities of $0.8 million and $1.0 million in the three and nine months ended January 31, 2023, respectively. In the three months ended January 31, 2023, due to the political instability and military actions between Russia and Ukraine, we made the decision to close our operations in Russia which primarily consists of technology development resources. We expect to be substantially completed by April 30, 2023, except for the liquidation of the operations in our fiscal year 2024. Included in the table above are restructuring charges for the three and nine months ended January 31, 2023 of $7.5 million, related to these actions, and include the following: •Severance charges of $6.8 million for the elimination of certain positions; •Relocation and other charges of $0.5 million primarily for positions that will remain with the Company but will be in another geographic location; and •Acceleration of depreciation and amortization of property and equipment of $0.2 million. The following table summarizes the activity for the Fiscal Year 2023 Restructuring Program liability for the nine months ended January 31, 2023:
| April 30, 2022 |  | Charges |  | Payments |  | Foreign Translation & Other Adjustments |  | January 31, 2023
Severance and termination benefits | $ | — |  |  | $ | 24,613 |  |  | $ | (16,157) |  |  | $ | 222 |  |  | $ | 8,678 |
Consulting costs | — |  |  | 597 |  |  | (597) |  |  | — |  |  | — |
Other activities | — |  |  | 981 |  |  | (814) |  |  | (60) |  |  | 107 |
Total | $ | — |  |  | $ | 26,191 |  |  | $ | (17,568) |  |  | $ | 162 |  |  | $ | 8,785 |
Approximately $7.8 million of the restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs and approximately $0.9 million is reflected in Other long-term liabilities on our Unaudited Condensed Consolidated Statement of Financial Position. The liability for Other activities is reflected in Other accrued liabilities. Business Optimization Program Beginning in fiscal year 2020, we initiated a multiyear Business Optimization Program (the Business Optimization Program) to drive efficiency improvement and operating savings. The following tables summarize the pretax restructuring (credits) charges related to this program:
| Three Months Ended January 31, |  | Nine Months Ended January 31, |  | Total Charges Incurred to Date
| 2023 |  | 2022 |  | 2023 |  | 2022 |
(Credits) Charges by Segment: |  |  |  |  |  |  |  |  |
Research | $ | (2) |  |  | $ | — |  |  | $ | (2) |  |  | $ | 238 |  |  | $ | 3,880 |
Academic | 28 |  |  | 261 |  |  | 31 |  |  | (347) |  |  | 12,448 |
Talent | (106) |  |  | (41) |  |  | (114) |  |  | 245 |  |  | 5,032 |
Corporate Expenses | 27 |  |  | 228 |  |  | 1,007 |  |  | (1,297) |  |  | 44,397 |
Total Restructuring and Related (Credits) Charges | $ | (53) |  |  | $ | 448 |  |  | $ | 922 |  |  | $ | (1,161) |  |  | $ | 65,757 |
(Credits) Charges by Activity: |  |  |  |  |  |  |  |  |
Severance and termination benefits | $ | (238) |  |  | $ | (291) |  |  | $ | (225) |  |  | $ | (2,861) |  |  | $ | 34,894 |
Impairment of operating lease ROU assets and property and equipment | — |  |  | — |  |  | — |  |  | — |  |  | 15,079 |
Acceleration of expense related to operating lease ROU assets and property and equipment | — |  |  | — |  |  | — |  |  | — |  |  | 3,378 |
Facility related charges, net | 185 |  |  | 739 |  |  | 1,147 |  |  | 1,700 |  |  | 10,666 |
Other activities | — |  |  | — |  |  | — |  |  | — |  |  | 1,740 |
Total Restructuring and Related (Credits) Charges | $ | (53) |  |  | $ | 448 |  |  | $ | 922 |  |  | $ | (1,161) |  |  | $ | 65,757 |
The credits in severance and termination benefits activities for the three and nine months ended January 31, 2023 and 2022 primarily reflects changes in the number of headcount reductions and estimates for previously accrued costs. Facilities related charges, net include sublease income related to those operating leases we had identified in the year ended April 30, 2021 as part of our Business Optimization program that would be subleased. The following table summarizes the activity for the Business Optimization Program liability for the nine months ended January 31, 2023:
| April 30, 2022 |  | (Credits) |  | Payments |  | Foreign Translation & Other Adjustments |  | January 31, 2023
Severance and termination benefits | $ | 2,079 |  |  | $ | (225) |  |  | $ | (642) |  |  | $ | 14 |  |  | $ | 1,226 |
Total | $ | 2,079 |  |  | $ | (225) |  |  | $ | (642) |  |  | $ | 14 |  |  | $ | 1,226 |
The restructuring liability for accrued severance and termination benefits is reflected in Accrued employment costs on our Unaudited Condensed Consolidated Statement of Financial Position as of January 31, 2023.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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