Restructuring Charges (Tables)

9 Months Ended

Oct. 31, 2019

Summary of Aggregate Restructuring Charges

For the three months ended October 31, 2019, the Company recorded aggregate restructuring charges of $3.1 million in its condensed consolidated statement of operations, which consisted of the following major components (in thousands):

	Employee Severance		Excess Inventory and Purchase Commitments ⁽¹⁾		Other Assets ⁽²⁾		Other Charges		Total
Cost of service revenue	$	75	$	—	$	—	$	93	$	168
Cost of product revenue		—		1,375		694		45		2,114
Sales and marketing		170		—		—		5		175
Research and development		475		—		42		111		628
General and administrative		—		—		—		—		—
Total restructuring charges	$	720	$	1,375	$	736	$	254	$	3,085

⁽¹⁾Includes charges for excess Smart Cam product inventory and non-cancelable purchase commitments.

⁽²⁾Includes impairment charges for abandoned intangible assets associated with Smart Cam as well as other long-lived assets.

Summary of Reconciliation of Restructuring Liability

The following provides a reconciliation of the Company’s restructuring liability, which was recorded as a component of accrued expenses on the condensed consolidated balance sheet (in thousands):


Restructuring liability, July 31, 2019	$	—
Restructuring charges ⁽¹⁾		1,504
Cash paid		—
Restructuring liability, October 31, 2019	$	1,504

⁽¹⁾Includes accrued expenses for employee severance, non-cancelable purchase commitments and other cash-based charges. Asset impairment charges were recorded against the respective assets, including inventory and intangible assets.