BCSI » Topics » Restructuring

These excerpts taken from the BCSI 10-K filed Jun 22, 2009.

Restructuring

In connection with our acquisition of Packeteer, we committed to a plan that resulted in the termination of the employment of 33 employees of Blue Coat. Restructuring charges consist primarily of personnel-related severance costs and stock-based compensation expenses. Stock-based compensation included in restructuring resulted primarily from the additional vesting of unvested option shares and restricted shares upon termination of the employment of those employees pursuant to the terms of their separation agreements. The termination of

 

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employment of all 33 employees occurred during the first quarter of fiscal 2009, and we recorded a restructuring charge of $1.5 million in our consolidated statements of operations, including $0.1 million of stock-based compensation related to the acceleration of certain equity awards. During fiscal 2009, we paid severance in the amount of $1.4 million related to this accrual. We do not anticipate incurring future restructuring charges related to this plan and anticipate the remaining balance of the restructuring accrual, which is included in “other accrued liabilities” in our consolidated sheet as of April 30, 2009, to be paid by the end of the second quarter of fiscal 2010. Changes to the accrual are recorded as operating expense on the statement of operations.

The following table summarizes the activity related to the restructuring accrual as of April 30, 2009 (in thousands):

 

Balance at May 1, 2008

   $ —    

Restructuring charges

     1,546   

Cash payments

     (1,357

Stock-based compensation

     (88
        

Balance at April 30, 2009

   $ 101   
        

As of April 30, 2008, all actions under the February 2002, August 2001, and February 2001 restructuring plans were completed. The following table summarizes our abandoned lease space accrual related to restructuring activity during the years ended April 30, 2007 and 2008 (in thousands):

 

Balances as of April 30, 2006

   $     894   

Cash payments

     (637

Reversals

     (19
        

Balances as of April 30, 2007

     238   

Cash payments

     (238
        

Balances as of April 30, 2008

   $ —     
        

Restructuring

FACE="Times New Roman" SIZE="2">In connection with our acquisition of Packeteer, we committed to a plan that resulted in the termination of the employment of 33 employees of Blue Coat. Restructuring charges consist primarily of personnel-related
severance costs and stock-based compensation expenses. Stock-based compensation included in restructuring resulted primarily from the additional vesting of unvested option shares and restricted shares upon termination of the employment of those
employees pursuant to the terms of their separation agreements. The termination of

 


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employment of all 33 employees occurred during the first quarter of fiscal 2009, and we recorded a restructuring charge of $1.5 million in our consolidated
statements of operations, including $0.1 million of stock-based compensation related to the acceleration of certain equity awards. During fiscal 2009, we paid severance in the amount of $1.4 million related to this accrual. We do not anticipate
incurring future restructuring charges related to this plan and anticipate the remaining balance of the restructuring accrual, which is included in “other accrued liabilities” in our consolidated sheet as of April 30, 2009, to be paid
by the end of the second quarter of fiscal 2010. Changes to the accrual are recorded as operating expense on the statement of operations.

SIZE="2">The following table summarizes the activity related to the restructuring accrual as of April 30, 2009 (in thousands):

 




















































Balance at May 1, 2008

  $ —   

Restructuring charges

   1,546  

Cash payments

   (1,357

Stock-based compensation

   (88
     

Balance at April 30, 2009

  $101  
     

As of April 30, 2008, all actions under the February 2002, August 2001, and February
2001 restructuring plans were completed. The following table summarizes our abandoned lease space accrual related to restructuring activity during the years ended April 30, 2007 and 2008 (in thousands):

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 
































































Balances as of April 30, 2006

  $    894  

Cash payments

   (637

Reversals

   (19
     

Balances as of April 30, 2007

   238  

Cash payments

   (238
     

Balances as of April 30, 2008

  $—    
     

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Jun 22, 2009
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