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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended April 30, 2021

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from               to              

Commission File Number: 1-16497

 

MOVADO GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

New York

 

13-2595932

(State or Other Jurisdiction

of Incorporation or Organization)

 

(IRS Employer

Identification No.)

 

 

 

650 From Road, Ste. 375

Paramus, New Jersey

 

07652-3556

(Address of Principal Executive Offices)

 

(Zip Code)

(201) 267-8000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

MOV

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for that past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,’’ “accelerated filer,’’ “smaller reporting company,’’ and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

The number of shares outstanding of the registrant’s Common Stock and Class A Common Stock as of May 24, 2021 were 16,819,629 and 6,559,999 respectively.

 

 


 

MOVADO GROUP, INC.

Index to Quarterly Report on Form 10-Q

April 30, 2021

 

 

 

 

 

Page

Part I

 

Financial Information (Unaudited)

 

 

 

 

 

Item 1.

 

 

Consolidated Balance Sheets at April 30, 2021, January 31, 2021 and April 30, 2020

 

3

 

 

 

 

 

Consolidated Statements of Operations for the three months ended April 30, 2021 and April 30, 2020

 

4

 

 

 

 

 

Consolidated Statements of Comprehensive Income (Loss) for the three months ended April 30, 2021 and April 30, 2020

 

5

 

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended April 30, 2021 and April 30, 2020

 

6

 

 

 

 

 

Notes to Consolidated Financial Statements

 

7

 

 

 

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

22

 

 

 

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

 

31

 

 

 

Item 4.

 

 

Controls and Procedures

 

31

 

Part II

 

 

Other Information

 

 

 

 

 

Item 1.

 

 

Legal Proceedings

 

32

 

 

 

Item 1A.

 

 

Risk Factors

 

32

 

 

 

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

32

 

 

 

Item 6.

 

 

Exhibits

 

34

 

Signature

 

35

 

 

 

 

 


 

 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

 

MOVADO GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

April 30,

 

 

January 31,

 

 

April 30,

 

 

2021

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

186,950

 

 

$

223,811

 

 

$

187,830

 

Trade receivables, net

 

78,584

 

 

 

76,931

 

 

 

49,765

 

Inventories

 

169,966

 

 

 

152,580

 

 

 

177,832

 

Other current assets

 

23,649

 

 

 

23,479

 

 

 

26,529

 

Income taxes receivable

 

24,305

 

 

 

24,850

 

 

 

520

 

Total current assets

 

483,454

 

 

 

501,651

 

 

 

442,476

 

Property, plant and equipment, net

 

20,599

 

 

 

22,349

 

 

 

26,934

 

Operating lease right-of-use assets

 

72,836

 

 

 

76,070

 

 

 

86,444

 

Deferred and non-current income taxes

 

41,528

 

 

 

42,507

 

 

 

67,281

 

Other intangibles, net

 

16,300

 

 

 

17,081

 

 

 

18,272

 

Other non-current assets

 

59,989

 

 

 

59,599

 

 

 

56,506

 

Total assets

$

694,706

 

 

$

719,257

 

 

$

697,913

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

34,595

 

 

$

28,187

 

 

$

19,241

 

Accrued liabilities

 

45,687

 

 

 

51,124

 

 

 

39,489

 

Accrued payroll and benefits

 

9,727

 

 

 

18,047

 

 

 

6,768

 

Current operating lease liabilities

 

15,413

 

 

 

15,861

 

 

 

15,053

 

Income taxes payable

 

9,128

 

 

 

14,452

 

 

 

13,064

 

Total current liabilities

 

114,550

 

 

 

127,671

 

 

 

93,615

 

Loans payable to bank

 

10,000

 

 

 

21,230

 

 

 

82,510

 

Deferred and non-current income taxes payable

 

21,280

 

 

 

21,895

 

 

 

25,085

 

Non-current operating lease liabilities

 

65,568

 

 

 

68,412

 

 

 

78,471

 

Other non-current liabilities

 

51,528

 

 

 

50,115

 

 

 

44,721

 

Total liabilities

 

262,926

 

 

 

289,323

 

 

 

324,402

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

2,560

 

 

 

2,600

 

 

 

2,966

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock, $0.01 par value, 5,000,000 shares authorized; no shares

   issued

 

 

 

 

 

 

 

 

Common Stock, $0.01 par value, 100,000,000 shares authorized;

   28,372,938, 28,078,241 and 28,000,364 shares issued and outstanding,

   respectively

 

284

 

 

 

281

 

 

 

280

 

Class A Common Stock, $0.01 par value, 30,000,000 shares authorized;

   6,560,509, 6,610,509 and 6,608,548 shares issued and outstanding,

   respectively

 

65

 

 

 

65

 

 

 

65

 

Capital in excess of par value

 

215,890

 

 

 

214,043

 

 

 

210,070

 

Retained earnings

 

346,408

 

 

 

341,641

 

 

 

305,486

 

Accumulated other comprehensive income

 

89,406

 

 

 

92,540

 

 

 

77,074

 

Treasury Stock, 11,558,546, 11,492,591 and 11,480,231 shares,

   respectively, at cost

 

(225,276

)

 

 

(223,306

)

 

 

(223,176

)

Total Movado Group, Inc. shareholders' equity

 

426,777

 

 

 

425,264

 

 

 

369,799

 

Noncontrolling interest

 

2,443

 

 

 

2,070

 

 

 

746

 

Total equity

 

429,220

 

 

 

427,334

 

 

 

370,545

 

Total liabilities, redeemable noncontrolling interest and equity

$

694,706

 

 

$

719,257

 

 

$

697,913

 

 

See Notes to Consolidated Financial Statements

3


 

MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended April 30,

 

 

2021

 

 

2020

 

Net sales

$

134,798

 

 

$

69,666

 

Cost of sales

 

60,596

 

 

 

37,773

 

Gross profit

 

74,202

 

 

 

31,893

 

Selling, general and administrative

 

60,946

 

 

 

58,137

 

Impairment of goodwill and intangible assets (Note 6)

 

 

 

 

155,919

 

Total operating expenses

 

60,946

 

 

 

214,056

 

Operating income/(loss)

 

13,256

 

 

 

(182,163

)

Non-operating income/(expense):

 

 

 

 

 

 

 

Other income

 

100

 

 

 

15

 

Interest expense

 

(275

)

 

 

(271

)

Income/(loss) before income taxes

 

13,081

 

 

 

(182,419

)

Provision/(benefit) for income taxes (Note 12)

 

3,330

 

 

 

(32,330

)

Net income/(loss)

 

9,751

 

 

 

(150,089

)

Less: Net income/(loss) attributable to noncontrolling interests

 

342

 

 

 

(96

)

Net income/(loss) attributable to Movado Group, Inc.

$

9,409

 

 

$

(149,993

)

 

 

 

 

 

 

 

 

Basic income/(loss) per share:

 

 

 

 

 

 

 

Weighted basic average shares outstanding

 

23,320

 

 

 

23,141

 

Net income/(loss) per share attributable to Movado Group, Inc.

$

0.40

 

 

$

(6.48

)

 

 

 

 

 

 

 

 

Diluted income/(loss) per share:

 

 

 

 

 

 

 

Weighted diluted average shares outstanding

 

23,741

 

 

 

23,141

 

Net income/(loss) per share attributable to Movado Group, Inc.

$

0.40

 

 

$

(6.48

)

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financial Statements

4


 

MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

 

 

 

Three Months Ended April 30,

 

 

 

2021

 

 

2020

 

Net income/(loss)

 

$

9,751

 

 

$

(150,089

)

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

Net unrealized gain/(loss) on investments, net of tax provision/(benefit) of $14 and $(13), respectively

 

 

41

 

 

 

(38

)

Amortization of prior service cost, net of tax provision of $4 and $4, respectively

 

 

14

 

 

 

13

 

Foreign currency translation adjustments

 

 

(3,189

)

 

 

(7,951

)

Total other comprehensive loss, net of taxes

 

 

(3,134

)

 

 

(7,976

)

Less:

 

 

 

 

 

 

 

 

Comprehensive income/(loss) attributable to noncontrolling interests:

 

 

 

 

 

 

 

 

Net income/(loss)

 

 

342

 

 

 

(96

)

Foreign currency translation adjustments

 

 

(9

)

 

 

(64

)

Total comprehensive income/(loss) attributable to noncontrolling interests

 

$

333

 

 

$

(160

)

Total comprehensive income/(loss) attributable to Movado Group, Inc.

 

$

6,284

 

 

$

(157,905

)

 

See Notes to Consolidated Financial Statements

5


 

MOVADO GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Three Months Ended April 30,

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income/(loss) attributable to Movado Group, Inc.

$

9,409

 

 

$

(149,993

)

Adjustments to reconcile net (loss)/income to net cash used in operating activities:

 

 

 

 

 

 

 

Impairment of goodwill and intangible assets

 

 

 

 

155,919

 

Non-cash corporate initiatives

 

 

 

 

7,240

 

Depreciation and amortization

 

3,173

 

 

 

3,885

 

Transactional (gains)/losses

 

(795

)

 

 

625

 

Provision for inventories and accounts receivable

 

776

 

 

 

468

 

Deferred income taxes

 

354

 

 

 

(42,241

)

Stock-based compensation

 

1,554

 

 

 

1,572

 

Other

 

399

 

 

 

4

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

Trade receivables

 

(1,896

)

 

 

25,432

 

Inventories

 

(19,525

)

 

 

(10,342

)

Other current assets

 

350

 

 

 

(1,259

)

Accounts payable

 

6,898

 

 

 

(15,655

)

Accrued liabilities

 

(3,594

)

 

 

(6,134

)

Accrued payroll and benefits

 

(8,234

)

 

 

500

 

Income taxes payable

 

(5,261

)

 

 

4,781

 

Other non-current assets

 

610

 

 

 

(366

)

Other non-current liabilities

 

409

 

 

 

(17

)

Net cash used in operating activities

 

(15,373

)

 

 

(25,581

)

Cash flows from investing activities:

 

 

 

 

 

 

 

Capital expenditures

 

(407

)

 

 

(926

)

Trademarks and other intangibles

 

(44

)

 

 

(41

)

Net cash used in investing activities

 

(451

)

 

 

(967

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Repayment of bank borrowings

 

(11,140

)

 

 

 

Proceeds from bank borrowings

 

 

 

 

30,879

 

Dividends paid

 

(6,962

)

 

 

 

Stock awards and options exercised and other changes

 

(1,385

)

 

 

(367

)

Stock repurchase

 

(316

)

 

 

 

Net cash (used in)/provided by financing activities

 

(19,803

)

 

 

30,512

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(1,249

)

 

 

(2,007

)

Net (decrease)/increase in cash, cash equivalents and restricted cash

 

(36,876

)

 

 

1,957

 

Cash, cash equivalents, and restricted cash at beginning of year

 

224,423

 

 

 

186,438

 

Cash, cash equivalents, and restricted cash at end of period

$

187,547

 

 

$

188,395

 

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash:

 

 

 

 

 

 

 

Cash and cash equivalents

$

186,950

 

 

$

187,830

 

Restricted cash included in other non-current assets

 

597

 

 

 

565

 

Cash, cash equivalents, and restricted cash

$

187,547

 

 

$

188,395

 

See Notes to Consolidated Financial Statements

6


 

MOVADO GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1 – BASIS OF PRESENTATION

The accompanying interim unaudited Consolidated Financial Statements have been prepared by Movado Group, Inc. (the “Company”), in a manner consistent with that used in the preparation of the annual audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2021 (the “2021 Annual Report on Form 10-K”). The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting of only normal and recurring adjustments, necessary for a fair statement of the financial position and results of operations for the periods presented. The consolidated balance sheet data at January 31, 2021 is derived from the audited annual financial statements, which are included in the Company’s 2021 Annual Report on Form 10-K and should be read in connection with these interim unaudited financial statements. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

 

 

NOTE 2 – IMPACT OF THE COVID-19 PANDEMIC

 

In December 2019, COVID-19 emerged and subsequently spread worldwide. The World Health Organization declared COVID-19 a pandemic in March 2020, resulting in federal, state and local governments and other authorities mandating various restrictions, including travel restrictions, quarantines and other social distancing requirements. As a result of the outbreak, in mid-March 2020, the Company and the majority of the Company’s wholesale customers temporarily closed all of their retail stores due to health concerns associated with COVID-19. Although the Company reopened all of its retail stores during the second quarter of fiscal 2021 and most of the Company’s brick and mortar wholesale customers have reopened the majority of their retail locations as well, the discretionary consumer goods segment remains highly challenged at brick and mortar retail locations worldwide.

 

The Company entered this period of uncertainty with a healthy liquidity position, and it took actions to enhance its financial liquidity and flexibility, including minimizing all non-essential operating expenses (including marketing, travel and consulting services), reevaluating all capital expenditures, furloughing approximately 80% of the Company’s North American workforce during March through June 2020 and temporarily reducing the work-rate of international employees while applying for available government payroll subsidies in accordance with local government guidelines and programs, suspending the Company’s share repurchase program and regular quarterly dividends, reducing salaries and suspending Board of Director fees from April through June 2020, amending license agreements to reduce its royalty obligations in fiscal 2021 and negotiating rent abatements in respect of its rent obligations for its Company Stores and certain other leases. As a precautionary measure, the Company borrowed an additional $30.9 million under its revolving credit facility in March 2020 and amended its revolving credit facility to modify some of its financial covenants (see Note 8 – Debt and Lines of Credit). During fiscal 2021 the Company repaid $64.5 million under its revolving credit facility and repaid an additional $11.1 million during the first quarter of fiscal 2022. At April 30, 2021, $10.0 million remained outstanding under the Company’s revolving credit facility.

 

As part of the Company’s efforts to continue to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic, the Company committed to a restructuring plan (the “Restructuring Plan”) on June 29, 2020 (see Note 5 – Restructuring Provision for further discussion).         

 

The Company evaluates its long-lived assets, operating lease right of use assets, goodwill and intangible assets for indicators of impairment at least annually in the fourth quarter of each fiscal year or whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Given the substantial reduction in the Company’s sales and the reduced cash flow projections as a result of closures of the Company’s retail stores and its wholesale customers due to the COVID-19 pandemic, as well as the significant decline in the Company’s market capitalization, the Company determined that a triggering event occurred during the first quarter of fiscal 2021 and that an impairment assessment was warranted for goodwill and intangible assets. This analysis resulted in impairment charges related to goodwill of $133.7 million and intangible assets of $22.2 million in the first quarter of fiscal 2021. See Note 6 – Goodwill and Intangible Assets – for a further discussion of these impairments.

7


 

 

Although the full magnitude of the effects on the Company’s business is difficult to predict at this time, the COVID-19 pandemic is expected to continue to impact the Company’s results of operations for the foreseeable future. In addition to the resurgence of COVID-19 cases in many regions which has resulted in the tightening of containment and mitigation measures in many countries, the ongoing economic impacts and health concerns associated with the pandemic will likely continue to affect consumer behavior, spending levels, shopping preferences and tourism. Nevertheless, the pandemic’s adverse impact on the Company has significantly diminished in recent quarters and the Company believes that based on the Company’s current expectations, cash flows from operations and its credit lines and cash on-hand, the Company has adequate funds to support its operating, capital and debt service requirements and expects to maintain compliance with its debt covenants for the next twelve months subsequent to the issuance of these financial statements.

 

NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS

 

In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. This guidance provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for the Company’s borrowing instruments, which use LIBOR as a reference rate, and is effective immediately, but is only available through December 31, 2022. The Company is evaluating the optional expedients and exceptions in the guidance and while transition from LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, derivatives or other financial instruments or extensions held by or due, the Company does not except such nor the adoption of this standard to have a material impact on its Consolidated Financial Statements.         

  

NOTE 4 – EARNINGS PER SHARE AND CASH DIVIDENDS

The Company presents net income/(loss) attributable to Movado Group, Inc. after adjusting for noncontrolling interests, as applicable, per share on a basic and diluted basis. Basic earnings per share is computed using weighted-average shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of shares outstanding adjusted for dilutive common stock equivalents.

The number of shares used in calculating basic and diluted earnings (loss) per share is as follows (in thousands):

 

 

Three Months Ended April 30,

 

 

2021

 

 

2020

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

23,320

 

 

 

23,141

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Stock awards and options to purchase shares of

common stock

 

421

 

 

 

 

Diluted

 

23,741

 

 

 

23,141

 

 

For the three months ended April 30, 2021 and 2020, approximately 536,000 and 891,000, respectively, of potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the three months ended April 30, 2020, the Company also had approximately 120,000 stock options that could potentially dilute earnings per share in future periods that were excluded from the computation of diluted EPS because their effect would have been anti-dilutive given the net loss during the period.    

 

On March 25, 2021, the Company declared a quarterly cash dividend of $0.20 per share payable on April 21, 2021, to shareholders of record on April 7, 2021. The total dividend of $4.6 million was paid on April 21, 2021. In addition, the Company paid a cash dividend on February 5, 2021 in the amount of $2.3 million to shareholders of record on January 21, 2021 of $0.10 per share. During the first quarter of fiscal 2021 the Company did not declare quarterly cash dividends.

 

 

8


 

 

NOTE 5 – RESTRUCTURING PROVISION

 

On June 29, 2020, the Company committed to a Restructuring Plan as part of the Company’s corporate initiatives to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The Restructuring Plan was completed during the second quarter of fiscal 2021, although cash severance will be paid over time and such payments will continue into the current fiscal year. Of the total $12.6 million provision recorded in fiscal 2021, $7.5 million has been paid out through the first quarter of fiscal 2022 ($6.7 million of which was paid out during fiscal 2021), approximately $1.7 million is expected to result in cash payments during the remainder of the current fiscal year with the remaining $1.3 million resulting in non-cash use ($2.1 million had been used in fiscal 2021). The Company expects annual savings in the range of $14 million to $16 million as it relates to severance and employee related and properties (contained within Other in table below).

 

A summary rollforward of the provision related to the Company’s corporate initiatives, including the provision associated with the Restructuring Plan, is as follows for the three months ended April 30, 2021 (in thousands):

 

 

Balance January 31, 2021

 

 

Provision

 

 

Non-Cash Use

 

 

Cash Payments

 

 

Balance April 30, 2021

 

Restructuring Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and Employee Related (1)

$

2,378

 

 

$

 

 

$

 

 

$

(787

)

 

$

1,591

 

Other (2)

 

51

 

 

 

 

 

 

 

 

 

(3

)

 

 

48

 

Other Corporate Initiatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and Employee Related

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory (3)

 

407

 

 

 

 

 

 

(21

)

 

 

 

 

 

386

 

Accounts receivable (4)

 

926

 

 

 

 

 

 

 

 

 

 

 

 

926

 

Other (2)

 

19

 

 

 

 

 

 

 

 

 

 

 

 

19

 

Total

$

3,781

 

 

$

 

 

$

(21

)

 

$

(790

)

 

$

2,970

 

 

A summary rollforward of the provision related to the Company’s corporate initiatives, including the provision associated with the Restructuring Plan, is as follows for the three months ended April 30, 2020 (in thousands):

 

 

Balance January 31, 2020

 

 

Provision

 

 

Non-Cash Use

 

 

Cash Payments

 

 

Balance April 30, 2020

 

Restructuring Plan:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and Employee Related

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Other (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Corporate Initiatives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and Employee Related