NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Employee Closure/ Severance, Consolidation Benefits, and Write-off of Facilities Related Costs of Assets Total Restructuring charge $2,774 $3,148 $1,047 $6,969 Write-off of asset — — (1,047) (1,047) Fiscal 2001 payments (114) (1,878) — (1,992) Accrued expenses, June 30, 2001 2,660 1,270 — 3,930 Adjustments — revised assumptions (800) — — (800) Fiscal 2002 payments (723) (1,217) — (1,940) Accrued expenses, June 30, 2002 1,137 53 — 1,190 Fiscal 2003 payments (397) (53) — (450) Accrued expenses, June 30, 2003 $ 740 $ — $ — $ 740 The Company expects that the remaining obligations will be paid-out by March 2008. Closure/consolidation of facilities: Approximately $2.8 million of the restructuring charge relates to the termination of facility leases and other lease-related costs. The facility leases had remaining terms ranging from one month to six years. The amount accrued reflects the Company's best estimate of the actual costs to buy out the leases in certain cases of the net cost to sublease the properties in other cases. Included in this amount is the write-off of certain assets, primarily leasehold improvements. The adjustments to the accrual that occurred in fiscal 2002 relate to revisions made to sub-lease assumptions. Employee severance, benefits and related costs: Approximately $3.2 million of the restructuring charge relates to the reduction in workforce. Approximately 100 employees, or 5% of the workforce, were eliminated under the changes to the business plan implemented by Company management. Areas impacted included sales and marketing, services, general and administrative, and research and development. Write-off of assets: Approximately $1.0 million of the restructuring and other charges relates to the impairment of an investment in certain e-business initiatives that the Company will no longer support as a direct consequence of the change in business plan. In the fourth quarter of fiscal 1999, the Company experienced a significant slow down in certain of its businesses due to difficulties that customers in its core vertical markets of refining, chemicals and petrochemicals were experiencing. These markets were experiencing a significant decrease in pricing for their products, which significantly reduced their revenues and related cash inflows. In turn, these companies began to reduce their capital spending and lengthened the evaluation and decision-making cycle for purchases. The impact of this on the Company was dramatic, lowering license revenues from expected levels by a significant amount. Based on these reduced revenues, Company management made significant changes to the business plan, resulting in a restructuring plan. The restructuring plan resulted in a pre-tax restructuring charge totaling $17.9 million. The restructuring and other charges are broken down as follows (in thousands): (e) Fiscal 1999 48