Company: CVLT
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0001169561-25-000007
Chunk: 23

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 1
Chunk 23
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 to enhance customer satisfaction through the reorganization and redesign of our customer success functions. The realignment of the customer success structure aims to optimize operational efficiency and improve continuity for our customers through the pre-sales and post-sales experience. These charges relate primarily to severance and related costs associated with headcount reductions, stock-based compensation related to modifications of existing awards granted to certain employees impacted by the plan and office termination and exit charges. We anticipate the restructuring plan will be completed by the end of fiscal 2025. The total costs to be incurred related to the restructuring plan cannot be estimated at this time.There were no restructuring charges for the three and nine months ended December 31, 2023. For the three and nine months ended December 31, 2024, restructuring charges were comprised of the following:Three Months Ended December 31, 2024Nine Months Ended December 31, 2024Employee severance and related costs$3,662 $4,317 Lease exit costs (1)— 402 Stock-based compensation307 4,495 Total restructuring charges$3,969 $9,214 (1) Lease exit costs relate to one office for the nine months ended December 31, 2024.Restructuring accrualThe accrual activity related to our restructuring plan for the nine months ended December 31, 2024 was as follows:TotalBalance as of March 31, 2024$2,746 Employee severance and related costs4,317 Payments(6,018)Balance as of December 31, 2024$1,045 

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Table of Contents      Commvault Systems, Inc.Notes to Consolidated Financial Statements - Unaudited (continued)(In thousands, except per share data)

13.    Revolving Credit Facility

On December 13, 2021, we entered into a five-year $100,000 senior secured revolving credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. The Credit Facility is available for share repurchases, general corporate purposes, and letters of credit. The Credit Facility contains financial maintenance covenants, including a leverage ratio and interest coverage ratio. The Credit Facility also contains certain customary events of default which would permit the lender to, among other things, declare all loans then outstanding to be immediately due and payable if such default is not cured within applicable grace periods. The Credit Facility also limits our ability to incur certain additional indebtedness, create or permit