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Restructuring
9 Months Ended
Dec. 31, 2013
Restructuring  
Restructuring

 

Note 14 — Restructuring

 

During the quarter ended June 30, 2012, the Company implemented a restructuring plan to simplify its organization, better align costs with its current business and free up resources to pursue growth opportunities. A majority of the restructuring activity was completed during the quarter ended June 30, 2012. As part of this restructuring plan, the Company reduced its worldwide non-direct labor workforce. Charges and other costs related to the workforce reduction are presented as restructuring charges in the Condensed Consolidated Statements of Operations. During the quarter ended September 30, 2012, the Company recorded a reversal of $3.8 million in termination benefits due to the further refinement of estimates previously recorded during the quarter ended June 30, 2012. During the three and nine months ended December 31, 2012, the Company recorded a $0.2 million reversal and a $24.7 million charge, respectively, in termination benefits. In addition, during the nine months ended December 31, 2012, the Company incurred legal, consulting and other costs of $1.1 million and $2.2 million as a result of the terminations during the three and nine months ended December 31, 2012, respectively. The Company also recorded a reversal of $0.2 million and a charge of $1.3 million in lease exit costs, primarily related to costs associated with the closure of existing facilities. In addition, charges of $3.0 million related to the discontinuance of certain product development efforts were included in cost of goods sold and a $2.2 million charge from the re-measurement of its Swiss defined benefit pension plan caused by the number of plan participants affected by this restructuring that was not included in restructuring charge since it related to prior services.

 

During the quarter ended March 31, 2013, the Company implemented an additional restructuring plan to align the organization to its strategic priorities of increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies. As part of this restructuring plan, the Company reduced its worldwide non-direct labor workforce. Restructuring charges under this plan primarily consisted of severance and other one-time termination benefits. During the quarter ended September 30, 2013, the Company recorded a reversal of $0.8 million in termination benefits due to the further refinement of estimates which were previously recorded and a $0.3 million charge in lease exit costs. During the three months ended December 31, 2013, the Company recorded charges of $0.1 million in termination benefits and $0.7 million in lease exit costs. During the nine months ended December 31, 2013, the Company recorded charges of $1.3 million in termination benefits and $1.3million in lease exit costs. The Company estimates to complete this restructuring plan by March 31, 2014.

 

During the quarter ended September 30, 2013, the Company implemented a restructuring plan solely affecting the video conferencing operating segment to align its organization to its strategic priorities of increasing focus on a tighter range of products, expanding cloud-based video conferencing services and improving profitability. Restructuring charges under this plan primarily consist of severance and other one-time termination benefits. During the three months ended December 31, 2013, the Company recorded immaterial restructuring charges related to this plan. During the nine months ended December 31, 2013, restructuring charges under this plan included $5.4 million in termination benefits and $0.6 million in lease exit costs.

 

Termination benefits were calculated based on regional benefit practices and local statutory requirements. Lease exit costs primarily relate to costs associated with the closure of existing facilities. Other charges primarily consist of legal, consulting and other costs related to employee terminations.

 

The following table summarizes restructuring related activities (in thousands):

 

 

 

Restructuring

 

 

 

Termination

 

Lease Exit

 

 

 

 

 

 

 

Benefits

 

Costs

 

Other

 

Total

 

March 31. 2012

 

$

 

$

 

$

 

$

 

Charges

 

28,655

 

1,472

 

1,100

 

31,227

 

Cash payments

 

(4,766

)

 

(429

)

(5,195

)

Foreign exchange

 

63

 

 

 

63

 

June 30, 2012

 

23,952

 

1,472

 

671

 

26,095

 

Charges (reversals)

 

(3,816

)

48

 

1,097

 

(2,671

)

Cash payments

 

(16,642

)

(52

)

(958

)

(17,652

)

Foreign exchange

 

 

 

14

 

14

 

September 30, 2012

 

3,494

 

1,468

 

824

 

5,786

 

Charges (reversals)

 

(188

)

(182

)

12

 

(358

)

Cash payments

 

(2,633

)

(1,104

)

(774

)

(4,511

)

December 31, 2012

 

673

 

182

 

62

 

917

 

Charges (reversals)

 

16,437

 

(30

)

(901

)

15,506

 

Cash payments

 

(3,727

)

(77

)

839

 

(2,965

)

March 31, 2013

 

13,383

 

75

 

 

13,458

 

Charges

 

2,004

 

330

 

 

2,334

 

Cash payments

 

(8,422

)

 

 

(8,422

)

Foreign exchange

 

(170

)

 

 

(170

)

June 30, 2013

 

6,795

 

405

 

 

7,200

 

Charges

 

4,562

 

903

 

 

5,465

 

Cash payments

 

(6,535

)

(564

)

 

(7,099

)

September 30, 2013

 

4,822

 

744

 

 

5,566

 

Charges

 

119

 

703

 

 

822

 

Cash payments

 

(2,429

)

(694

)

 

(3,123

)

December 31, 2013

 

$

2,512

 

$

753

 

$

 

$

3,265