Restructuring Charges

9 Months Ended

Dec. 31, 2011

3. RESTRUCTURING CHARGES

The Company recognizes restructuring costs associated with exit or disposal activities. Cost relating to facilities closure or lease commitments are recognized when the facility has been exited. Termination costs are recognized when the cost are deemed both probable and estimable. A combined summary of the recent activity of the restructuring programs initiated by the Company is as follows (in thousands):


	Workforce Reduction			Facilities Consolidation and Operating Lease Commitments			Total
Liability, March 31, 2010	$	393		$	190		$	583
Restructuring charges		486			112			598
Cash payments		(831	)		(284	)		(1,115	)
Reductions to estimated liability		(48	)		(18	)		(66	)

Liability, March 31, 2011		—			—			—

Restructuring charges		913			—			913
Cash payments		(873	)		—			(875	)
Reductions to estimated liability		(40	)		—			(38	)

Liability, December 31, 2011	$	—		$	—		$	—

Prior Fiscal Years' Completed Restructuring Programs

The February 2009 restructuring program was implemented to reduce its expenses and excess capacity in response to the worsening economic conditions. The restructuring program consisted of the elimination of approximately 100 positions. As a result of the February 2009 restructuring program, the Company recorded a net charge of $7.8 million, consisting of $4.7 million for employee severances, $0.8 million for operating lease impairments, $1.5 million in contract cancellation charges for a cancelled project and $0.8 million for an asset impairment. During the fiscal year ended March 31, 2011, the Company paid all its remaining liabilities related to this restructuring program.

The January 2010 restructuring program was implemented as part of the Company's ongoing cost reduction efforts and to better align its global operations to achieve greater efficiencies. The Company moved some of its functions offshore, which will allow it to be much closer to its third party subcontract manufacturers, thus reducing costs by taking advantage of its global cost structure and improving efficiencies by eliminating the delays inherent in working in different time zones. The January 2010 restructuring plan includes eliminating or relocating 63 positions. As a result of the January 2010 restructuring program, the Company recorded a charge of $1.0 million, consisting of $0.6 million for employee severances and $0.4 million for an asset impairment in the fiscal year ended March 31, 2010. During the fiscal year ended March 31, 2011, the Company recorded an additional charge of $0.5 million for employee severances and paid all its remaining liabilities related to this restructuring program.

April 2011 Restructuring Program

The April 2011 restructuring program was implemented as part of the Company's ongoing cost reduction efforts and to better align its global operations to achieve greater efficiencies. The Company moved more of its functions offshore, which will allow it to be closer and more connected to its customer's third party subcontract manufacturers. The April 2011 restructuring plan includes eliminating or relocating 25 positions. As a result of the April 2011 restructuring program, the Company recorded a charge of $0.9 million for employee severances during the nine months ended December 31, 2011. All amounts relating to this restructuring action were paid as of December 31, 2011.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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