Restructuring Charges

12 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

The Company recognizes restructuring costs related to asset impairment and exit or disposal activities. Costs relating to facilities closure or lease commitments are recognized when the facility has been exited. Termination costs are recognized when the costs are deemed both probable and estimable.

August 2013 Restructuring Program

In August 2013, the Company implemented a restructuring program to reorganize its operations and reduced its workforce by approximately 20 employees. The plan included eliminating job redundancies, reducing the Company's workforce and impairing the unamortized value of a software intellectual property license, which the Company no longer intends to use to develop new products. The Company anticipates that the restructuring plan will reduce ongoing headcount expenses by approximately $3.0 million annually and other additional operational expenses by $0.5 million annually. Total costs incurred and expected to be incurred as of March 31, 2014 in connection with the restructuring plan were $1.0 million.

December 2012 Restructuring Program

In December 2012, the Company implemented a restructuring program to reorganize its operations and reduced its workforce by approximately 70 employees. The plan included eliminating job redundancies, reducing the Company's workforce and impairing the unamortized value of a software intellectual property license, which the Company does not intend to use to develop new products. As of March 31, 2014, the actual annual savings were within the range of originally expected savings of $8.0 million to $9.0 million for headcount expenses and $4.0 million to $5.0 million for other additional operational expenses. Total costs incurred and expected to be incurred as of March 31, 2014 in connection with the restructuring plan are $1.8 million for employee severance expenses and $4.7 million for an asset impairment.

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 would allow it to be closer and more connected to its customers' third party subcontract manufacturers. The April 2011 restructuring plan included 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 for the fiscal year ended March 31, 2012.

The following table sets forth a summary of restructuring activities related to all of the Company's restructuring plans described above (in thousands):



	Workforce Reduction			Asset Impairment			Total
Liability, March 31, 2012	$	—		$	—		$	—
Restructuring charges	1,716			4,719			6,435
Cash payments	(1,168		)	—			(1,168		)
Non-cash items	—			(4,719		)	(4,719		)
Liability, March 31, 2013	$	548		$	—		$	548
Restructuring charges	$	862		$	272		$	1,134
Cash payments	(1,410		)	—			(1,410		)
Non-cash items	—			(272		)	(272		)
Liability, March 31, 2014	$	—		$	—		$	—

- 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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