RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

12 Months Ended

Mar. 31, 2011

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

2.             RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

The following table summarizes the restructuring activity for the years ended March 31, 2009, 2010 and 2011 (dollars in thousands):

	Associate-related reserves			Ongoing contract costs			Other accruals			Total
March 31, 2008	$	13,648		$	26,880		$	357		$	40,885
Fiscal year 2009 restructuring plan amount	12,434			3,210			—			15,644
Adjustments	(1,246		)	752			(39		)	(533		)
Payments	(16,603		)	(6,910		)	(318		)	(23,831		)
March 31, 2009	$	8,233		$	23,932		$	—		$	32,165
Adjustments	1,026			(1,336		)	—			(310		)
Payments	(6,389		)	(9,692		)	—			(16,081		)
March 31, 2010	$	2,870		$	12,904		$	—		$	15,774
Fiscal year 2011 restructuring plan amount	6,064			—			—			6,064
Adjustments	(291		)	(1,338		)	—			(1,629		)
Payments	(3,081		)	(2,024		)	—			(5,105		)
March 31, 2011	$	5,562		$	9,542		$	—		$	15,104

The above balances are included in accrued expenses on the consolidated balance sheet.

Restructuring Plans

In the current fiscal year, the Company recorded $4.4 million in restructuring charges and adjustments included in gains, losses and other items in the consolidated statement of operations.  The expense includes severance and other associate-related charges of $3.4 million, offset by adjustments to previous restructuring plans of $1.7 million, and executive leadership transition charges of $2.7 million.

The associate-related charges of $3.4 million result from the termination of associates in the United States, Australia, and Europe.  Of the $3.4 million accrued, $2.8 million remained accrued at March 31, 2011. These amounts are expected to be paid out during fiscal 2012.

The transition charges of $2.7 million result from the transition agreement between the Company and its Chief Executive Officer upon his resignation in March 2011.  According to the agreement, one lump sum payment equal to two times the Officer’s annual salary and bonus opportunity was to be paid by the Company.  The entire amount of $2.7 million was accrued at March 31, 2011 and was paid in full in April 2011.

In fiscal 2009, the Company recorded a total of $42.3 million in restructuring charges and adjustments included in gains, losses and other items in the consolidated statement of operations.  The expense included severance and other associate-related payments of $12.4 million, lease accruals of $3.2 million, asset disposal and write-offs of $26.5 million and adjustments to the fiscal 2008 restructuring plan of $0.2 million.  Included in the asset disposal was a $24.6 million loss incurred as a result of the Company terminating a software contract.

The associate-related payments of $12.4 million relate to the termination of associates in the United States and Europe.  All of these costs had been paid as of March 31, 2011.

The lease accruals of $3.2 million were evaluated under the accounting standards which govern exit costs.  These accounting standards require the Company to make an accrual for the liability for lease costs that will continue to be incurred without economic benefit to the Company upon the date that the Company ceases using the leased property.  On or before March 31, 2009, the Company ceased using certain leased office facilities.  The Company attempts to sublease those facilities to the extent possible.  The Company established a liability for the fair value of the remaining lease payments, partially offset by the estimated sublease payments to be received over the course of those leases.  The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate.  These liabilities will be paid out over the remainder of the leased properties’ terms, of which the longest continues through August 2015.  Actual sublease terms may differ from the estimates originally made by the Company.  Any future changes in the estimates or in the actual sublease income could require future adjustments to the liability for these leases, which would impact net income in the period the adjustment is recorded.  The remaining amount accrued at March 31, 2011 is $1.2 million.

In fiscal 2008, the Company recorded a total of $75.1 million in restructuring charges and adjustments included in gains, losses and other items in the consolidated statement of operations.  The expense included severance and other associate-related payments of $19.3 million, of which $0.1 million remain to be paid at March 31, 2011; lease accruals of $19.0 million, of which $8.3 million remain to be paid over the remainder of the lease terms, of which the longest continues through November 2021; contract accruals of $6.7 million, all of which had been paid by March 31, 2011;  asset disposal and write-offs of $29.6 million, and other related costs of $0.5 million.

Disposition of Operations in France

In fiscal 2008, the Company sold its GIS operations in France.  Adjustments regarding the final calculated purchase price were recorded in fiscal 2009 and 2010 resulting in gains of $2.1 million and $0.7 million, respectively.

Gains, Losses and Other Items

Gains, losses and other items for each of the years presented are as follows (dollars in thousands):

	2011			2010			2009
Gain on disposition of operations in France	—			(677		)	(2,083		)
Loss on disposition of operations in Portugal (see note 4)	828			—			—
Loss on disposition of operations in Netherlands (see note 4)	2,511			—			—
Legal contingency	(2,125		)	—			1,000
Restructuring plan charges and adjustments	4,435			(1,292		)	42,340
Leased airplane disposals	—			—			(110		)
Earnout liability adjustment (see note 3)	(1,058		)	—			—
Other	9			1,025			(2,581		)
	$	4,600		$	(944	)	$	38,566