12. RESTRUCTURING CHARGES

During fiscal year 2013 the Company initiated certain restructuring activities intended to improve its operational efficiencies by reducing excess workforce and capacity. Restructuring charges are recorded based upon employee termination dates, site closure and consolidation plans.

During the fiscal year ended March 31, 2013, the Company recognized restructuring charges of approximately $227.4 million, of which $110.1 million was associated with the terminations of 9,138 identified employees in connection with the charges described above. The identified employee terminations by reportable geographic region amounted to approximately 4,467, 2,282, and 2,389 for Asia, the Americas and Europe, respectively. The costs associated with these restructuring activities include employee severance, other personnel costs, non-cash impairment charges on facilities and equipment that are not recoverable through future cash flows or are no longer in use and are to be disposed of, and other exit related costs due to facility closures or rationalizations. Pre-tax restructuring charges comprised of $123.0 million of cash charges predominantly related to employee severance costs and $104.4 million of non-cash charges primarily related asset impairment and other exit charges. The Company classified approximately $215.8 million of these charges as a component of cost of sales and approximately $11.6 million of these charges as a component of selling, general and administrative expenses during the fiscal year ended March 31, 2013.

The components of the restructuring charges by geographic region incurred during fiscal year 2013:

	Third Quarter		Fourth Quarter		Total

	(In thousands)
Americas:
Severance	$	863	$	13,156	$	14,019
Long-lived asset impairment		—		6,302		6,302
Other exit costs		322		6,533		6,855

Total restructuring charges		1,185		25,991		27,176

Asia:
Severance		8,572		18,076		26,648
Long-lived asset impairment		46,250		5,268		51,518
Other exit costs		28,818		1,443		30,261

Total restructuring charges		83,640		24,787		108,427

Europe:
Severance		6,142		63,301		69,443
Long-lived asset impairment		9,851		1,782		11,633
Other exit costs		1,873		8,882		10,755

Total restructuring charges		17,866		73,965		91,831

Total
Severance		15,577		94,533		110,110
Long-lived asset impairment		56,101		13,352		69,453
Other exit costs		31,013		16,858		47,871

Total restructuring charges	$	102,691	$	124,743	$	227,434

During the fiscal year ended March 31, 2013 the Company recognized approximately $110.1 million of severance costs related to employee terminations. Approximately $98.5 million of this was classified as a component of cost of sales.

During the fiscal year ended March 31, 2013 the Company recognized approximately $69.5 million for the write-down of property and equipment and other manufacturing assets, which are continuing to be held and used by the Company. The majority of this amount was classified as a component of cost of sales.

During the fiscal year ended March 31, 2013, the Company recognized approximately $47.9 million of other exit costs, which primarily comprised of $22.8 million for the write-down of certain customer specific assets that were determined to be unrecoverable based on a specific product exit and resulting declining customer volumes. Additionally, other exit costs include $24.7 million of customer disengagement costs primarily related to inventory that resulted from a product exit as well as contractual obligations from facility closures and $0.4 million of other miscellaneous items.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of March 31, 2013 for charges incurred in fiscal year 2013 and prior periods:

	Severance			Long-Lived Asset Impairment			Other Exit Costs			Total

	(In thousands)
Balance as of March 31, 2011		7,596			—			21,726			29,322
Activities during the fiscal year 2012:
Cash payments for charges incurred in fiscal year 2010 and prior		(2,976	)		—			(13,659	)		(16,635	)

Balance as of March 31, 2012		4,620			—			8,067			12,687
Provision for charges incurred in fiscal year 2013		110,110			69,453			47,871			227,434
Cash payments for charges incurred in fiscal year 2013		(28,586	)		—			(3,832	)		(32,418	)
Cash payments for charges incurred in fiscal year 2010 and prior		(2,455	)		—			(2,902	)		(5,357	)
Non-cash charges incurred in fiscal year 2013		—			(69,453	)		(34,993	)		(104,446	)

Balance as of March 31, 2013		83,689			—			14,211			97,900
Less: Current portion (classified as other current liabilities)		80,439			—			7,397			87,836

Accrued restructuring costs, net of current portion (classified as other liabilities)	$	3,250		$	—		$	6,814		$	10,064