RESTRUCTURING CHARGES

9 Months Ended

Dec. 31, 2013

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

12.  RESTRUCTURING CHARGES

The Company initiated certain restructuring activities intended to improve its operational efficiencies by reducing excess workforce and capacity during fiscal year 2013. These restructuring activities extended through the first quarter of fiscal 2014. There were no restructuring charges incurred during the three-month period ended December 31, 2013. Restructuring charges are recorded based upon employee termination dates, site closure and consolidation plans.

During the nine-month period ended December 31, 2013, the Company recognized restructuring charges of approximately $40.8 million, of which $32.2 million was associated with the terminations of 5,106 identified employees. The identified employee terminations by reportable geographic region amounted to approximately 3,947, 1,105 and 54 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 equipment no longer in use and to be disposed of, and other exit related costs due to facility closures or rationalizations.  Of the total restructuring charges, $1.9 million were non-cash charges related to the impairment of long-lived assets, and were classified as a component of cost of sales.

The components of the restructuring charges by geographic region during the nine-month period ended December 31, 2013 were as follows:

	Americas		Asia		Europe		Total
	(In thousands)
Severance	$	11,331	$	16,205	$	4,631	$	32,167
Long-lived asset impairment	—		1,900		—		1,900
Other exit costs	2,248		3,157		1,288		6,693
Total restructuring charges	$	13,579	$	21,262	$	5,919	$	40,760

The majority of severance costs were classified as a component of cost of sales.

During the nine-month period ended December 31, 2013, the Company recognized approximately $6.7 million of other exit costs, which was primarily comprised of $3.8 million related to personnel costs and $2.9 million of contractual obligations that resulted from facility closures. The majority of these costs were classified as a component of cost of sales.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of December 31, 2013 for charges incurred in fiscal year 2014 and prior periods:

				Long-Lived			Other
	Severance			Asset Impairment			Exit Costs			Total
	(In thousands)
Balance as of March 31, 2013	$	83,689		$	—		$	14,211		$	97,900
Provision for charges incurred in first quarter of fiscal year 2014	32,167			1,900			6,693			40,760
Cash payments for charges incurred in fiscal year 2014 and 2013	(21,523		)	—			(2,872		)	(24,395		)
Cash payments for charges incurred in fiscal year 2010 and prior	(236		)	—			(1,164		)	(1,400		)
Non-cash charges incurred in first quarter of fiscal year 2014	—			(1,900		)	—			(1,900		)
Balance as of June 28, 2013	94,097			—			16,868			110,965
Cash payments for charges incurred in fiscal year 2014 and 2013	(40,209		)	—			(4,717		)	(44,926		)
Cash payments for charges incurred in fiscal year 2010 and prior	(335		)	—			(277		)	(612		)
Balance as of September 27, 2013	53,553			—			11,874			65,427
Cash payments for charges incurred in fiscal year 2014 and 2013	(9,312		)	—			(3,178		)	(12,490		)
Cash payments for charges incurred in fiscal year 2010 and prior	(153		)	—			(194		)	(347		)
Balance as of December 31, 2013	44,088			—			8,502			52,590
Less: current portion (classified as other current liabilities)	40,265			—			5,563			45,828
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	3,823		$	—		$	2,939		$	6,762