9. Restructuring

The Company accounts for charges resulting from operational restructuring actions in accordance with ASC Topic 420, Exit or Disposal Cost Obligations (“ASC 420”) and ASC Topic 712, Compensation—Nonretirement Postemployment Benefits (“ASC 712”). In accounting for these obligations, the Company is required to make assumptions related to the amounts of employee severance, benefits, and related costs and the time period over which leased facilities will remain vacant, sublease terms, sublease rates and discount rates. Estimates and assumptions are based on the best information available at the time the obligation arises. These estimates are reviewed and revised as facts and circumstances dictate; changes in these estimates could have a material effect on the amount accrued on the consolidated balance sheet.

During the years ended March 31, 2014 and March 31, 2013, the Company undertook restructuring activities, approved by the Board of Directors, in order to reorganize its global operations, streamline various functions of the business, and reduce its global workforce to better reflect the demand for its products. During the year ended March 31, 2014, the Company undertook a plan to consolidate its Grid manufacturing activities in its Devens, Massachusetts facility and close its facility in Middleton, Wisconsin. In addition, the Company is establishing a new Wind manufacturing facility in Romania and as a result reduced the headcount in its operation in China to a level necessary to support demand from its Chinese customers. The Company also undertook a workforce reduction in July 2013, reducing its workforce by approximately 7%, impacting primarily selling, engineering and general and administrative functions. The Company recorded restructuring charges for severance and other costs of approximately $1.2 million during the three months ended June 30, 2014. During the three months ended June 30, 2013, the Company incurred restructuring costs of less than $0.1 million. From April 1, 2011 through June 30, 2014, the Company’s various restructuring activities resulted in a substantial reduction of its global workforce. Remaining unpaid amounts under these restructuring activities are expected to be paid by August 31, 2015.

The following table presents restructuring charges and cash payments (in thousands):

	Severance pay			Facility Exit and
Three months ended June 30, 2014:	and benefits			Relocation costs			Total
Accrued restructuring balance at April 1, 2014	$	844		$	-		$	844
Charges to operations		690			489			1,179
Cash payments		(589	)		(489	)		(1,078	)
Accrued restructuring balance at June 30, 2014	$	945		$	-		$	945

Three months ended June 30, 2013:
Accrued restructuring at April 1, 2013	$	145		$	54		$	199
Charges to operations		40			-			40
Cash payments		(107	)		(18	)		(125	)
Non-cash/miscellaneous reductions		(20	)		(18	)		(38	)
Accrued restructuring balance at June 30, 2013	$	58		$	18		$	76

All restructuring charges discussed above are included within restructuring and impairments in the Company’s unaudited condensed consolidated statements of operations. The Company includes accrued restructuring within accounts payable and accrued expenses in the unaudited condensed consolidated balance sheets.