RESTRUCTURING AND OTHER RELATED CHARGES (CREDITS)

Summary of Restructuring Plans

Q3 FY19 restructuring plan

During the quarter ended December 31, 2018, the Company committed to a plan of restructuring to begin streamlining the global workforce of the combined company and to consolidate certain distribution activities in North America. The costs incurred to date under this plan primarily comprises of severance benefits from reduction in force actions and facilities related actions initiated by management during the period.

Subsequent to the Acquisition, the Company has multiple entities within certain jurisdictions around the globe. During the quarter ended December 31, 2018, the Company also initiated a project to reduce its legal entities around the globe in order to align with the business needs. The costs incurred for this project are being recognized as restructuring costs during the period they are incurred.

Q2 FY19 restructuring plan

During the quarter ended September 30, 2018, the Company initiated a post-acquisition restructuring plan to realign the Company's cost structure and resources to take advantage of operational efficiencies following the recent acquisition of Polycom. The costs incurred to date under this plan comprises of severance benefits from reduction in force actions initiated by management during the period.

Legacy Plans

The Company currently has a liability balance as of December 31, 2018 related to various restructuring actions undertaken in prior periods under these plans:

•

As a result of the acquisition of Polycom, the Company assumed restructuring liabilities under restructuring plans that were initiated under plans approved by Polycom's management prior to the completion of its acquisition on July 2, 2018. As of December 31, 2018, the restructuring reserve was approximately $7.7 million and primarily comprised of facilities-related liabilities which will expire over a period of 2018 to 2023.


•	During the fiscal quarter ended June 30, 2018, the Company executed a restructuring plan aimed at realigning its sales organization structure as part of a broader strategic objective to improve sales management and ensure proper investment across its geographic region.

•

During the first quarter of Fiscal Year 2018 and as part of its ongoing effort to reduce costs, improve profitability, and focus on its key strategic initiatives, the Company executed an asset sale agreement to dispose of substantially all assets of its Clarity division. In addition to the sale of the Clarity division and the related restructuring actions, the Company reduced headcount in certain divisions and terminated a lease in the Netherlands before the end of its contractual term.

The Company's restructuring liabilities as of December 31, 2018 is as follows (amounts in thousands):



	As of March 31, 2018		Assumed Liability		Accruals		Cash Payments			Adjustments			As of December 31, 2018
Legacy Plans
Severance	$	114	$	921	$	1,101	$	(1,333	)	$	(223	)	$	580
Facility	325		8,574		99		(1,420		)	115			$	7,693
Total Legacy Plans	439		9,495		1,200		(2,753		)	(108		)	8,273
Q2'19 Plan
Severance	—		—		7,420		(6,171		)	(3		)	1,246
Total Q2'19 Plan	—		—		7,420		(6,171		)	(3		)	1,246
Q3'19 Plan
Severance	—		—		7,205		(1,307		)	10			5,908
Facility	—		—		1,833		—			(191		)	1,642
Other	—		—		3,053		(991		)	—			2,062
Total Q3'19 Plan	—		—		12,091		(2,298		)	(181		)	9,612
Total
Severance	114		921		15,726		(8,811		)	(216		)	7,734
Facility	325		8,574		1,932		(1,420		)	(76		)	9,335
Other	—		—		3,053		(991		)	—			2,062
Grand Total	$	439	$	9,495	$	20,711	$	(11,222	)	$	(292	)	$	19,131