Note 13. Special Charges

A summary of the special charges recorded during fiscal 2014 is as follows:


	(In thousands)
Patent license (Note 2)	$	41,040
Exit costs		26,491
Asset impairments		7,322

	$	74,853

March 2014 Initiative

In March 2014, the Company implemented a restructuring plan (March 2014 Initiative) primarily designed to consolidate its Ethernet product roadmap following the acquisition of the Ethernet controller-related assets from Broadcom (Note 2). This restructuring plan primarily includes a workforce reduction and the consolidation and elimination of certain engineering activities. The Company expects to incur approximately $1 million of additional exit costs, primarily related to severance costs for workforce reductions. The Company expects to substantially complete these restructuring activities during the first quarter of fiscal 2015.

During the fourth quarter of fiscal 2014, the Company recorded special charges of $14.0 million in connection with the March 2014 Initiative, consisting of $9.1 million of exit costs and $4.9 million of asset impairment charges primarily related to abandoned property and equipment. The exit costs include severance and related costs associated with involuntarily terminated employees and the costs associated with the cancellation of certain contracts.

Activity and liability balances for exit costs related to the March 2014 Initiative are as follows:


	Workforce Reduction			Contract Cancellation and Other			Total
	(In thousands)
Charged to costs and expenses	$	4,789		$	4,325		$	9,114
Payments		(1,612	)		(14	)		(1,626	)

Balance as of March 30, 2014	$	3,177		$	4,311		$	7,488

June 2013 Initiative

In June 2013, the Company commenced a restructuring plan (June 2013 Initiative) designed to enhance product focus and streamline business operations. The restructuring plan includes a workforce reduction and the consolidation and elimination of certain engineering activities. In connection with this plan, the Company ceased development of future ASICs for switch products.

During fiscal 2014, the Company recorded special charges of $19.8 million in connection with the June 2013 Initiative, consisting of $17.4 million of exit costs and $2.4 million of asset impairment charges primarily related to abandoned property and equipment. The exit costs include severance and related costs associated with involuntarily terminated employees. Certain employees that were notified of their termination are required to provide services for varying periods in excess of statutory notice periods. Severance costs related to these services are recognized ratably over the estimated requisite service period. The Company expects to incur between $1 million and $2 million of additional severance costs in connection with these employees over the requisite service period. Exit costs also include the estimated costs associated with the portion of a facility under a non-cancelable lease that the Company ceased using.

Activity and liability balances for exit costs related to the June 2013 Initiative, including a liability associated with exit costs related to a portion of the facility the Company ceased using prior to fiscal 2013, are as follows:


	Workforce Reduction			Facilities and Other			Total
	(In thousands)
Balance as of March 31, 2013	$	—		$	1,771		$	1,771
Charged to costs and expenses		13,831			3,546			17,377
Payments		(10,303	)		(696	)		(10,999	)

Balance as of March 30, 2014	$	3,528		$	4,621		$	8,149

The total unpaid exit costs related to both initiatives are expected to be paid over the terms of the related agreements through fiscal 2018. As of March 30, 2014, unpaid exit costs totaling $10.0 million and $5.6 million are included in other current liabilities and other liabilities, respectively.