Note 7. Special Charges

A summary of the special charges recorded during the three months ended June 29, 2014 and June 30, 2013, respectively, is as follows:


	Three Months Ended
	June 29, 2014		June 30, 2013
	(In thousands)
Exit costs	$	1,033	$	9,604
Asset impairments		1,011		2,429
Other charges		500		—

	$	2,544	$	12,033

March 2014 Initiative

In March 2014, the Company commenced 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. This restructuring plan primarily includes a workforce reduction and the consolidation and elimination of certain engineering activities. The Company substantially completed these restructuring activities during the first quarter of fiscal 2015.

During the three months ended June 29, 2014, the Company recorded special charges of $1.7 million in connection with the March 2014 Initiative, consisting of $0.7 million of exit costs and $1.0 million of asset impairment charges related to abandoned property and equipment. The exit costs include severance and related costs associated with involuntarily terminated employees.

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)
Balance as of March 30, 2014	$	3,177		$	4,311		$	7,488
Charged to costs and expenses		622			54			676
Payments		(3,384	)		(4,225	)		(7,609	)

Balance as of June 29, 2014	$	415		$	140		$	555

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 the three months ended June 29, 2014, the Company recorded special charges of $0.4 million in connection with the June 2013 Initiative, consisting of exit costs associated with severance and related costs for involuntarily terminated employees. Certain employees that were notified of their termination are required to provide future services for varying 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.

Activity and liability balances for exit costs related to the June 2013 Initiative are as follows:


	Workforce Reduction			Facilities and Other			Total
	(In thousands)
Balance as of March 30, 2014	$	3,528		$	4,621		$	8,149
Charged to costs and expenses		357			—			357
Payments		(949	)		(306	)		(1,255	)

Balance as of June 29, 2014	$	2,936		$	4,315		$	7,251

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 June 29, 2014, unpaid exit costs totaling $2.5 million and $5.3 million are included in other current liabilities and other liabilities, respectively.