Note 7. Special Charges

A summary of the special charges recorded during the three and six months ended September 28, 2014 and September 29, 2013, respectively, is as follows:


	Three Months Ended				Six Months Ended
	September 28, 2014		September 29, 2013		September 28, 2014		September 29, 2013
	(In thousands)
Exit costs	$	2,259	$	4,349	$	3,292	$	13,953
Asset impairments		—		—		1,011		2,429
Other charges		—		—		500		—

	$	2,259	$	4,349	$	4,803	$	16,382

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 second quarter of fiscal 2015.

During the three and six months ended September 28, 2014, the Company recorded special charges of $2.0 million and $3.7 million, respectively, in connection with the March 2014 Initiative. Special charges for the three months ended September 28, 2014 consisted entirely of exit costs. Special charges for the six months ended September 28, 2014 consisted of $2.7 million of exit costs and $1.0 million of asset impairment charges related to abandoned property and equipment. The exit costs consist of severance and related costs associated with involuntarily terminated employees.

The aggregate amount of the exit costs recorded in connection with the March 2014 Initiative is $11.8 million and consisted of $7.5 million of workforce reduction costs and $4.3 million of contract cancellation and other costs.

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		2,724			(73	)		2,651
Payments		(5,567	)		(4,238	)		(9,805	)

Balance as of September 28, 2014	$	334		$	—		$	334

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 application-specific integrated circuits (ASICs) for switch products.

During the three and six months ended September 28, 2014, the Company recorded special charges of $0.3 million and $0.6 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 approximately $1 million of additional severance costs in connection with these employees over the requisite service period.

The aggregate amount of the exit costs recorded in connection with the June 2013 Initiative is $18.0 million and consisted of $14.5 million of workforce reduction costs and $3.5 million of facilities and other costs.

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		641			—			641
Payments		(1,404	)		(611	)		(2,015	)

Balance as of September 28, 2014	$	2,765		$	4,010		$	6,775

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 September 28, 2014, unpaid exit costs totaling $2.1 million and $5.0 million are included in other current liabilities and other liabilities, respectively.