Note 13. Special Charges

A summary of the special charges recorded during fiscal 2015 and 2014 is as follows:


	2015		2014
	(In thousands)
Exit costs	$	6,946	$	26,491
Asset impairments		3,074		7,322
Other charges		500		—
Patent license (Note 2)		—		41,040

	$	10,520	$	74,853

March 2015 Initiative

In March 2015, the Company implemented a restructuring plan consisting of a workforce reduction primarily designed to further streamline its business operations. In connection with this action, the Company recorded special charges of $1.2 million consisting of exit costs associated with severance benefits for involuntarily terminated employees. Unpaid exit costs related to this initiative totaled $1.1 million and are expected to be paid during the first quarter of fiscal 2016.

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. This restructuring plan primarily included a workforce reduction and the consolidation and elimination of certain engineering activities. The Company completed these restructuring activities and all amounts were paid as of March 29, 2015.

In connection with the March 2014 Initiative, the Company recorded special charges of $3.6 million and $14.0 million during fiscal 2015 and fiscal 2014, respectively. Special charges during fiscal 2015 included $2.6 million of exit costs and $1.0 million of asset impairment charges primarily related to abandoned property and equipment. Special charges during fiscal 2014 included $9.1 million of exit costs and $4.9 million of asset impairment charges primarily related to abandoned property and equipment. The exit costs included severance and related costs associated with involuntarily terminated employees. Exit costs for fiscal 2014 also included 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
Charged to costs and expenses		2,693			(73	)		2,620
Payments		(5,870	)		(4,238	)		(10,108	)

Balance as of March 29, 2015	$	—		$	—		$	—

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.

In connection with the June 2013 Initiative, the Company recorded special charges of $5.2 million and $19.8 million during fiscal 2015 and fiscal 2014, respectively. Special charges during fiscal 2015 consisted of $3.1 million in exit costs and $2.1 million of asset impairment charges primarily related to abandoned property. During the fourth quarter of fiscal 2015, the Company vacated the remaining space in a facility that it had ceased using and recorded exit costs of $2.4 million. In addition, the Company recorded a non-cash adjustment of $1.7 million primarily related to the reversal of a deferred rent liability associated with this facility. Special charges for fiscal 2014 consisted 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 included severance and related costs associated with involuntarily terminated employees. Certain employees that were notified of their termination are required to provide future 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 approximately $1 million of additional severance costs in connection with these employees over the requisite service period. Exit costs also included the estimated costs associated with 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
Charged to costs and expenses		749			2,353			3,102
Payments		(1,801	)		(1,064	)		(2,865	)
Non-cash adjustments		—			1,666			1,666

Balance as of March 29, 2015	$	2,476		$	7,576		$	10,052

The unpaid exit costs related to the June 2013 Initiative are expected to be paid over the terms of the related agreements through fiscal 2018.

A summary of the total unpaid exit costs for all restructuring plans, by classification, included in the consolidated balance sheets is as follows:


	2015		2014
	(In thousands)
Other current liabilities	$	3,664	$	10,042
Other liabilities		7,553		5,595

	$	11,217	$	15,637