Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING CHARGES

v2.4.1.9
RESTRUCTURING CHARGES
 12 Months Ended
Mar. 31, 2015
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES
The following summarizes the type of restructuring expense for fiscal 2015, 2014 and 2013 (in thousands):
 
For the year ended March 31,
 
2015
 
2014
 
2013
Restructuring expense related to cost of revenue
$
—

 
$
539

 
$
—

Restructuring expense in operating expense
1,666

 
10,675

 
10,171

 
$
1,666

 
$
11,214

 
$
10,171

 
For the year ended March 31,
 
2015
 
2014
 
2013
Severance and benefits
$
406

 
$
6,139

 
$
8,251

Facilities
1,250

 
4,303

 
1,920

Other
10

 
772

 
—

 
$
1,666

 
$
11,214

 
$
10,171



Fiscal 2015
Restructuring charges in fiscal 2015 were primarily due to facilities costs of $1.3 million as a result of further consolidating our facilities in the U.S.
Fiscal 2014
Restructuring charges in fiscal 2014 were primarily due to strategic management decisions to outsource our manufacturing operations and further consolidate repair and service activities, inclusive of exiting manufacturing facilities. In addition, we had additional consolidation in research and development, sales and marketing and administrative activities and teams to align our workforce with our continuing operations plans. Severance and benefits charges of $6.1 million in fiscal 2014 were attributable to positions eliminated worldwide, with the majority of positions eliminated in the U.S. Facility restructuring charges of $4.3 million in fiscal 2014 were primarily due to accruing the remaining lease obligation for the vacated portion of our manufacturing facility in the U.S, reduced by estimated future sublease amounts. Other restructuring charges of $0.8 million were primarily due to charges related to cost of sales as a result of our manufacturing outsource decision.
Fiscal 2013
Restructuring charges in fiscal 2013 were primarily due to severance and benefits expenses of $8.3 million for positions eliminated in both the U.S. and internationally across most functions of the business. Facility restructuring charges for fiscal 2013 were primarily due to accruing the remaining lease obligation for a vacant facility in the U.S.
The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands):
 
Severance and
benefits
 
Facilities
 
Other
 
Total
Balance as of March 31, 2012
$
1,312

 
$
440

 
$
—

 
$
1,752

Restructuring costs
8,815

 
1,920

 
—

 
10,735

Restructuring charge reversal
(564
)
 
—

 
—

 
(564
)
Cash payments
(6,852
)
 
(315
)
 
—

 
(7,167
)
Balance as of March 31, 2013
2,711

 
2,045

 
—

 
4,756

Restructuring costs
7,522

 
4,392

 
772

 
12,686

Restructuring charge reversal
(1,383
)
 
(89
)
 
—

 
(1,472
)
Cash payments
(7,276
)
 
(607
)
 
(702
)
 
(8,585
)
Other non-cash
—

 
983

 
—

 
983

Balance as of March 31, 2014
1,574

 
6,724

 
70

 
8,368

Restructuring costs
749

 
1,680

 
13

 
2,442

Restructuring charge reversal
(343
)
 
(430
)
 
(3
)
 
(776
)
Cash payments
(1,791
)
 
(3,617
)
 
(80
)
 
(5,488
)
Other non-cash
—

 
300

 
—

 
300

Balance as of March 31, 2015
$
189

 
$
4,657

 
$
—

 
$
4,846


Estimated timing of future payouts:
Severance and
benefits
 
Facilities
 
Total
Fiscal 2016
$
75

 
$
3,780

 
$
3,855

Fiscal 2017 to 2021
114

 
877

 
991

 
$
189

 
$
4,657

 
$
4,846



Facility restructuring accruals will be paid in accordance with the respective facility lease terms and amounts above are net of estimated sublease amounts.