Quantum Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

6 Months Ended

Sep. 30, 2016

Restructuring and Related Activities [Abstract]

Fiscal 2017 April Restructuring Plan

In April 2016, we approved a plan ("Fiscal 2017 April Restructuring Plan") to eliminate 29 positions in the U.S. and internationally to reduce investments in various functions of our business to improve operational efficiencies. The costs associated with these actions consist of restructuring charges related to severance and benefits. These actions were completed by the second quarter of fiscal 2017, with the majority having occurred by June 30, 2016. For the first six months of fiscal 2017, we incurred and paid $1.5 million of restructuring charges under this plan.

Summary of Restructuring Expense

The types of restructuring expense for the three and six months ended September 30, 2016 and September 30, 2015 were (in thousands):



	Three Months Ended					Six Months Ended
	September 30, 2016			September 30, 2015		September 30, 2016		September 30, 2015
Severance and benefits	$	(39	)	$	155	$	1,450	$	227
Facilities	54			232		617		418
Total	$	15		$	387	$	2,067	$	645

For the first six months of fiscal 2017, restructuring charges were largely due to $1.5 million of severance and benefits costs incurred as a result of the Fiscal 2017 April Restructuring Plan. We also approved a plan to vacate certain leased space in the U.S. primarily used for administration and research and development in the first quarter of fiscal 2017 and recorded $0.4 million of restructuring charges related to facilities costs in the first six months of fiscal 2017. The accrued facility restructuring charges, net of estimated sublease amounts, will be paid in accordance with the facility lease terms through November 2018.

For the second quarter of fiscal 2016, restructuring charges were largely due to facilities costs incurred as a result of a change in the estimate of lease payments for our facilities in the U.S. Additionally, for the first six months of fiscal 2016, we incurred restructuring charges related to facilities costs as a result of further consolidating our facilities in the U.S.

Accrued Restructuring Charges

The following tables show the activity and the estimated timing of future payouts for accrued restructuring charges (in thousands):



	Six Months Ended September 30, 2016
	Severance and Benefits			Facilities			Total
Balance as of March 31, 2016	$	354		$	2,383		$	2,737
Restructuring costs	1,489			480			1,969
Adjustment of prior estimates	(39		)	137			98
Cash payments	(1,664		)	(664		)	(2,328		)
Other non-cash	—			42			42
Balance as of September 30, 2016	$	140		$	2,378		$	2,518



	As of September 30, 2016
	Severance and Benefits		Facilities		Total
Estimated timing of future payouts:
Next twelve months	$	140	$	1,644	$	1,784
October 2017 through December 2021	—		734		734
	$	140	$	2,378	$	2,518

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