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, 2018

Restructuring and Related Activities [Abstract]

NOTE 7: RESTRUCTURING CHARGES

In the six months ended September 30, 2018, management approved two plans to eliminate 66 positions in the U.S. and internationally. The purpose of these plans was to improve operational efficiencies and align with management’s strategic vision for the Company. Severance and benefits costs of approximately $3.6 million were incurred as a result. As of September 30, 2018, the Company had four locations with a restructuring accrual.

In the six months ended September 30, 2017, management approved a plan to eliminate 39 positions in the U.S. and internationally. The purpose of this plan was to improve operational efficiencies and align with management’s strategic vision for the Company. Severance and benefits costs of approximately $1.6 million were incurred under this restructuring plan.

The following table summarizes the activity included in restructuring charges for the periods ended September 30, 2018 and 2017 (in thousands):


	Severance and benefits			Facilities			Total
Balance as of March 31, 2018	$	1,430		$	4,389		$	5,819
Restructuring costs		3,607			48			3,655
Adjustments to prior estimates		—			546			546
Cash payments		(4,592	)		(991	)		(5,583	)

Balance as of September 30, 2018	$	445		$	3,992		$	4,437

Balance as of March 31, 2017	$	130		$	6,152		$	6,282
Restructuring costs		1,597			104			1,701
Cash payments		(1,007	)		(991	)		(1,998	)

Balance as of September 30, 2017	$	720		$	5,265		$	5,985

	Severance and benefits		Facilities		Total
Estimated timing of future payments
Fiscal 2019	$	445	$	1,116	$	1,561
Fiscal 2020 to 2023		—		2,876		2,876
	$	445	$	3,992	$	4,437

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