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, 2011

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

NOTE 8: RESTRUCTURING CHARGES

In fiscal 2011 and continuing in fiscal 2012, restructuring actions to consolidate operations supporting the business were the result of strategic management decisions. The types of restructuring expense (benefit) for the three and six months ended September 30, 2011 and 2010 were (in thousands):

	Three Months Ended					Six Months Ended
	September 30, 2011		September 30, 2010			September 30, 2011			September 30, 2010
By expense (benefit) type
Severance and benefits	$	554	$	(6	)	$	375		$	549
Facilities		309		100			324			(538	)
Other		—		—			(300	)		—
Total	$	863	$	94		$	399		$	11

Fiscal 2012

During the second quarter and first six months of fiscal 2012, we accrued severance charges for various positions eliminated worldwide. Facility restructuring charges for both the second quarter and first six months of fiscal 2012 were due to estimated charges for a facility in India that we vacated in the second quarter of fiscal 2012. The other restructuring reversal for the first six months of fiscal 2012 was due to actual payments lower than estimated on a supplier relationship exited in fiscal 2011.

Fiscal 2011

During the second quarter of fiscal 2011, facilities restructuring expense was primarily due to negotiating a lease modification for a U.S. location. For the six months ended September 30, 2010, severance and benefits expense from additional positions eliminated was offset by facility reversals. The facility reversals were primarily due to negotiating settlements for lease liabilities on two vacated facilities in the U.S. for amounts lower than the outstanding lease contracts.

Accrued Restructuring

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

	For the three months ended September 30, 2011
	Severance and Benefits			Facilities			Other			Total
Balance as of June 30, 2011	$	822		$	743		$	—		$	1,565
Restructuring charges		554			309			—			863
Cash payments		(768	)		(384	)		—			(1,152	)
Balance as of September 30, 2011	$	608		$	668		$	—		$	1,276

	For the six months ended September 30, 2011
	Severance and Benefits			Facilities			Other			Total
Balance as of March 31, 2011	$	2,885		$	843		$	300		$	4,028
Restructuring charges		554			324			—			878
Reversals		(179	)		—			(300	)		(479	)
Cash payments		(2,675	)		(499	)		—			(3,174	)
Assumed restructuring liability		23			—			—			23
Balance as of September 30, 2011	$	608		$	668		$	—		$	1,276

	Severance and Benefits			Facilities			Other			Total
Estimated timing of future payouts:
Fiscal 2012	$	608		$	220		$	—		$	828
Fiscal 2013 to 2016		—			448			—			448
	$	608		$	668		$	—		$	1,276

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details