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

Quarterly report pursuant to Section 13 or 15(d)

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

9 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

NOTE 7: RESTRUCTURING CHARGES

In fiscal 2012 and 2013, restructuring actions to consolidate operations supporting the business were the result of strategic management decisions. The types of restructuring expense for the three and nine months ended December 31, 2012 and December 31, 2011 were (in thousands):

	Three Months Ended				Nine Months Ended
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011
By expense (benefit) type
Severance and benefits	$	6,363	$	—	$	6,363	$	375
Facilities		239		—		239		324
Other		—		—		—		(300	)
Total	$	6,602	$	—	$	6,602	$	399

During the third quarter and first nine months of fiscal 2013, we accrued severance charges for various positions eliminated worldwide across most functions of the business to align spending with revenue expectations and accrued the remaining lease obligation for a vacant facility in the U.S. Severance and benefits accrued during the first nine of months of fiscal 2012 were for various positions eliminated worldwide. Facility restructuring charges for the first nine months of fiscal 2012 were due to estimated charges for a facility in India that we vacated in fiscal 2012. The other restructuring reversal for the first nine months of fiscal 2012 was due to actual payments lower than estimated on a supplier relationship.

Accrued Restructuring

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

	Three Months Ended December 31, 2012
	Severance and Benefits			Facilities			Total
Balance as of September 30, 2012	$	677		$	247		$	924
Restructuring costs		6,363			239			6,602
Cash payments		(2,514	)		(77	)		(2,591	)
Balance as of December 31, 2012	$	4,526		$	409		$	4,935

	Nine Months Ended December 31, 2012
	Severance and Benefits			Facilities			Total
Balance as of March 31, 2012	$	1,312		$	440		$	1,752
Restructuring costs		6,363			239			6,602
Cash payments		(3,149	)		(270	)		(3,419	)
Balance as of December 31, 2012	$	4,526		$	409		$	4,935

	As of December 31, 2012
	Severance and Benefits			Facilities			Total
Estimated timing of future payouts:
Fiscal 2013	$	2,861		$	32		$	2,893
Fiscal 2014 to 2019		1,665			377			2,042
	$	4,526		$	409		$	4,935

- 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.

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