NOTE 7: RESTRUCTURING CHARGES

In the second quarter of fiscal 2014, restructuring actions were primarily the result of continued implementation efforts to further consolidate manufacturing and service activities with contract manufacturers that were initiated the first quarter of fiscal 2014. We had no restructuring expense in the second quarter or first six months of fiscal 2013. The types of restructuring expense for the three and six months ended September 30, 2013 were (in thousands):

Accrued Restructuring

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

The $0.5 million of severance and benefit restructuring costs for the three months ended September 30, 2013 was primarily due to further consolidation of sales territories to improve utilization of our global sales team, and the $3.5 million severance and benefit restructuring costs for the six months ended September 30, 2013 was primarily the result of deciding to outsource our manufacturing operations and further consolidate production and service activities. The restructuring charge reversal was primarily due to actual costs being lower than estimated, followed by employees transferring from eliminated positions to fill other staffing needs during the second quarter and first six months of fiscal 2014. Other restructuring expenses were comprised of incremental retention bonuses for certain key employees whose positions are being eliminated, freight charges and travel costs as a result of transitioning toward an outsource model.

We anticipate the $3.1 million and $0.1 million severance and benefits and other restructuring accruals, respectively, will be substantially paid by the end of fiscal 2014. Facility restructuring accruals will be paid in accordance with the respective facility lease terms. The $1.6 million of lease payments scheduled to occur between October 2014 and February 2021 is included in other long-term liabilities in the Condensed Consolidated Balance Sheets.