RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

12 Months Ended

Mar. 31, 2012

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

2.             RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

The following table summarizes the restructuring activity for the years ended March 31, 2010, 2011 and 2012 (dollars in thousands):

	Associate-related reserves			Ongoing contract costs			Total
March 31, 2009	$	8,233		$	23,932		$	32,165
Adjustments	1,026			(1,336		)	(310		)
Payments	(6,389		)	(9,692		)	(16,081		)
March 31, 2010	$	2,870		$	12,904		$	15,774
Fiscal year 2011 restructuring plan	6,064			—			6,064
Adjustments	(291		)	(1,338		)	(1,629		)
Payments	(3,081		)	(2,024		)	(5,105		)
March 31, 2011	$	5,562		$	9,542		$	15,104
Fiscal year 2012 restructuring plan	9,855			2,652			12,507
Adjustments	271			—			271
Payments	(6,091		)	(1,145		)	(7,236		)
March 31, 2012	$	9,597		$	11,049		$	20,646

The above balances are included in accrued expenses on the consolidated balance sheet.

Restructuring Plans

In fiscal 2012, the Company recorded a total of $12.8 million in restructuring charges and adjustments included in gains, losses and other items in the consolidated statement of operations.  The expense includes severance and other associate-related payments of $9.9 million, lease accruals of $2.6 million, and adjustments to the fiscal 2011 restructuring plan of $0.3 million.

The associate-related accruals of $9.9 million relate to the termination of associates in the United States, Australia, Europe, and Brazil.  Of the amount accrued, $9.5 million remained accrued as of March 31, 2012.  These costs are expected to be paid out in fiscal 2013.

The lease accruals of $2.6 million were evaluated under the accounting standards which govern exit costs.  These accounting standards require the Company to make an accrual for the liability for lease costs that will continue to be incurred without economic benefit to the Company upon the date that the Company ceases using the leased property.  On or before March 31, 2012, the Company ceased using certain leased office facilities.  The Company intends to attempt to sublease those facilities to the extent possible.  The Company established a liability for the fair value of the remaining lease payments, partially offset by the estimated sublease payments to be received over the course of those leases.  The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate.  These liabilities will be paid out over the remainder of the leased properties’ terms, of which the longest continues through July 2019.  Actual sublease terms may differ from the estimates originally made by the Company.  Any future changes in the estimates or in the actual sublease income could require future adjustments to the liability for these leases, which would impact net income in the period the adjustment is recorded.  The remaining amount accrued at March 31, 2012 is $2.6 million.

In fiscal 2011, the Company recorded $4.4 million in restructuring charges and adjustments included in gains, losses and other items in the consolidated statement of operations.  The expense includes severance and other associate-related charges of $3.4 million, offset by adjustments to previous restructuring plans of $1.7 million, and executive leadership transition charges of $2.7 million.

The associate-related charges of $3.4 million result from the termination of associates in the United States, Australia, and Europe.  Of the $3.4 million accrued, $0.1 million remained accrued at March 31, 2012. These amounts are expected to be paid out during fiscal 2013.

The transition charges of $2.7 million result from the transition agreement between the Company and its Chief Executive Officer upon his resignation in March 2011.  According to the agreement, one lump sum payment equal to two times the officer’s annual salary and bonus opportunity was to be paid by the Company.  The entire amount of $2.7 million was accrued at March 31, 2011 and was paid in full in April 2011.

As part of its restructuring plans in fiscal 2008 and 2009, the Company recorded a total of $22.2 million in lease accruals included in gains, losses and other items in the consolidated statement of operations.  The Company established a liability for the fair value of the remaining lease payments, partially offset by the estimated sublease payments to be received over the course of those leases.  The fair value of these liabilities is based on a net present value model using a credit-adjusted risk-free rate.  These liabilities will be paid out over the remainder of the leased properties terms, of which the longest continues through November 2021.  Actual sublease terms may differ from the estimates originally made by the Company.  Any future changes in the estimates or in the actual sublease income could require future adjustments to the liability for these leases, which would impact net income in the period the adjustment is recorded.  The remaining amount at March 31, 2012 is $8.5 million.

Gains, Losses and Other Items

Gains, losses and other items for each of the years presented are as follows (dollars in thousands):

	2012			2011			2010
Loss (gain) on disposition of operations in Portugal (see note 4)	(7		)	828			—
Loss on disposition of operations in Netherlands (see note 4)	30			2,511			—
Loss on disposition of operations in MENA (see note 4)	2,505			—			—
Legal contingency	—			(2,125		)	—
Restructuring plan charges and adjustments	12,778			4,435			(1,292		)
Earnout liability adjustment (see note 3)	(2,598		)	(1,058		)	—
Other	(70		)	9			348
	$	12,638		$	4,600		$	(944	)