RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

6 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:

Restructuring activities result in various costs, including asset write-offs, right of use ("ROU") asset group impairments, exit charges including severance, contract termination fees, and decommissioning and other costs. Any impairment of the asset is recognized immediately in the period the plan is approved.

A reconciliation of the beginning and ending restructuring liabilities is shown below for the six months ended September 30, 2022. The restructuring charges and adjustments are included in gains, losses and other items, net in the condensed consolidated statement of operations. The reserve balances are included in other accrued expenses and other liabilities in the condensed consolidated balance sheets (dollars in thousands).


	Employee-related reserves		Lease accruals		Total






Balances at March 31, 2022	$	47	$	3,027	$	3,074
Restructuring charges and adjustments	1,646		2,055		3,701
Payments	(1,551)		(513)		(2,064)
Balances at September 30, 2022	$	142	$	4,569	$	4,711

Employee-related Restructuring Plans

During the six months ended September 30, 2022, the Company recorded a total of $1.6 million in employee-related restructuring charges and adjustments. The expense included severance and other employee-related charges primarily in the United States. Of the $1.6 million employee-related charges, $0.1 million remained accrued as of September 30, 2022 and are expected to be paid out during fiscal 2023.

In fiscal 2021, the Company recorded a total of $1.7 million in employee-related restructuring charges and adjustments. The expense included severance and other employee-related charges in the United States and Europe. Of the employee-related charges of $1.7 million, $0.1 million remained accrued as of September 30, 2022 and are expected to be paid out during fiscal 2023.

Lease-related Restructuring Plans and Impairments

During the quarter ended September 30, 2022, the Company initiated a restructuring plan to lower its operating expenses by reducing its real estate footprint in the United States. As part of this plan, we exited three leased office spaces, one located in Boston, one located in Philadelphia, and one floor of leased office space in San Francisco. Based on a comparison of undiscounted cash flows to the ROU asset group of each exited lease, the Company determined that each of the ROU asset groups were impaired, driven largely by the difference between the existing lease terms and rates on the Company’s leases and the expected sublease terms and rates available in the market. This resulted in an impairment charge of $10.2 million which reflects the excess of the ROU asset group book value over its fair value, which was determined based on estimates of future discounted cash flows and is classified as Level 3 in the fair value hierarchy. The lease impairment charges included impairments of the operating lease ROU assets and the associated furniture, equipment, and leasehold improvements. Additionally, the Company recorded $2.1 million in lease-related restructuring charges and adjustments that covered other retirement obligations related to the leased office space in San Francisco. Of the $2.1 million lease-related charges, $2.0 million remained accrued as of September 30, 2022 and will be satisfied over the remainder of the San Francisco property's lease term, which continues through April 2029.

In fiscal 2017, the Company made the strategic decision to exit and sub-lease a certain leased office facility under a staggered-exit plan. The full exit was completed in fiscal 2019. We intend to continue subleasing the facility to the extent possible. The liability will be satisfied over the remainder of the leased property's term, which continues through November 2025. Any future changes in the estimates or in the actual sublease income may require future adjustments to the liabilities, which would impact net earnings (loss) in the period the adjustment is recorded. Through September 30, 2022, the Company has recorded a total of $7.3 million of restructuring charges and adjustments related to this lease. Of the amount accrued for this facility lease, $2.5 million remained accrued at September 30, 2022.

Gains, Losses and Other Items, net

The following table summarizes the activity included in gains, losses and other items, net in the condensed consolidated statements of operations for each of the periods presented (dollars in thousands):


	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Restructuring plan charges and adjustments	$	2,962	$	—	$	3,701	$	—
Early contract terminations	—		—		—		1,042
ROU asset group impairments	10,170				10,170
Other	(21)		18		(21)		254
	$	13,111	$	18	$	13,850	$	1,296