RESTRUCTURING CHARGES

12 Months Ended

Mar. 31, 2013

8. RESTRUCTURING CHARGES

The following table summarizes the restructuring activity during fiscal 2013, 2012 and 2011 (in thousands):

	Employee Termination Benefits			Lease Abandonment Costs			Other			Total Restructuring Activity
Accrual at April 1, 2010	$	1,810		$	978		$	22		$	2,810

Payments		(1,810	)		(505	)		(22	)		(2,337	)

Accrual at March 31, 2011		-			473			-			473

Payments		-			(345	)		-			(345	)

Accrual at March 31, 2012		-			128			-			128

Restructuring charge		10,940			2,712			2,921			16,573

Payments		(1,698	)		(128	)		-			(1,826	)

Non-cash charges		(4,572	)		5			(2,841	)		(7,408	)

Accrual at March 31, 2013	$	4,670		$	2,717		$	80		$	7,467

Fiscal 2013 restructuring actions

In February 2013, the Company approved the initial phase of a restructuring plan designed to achieve cost savings, which involves reductions in our global workforce of approximately 190 employees (less than 5% of our total workforce), including employees across all operating and administrative divisions, and the early termination of certain operating leases and the closing or reduction in size of 16 office facilities worldwide.

The Company recorded a charge of approximately $16.6 million during the fourth quarter of 2013 for the costs associated with these reductions. Of the total amount, approximately $10.9 million was related to severance costs for 111 terminated employees, $2.7 million was related to lease abandonment costs and $2.9 million was related to other restructuring charges, primarily asset write-downs. The Company anticipates that approximately $4.3 million in additional employee termination charges and $4.1 million in lease abandonment costs will be taken during fiscal 2014 for the initial phase of the restructuring plan, and it is expected that the activities in the initial phase will be completed before December 2013.

The Company evaluates its business segments prior to restructuring charges. Lease abandonment and other restructuring charges were not related to any specific segment. Employee termination benefits related to employees across most business units as follows (in thousands):

Year Ended

March 31, 2013

Unallocated

APM

Expenses

Total

Employee termination benefits

$2,657

$5,647

$367

$40

$415

$1,814

$10,940

Fiscal 2011 and fiscal 2012 restructuring payments

The payments made during fiscal 2012 and 2011 were related to restructuring charges taken during fiscal 2010 associated with the following initiatives: (1) aligning the professional services segment headcount and operating expenses after initiating a plan to exit low-margin engagements and (2) increasing the operating efficiency of our products segment and administrative and general business processes with the goal of reducing operating expenses.

Restructuring accrual

As of March 31, 2013, $6.1 million of the restructuring accrual was recorded in current "accrued expenses" with the remaining balance of $1.4 million recorded in long-term "accrued expenses" in the consolidated balance sheets.

The accruals for employee termination benefits at March 31, 2013 primarily represent the amounts to be paid to employees that have been terminated as a result of initiatives described above.

The accruals for lease abandonment costs at March 31, 2013 represent the expected payments related to leases that have been terminated before the end of the contractual term. For terminated operating leases, the accrual includes the remaining fair value of lease obligations for exited and demised locations, as determined at the cease-use dates of those facilities, net of estimated sublease income that could be reasonably obtained in the future, and will be paid out over the remaining lease terms, the last of which ends in fiscal 2015. Projected sublease income is based on management's estimates, which are subject to change.

- 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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