Restructuring Charges

3 Months Ended

Jun. 30, 2013

Note 10 – Restructuring Charges

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 210 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 20 office facilities worldwide.

During the first quarter of 2014, the Company recorded a charge of approximately $5.1 million for costs associated with these reductions, primarily related to severance costs for 67 terminated employees. The Company anticipates that approximately $4.3 million in additional employee termination charges and $4.0 million in lease abandonment costs will be taken during the remainder of 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 31, 2013.

The following table summarizes the restructuring accrual as of March 31, 2013 and changes to the accrual during the first quarter of fiscal 2014 (in thousands):

	Employee Termination Benefits			Lease Abandonment Costs			Other			Total Restructuring Activity
Accrual at March 31, 2013	$	4,670		$	2,717		$	80		$	7,467

Restructuring charge		5,110			-			2			5,112

Payments		(4,770	)		(405	)		(67	)		(5,242	)

Non-cash charges		(1,791	)		-			-			(1,791	)

Accrual at June 30, 2013	$	3,219		$	2,312		$	15		$	5,546

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 the business units as follows (in thousands):

	Quarter Ended
	June 30, 2013
							Unallocated
	APM	MF	CP	UF	PS	AS	Expenses	Total

Employee termination benefits	$1,040	$384	$36	$189	$84	$95	$3,282	$5,110

As of June 30, 2013, $4.4 million of the restructuring accrual was recorded in current "accrued expenses" with the remaining balance of $1.1 million recorded in long-term "accrued expenses" in the condensed consolidated balance sheets.

The accruals for employee termination benefits at June 30, 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 June 30, 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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