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Restructuring Charges
 9 Months Ended
Dec. 31, 2013
Restructuring Charges [Abstract]  
Restructuring Charges
Note 10 – Restructuring Charges

In February 2013, the Company approved the initial phase of a restructuring plan designed to achieve cost savings. On January 23, 2014 the Company announced the final phase of its restructuring plan designed to reduce the Company’s annual cost base and substantially improve the Company’s operating margins, increasing the aggregate targeted annualized cost savings to a total of $110 million to $120 million.  This final phase includes additional reductions in the global workforce across all general, administrative and shared services divisions of the Company, along with the early termination of certain operating leases and the closing or reduction in size of office facilities worldwide. This final phase of restructuring is influenced by the disposition of three operating business units. See note 12 of the condensed consolidated financial statements.

These cost reduction efforts, which are expected to be substantially completed by the end of fiscal 2015, are expected to result in cumulative charges of $50 million to $60 million.  Substantially all of the estimated charges will result in future cash expenditures.

During the three and nine months ended December 31, 2013, the Company recorded a charge of approximately $3.7 million and $9.1 million, respectively. These costs are primarily related to severance costs for 91 terminated employees during the nine months ended December 31, 2013 and early termination of certain operating leases. The timing of additional charges is dependent upon certain actions to be taken in the future.
 
The following table summarizes the restructuring accrual as of March 31, 2013 and changes to the accrual during the three months and nine months ended December 31, 2013 (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
 
 
                
Restructuring charge
  
196
   
37
   
-
   
233
 
 
                
Payments
  
(1,815
)
  
(309
)
  
(8
)
  
(2,132
)
 
                
Accrual at September 30, 2013
 
$
1,600
  
$
2,040
  
$
7
  
$
3,647
 
 
                
Restructuring charge
  
1,503
   
2,234
   
-
   
3,737
 
 
                
Payments
  
(715
)
  
(762
)
  
-
   
(1,477
)
 
                
Non-cash charges
  
(450
)
  
-
   
-
   
(450
)
 
                
Accrual at December 31, 2013
 
$
1,938
  
$
3,512
  
$
7
  
$
5,457
 

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
December 31, 2013
 
 
 
APM
  
MF
  
CP
  
UF
  
PS
  
AS
  
Unallocated
Expenses
  
Total
 
 
 
  
  
  
  
  
  
  
 
Employee termination benefits
 
$
241
  
$
43
  
$
14
  
$
39
  
$
-
  
$
287
  
$
879
  
$
1,503
 
 
                                
 
 
Nine Months Ended
December 31, 2013
 
 
 
APM
  
MF
  
CP
  
UF
  
PS
  
AS
  
Unallocated
Expenses
  
Total
 
 
                                
Employee termination benefits
 
$
1,375
  
$
427
  
$
50
  
$
228
  
$
98
  
$
391
  
$
4,240
  
$
6,809
 

As of December 31, 2013, $4.8 million of the restructuring accrual was recorded in current “accrued expenses” with the remaining balance of $664,000 recorded in long-term “accrued expenses” in the condensed consolidated balance sheets.

The accruals for employee termination benefits at December 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 December 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 2017. Projected sublease income is based on management’s estimates, which are subject to change.