RESTRUCTURING CHARGES

12 Months Ended

Mar. 31, 2014

9. RESTRUCTURING CHARGES

Fiscal 2013 and 2014 restructuring actions

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 primarily 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.

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 year ended March 31, 2014, the Company recorded a charge of approximately $13.3 million. These costs are primarily related to severance costs for 132 terminated employees 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 activity during fiscal 2014, 2013 and 2012 (in thousands):

	Employee Termination Benefits			Lease Abandonment Costs			Other			Total Restructuring Activity
Accrual at April 1, 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

Restructuring charge		10,794			2,452			8			13,254

Payments		(9,842	)		(2,488	)		(71	)		(12,401	)

Non-cash charges		(2,591	)		(1,137	)		-			(3,728	)

Accrual at March 31, 2014	$	3,031		$	1,544		$	17		$	4,592

The Company evaluates its business segments prior to restructuring charges. Lease abandonment and other restructuring charges were not related to any specific segment. Restructuring charges across the business segments were as follows (in thousands):

	Year Ended
	March 31, 2014
					Unallocated						Discontinued
	APM		MF		Expenses		AS		Total		Operations		Total

Employee termination benefits	$	1,652	$	705	$	7,272	$	391	$	10,020	$	774	$	10,794
Lease abandonment costs		-		-		1,962		-		1,962		490		2,452
Other		-		-		8		-		8		-		8
Total restructuring charges	$	1,652	$	705	$	9,242	$	391	$	11,990	$	1,264	$	13,254

	Year Ended
	March 31, 2013
					Unallocated						Discontinued
	APM		MF		Expenses		AS		Total		Operations		Total

Employee termination benefits	$	2,657	$	5,647	$	1,814	$	-	$	10,118	$	822	$	10,940
Lease abandonment costs		-		-		2,712		-		2,712		-		2,712
Other		-		-		2,921		-		2,921		-		2,921
Total restructuring charges	$	2,657	$	5,647	$	7,447	$	-	$	15,751	$	822	$	16,573

Fiscal 2012 restructuring payments

The payments made during fiscal 2012 were related to restructuring charges taken during fiscal 2010 associated with initiatives to align the professional services segment headcount and operating expenses after initiating a plan to exit low-margin engagements and to increase 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, 2014, substantially all of the restructuring accrual was recorded in current “accrued expenses” in the consolidated balance sheets.

The accruals for employee termination benefits at March 31, 2014 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, 2014 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.

- 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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