RESTRUCTURING CHARGES

9 Months Ended

Dec. 31, 2012

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

10. RESTRUCTURING CHARGES

In response to a challenging macroeconomic environment, the Company initiated certain restructuring activities intended to improve its operational efficiencies by reducing excess workforce and capacity.  The restructuring activities are targeted at rationalizing the Company’s global manufacturing capacity and infrastructure and will result in a further shift of manufacturing capacity to locations with higher efficiencies.  Restructuring charges are recorded based upon employee termination dates, site closure and consolidation plans.

During the three-month period ended December 31, 2012, the Company recognized restructuring charges of approximately $102.7 million.  The costs associated with these restructuring activities include employee severance, other personnel costs, non-cash impairment charges on facilities and equipment that are not recoverable through future cash flows or are no longer in use and are to be disposed of, and other exit related costs due to facility closures. The Company classified approximately $98.3 million of these charges as a component of cost of sales and approximately $4.4 million of these charges as a component of selling, general and administrative expenses during the three-month and nine-month periods ended December 31, 2012.

The components of the restructuring charges by geographic region during the three-month period ended December 31, 2012 were as follows:

	Americas		Asia		Europe		Total
	(In thousands)
Severance	$	863	$	8,572	$	6,142	$	15,577
Long-lived asset impairment	—		46,250		9,851		56,101
Other exit costs	322		28,818		1,873		31,013
Total restructuring charges	$	1,185	$	83,640	$	17,866	$	102,691

During the three-month period ended December 31, 2012 the Company recognized approximately $15.6 million of severance costs related to employee terminations.  Approximately $12.1 million of this was classified as a component of cost of sales.

During the three-month period ended December 31, 2012 the Company recognized approximately $56.1 million for the write-down of property and equipment and other manufacturing assets, which are continuing to be held and used by the Company.  The majority of this amount was classified as a component of cost of sales.

During the three-month period ended December 31, 2012, the Company recognized approximately $31.0 million of other exit costs, which primarily comprised of $21.6 million for the write-down of certain customer specific assets that were determined to be unrecoverable based on a specific product exit and  resulting declining customer volumes.  Additionally, other exit costs include $8.4 million of customer disengagement costs primarily related to inventory that resulted from facility closures or a product exit and $1.0 million of other miscellaneous items.

The following table summarizes the provisions, respective payments, and remaining accrued balance as of December 31, 2012 for charges incurred in fiscal year 2013 and prior periods:

				Long-Lived			Other
	Severance			Asset Impairment			Exit Costs			Total
	(In thousands)
Balance as of March 31, 2012	$	4,620		$	—		$	8,067		$	12,687
Provision for charges incurred in fiscal year 2013	15,577			56,101			31,013			102,691
Cash payments for charges incurred in fiscal year 2013	(6,803		)	—			—			(6,803		)
Cash payments for charges incurred in fiscal year 2010 and prior	(1,997		)	—			(2,567		)	(4,564		)
Non-cash charges incurred in fiscal year 2013	—			(56,101		)	(26,012		)	(82,113		)
Balance as of December 31, 2012	11,397			—			10,501			21,898
Less: current portion (classified as other current liabilities)	11,397			—			8,774			20,171
Accrued restructuring costs, net of current portion (classified as other liabilities)	$	—		$	—		$	1,727		$	1,727