RESTRUCTURING AND IMPAIRMENT CHARGES

9 Months Ended

Jun. 30, 2012

Restructuring and Related Activities [Abstract]

Activity related to our restructuring accrual is as follows:



	Facility Consolidation and Operating Lease Commitments			Severance Costs			Total
	(in thousands)
Liability balance at September 30, 2011	$	2,310		$	298		$	2,608
Charged to operations	—			24			24
Non-cash charges	29			(17		)	12
Cash payments	(690		)	(305		)	(995		)
Liability balance at June 30, 2012	$	1,649		$	—		$	1,649

In September 2011, we initiated a restructuring plan to further align our resources with our strategic business objectives. Employees impacted under this plan were notified prior to the end of fiscal year 2011. In September 2011, we consolidated our Camarillo operations into a single facility and exited an adjacent leased facility. As a result of the lease exit, we incurred $1.4 million in lease exit costs and $1.1 million in asset impairment charges for asset write-down for tenant improvements at the facility which will not be recovered from future related cash flows. The related facility was vacated before September 30, 2011.

The fair value of the lease termination liability was determined based upon the present value of the remaining lease payments reduced by the current market rate for sublease rentals of similar properties. Our ability to generate sublease income is highly dependent upon the commercial real estate conditions at the time we perform our evaluations or negotiate sublease arrangements with third parties. The amounts we have accrued represent our best estimate of the obligations we expect to incur and could be subject to adjustments as market conditions change. Changes to the estimates will be reflected as “adjustments” in the period the changes in estimates were determined. There were no changes to the estimates for the nine months ended June 30, 2012. Our cash payments under the lease agreement may differ significantly from the exit accrual recorded due to the differences between actual experience and estimates made by management in establishing the lease termination accrual.