9. Restructuring

The Company accounts for charges resulting from operational restructuring actions in accordance with ASC Topic 420, Exit or Disposal Cost Obligations (“ASC 420”) and ASC Topic 712, Compensation—Nonretirement Postemployment Benefits (“ASC 712”). In accounting for these obligations, the Company is required to make assumptions related to the amounts of employee severance, benefits, and related costs and the time period over which leased facilities will remain vacant, sublease terms, sublease rates and discount rates. Estimates and assumptions are based on the best information available at the time the obligation arises. These estimates are reviewed and revised as facts and circumstances dictate; changes in these estimates could have a material effect on the amount accrued on the consolidated balance sheet.

During the years ended March 31, 2013 and March 31, 2012, the Company undertook restructuring activities, approved by the Board of Directors, in order to reorganize its global operations, streamline various functions of the business, and reduce its global workforce to better reflect the demand for its products. The Company undertook an additional workforce reduction in July 2013, reducing its workforce by approximately 7%, impacting primarily selling, engineering and general and administrative functions. The Company recorded restructuring charges for severance and other costs of approximately $0.1 million and $0.9 million during the three and nine months ended December 31, 2013. From April 1, 2011 through December 31, 2013, these activities resulted in a substantial reduction of its global workforce. During the three and nine months ended December 31, 2012, the Company incurred restructuring costs of $6.7 million and $6.8 million, respectively. The costs related to the Company’s restructuring activities have been paid as of December 31, 2013.

The following table presents restructuring charges and cash payments (in thousands):

	Severance pay			Facility
Nine months ended December 31, 2013	and benefits			exit costs			Total
Accrued restructuring balance at April 1, 2013	$	145		$	54		$	199
Charges to operations		849			23			872
Cash payments		(821	)		(37	)		(858	)
Other adjustments		(173	)		(40	)		(213	)
Accrued restructuring balance at December 31, 2013	$	-		$	-		$	-
Nine months ended December 31, 2012
Accrued restructuring balance at April 1, 2012	$	680		$	294		$	974
Charges to operations		2,377			(39	)		2,338
Cash payments		(1,673	)		(255	)		(1,928	)
Accrued restructuring balance at December 31, 2012	$	1,384		$	-		$	1,384

All restructuring charges discussed above are included within restructuring and impairments in the Company’s unaudited condensed consolidated statements of operations. The Company includes accrued restructuring within accounts payable and accrued expenses in the unaudited condensed consolidated balance sheets.