• Filing Date: 2017-08-09
  • Form Type: 10-Q
  • Description: Quarterly report
v3.7.0.1
RESTRUCTURING CHARGES
3 Months Ended
Jun. 30, 2017
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES
Fiscal 2018 Restructuring Plan
During the first quarter of fiscal 2018, we approved a plan (“Fiscal 2018 Restructuring Plan”) to eliminate 49 positions in the U.S. and internationally to align our workforce within various functions of our business in order to meet the Company’s strategic plans. The costs associated with these actions consist of restructuring charges related to severance and benefits. We incurred $1.6 million of restructuring charges under this plan during the quarter, and as of June 30, 2017, we paid $0.5 million under this plan with the remaining amounts to be paid during the remainder of fiscal 2018.
Fiscal 2017 April Restructuring Plan
In April 2016, we approved a plan (“Fiscal 2017 April Restructuring Plan”) to eliminate 29 positions in the U.S. and internationally to reduce investments in various functions of our business to improve operational efficiencies. The costs associated with these actions consist of restructuring charges related to severance and benefits. These actions were completed by the second quarter of fiscal 2017. We incurred and paid $1.5 million of restructuring charges under this plan.

Fiscal 2016 Restructuring Plan

In November 2015, we approved a plan (“Fiscal 2016 Restructuring Plan”) to eliminate approximately 65 positions in the U.S. and internationally, primarily in research and development and sales and marketing functions, in order to improve our cost structure and align spending with continuing operations plans. These actions were completed by the first quarter of fiscal 2017, with the majority having occurred by December 31, 2015. The costs associated with these actions consist of restructuring charges related to severance and benefits. We incurred and paid $2.0 million of restructuring charges under this plan.

Summary of Restructuring Expense
The following summarizes the type of restructuring costs, included in operating expense, for the three months ended June 30, 2017 and June 30, 2016 (in thousands):
 
Three Months Ended
 
June 30, 2017
 
June 30, 2016
Severance and benefits
$
1,570

 
$
1,489

Facilities
756

 
563

Other
9

 

 
$
2,335

 
$
2,052



Restructuring charges for the first three months of fiscal 2018 included $1.6 million of severance and benefits costs incurred as a result of the Fiscal 2018 Restructuring Plan. Additionally, we incurred $0.8 million of facilities restructuring charges in the first three months of fiscal 2018 due to a change in estimate of sublease timing and related expenses for our facilities previously used in manufacturing.

Restructuring charges for the first three months of fiscal 2017 were largely due to $1.5 million of severance and benefits costs incurred as a result of the Fiscal 2017 Restructuring Plan. Additionally, we incurred $0.6 million of restructuring charges related to facilities costs primarily due to a change in estimate of sublease timing for our facilities previously used in manufacturing.

Accrued Restructuring

The following tables show the activity and the estimated timing of future payouts for accrued restructuring (in thousands):
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
Severance
and Benefits
 
Facilities
 
Total
Balance as of March 31, 2017
$
130

 
$
1,220

 
$
1,350

Restructuring costs
1,570

 

 
1,570

Adjustment of prior estimates

 
756

 
756

Cash payments
(472
)
 
(411
)
 
(883
)
Balance as of June 30, 2017
$
1,228

 
$
1,565

 
$
2,793


 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
Severance
and Benefits
 
Facilities
 
Total
Balance as of March 31, 2016
$
354

 
$
2,383

 
$
2,737

Restructuring costs
1,489

 
426

 
1,915

Adjustment of prior estimates

 
179

 
179

Cash payments
(1,029
)
 
(339
)
 
(1,368
)
Balance as of June 30, 2016
$
814

 
$
2,649

 
$
3,463



 
As of June 30, 2017
 
Severance and
Benefits
 
Facilities
 
Total
Estimated timing of future payouts:
 
 
 
 
 
Next twelve months
$
1,228

 
$
1,022

 
$
2,250

July 2018 through June 2022

 
543

 
543

 
$
1,228

 
$
1,565

 
$
2,793



Facility restructuring accruals will be paid in accordance with the respective facility lease terms and the above amounts are net of estimated sublease amounts.