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 initiated 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, (See Note 16—“Subsequent Events”, for additional information related to the July reduction). These activities resulted in the reduction of its global workforce by approximately 57%, in aggregate. During the three months ended June 30, 2013 and 2012, the Company incurred restructuring costs of less than $0.1 million and $0.1 million, respectively. The remaining balance of accrued restructuring is expected to be paid through June 2014.

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


	Severance pay and benefits			Facility exit costs			Total
Three months ended June 30, 2013
Accrued restructuring balance at April 1, 2013	$	199			—		$	199
Charges to operations		13			—			13
Cash payments		(136	)		—			(136	)

Accrued restructuring balance at June 30, 2013	$	76		$	—		$	76


Three months ended June 30, 2012
Accrued restructuring balance at April 1, 2012	$	680		$	294		$	974
Charges to operations		167			(39	)		128
Cash payments		(269	)		(255	)		(524	)

Accrued restructuring balance at June 30, 2012	$	578		$	—		$	578

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.