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58
Fiscal Year Ended March 31, 2012
Lease and
Contract
Terminations
Net Asset
Im
p
airments Total
Be
g
innin
g
balance $
—
$
—
$
—
Char
g
es to o
p
erations 634 117 751
Non-cash write-offs
—
(
117
)
(
117
)
Cash payments, net of sublease
income
(
181
)
—
(
181
)
Foreign currency and other
ad
j
ustments 132
—
132
Endin
g
balance $ 585 $
—
$ 585
Additionally, in connection with the U.K. studio closure, in fiscal 2012, we incurred $1.7 million of cash severance and other
employee-based charges related to the notification to employees of position eliminations (recorded within operating expenses in
our consolidated statements of operations). In fiscal 2012, we also incurred a $1.6 million loss related to accumulated foreign
currency translation adjustments (recorded within "Interest and other income (expense), net" in our consolidated statements of
operations). We do not expect any future charges under the fiscal 2012 first quarter realignment, other than additional facility
related charges and adjustments in the event actual and estimated sublease income changes.
Fiscal 2011 Fourth Quarter Realignment. In the fourth quarter of fiscal 2011, we performed an assessment of our product
development and publishing staffing models. This resulted in a change to our staffing plans to better address peak service
periods, as well as to better utilize shared services and more cost-effective locations. The following table summarizes the
components and activity under the fiscal 2011 fourth quarter realignment, classified as "Restructuring" in our consolidated
statements of operations, for fiscal 2012, and the related restructuring reserve balances (amounts in thousands):
Fiscal Year Ended March 31, 2012
Lease and
Contract
Terminations
Net Asset
Im
p
airments Total
Be
g
innin
g
balance $ 41 $
—
$ 41
Char
g
es to o
p
erations 405 90 495
Non-cash write-offs
—
(
90
)
(
90
)
Cash payments, net of sublease
income
(
320
)
—
(
320
)
Foreign currency and other
ad
j
ustments 195
—
195
Endin
g
balance $ 321 $
—
$ 321
Since the inception of the fiscal 2011 fourth quarter realignment through March 31, 2012, total restructuring charges amounted
to $0.6 million.
Additionally, in connection with this change, in fiscal 2012, we incurred charges of $1.8 million related to estimates of cash
severance and other employee-based charges (recorded within operating expenses in our consolidated statements of operations),
as well as a $0.5 million loss related to accumulated foreign currency translation adjustments (recorded within "Interest and
other income (expense), net" in our consolidated statements of operations). In fiscal 2011 we incurred $1.3 million of cash
severance charges related to the elimination of positions (recorded within operating expenses in our consolidated statements of
operations) and $76,000 of lease and other contract termination charges (recorded within "Restructuring" in our consolidated
statement of operations). We do not expect any future charges under the fiscal 2011 fourth quarter realignment, other than
additional facility related charges and adjustments in the event actual and estimated sublease income changes.
Fiscal 2011 Third Quarter Realignment. In the third quarter of our fiscal 2011, we reevaluated our strategy of adapting certain
Western content for free-to-play online games in Asian markets. As a result, we cancelled two games, eliminated certain
positions, and closed our Korean support office. There were no significant charges recorded in fiscal 2012 related to this
realignment. Restructuring expenses recorded during fiscal 2011 related to the closure of our Korean support office were