Table:
|  | Lease abandonment charges | Severance & payroll related charges | Total |
| --- | --- | --- | --- |
| Balance at March 31, 2018 | $— | $— | $— |
| Restructuring charges | 1,034 | 14,606 | 15,640 |
| Payments | (540) | (12,642) | (13,182) |
| Accrual reversals | — | (875) | (875) |
| Balance at March 31, 2019 | $494 | $1,089 | $1,583 |
Paragraphs:
12. Restructuring
In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the year ended March 31, 2019, the Company incurred total restructuring charges of $14,765. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and lease abandonment charges associated with two leases. These charges include $2,632 of stock- based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan.
The activity in the Company’s restructuring accruals for the year ended March 31, 2019 is summarized as follows:
As of March 31, 2019, the outstanding restructuring accruals primarily relate to future severance and lease payments.
(In thousands, except per share data)
Question:
Why did the company initiate a restructuring plan?
Answer: to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas.