The Company accounts for its participation in the Fujitsu Defined Benefit Plan (Pension Plan) on behalf of the employees transferred as part of the MCA business acquisition (Plan participants) as a multiemployer plan. The Company recorded pension expense of $1.5 million for the quarter ended March 30, 2014 and had an unpaid liability of $0.5 million as of March 30, 2014. The Company has also recorded $22.9 million as Restricted Cash and $22.9 million in Accrued compensation and benefits in the Condensed Consolidated Balance Sheet relating to the estimated underfunded portion of the plan.

The Company may also be subject to additional liabilities imposed by law as a result of its participation in the Pension Plan. The Pension Plan imposes certain liabilities upon an employer who is a contributor to a multi-employer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. These liabilities include an allocable share of the unfunded vested benefits in the plan for all plan participants, not merely the benefits payable to a contributing employer’s own retirees. As a result, participating employers may bear a higher proportion of liability for unfunded vested benefits if other participating employers cease to contribute or withdraw, with the reallocation of liability being more acute in cases when a withdrawn employer is insolvent or otherwise fails to pay its withdrawal liability.

On January 15, 2014, the Company received approval from the transferred employees' union to exit from the Fujitsu Defined Benefit Plan, and establish a Spansion managed defined contribution plan and a cash balance plan (defined benefit plan). The Company also recorded an estimated additional expense of $2.1 million due to certain plan participants whose long-term retirement benefits are unfavorably impacted by the move from the Fujitsu Defined Benefit Plan to the Spansion defined contribution and cash balance plan. This estimated amount has been recorded as a part of the Accrued compensation and benefits in the Condensed Consolidated Balance Sheet as of March 30, 2014.

On April 1, 2014, the Company withdrew from the Fujitsu Defined Benefit Plan and set up a defined contribution plan and a cash balance plan, which is an unfunded defined benefit plan. The assets withdrawn will ultimately be transferred to Spansion's defined contribution plan in the second quarter of fiscal 2014. The restricted cash transferred from FSL as part of the MCA business acquisition will be distributed to the plan participants during the third quarter of fiscal 2014 or rolled over to Spansion’s defined contribution plan over a four year period, at the plan participant’s option.