RESTRUCTURING ACTIVITIES

2016 Plan

On October 6, 2016, the Board of Directors of the Company approved a realignment of the Company’s consumer-direct operations (the “2016 Plan”), which will result in the closure of certain retail stores. The Company has closed 155 retail stores in connection with the 2016 Plan through the end of the first quarter of fiscal 2017 and plans to close approximately 115 additional stores through the end of fiscal 2017. The Company currently estimates pretax charges related to the 2016 Plan will range from $66.0 million to $71.0 million. The Company estimates it will record the remaining charges through the end of fiscal 2017. Once fully implemented, the Company expects annual pretax benefits of approximately $20.0 million as a result of the 2016 Plan.

Costs incurred related to the 2016 Plan have been recorded within the Corporate category. The cumulative costs incurred is $29.7 million, with $7.3 million recorded in the restructuring costs line item as a component of cost of goods sold, and $22.4 million recorded in the restructuring and impairment costs line item as a component of operating expenses. The following is a summary of the activity during the quarter ended April 1, 2017, with respect to a reserve established by the Company in connection with the 2016 Plan, by category of costs.



(In millions)	Severance and employee related			Impairment of property and equipment			Costs associated with exit or disposal activities			Total
Balance at December 31, 2016	$	0.8		$	—		$	1.2		$	2.0
Restructuring costs	1.5			4.5			17.9			23.9
Amounts paid	(0.6		)	—			(9.3		)	(9.9		)
Charges against assets	—			(4.5		)	(4.6		)	(9.1		)
Balance at April 1, 2017	$	1.7		$	—		$	5.2		$	6.9

2014 Plan

On July 9, 2014, the Board of Directors of the Company approved a realignment of the Company’s consumer-direct operations (the “2014 Plan”). As a part of the 2014 Plan, the Company closed 136 retail stores, consolidated certain consumer-direct support functions and implemented certain other organizational changes. The Company completed the 2014 Plan during the first quarter of fiscal 2016. Costs incurred related to the 2014 Plan have been recorded within the Corporate category. The cumulative costs incurred is $49.5 million, with $6.5 million recorded in the restructuring costs line item as a component of cost of goods sold, and $43.0 million recorded in the restructuring and impairment costs line item as a component of operating expenses. Approximately $23.0 million represents non-cash charges. The Company expects annual pretax benefits of approximately $16.0 million as a result of the 2014 Plan. The majority of the remaining restructuring reserve relates to a lease liability that extends to 2019.

The following is a summary of the activity during the quarters ended April 1, 2017 and March 26, 2016, with respect to a reserve established by the Company in connection with the 2014 Plan, by category of costs.



(In millions)	Severance and employee related			Impairment of property and equipment			Costs associated with exit or disposal activities			Total
Balance at January 2, 2016	$	2.1		$	—		$	6.5		$	8.6
Restructuring and impairment costs	1.2			0.2			9.6			11.0
Amounts paid	(1.4		)	—			(3.8		)	(5.2		)
Charges against assets	—			(0.2		)	(6.9		)	(7.1		)
Balance at March 26, 2016	$	1.9		$	—		$	5.4		$	7.3

Balance at December 31, 2016	$	—		$	—		$	1.7		$	1.7
Restructuring and impairment costs	—			—			—			—
Amounts paid	—			—			(0.1		)	(0.1		)
Charges against assets	—			—			—			—
Balance at April 1, 2017	$	—		$	—		$	1.6		$	1.6

Other Restructuring Activities

During the quarters ended April 1, 2017 and March 26, 2016, the Company recorded restructuring costs of $0.7 million and $3.3 million, respectively, in connection with certain organizational changes. The costs associated with these restructuring activities were recorded within the Company’s Corporate category in the restructuring and impairment costs line item as a component of operating expenses.

During the quarter ended March 26, 2016, the Company recorded restructuring costs of $0.3 million related to its decision to wind-down operations of its Cushe^® brand. The Company recorded these costs within its Corporate category in the restructuring and impairment costs line item as a component of operating expenses.