NOTE 13: STREAMLINING INITIATIVES

2014 Actions

On January 29, 2015, the Company announced it will discontinue KATE SPADE SATURDAY as a standalone brand, including retail stores and its e-commerce website and that it will close its JACK SPADE retail stores. These actions are expected to be completed in the first half of 2015. Based on a probability weighted approach, the Company recorded non-cash asset impairment charges in 2014 and expects to incur additional asset impairment charges as well as contract termination costs and employee related costs in 2015 (see Note 23 — Subsequent Events).

In connection with the sale of the Juicy Couture IP and former Lucky Brand business, the Board of Directors of the Company approved various changes to its senior management, which resulted in charges related to severance in 2014. As discussed in Note 14 — Share-Based Compensation, the Company's Compensation Committee approved the continued vesting of unvested options and restricted stock awards without any required service period or the accelerated vesting of such awards for former employees, including former executive officers. In addition, as a result of the reduction of office space, the Company recorded charges related to contract terminations and other charges in the first quarter of 2014.

The Company expects to pay approximately $7.8 million of accrued streamlining costs during 2015. In addition, the Company expects to pay $5.9 million of accrued streamlining costs related to discontinued operations in 2015. A summary rollforward and components of the Company's streamlining initiatives were as follows:

In thousands	Payroll and Related Costs			Contract Termination Costs			Asset Write-Downs			Other Costs			Total
Balance at December 31, 2011	$	7,352		$	18,012		$	—		$	30,967		$	56,331
2012 provision		9,158			2,681			27,783			3,571			43,193
2012 asset write-downs		—			—			(27,783	)		—			(27,783	)
Translation difference		25			49			—			9			83
2012 spending		(11,976	)		(16,499	)		—			(18,783	)		(47,258	)

Balance at December 29, 2012		4,559			4,243			—			15,764			24,566
2013 provision(a)		5,657			6			1,744			3,194			10,601
2013 asset write-downs		—			—			(1,744	)		—			(1,744	)
Translation difference		(7	)		12			—			18			23
2013 spending(a)		(7,173	)		(2,110	)		—			(7,269	)		(16,552	)

Balance at December 28, 2013		3,036			2,151			—			11,707			16,894
2014 provision(a)		33,729			1,540			6,367			316			41,952
2014 asset write-downs		—			—			(6,367	)		—			(6,367	)
Translation difference		—			—			—			(3	)		(3	)
2014 spending(a)		(34,685	)		(2,704	)		—			(5,190	)		(42,579	)

Balance at January 3, 2015(b)	$	2,080		$	987		$	—		$	6,830		$	9,897

(a)	Payroll and related costs provision and spending include $17.3 million and $2.8 million in 2014 and 2013, respectively, of non-cash share-based compensation expense.
(b)	The balance in other costs at January 3, 2015 includes $6.8 million for a withdrawal liability incurred in 2011 related to a multi-employer pension plan that the Company will pay through June 1, 2016.

Expenses associated with the Company's streamlining actions were primarily recorded in SG&A in the Consolidated Statements of Operations and impacted reportable segments and Corporate as follows:

	Fiscal Years Ended
In thousands	January 3, 2015		December 28, 2013		December 29, 2012
KATE SPADE North America	$	7,319	$	791	$	2,519
KATE SPADE International		1,567		—		—
Adelington Design Group		982		272		3,112
Other(a)		32,084		9,538		37,562

Total	$	41,952	$	10,601	$	43,193

(a)	Other consists of unallocated corporate restructuring costs and Juicy Couture and Lucky Brand restructuring charges principally related to distribution functions that are not directly attributable to Juicy Couture or Lucky Brand and therefore have not been included in discontinued operations.