Restructuring Charges

9 Months Ended

Jul. 31, 2014

Restructuring and Related Activities [Abstract]

In connection with the globalization of its organizational structure and core processes, as well as its cost reduction efforts, the Company formulated and announced a multi-year profit improvement plan (the "PIP") in May 2013. The PIP covers the global operations of the Company, and as the Company continues to evaluate its structure, processes and costs, additional charges may be incurred in the future under the PIP that are not yet determined. The PIP is, in many respects, a continuation and acceleration of the Company’s Fiscal 2011 Cost Reduction Plan (the “2011 Plan”). The Company will no longer incur any charges under the 2011 Plan, but will continue to make cash payments on amounts previously accrued under the 2011 Plan. Amounts charged to expense under the PIP and 2011 Plan were primarily recorded in SG&A with smaller amounts recorded in cost of goods sold (“COGS”) in the Company’s condensed consolidated statements of operations.

Activity and liability balances recorded as part of the PIP and 2011 Plan were as follows:



In thousands	Workforce			Facility & Other			Total
Balance, October 31, 2012	$	5,335		$	6,856		$	12,191
Charged to expense	22,671			5,838			28,509
Cash payments	(15,847		)	(5,163		)	(21,010		)
Adjustments	—			(592		)	(592		)
Balance, October 31, 2013	$	12,159		$	6,939		$	19,098
Charged to expense	7,532			5,005			12,537
Cash payments	(13,936		)	(2,829		)	(16,765		)
Balance, July 31, 2014	$	5,755		$	9,115		$	14,870

Amounts charged to expense during the nine months ended July 31, 2014 were primarily composed of severance and separation charges for employees and athletes, as well as early lease exit costs. The majority of these charges were within the Americas and EMEA segments.

In addition to the restructuring charges noted above, the Company also recorded approximately $3 million of additional inventory reserves within COGS and approximately $2 million of additional expenses within SG&A during the nine months ended July 31, 2013, related to certain non-core brands and peripheral product categories that have been discontinued, which are not reflected in the table above.

The Company also recorded severance charges of approximately $3 million within SG&A during the nine months ended July 31, 2013 which were unrelated to the PIP or the 2011 Plan.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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