ACCRUED RESTRUCTURING COSTS

9 Months Ended

Oct. 01, 2011

Restructuring And Related Activities [Abstract]

ACCRUED RESTRUCTURING COSTS

ACCRUED RESTRUCTURING COSTS

Jewelry

        During 2009, we decided to discontinue the domestic manufacturing, product development and sourcing activities of our jewelry business, and also announced the closing of our jewelry distribution center during 2010. We accrued $0.4 million of termination benefits and associated employee costs and $2.2 million of lease termination costs in the fiscal nine months ended October 2, 2010 and we accrued $0.1 million of lease termination costs in the fiscal nine months ended October 1, 2011. These costs are reported as SG&A expenses in the domestic wholesale footwear and accessories segment.

        The details of the jewelry restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total jewelry restructuring
Balance, January 1, 2010	$	2.9		$	-		$	2.9
Additions		0.4			2.2			2.6
Payments and reductions		(1.7	)		(0.2	)		(1.9	)
Balance, October 2, 2010	$	1.6		$	2.0		$	3.6
Balance, January 1, 2011	$	1.3		$	2.3		$	3.6
Additions		-			0.1			0.1
Payments and reductions		(1.3	)		(0.8	)		(2.1	)
Balance, October 1, 2011	$	-		$	1.6		$	1.6

        We utilized $1.7 million and $1.3 million of the termination benefits accrual in the fiscal nine months ended October 2, 2010 and October 1, 2011, respectively (relating to full or partial severance for 50 and 43 employees, respectively). The net accrual of $3.6 million at October 2, 2010 is reported as $2.0 million of accrued expenses and other current liabilities and $1.6 million of other noncurrent liabilities. The net accrual of $1.6 million at October 1, 2011 is reported as $0.4 million of accrued expenses and other current liabilities and $1.2 million of other noncurrent liabilities.

Texas Warehouse

        On December 1, 2009, we announced the closing of warehouse facilities in Socorro, Texas. We accrued $3.4 million of termination benefits and associated employee costs for 220 employees, of which $0.3 million was recorded in the fiscal nine months ended October 2, 2010. We also recorded $5.7 million and $0.1 million of lease obligation costs relating to the warehouse in the fiscal nine months ended October 2, 2010 and October 1, 2011, respectively. These costs are reported as SG&A expenses in the domestic wholesale jeanswear segment. The closing was substantially completed by the end of April 2010.

        The details of the Texas warehouse restructuring accruals are as follows:

(In millions)		One-time termination benefits			Lease obligations			Total Texas warehouse restructuring
Balance, January 1, 2010	$	3.1		$	-		$	3.1
Additions		0.3			5.7			6.0
Payments and reductions		(3.2	)		(1.4	)		(4.6	)
Balance, October 2, 2010	$	0.2		$	4.3		$	4.5
Balance, January 1, 2011	$	-		$	4.1		$	4.1
Additions		-			0.1			0.1
Payments and reductions		-			(3.5	)		(3.5	)
Balance, October 1, 2011	$	-		$	0.7		$	0.7

        During the fiscal nine months ended October 2, 2010, $3.2 million of the accruals relating to termination benefits were utilized (relating to partial or full severance for 219 employees). The net accruals of $4.5 million and $0.7 million at October 2, 2010 and October 1, 2011, respectively, are reported as accrued expenses and other current liabilities.

Other Restructurings

        Moderate Apparel Restructuring. In connection with the exit from and reorganization of certain moderate apparel product lines, we decided to close certain New York offices, and on October 9, 2007, we announced the closing of warehouse facilities in Goose Creek, South Carolina. Prior to 2010, we recorded $2.0 million of lease obligation costs as selling, general and administrative expenses in our domestic wholesale jeanswear segment relating to one of the warehouse facilities. During the fiscal nine months ended October 2, 2010, we reversed $1.4 million of lease obligation costs as SG&A expenses in our domestic wholesale jeanswear segment due to a sublease of one of the warehouse facilities.

        Retail Stores. We continue to review our retail operations for underperforming locations. As a result of this review, we have decided to close retail locations that no longer provide strategic benefits. During the fiscal nine months ended October 2, 2010 and October 1, 2011, we closed 153 and 78 locations, respectively, and anticipate closing additional locations in 2011 and 2012. Total termination benefits and associated employee costs are expected to be $8.8 million for approximately 1,838 employees, including both store employees and administrative support personnel. We recorded $2.9 million and $1.2 million of employee termination costs in the fiscal nine months ended October 2, 2010 and October 1, 2011, respectively. In connection with our decision to close these stores, we reviewed the associated long-term assets for impairments. As a result of this review, we recorded $7.1 million and $4.7 million of impairment losses during the fiscal nine months ended October 2, 2010 and October 1, 2011, respectively, on leasehold improvements and furniture and fixtures located in the stores to be closed. These costs are reported as SG&A expenses in our domestic retail segment.

        California Restructuring. On February 15, 2011, we announced the closing of our Commerce, California design facility. In connection with this closing, we accrued $0.5 million of termination benefits and associated employee costs for 17 employees. These costs are reported as SG&A expenses in our domestic wholesale jeanswear segment.

        The details of these restructuring accruals are as follows:

(In millions)		Moderate restructuring			Retail stores			California restructuring
Balance, January 1, 2010	$	2.0		$	1.9		$	-
(Reversals) aditions		(1.4	)		2.9			-
Payments and reductions		(0.3	)		(1.6	)		-
Balance, October 2, 2010	$	0.3		$	3.2		$	-
Balance, January 1, 2011	$	0.3		$	2.2		$	-
Additions		-			1.2			0.5
Payments and reductions		(0.1	)		(2.3	)		(0.5	)
Balance, October 1, 2011	$	0.2		$	1.1		$	-

        During the fiscal nine months ended October 2, 2010 and October 1, 2011, $1.6 million and $2.3 million of the termination benefits accrual were utilized (relating to partial or full severance for 544 and 395 employees, respectively). The net accrual of $3.5 million at October 2, 2010 is reported as $3.1 million of accrued expenses and other current liabilities and $0.4 million of other noncurrent liabilities. The net accrual of $1.3 million at October 1, 2011 is reported as $1.0 million of accrued expenses and other current liabilities and $0.3 million of other noncurrent liabilities.