ACCRUED RESTRUCTURING COSTS

9 Months Ended

Sep. 29, 2012

ACCRUED RESTRUCTURING COSTS [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 $0.1 million and $0.2 million of lease termination costs in the fiscal nine months ended October 1, 2011 and September 29, 2012, respectively.  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, 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
Balance, January 1, 2012	$	-		$	1.5		$	1.5
Additions		-			0.2			0.2
Payments and reductions		-			(0.4	)		(0.4	)
Balance, September 29, 2012	$	-		$	1.3		$	1.3

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.  The net accrual of $1.3 million at September 29, 2012 is reported as $0.4 million of accrued expenses and other current liabilities and $0.9 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.  We also recorded $7.4 million of lease obligation costs relating to the warehouse.  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)	Lease obligations
Balance, January 1, 2011	$	4.1
Additions		0.1
Payments and reductions		(3.5	)
Balance, October 1, 2011	$	0.7
Balance, January 1, 2012	$	0.9
Payments and reductions		(0.1	)
Balance, September 29, 2012	$	0.8

The net accruals of $0.7 million at October 1, 2011 and $0.8 million at September 29, 2012 are reported as accrued expenses and other current liabilities.

Retail Stores

We continue to review our retail operations for underperforming locations.  As a result of this review, we have decided to close domestic retail locations that no longer provide strategic benefits.  During the first fiscal nine months of 2011 and 2012, we closed 78 and 85 locations, respectively, and we anticipate closing additional locations in 2012.  Total termination benefits and associated employee costs are expected to be $10.8 million for approximately 2,020 employees, including both store employees and administrative support personnel.  We recorded $1.2 million and $1.6 million of employee termination costs in the fiscal nine months ended October 1, 2011 and September 29, 2012, 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 $4.7 million and $0.4 million of impairment losses during the fiscal nine months ended October 1, 2011 and September 29, 2012, 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.

The details of the retail store restructuring accruals are as follows:

(In millions)	One-time termination benefits
Balance, January 1, 2011	$	2.2
Additions		1.2
Payments and reductions		(2.3	)
Balance, October 1, 2011	$	1.1
Balance, January 1, 2012	$	1.3
Additions		1.6
Payments and reductions		(1.8	)
Balance, September 29, 2012	$	1.1

The net accrual of $1.1 million at October 1, 2011 is reported as accrued expenses and other current liabilities.  The net accrual of $1.1 million at September 29, 2012 is reported as $1.0 million of accrued expenses and other current liabilities and $0.1 million of other noncurrent liabilities.