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 $0.2 million of lease termination costs in the fiscal nine months ended September 29, 2012. The details of the jewelry restructuring accruals are as follows:

(In millions)	Lease obligations
Balance, January 1, 2012	$	1.5
Additions		0.2
Payments and reductions		(0.4	)
Balance, September 29, 2012	$	1.3
Balance, January 1, 2013	$	1.4
Payments and reductions		(0.3	)
Balance, October 5, 2013	$	1.1

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. The net accrual of $1.1 million at October 5, 2013 is reported as $0.4 million of accrued expenses and other current liabilities and $0.7 million of other noncurrent liabilities.

Retail Stores

We continue to review our domestic retail operations for underperforming locations. As a result of these reviews, we have decided to close retail locations that no longer provide strategic benefits. During the fiscal nine months ended October 5, 2013, we decided to close 120 underperforming domestic retail locations throughout 2013 and 2014 in addition to the 50 store closings announced in the fiscal quarter ended December 31, 2012. We expect to operate a smaller and more productive chain of domestic locations, with outlet stores comprising a significantly higher percentage of the overall retail portfolio. We will continue to critically assess individual store profitability, including consideration of converting certain locations to brands that offer the greatest opportunity for revenue growth.

During the first fiscal nine months of 2013 and 2012, we closed 66 and 85 locations, respectively, under this plan. Total termination benefits and associated employee costs for all locations closed since 2009 and identified to be closed are expected to be $14.3 million for approximately 3,000 employees, including both store employees and administrative support personnel. We accrued $3.4 million and $1.6 million of termination benefits and associated employee costs during the first fiscal nine months of 2013 and 2012, respectively. We also incurred $3.2 million and $0.4 million in the fiscal nine months ended October 5, 2013 and September 29, 2012, respectively, for costs to terminate leases. In connection with our decision to close these locations, we reviewed the associated long-term assets for impairments. As a result of these reviews, we recorded $6.1 million and $0.4 million of impairment losses in the fiscal nine months ended October 5, 2013 and September 29, 2012, respectively, on leasehold improvements and furniture and fixtures present in the locations to be closed. These costs are reported as SG&A expenses in the domestic retail segment.

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

(In millions)	Termination benefits
Balance, January 1, 2012	$	1.3
Additions		1.6
Payments and reductions		(1.8	)
Balance, September 29, 2012	$	1.1
Balance, January 1, 2013	$	0.9
Additions		3.4
Payments and reductions		(1.4	)
Balance, October 5, 2013	$	2.9

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. The net accrual of $2.9 million at October 5, 2013 is reported as accrued expenses and other current liabilities.

Other Cost Reduction Initiatives

During the fiscal nine months ended October 5, 2013, we implemented actions to reduce costs in certain selling, supply chain and corporate back office functions (primarily through headcount reductions) and to optimize our wholesale sportswear channel by streamlining our structure to support a brand-focused organization, including the consolidation of certain production, design and selling divisions and consolidation of distribution and supply chain facilities. We recorded $4.3 million of employee termination costs in the fiscal nine months ended October 5, 2013 for approximately 100 employees. These costs are reported as SG&A expenses and affect all of our reportable segments. Additional actions may be taken during 2013 as we continue to assess our operations for opportunities to reduce costs and improve profitability.

The details of the cost reduction initiative accruals are as follows:

(In millions)	Termination benefits
Balance, January 1, 2013	$	-
Additions		4.3
Payments and reductions		(4.1	)
Balance, October 5, 2013	$	0.2

The net accrual of $0.2 million at October 5, 2013 is reported as accrued expenses and other current liabilities.