RESTRUCTURING AND STRATEGIC CHARGES:

During the fourth quarter of fiscal 2014, we initiated a restructuring program, including the acceleration of domestic store closures and an organizational realignment, to ensure that resources align with long-term growth initiatives, including omni-channel.

In fiscal 2015, we completed an evaluation of the Boston Proper brand, completed the sale of the Boston Proper DTC business and closed its stores. We assessed the disposal group and determined that the sale of the Boston Proper DTC business did not have a major effect on our consolidated results of operations, financial position or cash flows. Accordingly, the disposal group is not presented in the consolidated financial statements as a discontinued operation. Pretax losses for the Boston Proper DTC business for fiscal 2015 was $11.8 million. The loss recorded in fiscal 2015 upon disposition of the Boston Proper assets held for sale was not material.

During the first quarter of fiscal 2016, we expanded our restructuring program to include components of our strategic initiatives that further align the organizational structure with long-term growth initiatives and to reduce cost of goods sold ("COGS") and selling, general and administrative expenses ("SG&A") through strategic initiatives. These strategic initiatives include realigning marketing and digital commerce, improving supply chain efficiency, reducing non-merchandise expenses, optimizing marketing spend and transition of executive leadership. We also adjusted the estimated store closures to 150 through fiscal 2017 in connection with the restructuring and strategic activities. In fiscal 2016, the Company recorded pre-tax restructuring and strategic charges of $31.0 million, primarily related to outside services, severance and proxy solicitation costs. In fiscal 2016, we substantially completed our restructuring program. As of the end of fiscal 2017, we have closed a majority of the stores identified for closure in connection with our restructuring and strategic activities and did not incur any material additional expenses related to lease terminations or restructuring and strategic charges.

A summary of the restructuring and strategic charges is presented in the table below:



		Fiscal 2016		Fiscal 2015

	(in thousands)
Impairment charges		$	1,453	$	22,001
Continuing employee-related costs		1,796		8,330
Severance charges		9,485		6,863
Proxy solicitation costs		5,697		—
Lease terminations		427		9,578
Outside services		12,013		—
Other charges		156		2,029
Restructuring and strategic charges, pre-tax		$	31,027	$	48,801

As of February 3, 2018, a reserve of $0.5 million related to restructuring and strategic activities was included in other current and deferred liabilities in the accompanying consolidated balance sheets. A roll-forward of the reserve is presented as follows:



	Continuing Employee-Related Costs			Severance Charges			Lease Termination Charges			Outside Services			Total

	(in thousands)
Ending Balance, January 28, 2017	$	671		$	2,413		$	846		$	7,299		$	11,229
Charges	—			—			—			—			—
Payments	(671		)	(2,413		)	(332		)	(7,299		)	(10,715		)
Ending Balance, February 3, 2018	$	—		$	—		$	514		$	—		$	514