Restructuring

In February 2016, the Company announced the implementation of a retail store fleet optimization and office consolidation that is intended to streamline brand operations, reduce overhead costs, create operating efficiencies and improve collaboration, and includes the closure of facilities and relocation of employees. The Company has begun to realign its brands across two groups: Fashion Lifestyle and Performance Lifestyle. The Fashion Lifestyle group will include the UGG and Koolaburra® by UGG (Koolaburra) brands. The Performance Lifestyle group includes the Teva, Sanuk, Hoka One One® (Hoka) and Ahnu® (Ahnu) brands. As part of this realignment, we also relocated our Sanuk brand operations in Irvine, California to our corporate headquarters in Goleta, California. In addition, we closed our Ahnu brand operations office in Richmond, California and consolidated our European offices.

The Company is in the process of evaluating its portfolio of retail stores. The Company identified 24 retail stores that are candidates for potential closure and has closed 12 stores in total as of December 31, 2016.

Subsequent to the sales of the Company's discontinued MOZO and TSUBO brands, in July 2015 and February 2016, respectively, the operating results for the other brands segment include only the Hoka, Ahnu and Koolaburra brands. The Company has begun to leverage elements of the Ahnu brand, including particular styles, under the Teva brand beginning in calendar year 2017.

As a result of the restructuring, the Company has incurred charges totaling approximately $32,500 through December 31, 2016. Of the total amount, approximately $5,700 remained accrued as of December 31, 2016, and is expected to be paid during fiscal year 2017. Restructuring charges are reflected in selling, general and administrative expenses for the three and nine months ended December 31, 2016 and the related liability is reflected in accrued payroll and other accrued expenses. It is anticipated that the Company will incur approximately $20,000 of additional similar restructuring costs during the remainder of fiscal year 2017. The following table summarizes these restructuring charges:



	Lease Termination Costs			Severance Costs			Leasehold Impairments			Software Impairments			Other			Total
Fiscal year 2016 charges	$	8,900		$	4,000		$	5,800		$	3,800		$	2,300		$	24,800
Paid in cash	(1,200		)	(600		)	—			—			—			(1,800		)
Non-cash	—			—			(5,800		)	(3,800		)	(500		)	(10,100		)
Liability as of March 31, 2016	7,700			3,400			—			—			1,800			12,900
Additional charges	4,700			1,000			100			—			1,900			7,700
Paid in cash	(7,800		)	(3,200		)	—			—			(3,500		)	(14,500		)
Non-cash	—			(300		)	(100		)	—			—			(400		)
Liability as of December 31, 2016	$	4,600		$	900		$	—		$	—		$	200		$	5,700