Restructuring

Restructuring Charges

In February 2016, the Company announced the implementation of a multi-year restructuring plan which is designed to realign its brands across our Fashion Lifestyle and Performance Lifestyle brand groups, optimize the Company's retail store fleet, and consolidate management and operations. In general, this restructuring plan is intended to streamline brand operations, reduce overhead costs, create operating efficiencies, and improve collaboration.

In connection with the restructuring plan, the Company closed 27 retail stores as of December 31, 2017, and consolidated its brand operations and corporate headquarters. The Company has incurred cumulative restructuring charges of $55,324 since the commencement of the restructuring plan through December 31, 2017. Of this amount, $149 and $1,667 of restructuring charges were recorded in selling, general and administrative expenses (SG&A) in the condensed consolidated statements of comprehensive income during the three and nine months ended December 31, 2017, respectively.

Restructuring charges by reportable operating segment are as follows:



	Three Months Ended December 31,				Nine Months Ended December 31,				Cumulative Restructuring Charges*
	2017		2016		2017		2016		Cumulative Restructuring Charges*
UGG brand wholesale	$	—	$	—	$	—	$	574	$	2,238
Sanuk brand wholesale	—		—		—		—		3,068
Other brands wholesale	—		—		—		—		2,263
Direct-to-Consumer	149		3,233		149		4,628		23,454
Unallocated overhead costs	—		1,712		1,518		2,375		24,301
Total restructuring charges	$	149	$	4,945	$	1,667	$	7,577	$	55,324

*Cumulative restructuring charges includes restructuring charges of $28,984 and $24,673, which were incurred during the fiscal years ended March 31, 2017 and 2016, respectively, as reported in the 2017 Annual Report.

Of the cumulative restructuring charges incurred through December 31, 2017, $5,077 remained accrued as of that date, with $1,428 reflected in short-term liabilities, and $3,649 reflected in long-term liabilities in the condensed consolidated balance sheets. The specific categories of restructuring charges, as well as payments associated with the related accrued liabilities, were as follows:



	Lease termination costs			Severance costs			Termination of various contracts and other services**			Total
Balance as of March 31, 2017	$	4,572		$	2,555		$	3,953		$	11,080
Additional charges	149			—			1,518			1,667
Paid in cash	(880		)	(2,416		)	(4,374		)	(7,670		)
Balance as of December 31, 2017	$	3,841		$	139		$	1,097		$	5,077

**Includes restructuring charges for office consolidation costs.

The Company currently does not anticipate incurring material restructuring charges in future periods, though reduction of Company-owned retail stores remains a focus for the Company.

As a result of the implementation of this restructuring plan, the Company expects to realize additional SG&A expense savings by fiscal year end 2020. Refer to the section entitled "Recent Developments" in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part I, Item 2 of this Quarterly Report on Form 10-Q for further information.