Restructuring Charges

9 Months Ended

Oct. 29, 2016

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring Charges

During the first quarter of fiscal 2017, the Company implemented a global cost reduction and restructuring plan to better align its global cost and organizational structure with its current strategic initiatives. This plan included the consolidation and streamlining of the Company’s business processes and a reduction in its global workforce and other expenses. These actions resulted in restructuring charges related primarily to cash-based severance costs of $6.1 million during the nine months ended October 29, 2016. There were no restructuring charges incurred during the three months ended October 29, 2016 related to this plan. The Company does not expect significant future cash-based severance charges to be incurred as the actions under this plan were substantially completed during the first quarter of fiscal 2017. As of October 29, 2016, the Company had a balance of approximately $0.6 million in accrued expenses for amounts expected to be paid during the remainder of fiscal 2017.

The following table summarizes restructuring activities related primarily to severance during the three and nine months ended October 29, 2016 (in thousands):

	Three Months Ended
	Oct 29, 2016
Balance at July 30, 2016	$	1,131
Cash payments	(694		)
Foreign currency and other adjustments	168
Balance at October 29, 2016	$	605

	Nine Months Ended
	Oct 29, 2016
Balance at January 30, 2016	$	—
Charges to operations	6,083
Cash payments	(5,530		)
Foreign currency and other adjustments	52
Balance at October 29, 2016	$	605

During the nine months ended October 29, 2016, the Company also incurred an estimated exit tax charge of approximately $1.9 million related to its reorganization in Europe as a result of the global cost reduction and restructuring plan. The estimated exit tax charge was recorded during the three months ended April 30, 2016. The exit tax charge has not been finalized with the local authorities and actual amounts could differ significantly from these estimates as negotiations are completed.