12. Restructuring Related Charges

In the 13 and 26 weeks ended July 29, 2017, the Company recorded pre-tax restructuring related charges of $20.7 million and $26.2 million, respectively. These amounts consist of costs related to the planned exit of a joint business venture; charges for home office restructuring; and the previously announced initiative to explore the closure or conversion of Company owned and operated stores in Hong Kong, China, and the United Kingdom to licensed partnerships. The closure of the United Kingdom was completed in the 13 weeks ended July 29, 2017. The Company expects to incur additional charges for corporate and international restructuring charges in Fiscal 2017. The timing and magnitude is dependent on a number of factors, including negotiating third-party agreements, adherence to notification requirements and local laws.

	13 Weeks Ended		26 Weeks Ended
	July 29,		July 29,
(In thousands)	2017		2017
Lease termination and store closure costs	$	7,860	$	8,032
Severance and related employee costs		1,886		7,161
Total cash restructuring charges (1)		9,746		15,193

Joint business venture charges (2)		9,311		9,311
Inventory charges (3)		1,669		1,669
Total restructuring related charges	$	20,726	$	26,173

(1)

Cash charges of $9.7 million and $15.2 million for the 13 and 26 weeks respectively, for lease termination, store closures & severance were recorded within Restructuring Charges on the Consolidated Statements of Operations

(2)

$9.3 million ($5.1 million cash and $4.2 million non-cash) of charges related to the planned exit of a joint business venture were recorded within Other (Expense) Income, Net on the Consolidated Statements of Operations

(3)

Non-cash inventory charges of $1.7 million related to restructuring activities for our United Kingdom and Asia markets recorded as a reduction in Gross Profit on the Consolidated Statements of Operations.

A rollforward of the liabilities recognized in the Consolidated Balance Sheet is as follows. The accrued liability as of January 28, 2017 relates to previous restructuring activities disclosed in the Company’s Fiscal 2016 Form 10-K, which remained unpaid at the beginning of Fiscal 2017.

(In thousands)
Accrued liability as of January 28, 2017	$	1,175
Add: Costs incurred, excluding non-cash charges		20,321
Less: Cash payments and adjustments		(13,529	)

Accrued liability as of July 29, 2017	$	7,967