XML 29 R19.htm IDEA: XBRL DOCUMENT v3.5.0.2
Restructuring Activities
 6 Months Ended
Jun. 18, 2016
Restructuring Activities [Abstract]  
Restructuring Activities
RESTRUCTURING ACTIVITIES
2014 Plan
On July 9, 2014, the Board of Directors of the Company approved a realignment of the Company’s consumer-direct operations (the “2014 Plan”). As a part of the 2014 Plan, the Company closed 136 retail stores, consolidated certain consumer-direct support functions and implemented certain other organizational changes. The Company completed the 2014 Plan during the first quarter of fiscal 2016. Costs incurred related to the 2014 Plan have been recorded within the Corporate category. The cumulative costs incurred is $49.5 million, with $6.5 million recorded in the restructuring costs line item as a component of cost of goods sold, and $43.0 million recorded in the restructuring and impairment costs line item as a component of operating expenses. Approximately $23.0 million represents non-cash charges. The Company expects annual pretax benefits of approximately $16.0 million as a result of the 2014 Plan. The Company estimates the remaining restructuring reserve will be settled during the remainder of fiscal 2016.
The following is a summary of the activity during the 24 weeks ended June 18, 2016 and June 20, 2015, with respect to a reserve established by the Company in connection with the 2014 Plan, by category of costs.
(In millions)
Severance and employee related
 
Impairment of property and equipment
 
Costs associated with exit or disposal activities
 
Total
Balance at January 3, 2015
$
1.0

 
$
—

 
$
6.5

 
$
7.5

Restructuring and impairment costs (gain)
1.4

 
0.3

 
(1.9
)
 
(0.2
)
Amounts paid
(1.7
)
 
—

 
(2.9
)
 
(4.6
)
Charges against assets
—

 
(0.3
)
 
(0.4
)
 
(0.7
)
Balance at June 20, 2015
$
0.7

 
$
—

 
$
1.3

 
$
2.0

 
 
 
 
 
 
 
 
Balance at January 2, 2016
$
2.1

 
$
—

 
$
6.5

 
$
8.6

Restructuring and impairment costs
1.2

 
0.2

 
9.6

 
11.0

Amounts paid
(3.3
)
 
—

 
(4.7
)
 
(8.0
)
Charges against assets
—

 
(0.2
)
 
(6.9
)
 
(7.1
)
Balance at June 18, 2016
$
—

 
$
—

 
$
4.5

 
$
4.5


Other Restructuring Activities
During the 24 weeks ended June 18, 2016, the Company recorded restructuring costs of $5.1 million in connection with certain organizational changes made during the first quarter of fiscal 2016. The costs associated with these restructuring activities were recorded within the Company’s Corporate category included in the restructuring and impairment costs line item as a component of operating expenses in the consolidated condensed statements of operations and comprehensive income. The Company estimates another $5.0 million to $6.0 million of costs will be incurred during the remainder of fiscal 2016 to complete these organizational changes.
During the 24 weeks ended June 18, 2016, the Company recorded restructuring costs of $0.3 million in connection with the Company’s decision to wind-down operations of its Cushe® brand. During the second quarter of fiscal 2015, the Company recorded restructuring and impairment costs, primarily related to indefinite-lived intangibles, of $2.9 million related to its Cushe brand. The Company recorded these costs within its Corporate category in the restructuring and impairment costs line item as a component of operating expenses in the consolidated condensed statements of operations and comprehensive income.