RESTRUCTURING ACTIVITIES

3 Months Ended

Apr. 29, 2018

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

NOTE 9—RESTRUCTURING ACTIVITIES

Fiscal 2017 Plan

As a result of the sale of the Waterworks business in fiscal 2017, management evaluated the Company’s alignment and functional support strategies. During fiscal 2017, the Company initiated a restructuring plan that included reducing workforce personnel, realigning talent, and closing a C&I branch. In addition, the Company relocated its headquarters in first quarter 2018. During the three months ended April 29, 2018, the Company recognized $7 million of restructuring charges, primarily related to property lease obligations upon exiting the Company’s previous headquarters location, and, to a lesser extent, severance and other employee-related costs.

During fiscal 2017, the Company recognized $6 million of restructuring changes under this plan. Management expects to incur a total of $13 million to $15 million under this plan and expects a payback of the employee-related costs via a reduction in personnel costs over the next one to two years. The Company is actively pursuing buyout options and subleasing opportunities for the leased property prior to its lease expiration in October 2020.

Payments for severance and employee-related costs incurred under this plan are expected to be substantially complete by the end of fiscal 2018. Payments related to the property lease obligations of the exited property will continue until the expiration of the lease in October 2020 or until a buyout option is negotiated.

The following table presents the activity for the liability balances, included in Other current liabilities and Other liabilities in the Consolidated Balance Sheets (amounts in millions):

	Severance			Relocation & Other Costs			Occupancy Costs		Total
Balance—January 28, 2018	$	2		$	1		$	—	$	3
Charges	1			1			5		7
Cash payments	(2		)	(1		)	—		(3		)
Balance—April 29, 2018	$	1		$	1		$	5	$	7