RESTRUCTURING AND OTHER INITIATIVES

Portfolio Realignment

The Company's portfolio realignment efforts included the sale of ASG, the sale and closure of certain sourcing and supply chain assets, closing or relocating numerous underperforming or poorly aligned retail stores, the termination of the Etienne Aigner license agreement, the election not to renew the Vera Wang license in accordance with agreement terms and other infrastructure changes. These portfolio realignment efforts began in 2011 and were completed in 2013. Expenses for these initiatives are reflected in both continuing operations and discontinued operations.

The following is a summary of the Company’s portfolio realignment expense for our continuing and discontinued operations for 2013:



	2013
($ millions, except per share data)	Pre-tax Expense		After-tax Expense		Loss Per Diluted Share
Continuing Operations
Business exits and cost reductions	$	1.2	$	0.8	$	0.02
Non-cash impairments/dispositions	4.7		4.7		0.11
Total Continuing Operations	5.9		5.5		0.13
Discontinued Operations
Business exits and cost reductions	13.3		6.4		0.13
Non-cash impairments/dispositions	11.5		11.5		0.27
Total Discontinued Operations	24.8		17.9		0.40
Total	$	30.7	$	23.4	$	0.53

The business exits and cost reductions associated with continuing operations were recorded within restructuring and other special charges, net and cost of goods sold in the consolidated statements of earnings. The business exits and cost reductions associated with discontinued operations were recorded within loss from discontinued operations, net of tax, in the consolidated statements of earnings. The non-cash impairments/dispositions of the Company’s continuing operations were recorded within impairment of assets held for sale in the consolidated statements of earnings. The non-cash impairments/dispositions of the Company’s discontinued operations were recorded within disposition/impairment of discontinued operations, net of tax in the consolidated statements of earnings. The non-cash impairments/dispositions are included in Other in the following table. All of the $5.9 million of expenses for portfolio realignment that were recorded in continuing operations during 2013 were included in the Brand Portfolio segment.

The following is a summary of the charges and settlements by category of costs:



																Total by Classification
($ millions)	Employee			Markdowns and Royalty Shortfalls			Facility			Other			Total			Continuing Operations			Discontinued Operations
Reserve balance at February 2, 2013	$	1.7		$	0.2		$	3.3		$	0.3		$	5.5		$	5.3		$	0.2
Additional charges in 2013	2.6			2.7			0.1			25.3			30.7			5.9			24.8
Amounts settled in 2013	(3.3		)	(2.9		)	(2.0		)	(25.6		)	(33.8		)	(9.7		)	(24.1		)
Reserve balance at February 1, 2014	$	1.0		$	—		$	1.4		$	—		$	2.4		$	1.5		$	0.9
Amounts settled in 2014	(0.9		)	—			(0.4		)	—			(1.3		)	(0.4		)	(0.9		)
Reserve balance at January 31, 2015	$	0.1		$	—		$	1.0		$	—		$	1.1		$	1.1		$	—
Amounts settled in 2015	(0.1		)				(0.3		)				(0.4		)	(0.4		)	—
Reserve balance at January 31, 2015	$	—		$	—		$	0.7		$	—		$	0.7		$	0.7		$	—

Sale of Sourcing and Supply Chain Assets

On April 30, 2013, the Company entered into an agreement to sell certain of its supply chain and sourcing assets (“Sale Agreement”) for $9.0 million, including $1.5 million in cash and a $7.5 million promissory note, subject to working capital adjustments. The sale closed during the second quarter of 2013. In anticipation of this transaction, the Company recognized an impairment charge in the first quarter of 2013 of $4.7 million ($4.7 million after tax, or $0.11 per diluted share) to adjust the assets to their estimated fair value. The promissory note required installments over two years and accrued interest at 5%. In accordance with the terms of the promissory note, the final principal payment was received during the third quarter of 2015.

Organizational Change

During 2014, the Company incurred costs of $1.9 million ($1.2 million on an after-tax basis, or $0.03 per diluted share) related to a management change at the corporate headquarters, with no corresponding charges in 2015 or 2013. These costs were recognized as restructuring and other special charges, net and included in the Other category.

Disposition of Shoes.com

As further discussed in Note 2 to the consolidated financial statements, in response to the sale of Shoes.com, the Company incurred restructuring and other special charges of $1.5 million in 2014. The restructuring reserve of $1.5 million as of January 31, 2015 was included in employee compensation and benefits on the consolidated balance sheets, with no corresponding reserve as of January 30, 2016.