Restructuring and Other Charges

Retail Fleet Optimization Plan

On May 31, 2017, the Company announced that it plans to close between 100 and 125 of its Michael Kors retail stores in order to improve the profitability of its retail store fleet (“Retail Fleet Optimization Plan”). The Company anticipates finalizing the remainder of the planned store closures under the Retail Fleet Optimization Plan by the end of Fiscal 2020. The Company expects to incur approximately $100 - $125 million of one-time costs associated with these store closures. Collectively, the Company anticipates ongoing annual savings of approximately $60 million as a result of store closures and lower depreciation and amortization expense as a result of the impairment charges recorded once these initiatives are completed.

During the six months ended September 29, 2018, the Company closed 19 of its Michael Kors retail stores under the Retail Fleet Optimization Plan, for a total of 66 stores closed since plan inception. Restructuring charges recorded in connection with the Retail Fleet Optimization Plan during the three and six months ended September 29, 2018 were $1.2 million and $5.4 million, respectively. The below table presents a summary of charges recorded in connection with this plan for the MK Retail segment and the Company’s remaining restructuring liability (in millions):



	Severance and benefit costs			Lease-related costs			Total
Balance at March 31, 2018	$	0.2		$	44.6		$	44.8
Additions charged to expense	0.3			5.1			5.4
Balance sheet reclassifications ⁽¹⁾	—			1.1			1.1
Payments	(0.1		)	(16.0		)	(16.1		)
Balance at September 29, 2018	$	0.4		$	34.8		$	35.2


⁽¹⁾	Primarily consists of reclassification of deferred rent for locations subject to closure to a restructuring liability.

During the three and six months ended September 30, 2017, the Company recorded restructuring charges of $5.9 million under the Retail Fleet Optimization Plan, which were comprised of lease-related charges of $5.3 million and severance and benefit costs of $0.6 million.

Other Restructuring Charges

In addition to the restructuring charges related to the Retail Fleet Optimization Plan, the Company incurred charges of $1.0 million relating to Jimmy Choo lease-related charges during three and six months ended September 29, 2018.

Transaction and Transition Costs

During the three and six months ended September 29, 2018, the Company recorded transaction and transition costs of $16.0 million and $23.1 million, respectively, which included transition costs of $6.8 million and $13.9 million, respectively, in connection with the Jimmy Choo acquisition, as well as transaction costs of $6.5 million and transition costs of $2.7 million recorded in connection with the Company's agreement to acquire Versace during the three and six months ended September 29, 2018.

During the three and six months ended September 30, 2017, the Company recorded transaction costs of $16.1 million and $17.4 million, respectively, in connection with the Jimmy Choo acquisition.