Restructuring Charge Restructuring Charge

9 Months Ended

Nov. 01, 2014

During the first quarter of Fiscal 2014, the Company executed an organizational restructuring in support of its omni-channel retail strategy and its strategic growth initiatives. As part of the restructuring, the Company realigned certain functions within its corporate workforce, including its marketing, merchandise planning, procurement and allocation functions, to eliminate redundancy and integrate processes to better support its brands and serve its clients. These actions resulted in the separation of approximately 100 full-time associates. In connection with this effort, the Company recorded a pre-tax restructuring charge of approximately $17.3 million for severance and other costs during the first quarter of Fiscal 2014. The Company expects to pay all amounts accrued in connection with the restructuring by 2017.


2.	Restructuring Charge (Continued)

The following tables present a reconciliation of the restructuring reserve for the quarter and nine months ended November 1, 2014:



	Quarter Ended
	Severance and Related Costs			Other Restructuring Costs		Total
	(in thousands)
Balance at August 2, 2014	$	14,491		$	—	$	14,491
Cash payments	(3,765		)	—		(3,765		)
Balance at November 1, 2014	$	10,726		$	—	$	10,726



	Nine Months Ended
	Severance and Related Costs			Other Restructuring Costs			Total
	(in thousands)
Balance at February 1, 2014	$	—		$	—		$	—
Restructuring charge	16,742			561			17,303
Cash payments	(7,883		)	(561		)	(8,444		)
Reclassification to restructuring reserve (1)	1,867			—			1,867
Balance at November 1, 2014	$	10,726		$	—		$	10,726


(1)	Prior compensation accruals related to associates separated in connection with the restructuring were reclassified to the restructuring reserve.

Approximately $4.8 million and $5.9 million of the restructuring reserve is included in “Accrued salaries and bonus” and “Other liabilities,” respectively, on the Company’s Condensed Consolidated Balance Sheet at November 1, 2014, based upon the expected timing of the payments.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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