Restructuring and Other Charges

A description of significant restructuring and other activities and related costs is included below.

Fiscal 2016

Global Reorganization Plan

On May 12, 2015, the Company's Board of Directors approved a reorganization and restructuring plan comprised of the following major actions: (i) the reorganization of the Company from its historical channel and regional structure to an integrated global brand-based operating structure, which will streamline the Company's business processes to better align its cost structure with its long-term growth strategy; (ii) a strategic store and shop-within-shop performance review conducted by region and brand; (iii) a targeted corporate functional area review; and (iv) the consolidation of certain of the Company's luxury lines (collectively, the "Global Reorganization Plan"). Actions associated with the Global Reorganization Plan were substantially completed during Fiscal 2016 and resulted in a reduction in workforce and the closure of certain stores and shop-within-shops.

A summary of the charges recorded in connection with the Global Reorganization Plan during Fiscal 2016 is as follows:



	Fiscal Year Ended
	April 2, 2016
	(millions)
Cash-related restructuring charges:
Severance and benefit costs	$	64
Lease termination and store closure costs	8
Other cash charges^(a)	14
Total cash-related restructuring charges	86
Non-cash charges:
Impairment of assets (see Note 10)	27
Accelerated stock-based compensation expense^(b)	9
Inventory-related charges^(c)	20
Total non-cash charges	56
Total charges	$	142


^(a)	Other cash charges primarily consisted of consulting fees incurred in connection with the Global Reorganization Plan.


^(b)	Accelerated stock-based compensation expense, which is recorded within restructuring and other charges in the consolidated statements of income, was recorded in connection with vesting provisions associated with certain separation agreements.


^(c)	Inventory-related charges are recorded within cost of goods sold in the consolidated statements of income.

The Company expects to incur additional charges of approximately $5 million during its fiscal year ending April 1, 2017 ("Fiscal 2017") in connection with the Global Reorganization Plan, consisting primarily of cash-related severance and benefit costs. In addition, the Company continues to develop and work towards finalizing its strategic growth plan for Fiscal 2017 and beyond, which once completed will likely result in additional restructuring activities and related charges.

A summary of the activity in the restructuring reserve related to the Global Reorganization Plan is as follows:



	Severance and Benefit Costs			Lease Termination and Store Closure Costs			Other Cash Charges			Total
	(millions)
Balance at March 28, 2015	$	—		$	—		$	—		$	—
Additions charged to expense	64			8			14			86
Cash payments charged against reserve	(33		)	(3		)	(11		)	(47		)
Non-cash adjustments	—			1			—			1
Balance at April 2, 2016	$	31		$	6		$	3		$	40

Other Charges

During Fiscal 2016, the Company recorded other charges of $34 million related to its pending customs audit (see Note 16) and $14 million primarily related to the settlement of certain litigation claims.

Fiscal 2015

During Fiscal 2015, the Company recorded restructuring charges of $10 million, primarily related to severance and benefit costs associated with certain of its retail, wholesale, and corporate operations. As of March 28, 2015, the related aggregate remaining restructuring liability was approximately $5 million. As of April 2, 2016, the related aggregate remaining restructuring liability was not material.

Fiscal 2014

During Fiscal 2014, the Company recorded restructuring charges of $8 million, primarily related to severance and benefit costs associated with its corporate operations. As of both April 2, 2016 and March 28, 2015, the related aggregate remaining restructuring liability was not material.

In addition, in connection with the formation of the Office of the Chairman, the Company entered into employment agreements with certain of its executive officers, which became effective in November 2013. As a result of the new employment agreement provisions, the Company recorded $10 million of accelerated stock-based compensation expense during Fiscal 2014.