RESTRUCTURING ACTIVITIES

2017 Plan

Beginning in the second quarter of fiscal 2017, the Company implemented certain organizational changes and initiated the sale of certain assets and a change to the distribution model for certain brands (the “2017 Plan”). The Company completed the 2017 Plan during the fourth quarter of fiscal 2017. The Company expects annual pretax benefits of approximately $11.0 million as a result of the 2017 Plan. Costs incurred related to the 2017 Plan have been recorded within the Corporate category. The cumulative costs incurred is $11.3 million, with $1.5 million recorded in the restructuring costs line item as a component of cost of goods sold, and $9.8 million recorded in the restructuring and other related costs line item as a component of operating expenses.

The following is a summary of the activity during the year-to-date ended June 30, 2018 and July 1, 2017, with respect to a reserve established by the Company in connection with the 2017 Plan, by category of costs.



(In millions)	Severance and employee related			Costs associated with exit or disposal activities			Total
Balance at December 31, 2016	$	—		$	—		$	—
Restructuring costs	1.7			0.3			2.0
Amounts paid	(0.1		)	(0.3		)	(0.4		)
Balance at July 1, 2017	$	1.6		$	—		$	1.6

Balance at December 30, 2017	$	3.3		$	—		$	3.3
Amounts paid	(2.5		)	—			(2.5		)
Balance at June 30, 2018	$	0.8		$	—		$	0.8

2016 Plan

On October 6, 2016, the Board of Directors of the Company approved a realignment of the Company’s consumer-direct operations (the “2016 Plan”), which resulted in the closure of certain retail stores. The Company closed 266 retail stores in connection with the 2016 Plan, which was completed during the fourth quarter of fiscal 2017. The Company expects annual pretax benefits of approximately $20.0 million as a result of the 2016 Plan. Costs incurred related to the 2016 Plan have been recorded within the Corporate category. The cumulative costs incurred is $75.1 million, with $10.2 million recorded in the restructuring costs line item as a component of cost of goods sold, and $64.9 million recorded in the restructuring and other related costs line item as a component of operating expenses.



(In millions)	Severance and employee related			Impairment of property and equipment			Costs associated with exit or disposal activities			Total
Balance at December 31, 2016	$	0.8		$	—		$	1.2		$	2.0
Restructuring costs	3.0			4.6			39.4			47.0
Amounts paid	(3.0		)	—			(21.7		)	(24.7		)
Charges against assets	—			(4.6		)	(4.0		)	(8.6		)
Balance at July 1, 2017	$	0.8		$	—		$	14.9		$	15.7

Balance at December 30, 2017	$	0.3		$	—		$	1.4		$	1.7
Amounts paid	(0.3		)	—			(1.0		)	(1.3		)
Balance at June 30, 2018	$	—		$	—		$	0.4		$	0.4

Other Restructuring Activities

During the year-to-date ended July 1, 2017, the Company recorded restructuring costs of $0.7 million in connection with certain organizational changes. The costs associated with these restructuring activities were recorded within the Company’s Corporate category in the restructuring and other related costs line item as a component of operating expenses.