NOTE 16 – COST SAVINGS INITIATIVES

As a result of actions taken by the Company in the first quarter of fiscal 2018 to better align its global infrastructure with the current business environment by consolidating certain operations and streamlining functions to reduce costs and improve profitability, the Company recorded $6.3 million of pre-tax expenses primarily for severance and payroll related, other and occupancy charges, predominantly impacting the Company’s North American and Swiss operations. The Company recorded an additional $0.1 million of pre-tax expenses in the second quarter of fiscal 2018 related to Other. The Company expects the cost savings initiatives to be substantially completed by the end of fiscal 2018.

A summary rollforward of costs related to the cost savings initiatives is as follows (in thousands):

	Fiscal 2018 Charges (2)		Cash payments			Non-cash adjustments			Foreign exchange		Accrued balance at July 31, 2017
Severance and payroll related (1)	$	5,943	$	(4,243	)	$	(153	)	$	73	$	1,620
Other (1)		377		(27	)		(13	)		29		366
Occupancy charges (1)		99		(11	)		—			9		97
Total	$	6,419	$	(4,281	)	$	(166	)	$	111	$	2,083

(1)

The total severance and payroll related charges of $5.9 million include $4.5 million in SG&A and $1.4 million in Cost of Sales in the Consolidated Statement of Operations for the six months ended July 31, 2017. The other charges of $0.4 million and occupancy charges of $0.1 million are included in SG&A in the Consolidated Statement of Operations for the six months ended July 31, 2017.

(2)	The United States and International locations of the Wholesale segment include a pre-tax charge of $3.8 million and $2.6 million, respectively.