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74
The composition of total restructuring charges we incurred for the Canadian brand consolidation in fiscal 2016 was as follows
($ in millions):
International
Continuing operations
Inventory write-downs $3
Property and equipment impairments 30
Tradename impairment 40
Termination benefits 25
Facility closure and other costs 102
Total continuing operations $ 200
The following tables summarize our restructuring accrual activity during the fiscal 2016, related to termination benefits and
facility closure and other costs associated with Canadian brand consolidation ($ in millions):
Termination
Benefits
Facility
Closure and
Other Costs Total
Balances at January 31, 2015 $ — $ — $ —
Charges 28 113 141
Cash payments (24)(47)(71)
Adjustments(1) (2)5 3
Changes in foreign currency exchange rates — (7)(7)
Balances at January 30, 2016 $ 2 $ 64 $ 66
(1) The adjustments related to termination benefits relate to higher-than-expected employee retention. Adjustments to facility closure and other costs represent
changes in sublease assumptions.
Renew Blue
In the fourth quarter of fiscal 2013, we launched the Renew Blue strategy, which included initiatives intended to improve
operating performance and reduce costs. These initiatives included focusing on core business activities, reducing headcount,
updating our store operating model and optimizing our real estate portfolio. These cost reduction initiatives represented one of
the key Renew Blue priorities. We incurred $2 million of favorable adjustments related to Renew Blue initiatives in fiscal 2016.
Of the total adjustments, $1 million related to our Domestic segment, which consisted primarily of changes in retention
assumptions used to estimate employee termination benefits. The remaining $1 million adjustment related to our International
segment and consisted of facility closure and other costs. We expect to continue to implement cost reduction initiatives
throughout fiscal 2017 as we further analyze our operations and strategies.
We incurred $29 million of charges related to Renew Blue initiatives during fiscal 2015. Of the total charges, $10 million
related to our Domestic segment, which consisted primarily of employee termination benefits. The remaining $19 million of
charges related to our International segment and consisted of employee termination benefits, property and equipment
impairments and facility closure and other costs.
For continuing operations, the inventory write-downs related to our Renew Blue restructuring activities are presented in
restructuring charges – cost of goods sold in our Consolidated Statements of Earnings and the remainder of the restructuring
charges are presented in restructuring charges. The restructuring charges from discontinued operations related to this plan are
presented in discontinued operations.