Staples 2014 Annual Report Download - page 146

APPENDIX C
C-14 STAPLES Form 10-K
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
The table below shows a reconciliation of the beginning and ending liability balances related to each major type of cost incurred
under the 2013 Plan (in thousands):
2013 Plan
Employee Related Other Total
Accrued restructuring balance as of February 1, 2014 $62,489 $2,532 $65,021
Cash payments (23,609) (1,327) (24,936)
Adjustments 5,129 (1,243) 3,886
Foreign currency translations (8,294) 38 (8,256)
Accrued restructuring balance as of January 31, 2015 $35,715 $— $35,715
For the restructuring liabilities associated with the 2013 Plan,
all of the balances are included within Accrued expenses and
other current liabilities in the Company’s consolidated balance
sheet as of January 31, 2015. The Company expects that
the payments related to the employee related liabilities will be
substantially completed by the end of fiscal 2015.
The restructuring charges related to the 2013 Plan are
presented within Restructuring charges in the Company’s
consolidated statements of income. The table below shows
how the $78.3 million of restructuring charges would have
been allocated if the Company had recorded the expenses
within the functional departments of the restructured activities
(in thousands):
Fiscal Year Ended
February 1, 2014
Cost of goods sold and occupancy costs $7,680
Selling, general and administrative 70,610
Total $78,290
2012 Restructuring Plan
In 2012, the Company initiated a strategic plan (the “2012
Plan”) aimed at accelerating growth, particularly in the
Company’s online businesses. Pursuant to the 2012 Plan, the
Company took the following actions:
• closed 46 retail stores in Europe and accelerated the
closure of 15 retail stores in the United States;
• closed and consolidated certain sub-scale delivery
businesses in Europe;
• sold PSD;
• reorganized certain general and administrative functions
in Europe; and
• rebranded its business in Australia from the Corporate
Express tradename to the Staples tradename (see Note C
- Goodwill and Long-Lived Assets).
As a result of the actions taken under the 2012 Plan, during
2012 the Company recorded pre-tax restructuring charges
of $207.0 million related to continuing operations. Of these
amounts, approximately $177 million related to the Company’s
International Operations segment and $30 million related to
the North American Stores & Online segment. The Company
does not expect to incur material costs in future periods in
connection with the 2012 Plan. The actions required under
the 2012 Plan were substantially complete by the end of
fiscal 2013.
The table below shows a reconciliation of the beginning and ending liability balances related to each major type of cost incurred
under the 2012 Plan (in thousands):
2012 Plan
Contractual
Obligation
Employee
Related Other Total
Accrued restructuring balance as of February 1, 2014 $28,681 $13,787 $179 $42,647
Cash payments (13,594) (9,480) (23,074)
Adjustments (1,197) (3,722) (179) (5,098)
Foreign currency translations (847) 3,045 2,198
Accrued restructuring balance as of January 31, 2015 $13,043 $3,630 $— $16,673