Quarterly report pursuant to Section 13 or 15(d)

Costs Associated with an Exit Activity Costs Associated with an Exit Activity (Note)

v3.5.0.2
Costs Associated with an Exit Activity Costs Associated with an Exit Activity (Note)
 9 Months Ended
Sep. 30, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure
COSTS ASSOCIATED WITH AN EXIT ACTIVITY

As part of its supply chain optimization initiative, HSNi announced in June 2015 its plan to close the HSN distribution center in Roanoke, Virginia and expand the capabilities of its distribution center in Piney Flats, Tennessee. The closure will involve the eventual elimination of approximately 350 positions at the Virginia facility. HSNi expects the closure to occur in accordance with a two-year transition plan and be substantially completed in 2017.

HSN expects to incur approximately $4 million to $5 million in total charges related to the closure. These charges include approximately $3 million to $4 million in employee-related expenses, including severance payments and retention incentives.

A summary of HSNi’s liability associated with exit activities, which is recorded in “Accrued expenses and other current liabilities” in the accompanying consolidated balance sheets, are presented in the following table (in thousands):
 
 
Employee Related Costs
Balance at January 1, 2016
 
$
3,221

Provisions
 
—

Payments
 
(65
)
Adjustments
 
—

Balance at September 30, 2016
 
$
3,156