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Impairment, Restructuring and Other Costs | 12 Months Ended
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Jan. 29, 2022
Restructuring Costs And Asset Impairment Charges [Abstract] |
Impairment, Restructuring and Other Costs |
| 3. | Impairment, Restructuring and Other Costs
Impairment, restructuring and other costs consist of the following:
|  | 2021 |  |  | 2020 |  |  | 2019 |
|  |  |  |  |  | (millions) |  |  |  |  |
Asset Impairments |  | $ | 6 |  |  | $ | 3,280 |  |  | $ | 197 |
Restructuring |  |  | 3 |  |  |  | 224 |  |  |  | 123 |
Other |  |  | 21 |  |  |  | 75 |  |  |  | 34 |
|  | $ | 30 |  |  | $ | 3,579 |  |  | $ | 354 |
During 2020, primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $3,280 million, the majority of which was recognized during the first quarter of 2020 and consisted of:
| • | $3,080 million of goodwill impairments, with $2,982 million attributable to the Macy’s reporting unit and $98 million attributable to the bluemercury reporting unit. See discussion at Note 5, “Goodwill and Other Intangible Assets.”
| • | $200 million of impairments primarily related to long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value.
In June 2020, the Company announced a restructuring to align its cost base with anticipated near-term sales as the business recovered from the impact of the COVID-19 pandemic. The Company reduced corporate and management headcount by approximately 3,900. Additionally, the Company reduced staffing across its store portfolio, supply chain and customer support network, which it has since adjusted as sales recovered in early 2021. During the second quarter of 2020, the Company recognized $154 million of expense for severance related to this reduction in force, of which substantially all of this severance was paid as of January 29, 2022. On February 4, 2020, the Company announced its Polaris strategy, a multi-year plan designed to stabilize profitability and position the Company for sustainable, profitable growth. The strategy, developed in 2019 and refined in 2020, includes initiatives focused on growing the Company’s digital channels, expanding the Company’s off-mall store presence and modernizing the Company’s technology and supply chain infrastructures. In conjunction with these initiatives, in 2020 the Company announced plans to close approximately 125 of its least productive stores, including 8, 37, and 30 store closures that were announced in 2021, 2020, and 2019, respectively. However, in November 2021, the Company announced the deferral of the closure of the remaining locations previously identified for closure as part of the 125 locations from February 2020. The Company is currently in the process of repositioning its store portfolio in order to optimize its omnichannel ecosystem. A summary of the restructuring and other cash activity for 2021, 2020, and 2019 related to the Polaris strategy, which are included within accounts payable and accrued liabilities, is as follows:
|  |  |  |  |  | Professional |  |  |  |  |
|  |  |  |  |  | fees and |  |  |  |  |
|  | Severance and |  |  | other related |  |  |  |  |
|  | other benefits |  |  | charges |  |  | Total |
|  |  |  |  |  | (millions) |  |  |  |  |
Balance at February 2, 2019 |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions charged to expense |  |  | 121 |  |  |  | 36 |  |  |  | 157 |
Cash payments |  |  | (6 | ) |  |  | (27 | ) |  |  | (33 | )
Balance at February 1, 2020 |  |  | 115 |  |  |  | 9 |  |  |  | 124 |
Additions charged to expense |  |  | 55 |  |  |  | 17 |  |  |  | 72 |
Cash payments |  |  | (156 | ) |  |  | (24 | ) |  |  | (180 | )
Balance at January 30, 2021 |  |  | 14 |  |  |  | 2 |  |  |  | 16 |
Additions charged to expense |  |  | 5 |  |  |  | — |  |  |  | 5 |
Cash payments |  |  | (18 | ) |  |  | (2 | ) |  |  | (20 | )
Balance at January 29, 2022 |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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