XML 35 R22.htm IDEA: XBRL DOCUMENT
v3.21.2

Asset impairments, net | 9 Months Ended
--- | ---
Oct. 30, 2021
Asset Impairment Charges [Abstract] |
Asset impairments, net | Asset impairments, net The following table summarizes the Company's asset impairment activity for the periods presented:
| 13 weeks ended |  | 39 weeks ended
(in millions) | October 30, 2021 |  | October 31, 2020 |  | October 30, 2021 |  | October 31, 2020
Goodwill impairment (1) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10.7 |
Indefinite-lived intangible asset impairment (1) | — |  |  | — |  |  | — |  |  | 83.3 |
Property and equipment impairment | 0.3 |  |  | 1.5 |  |  | 1.5 |  |  | 27.2 |
Operating lease ROU asset impairment, net (2) | 0.4 |  |  | — |  |  | 0.5 |  |  | 36.9 |
Total asset impairments, net | $ | 0.7 |  |  | $ | 1.5 |  |  | $ | 2.0 |  |  | $ | 158.1 |
(1) Refer to Note 16 for additional information. (2) The Company recorded $0.8 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 39 weeks ended October 30, 2021. The Company recorded $0.9 million and $3.2 million of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets during the 13 and 39 weeks ended October 31, 2020, respectively. Long-lived assets of the Company consist primarily of property and equipment, definite-lived intangible assets and operating lease right-of-use (“ROU”) assets. Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. Potentially impaired assets or asset groups are identified by reviewing the undiscounted cash flows of individual stores or other asset groups. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset group, based on the Company’s internal business plans. If the undiscounted cash flow for the asset group is less than its carrying amount, the long-lived assets are measured for potential impairment by estimating the fair value of the asset group, and recording an impairment loss for the amount that the carrying value exceeds the estimated fair value. The Company utilizes primarily the replacement cost method to estimate the fair value of its property and equipment, and the income capitalization method to estimate the fair value of its ROU assets, which incorporates historical store level sales, internal business plans, real estate market capitalization and rental rates, and discount rates. Fiscal 2021 Due to the various impacts of COVID-19 to the Company’s business during the 13 weeks ended May 2, 2020, including the temporary closure of all the Company’s stores beginning in late March 2020, the Company determined triggering events had occurred for certain of the Company’s long-lived asset groups at the individual stores that required an interim impairment assessment during the first quarter of Fiscal 2021. This impacted property, plant and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded an impairment charge for property, plant and equipment of $13.8 million and ROU assets of $28.5 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $1.0 million. During the 13 weeks ended August 1, 2020, the Company completed its quarterly trigger event assessment and determined that a triggering event had occurred for certain additional long-lived asset groups at the individual stores based on real estate assessments (including store closure decisions) and the continued uncertainty related to COVID-19 on forecasted cash flows for the remaining lease period for certain stores. These events required an interim impairment assessment during the second quarter of Fiscal 2021 for the identified store assets. This impacted both property, plant and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded impairment charges for property, plant and equipment of $11.9 million and ROU assets of $8.4 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $1.3 million. During the 13 weeks ended October 31, 2020, the Company completed its quarterly trigger event assessment and determined that a triggering event had occurred for certain additional long-lived asset groups at the individual stores based on real estate assessments (including store closure decisions) and the continued uncertainty related to COVID-19 on forecasted cash flows for the remaining lease period for certain stores. These events required an interim impairment assessment during the third quarter of Fiscal 2021 for the identified store assets. This impacted property and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the recoverability test, a fair value assessment for these long-lived assets was performed, and as a result of the estimated fair values, the Company recorded impairment charges for property and equipment of $1.5 million and ROU assets of $0.0 million, which is net of $0.9 million gains on terminations or modifications of leases resulting from previously recorded impairments of the right of use assets for the 13 weeks ended October 31, 2020. Fiscal 2022 During Fiscal 2022, the Company completed its quarterly triggering event assessments and determined that triggering events had occurred for certain long-lived asset groups at individual stores based on real estate assessments (including store closure decisions) and store performance for the remaining lease period for certain stores that required an impairment assessment. This impacted property and equipment and ROU assets at the store level. The Company identified certain stores in the initial recoverability test which had carrying values in excess of the estimated undiscounted cash flows. For these stores failing the initial recoverability test, a fair value assessment for these long-lived assets was performed. As a result of the estimated fair values, during the 13 weeks ended October 30, 2021, the Company recorded impairment charges for property and equipment of $0.3 million and ROU assets of $0.4 million. During the 39 weeks ended October 30, 2021 the Company recorded impairment charges for property and equipment of $1.5 million and ROU assets of $0.5 million, which is net of gains on terminations or modifications of leases resulting from previously recorded impairments of the ROU assets of $0.8 million. The uncertainty of the COVID-19 impact to the Company’s business could continue to further negatively affect the operating performance and cash flows of the above identified stores or additional stores, including the magnitude and potential resurgence of COVID-19 (including variants), occupancy restrictions in the Company’s stores, the inability to achieve or maintain cost savings initiatives included in the business plans, changes in real estate strategy or macroeconomic factors which influence consumer behavior. In addition, key assumptions used to estimate fair value, such as sales trends, capitalization and market rental rates, and discount rates could impact the fair value estimates of the store-level assets in future periods.

X
- References No definition available. + Details
Name: | us-gaap_AssetImpairmentChargesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
Name: | us-gaap_AssetImpairmentChargesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration