Restructuring Charges

9 Months Ended

Nov. 03, 2018

Restructuring And Related Activities [Abstract]

12. Restructuring Charges

During the 39 weeks ended November 3, 2018, the Company recorded pre-tax restructuring charges of $1.6 million. This amount consists primarily of charges for corporate severance costs. The Company may incur additional charges for corporate and international restructuring in Fiscal 2018. The magnitude is dependent on a number of factors, including negotiating third-party agreements, adherence to notification requirements and local laws.

During the 13 and 39 weeks ended October 28, 2017, the Company recorded pre-tax restructuring related charges of $3.7 million and $29.9 million, respectively. These amounts consist of costs related to the planned exit of a joint business venture; charges for home office restructuring; and the previously announced initiative to explore the closure or conversion of Company owned and operated stores in Hong Kong, China, and the United Kingdom to licensed partnerships. The closure of the Company owned and operated United Kingdom stores was completed in the 39 weeks ended October 28, 2017.

	39 Weeks Ended		13 Weeks Ended		39 Weeks Ended
	November 3,		October 28,		October 28,
(In thousands)	2018		2017		2017
Severance and related employee costs	$	1,568	$	2,431	$	9,592
Lease termination and store closure costs		—		1,264		9,296
Total cash restructuring charges (1)		1,568		3,695		18,888

Joint business venture charges (2)		—		—		9,311
Inventory charges (3)		—		—		1,669
Total restructuring and related charges	$	1,568	$	3,695	$	29,868

(1)

Cash charges of $1.6 million for the 39 weeks ended November 3, 2018 consisted primarily of charges for corporate severance costs; and $3.7 million and $18.9 million for the 13 and 39 weeks ended October 28, 2017, respectively, for lease termination, store closures and severance were recorded within Restructuring Charges on the Consolidated Statements of Operations and Retained Earnings.

(2)	$9.3 million ($5.1 million cash and $4.2 million non-cash) of charges related to the planned exit of a joint business venture were recorded within Other (Expense) Income, Net on the Consolidated Statements of Operations and Retained Earnings.

(3)	Non-cash inventory charges of $1.7 million related to restructuring activities for our United Kingdom and Asia markets recorded as a reduction in Gross Profit on the Consolidated Statements of Operations and Retained Earnings.

A roll forward of the liabilities recognized in the Consolidated Balance Sheet is as follows. The accrued liability as of February 3, 2018 relates to previous restructuring activities disclosed in the Company’s Fiscal 2017 Form 10-K, which remained unpaid at the beginning of Fiscal 2018.

	39 Weeks Ended
	November 3,
(In thousands)	2018
Accrued liability as of February 3, 2018	$	7,650
Add: Costs incurred, excluding non-cash charges		1,568
Less: Cash payments and adjustments		(5,284	)

Accrued liability as of November 3, 2018	$	3,934