Impairment & Restructuring Charges

12 Months Ended

Feb. 01, 2020

Restructuring And Related Activities [Abstract]

15. Impairment and Restructuring Charges

The following table represents impairment and restructuring charges. All amounts were recorded within impairment and restructuring charges on the Consolidated Statements of Operations, unless otherwise noted.

	For the years ended
	February 1,		February 2,		February 3,
(In thousands)	2020		2019		2018
Asset impairment charges ⁽¹⁾	$	66,252	$	—	$	—
Severance and related employee costs		6,691		1,568		10,660
Joint business venture exit charges ⁽²⁾		4,194		—		7,964
Japan market transition costs		1,814		—		—
China restructuring ⁽³⁾		1,543		—		—
Lease termination and store closure costs		—		—		9,951
Inventory charges ⁽⁴⁾		—		—		1,669
Total impairment and restructuring charges	$	80,494	$	1,568	$	30,244

(1)

Fiscal 2019 asset impairment charges of $64.5 million on the assets of 20 retail stores. Of the total, $39.5 million related to the impairment of leasehold improvements and store fixtures, and $25.0 million related to the impairment of operating lease ROU assets. The Company also concluded that certain goodwill was impaired resulting in a $1.7 million charge in Fiscal 2019.

(2)	Fiscal 2017 joint business venture exit charges were recorded within other (expense) income, net on the Consolidated Statements of Operations

(3)	Pre-tax corporate restructuring charges of $1.5 million, primarily consisting of severance and closure costs for our company-owned and operated stores in China recorded in the first quarter of Fiscal 2019

(4)	Fiscal 2017 inventory charges were recorded within cost of sales, including certain buying, occupancy, and warehousing expenses on the Consolidated Statements of Operations

A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows:

	February 1,
(In thousands)	2020
Accrued liability as of February 2, 2019	$	6,629
Add: Costs incurred, excluding non-cash charges		10,686
Less: Cash payments and adjustments		(13,128	)
Accrued liability as of February 1, 2020	$	4,187

The accrued liability as of February 2, 2019 relates to previous restructuring activities disclosed in the Company’s Fiscal 2018 Form 10-K, which remained unpaid at the beginning of Fiscal 2019.