Impairment, Restructuring and Other Charges (Tables)

9 Months Ended

Nov. 02, 2024

Restructuring and Related Activities [Abstract]

Schedule of Impairment, Restructuring and Other Charges

The following table represents impairment, restructuring and other charges recorded in the 13 and 39 weeks ended November 2, 2024.


	13 and 39 Weeks Ended
	November 2,
(In thousands)	2024
Corporate restructuring costs (1)		10,729
Hong Kong retail operations impairment and restructuring costs (2)		6,832
Total impairment, restructuring and other charges	$	17,561

The following footnotes relate to the impairment and restructuring charges in the third quarter of Fiscal 2024:

(1)

The Company recorded restructuring costs of $10.7 million related to employee severance.

(2)

The Company recorded impairment and restructuring costs of $6.8 million related to the pending sale of its Hong Kong retail operations to a third party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.

The following table represents impairment, restructuring and other charges related to Quiet Platforms. All amounts were recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations during the 39 weeks ended October 28, 2023. There were no impairment, restructuring and other charges recorded for the 13 weeks ended October 28, 2023.


	39 Weeks Ended
	October 28,
(In thousands)	2023
Long-lived asset impairment charges	$	10,759
Employee related costs		5,592
Other commercial related charges		4,924
Total impairment, restructuring and other charges(1)	$	21,275

The following footnote relates to impairment, restructuring, and other charges recorded during the 39 weeks ended October 28, 2023:

(1)

$21.3 million of charges related to the Quiet Platforms restructuring. Of this amount, we recorded $10.8 million of long-term asset impairment primarily related to technology that is no longer a part of our long-term strategy. All impairments were recorded due to insufficient prospective cash flows to support the asset value, resulting from the restructuring of Quiet Platforms. We recorded $5.6 million of severance based on our revised long-term strategy. We also recorded $4.9 million of contract-related charges.

Roll-forward of Restructuring Liabilities Recognized in Consolidated Balance Sheet

A roll-forward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows:


	39 Weeks Ended
	November 2,
(In thousands)	2024
Accrued liability as of February 3, 2024	$	11,414
Add: Costs incurred, excluding non-cash charges		10,728
Less: Cash payments and adjustments		(11,375	)
Accrued liability as of November 2, 2024	$	10,767