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Impairment, Restructuring and Other Charges (Tables) | 12 Months Ended
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Feb. 01, 2025
Restructuring and Related Activities [Abstract] |
Summary of Impairment and Restructuring Charges | The following table represents impairment, restructuring and other charges. All amounts were recorded within impairment, restructuring and other charges on the Consolidated Statements of Operations, unless otherwise noted.
|  | For the year ended |
|  | February 1, |
(In thousands) |  | 2025 |
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 sale of the Company's Hong Kong retail operations to a third-party buyer. These costs primarily consist of impairment of $6.4 million and employee severance.
|  | Fiscal Years Ending |
|  | February 3, |  |  | January 28, |
(In thousands) |  | 2024 |  |  | 2023 |
Charges recorded in cost of sales: |  |  |  |  |  |
Inventory charges (1) |  | $ | 10,950 |  |  |  | — |
Charges recorded in operating expenses: |  |  |  |  |  |
Quiet Platforms impairment, restructuring and other charges (2) |  |  | 119,572 |  |  | $ | 3,844 |
International impairment and restructuring costs (3) |  |  | 10,882 |  |  |  | 7,997 |
Corporate impairment and restructuring charges (4) |  |  | 11,241 |  |  |  | - |
U.S. and Canada store impairment charges(5) |  |  | - |  |  |  | 10,368 |
Total impairment, restructuring and other charges |  | $ | 141,695 |  |  | $ | 22,209 |
Total Company impairment, restructuring and other charges |  | $ | 152,645 |  |  | $ | 22,209 |
The following footnotes relate to the impairment, restructuring and other charges in Fiscal 2023 and Fiscal 2022: (1) $11.0 million of inventory write-down charges related to our international businesses as further described in paragraph 1 of note (3) below. (2) $119.6 million of charges related to the Quiet Platforms restructuring. Of this amount, we impaired definite lived intangible assets of $40.5 million consisting of $31.2 million of customer relationships and $9.3 million of trade names. We also impaired $39.6 million of goodwill. We recorded $24.7 million of long-term asse t impairment primarily related to technology which is no longer a part of the 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 $9.9 million of severance based on this revised strategy. We also recorded $4.9 million of contract related charges. For Fiscal 2022, impairment of $2.8 million consisting of $2.3 million of ROU asset and $0.5 million of property and equipment related to the closure of the Jacksonville, FL distribution center and severance of $1.0 million related to employees of that distribution center. The Jacksonville distribution center was replaced with a higher productivity location in Atlanta, GA. (3) $10.9 million of charges related to exiting the Japan market, including the closure of all 4 stores in January 2024, as well as impairment related to our Hong Kong retail operations. Of this amount, $4.7 million related to Japan ROU assets, $3.6 million of Japan store property and equipment, $1.3 million of Hong Kong store ROU assets, and $1.3 million of employee severance. All impairments were recorded due to insufficient prospective cash flows to support the asset values. Additionally, we recorded $11.0 million of inventory write-down charges related to restructuring our international operations, which was recorded separately in Cost of Sales and discussed in note (1) above. For Fiscal 2022, $7.5 million of store impairment due to insufficient prospective cash flows to support the asset values and $0.5 million of severance related to down-sizing Hong Kong retail operations. (4) $11.2 million, consisting of $6.0 million of employee severance related to corporate realignment and other asset impairment of $5.2 million of investments related to further strategic business changes. (5) For Fiscal 2022, $10.4 million of impairment charges, consisting of $9.2 million of ROU assets and $1.2 million of store property and equipment related to insufficient cash flows to support the asset value in the U.S. and Canada.
Rollforward of Restructuring Liabilities Recognized in Consolidated Balance Sheet | A rollforward of the restructuring liabilities recognized in the Consolidated Balance Sheet is as follows:
|  |  |  | For the year ended |
|  |  |  | February 1, |
(In thousands) |  |  |  | 2025 |
Accrued liability as of February 3, 2024 |  |  |  | $ | 11,414 |
Add: Costs incurred, excluding non-cash charges |  |  |  |  | 10,728 |
Less: Cash payments and adjustments |  |  |  |  | (14,492 | )
Accrued liability as of February 1, 2025 |  |  |  | $ | 7,650 |

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