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Related Party | 6 Months Ended
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Aug. 03, 2018
Related Party Transactions [Abstract] |
Related Party | RELATED PARTY TRANSACTIONS According to statements on Schedule 13D filed with the SEC by ESL, ESL beneficially owns significant portions of both the Company's and Sears Holdings Corporation's outstanding shares of common stock. Therefore, Sears Holdings Corporation, the Company's former parent company, is considered a related party. In connection with and subsequent to the Separation, the Company entered into various agreements with Sears Holdings which, among other things, (i) govern specified aspects of the Company's relationship following the Separation, especially with regards to the Lands’ End Shops at Sears, and (ii) establish terms pursuant to which subsidiaries of Sears Holdings Corporation are providing services to the Company. Descriptions of these transactions are included in the Company's Fiscal 2017 Form 10-K filed with the SEC on March 29, 2018 and proxy statement filed with the SEC on April 6, 2018. The components of the transactions between the Company and Sears Holdings, which exclude pass-through payments to third parties, are as follows: Lands’ End Shops at Sears Related party costs charged by Sears Holdings to the Company related to Lands’ End Shops at Sears are as follows:
|  | 13 Weeks Ended |  | 26 Weeks Ended
(in thousands, except for number of stores) |  | August 3, 2018 |  | July 28, 2017 |  | August 3, 2018 |  | July 28, 2017
Rent, CAM and occupancy costs |  | $ | 4,027 |  |  | $ | 5,597 |  |  | $ | 8,521 |  |  | $ | 11,506 |
Retail services, store labor |  | 3,723 |  |  | 5,594 |  |  | 7,853 |  |  | 11,142 |
Financial services and payment processing |  | 452 |  |  | 676 |  |  | 841 |  |  | 1,148 |
Supply chain costs |  | 106 |  |  | 200 |  |  | 236 |  |  | 391 |
Total expenses |  | $ | 8,308 |  |  | $ | 12,067 |  |  | $ | 17,451 |  |  | $ | 24,187 |
Number of Lands’ End Shops at Sears at period end |  | 147 |  |  | 204 |  |  | 147 |  |  | 204 |
General Corporate Services Related party costs charged by Sears Holdings to the Company for general corporate services are as follows:
|  | 13 Weeks Ended |  | 26 Weeks Ended
(in thousands) |  | August 3, 2018 |  | July 28, 2017 |  | August 3, 2018 |  | July 28, 2017
Sourcing |  | $ | 1,497 |  |  | $ | 2,682 |  |  | $ | 3,314 |  |  | $ | 5,080 |
Shop Your Way |  | 215 |  |  | 321 |  |  | 382 |  |  | 697 |
Shared services |  | 48 |  |  | 48 |  |  | 95 |  |  | 95 |
Total expenses |  | $ | 1,760 |  |  | $ | 3,051 |  |  | $ | 3,791 |  |  | $ | 5,872 |
The Company's contract under which it receives sourcing services from an affiliate of Sears Holdings runs through June 30, 2020. The Company continues to participate in the Shop Your Way program. Use of Intellectual Property or Services Related party revenue and costs charged by the Company to and from Sears Holdings for the use of intellectual property or services is as follows:
|  | 13 Weeks Ended |  | 26 Weeks Ended
(in thousands) |  | August 3, 2018 |  | July 28, 2017 |  | August 3, 2018 |  | July 28, 2017
Call center services |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,160 |
Lands' End business outfitters revenue |  | 293 |  |  | 271 |  |  | 618 |  |  | 542 |
Credit card revenue |  | 169 |  |  | 221 |  |  | 322 |  |  | 433 |
Royalty income |  | 86 |  |  | 86 |  |  | 113 |  |  | 114 |
Gift card (expense) |  | (4 | ) |  | (7 | ) |  | (8 | ) |  | (13 | )
Total income |  | $ | 544 |  |  | $ | 571 |  |  | $ | 1,045 |  |  | $ | 2,236 |
Call Center Services The Company had entered into a contract with SHMC to provide call center services in support of Sears Holdings’ SYW. This income was net of agreed upon costs directly attributable to the Company providing these services. The income was included in Net revenue and costs are included in Selling and administrative expenses in the Condensed Consolidated Statements of Operations. The contract for call center services expired on April 30, 2017. Additional Balance Sheet Information At August 3, 2018, July 28, 2017 and February 2, 2018, the Company included $1.9 million, $3.0 million and $2.0 million in Accounts receivable, net, respectively, and $2.0 million, $3.6 million and $2.9 million in Accounts payable, respectively, in the Condensed Consolidated Balance Sheets to reflect amounts due from and owed to Sears Holdings. At August 3, 2018, July 28, 2017 and February 2, 2018, respectively, a $2.6 million, $11.8 million and $7.4 million receivable was recorded by the Company in Other assets in the Condensed Consolidated Balance Sheets to reflect the indemnification by Sears Holdings Corporation of the pre-Separation UTBs (including penalties and interest) for which Sears Holdings Corporation is responsible under the Tax Sharing Agreement.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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