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Restructuring Provision | 6 Months Ended
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Jul. 31, 2021
Restructuring Charges [Abstract] |
Restructuring Provision | NOTE 5 – RESTRUCTURING PROVISION On June 29, 2020, the Company committed to a Restructuring Plan as part of the Company’s corporate initiatives to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. The Restructuring Plan was completed during the second quarter of fiscal 2021, although cash severance will be paid over time and such payments continue in the current fiscal year. Of the total $12.6 million provision recorded in fiscal 2021, $8.1 million has been paid out through the second quarter of fiscal 2022 ($6.7 million of which was paid out during fiscal 2021), approximately $1.1 million is expected to result in cash payments during the remainder of the current fiscal year with the remaining $1.3 million resulting in non-cash use ($2.1 million had been used in fiscal 2021). The Company expects annual savings in the range of $14 million to $16 million in respect of severance and employee-related initiatives and property-related initiatives (the latter being contained within Other in the table below). A summary rollforward of the provision related to the Company’s corporate initiatives, including the provision associated with the Restructuring Plan, is as follows for the six months ended July 31, 2021 (in thousands):
| Balance January 31, 2021 |  |  | Provision |  |  | Non-Cash Use |  |  | Cash Payments |  |  | Balance July 31, 2021 |
Restructuring Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Employee Related (1) | $ | 2,378 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,350 | ) |  | $ | 1,028 |
Other (2) |  | 51 |  |  |  | — |  |  |  | — |  |  |  | (6 | ) |  |  | 45 |
Other Corporate Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Employee Related |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Inventory (3) |  | 407 |  |  |  | — |  |  |  | (45 | ) |  |  | — |  |  |  | 362 |
Accounts receivable (4) |  | 926 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 926 |
Other (2) |  | 19 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19 |
Total | $ | 3,781 |  |  | $ | — |  |  | $ | (45 | ) |  | $ | (1,356 | ) |  | $ | 2,380 |
A summary rollforward of the provision related to the Company’s corporate initiatives, including the provision associated with the Restructuring Plan, is as follows for the six months ended July 31, 2020 (in thousands):
| Balance January 31, 2020 |  |  | Provision |  |  | Non-Cash Use |  |  | Cash Payments |  |  | Balance July 31, 2020 |
Restructuring Plan: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Employee Related | $ | — |  |  | $ | 6,966 |  |  | $ | — |  |  | $ | (1,160 | ) |  | $ | 5,806 |
Other (2) |  | — |  |  |  | 402 |  |  |  | (198 | ) |  |  | (115 | ) |  |  | 89 |
Other Corporate Initiatives: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance and Employee Related |  | — |  |  |  | 936 |  |  |  | — |  |  |  | (395 | ) |  |  | 541 |
Inventory (3) |  | — |  |  |  | 3,507 |  |  |  | (47 | ) |  |  | — |  |  |  | 3,460 |
Accounts receivable (4) |  | — |  |  |  | 1,075 |  |  |  | — |  |  |  | — |  |  |  | 1,075 |
Other |  | — |  |  |  | 1,722 |  |  |  | (1,518 | ) |  |  | (167 | ) |  |  | 37 |
Total | $ | — |  |  | $ | 14,608 |  |  | $ | (1,763 | ) |  | $ | (1,837 | ) |  | $ | 11,008 |
The following amounts are included in the Consolidated Balance Sheet at July 31, 2021: (1) $0.6 million included in Accrued payroll and benefits and $0.4 million included in Capital in excess of par value. (2) Balance included in Accrued liabilities. (3) Reserve included in Inventories. (4) Reserve included in Trade receivables, net. At July 31, 2020, included in Other is approximately a $1.5 million write-off related to unrefunded deposits for a canceled global customer event. The corporate initiative costs by operating segment are as follows:
| For the Three Months Ended July 31, 2020 Provision |  |  | For the Six Months Ended July 31, 2020 Provision |
Watch and Accessory Brands: |  |  |  |  |
United States | $ | 6,631 |  |  | $ | 11,335 |
International |  | 737 |  |  |  | 3,273 |
Total Watch and Accessory Brands |  | 7,368 |  |  |  | 14,608 |
Total Company Stores |  | — |  |  |  | — |
Total Consolidated | $ | 7,368 |  |  | $ | 14,608 |
Cost of sales | $ | — |  |  | $ | 3,508 |
Selling, general and administrative |  | 7,368 |  |  |  | 11,100 |
Total | $ | 7,368 |  |  | $ | 14,608 |
There was no provision for restructuring during the first and second quarters of fiscal 2022.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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- References No definition available. + Details
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