v3.20.4
Basis of Presentation (Tables)
 3 Months Ended
Oct. 31, 2020
Accounting Policies [Abstract]  
Summary of Discontinued Operations
The following table summarizes the results of Catherines which are classified as discontinued operations:
Three Months Ended
October 31,
2020		November 2,
2019
(millions)
Net sales$31.7 $59.1 
Depreciation and amortization expense(0.4)(0.9)
Operating income12.3 8.1 
Reorganization items, net19.9 — 
Gain on disposal of discontinued operations, net of tax38.9 — 
Pretax income from discontinued operations71.1 8.1 
Income from discontinued operations, net of tax$71.1 $7.7 

The major components of Catherines assets and liabilities related to discontinued operations are summarized below:
October 31,
2020		August 1,
2020
(millions)
Cash and cash equivalents$0.4 $5.3 
Inventories— 15.9 
Prepaid expenses and other current assets6.7 6.2 
Property and equipment, net— 0.3 
Operating lease right-of-use assets— 0.6 
Other assets— 0.2 
Total assets related to discontinued operations$7.1 $28.5 
Accounts payable and other current liabilities$6.4 $14.7 
Liabilities subject to compromise20.9 49.8 
Other liabilities5.0 3.0 
Total liabilities related to discontinued operations$32.3 $67.5 
Dressbarn Wind Down

In May 2019, the Company announced the wind down of its Dressbarn brand, which was completed in the second quarter of Fiscal 2020. All Dressbarn store locations were closed as of December 31, 2019. Activities during the first quarter of Fiscal 2020 include additional employee related accruals, the closure of stores and the negotiation of lease terminations, as well as the Company sold the direct channel rights to Dressbarn intellectual property to a third-party for approximately $5 million, which was treated as a reduction of the wind down costs. In connection with the Dressbarn wind down, we have incurred cumulative costs of approximately $50 million. Of these costs, approximately $8 million of income was reflected during the three months ending October 31, 2020 as non-cash lease-related accruals for terminated store leases, which were reversed due to the bankruptcy proceedings . Approximately $1 million was incurred during the three months ending November 2, 2019.

The following table summarizes the results of Dressbarn reclassified as discontinued operations:
Three Months Ended
October 31,
2020		November 2,
2019
(millions)
Net sales$— $177.5 
Depreciation and amortization expense— (7.2)
Operating (loss) income(0.7)25.6 
Reorganization items, net8.5 — 
Pretax (loss) income from discontinued operations7.8 25.6 
(Loss) income from discontinued operations, net of tax$7.8 $25.6 

The major components of Dressbarn assets and liabilities related to discontinued operations are summarized below:
October 31,
2020		August 1,
2020
(millions)
Prepaid expenses and other current assets$3.3 $3.5 
Total assets related to discontinued operations$3.3 $3.5 
Accounts payable and other current liabilities$14.0 $5.5 
Liabilities subject to compromise1.6 19.9 
Other liabilities3.9 4.0 
Total liabilities related to discontinued operations$19.5 $29.4 
The major components of cash flows related to discontinued operations are summarized below:
Three Months Ended
October 31,
2020		November 2,
2019
(millions)
Cash provided by operations of discontinued operations$17.7 $(1.1)
Cash provided by investing activities of discontinued operations40.8 4.3 
Condensed Cash Flow Statement
CONDENSED STATEMENT OF CASH FLOWS
Three Months Ended
October 31, 2020
(millions)
Cash flows provided by operating activities$(122.2)
Cash flows from investing activities:
Capital expenditures(2.9)
Proceeds from the sale of intangible assets40.8 
Cash flows used in investing activities37.9 
Cash flows from financing activities:
New term loan312.3 
Redemptions and repayments of term loan(162.3)
Repayments of revolver borrowings(230.0)
Payments of deferred financing fees(20.6)
Cash flows provided by financing activities(100.6)
Increase in cash and cash equivalents(184.9)
Cash and cash equivalents, beginning of period554.7 
Cash and cash equivalents, end of period (a)
$369.8 
____________
(a) Difference of $1.6 million to the Cash and cash equivalents balance on the debtor-in-possession balance sheet above represents restricted cash included in other assets and cash included in discontinued operations.
Cash Interest and Taxes
Supplemental disclosures related to leases are as follows:
Three Months Ended
October 31,
2020		November 2,
2019
(millions)
Cash payments arising from operating lease liabilities (included in cash flows from operating activities)$97.8 $123.7 
Non-cash operating lease liabilities from obtaining right-of-use assets— 1.1 
 Three Months Ended
Cash Interest and Taxes:  
October 31,
2020		November 2,
2019
 (millions)
Cash paid for interest$5.7 $24.1 
Cash paid (refund) for income taxes$1.4 $(2.7)
Schedule of Cash and Cash Equivalents
Condensed Consolidated Statements of Cash Flows Reconciliation

A reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets to the amounts shown on the condensed consolidated statements of cash flows is shown below:
Reconciliation of cash, cash equivalents and restricted cash:October 31,
2020		August 1,
2020		November 2,
2019		August 3,
2019
Cash and cash equivalents$380.3 $575.1 $255.0 $322.9 
Restricted cash included in other current assets
1.2 1.2 1.2 1.2 
Cash included in discontinued operations0.4 5.3 7.1 5.1 
Total cash, cash equivalents and restricted cash$381.9 $581.6 $263.3 $329.2