Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Other Charges (Tables)

v3.5.0.2
Restructuring and Other Charges (Tables)
9 Months Ended
Oct. 29, 2016
Restructuring and Other Charges  
Summary of charges incurred

 

A summary of the charges incurred for the three and nine months ended October 29, 2016 along with cumulative charges incurred under these initiatives since inception is presented in the table below (amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

    

For the Three Months Ended

    

For the Nine Months Ended

    

 

 

 

 

 

October 29,

 

October 29,

 

 

 

 

 

 

2016

 

2016

 

Cumulative

 

Lease termination costs

 

$

8,667

 

$

37,004

 

$

37,004

 

Store asset impairment charges and accelerated depreciation, net of deferred rent

 

 

(844)

 

 

2,330

 

 

25,476

 

Consulting costs

 

 

1,806

 

 

13,583

 

 

14,501

 

Inventory reserve charges

 

 

 —

 

 

 —

 

 

11,008

 

Favorable lease impairment charges

 

 

 —

 

 

 —

 

 

5,533

 

Severance and employee-related costs

 

 

481

 

 

4,643

 

 

4,643

 

Other costs

 

 

839

 

 

1,565

 

 

2,423

 

Total pre-tax restructuring and other charges(1)

 

$

10,949

 

$

59,125

 

$

100,588

 


(1)

Consists of $12.4 million included in selling, general and administrative expenses (“SG&A”) offset by a $1.5 million reduction in cost of sales for the three months ended October 29, 2016. Consists of $61.8 million included in SG&A offset by a $2.7 million reduction in cost of sales for the nine months ended October 29, 2016. For the three and nine months ended October 29, 2016 and cumulatively since inception of the initiatives, of the total amounts recorded in the table above, $9.1 million, $42.7 million and $82.6 million relate to our retail segment and the remainder are recorded in shared services.

 

 

Rollforward of amounts related to pre-tax restructuring and other charges

The following table is a rollforward of amounts included in accrued expenses and other current liabilities in the condensed consolidated balance sheet related to the pre-tax restructuring and other charges (amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and

 

Lease

 

 

 

 

 

 

 

 

 

 

 

 

Employee-

 

Termination

 

Consulting

 

Other

 

 

 

 

 

    

Related Costs

    

Costs

    

Costs

    

Costs

    

Total

 

Beginning Balance, January 30, 2016

 

$

 —

 

$

 —

 

$

918

 

$

858

 

$

1,776

 

Charges, excluding non-cash items

 

 

4,643

 

 

37,004

 

 

13,583

 

 

1,565

 

 

56,795

 

Payments

 

 

(4,179)

 

 

(30,562)

 

 

(13,983)

 

 

(2,398)

 

 

(51,122)

 

Ending Balance, October 29, 2016

 

$

464

 

$

6,442

 

$

518

 

$

25

 

$

7,449