Annual report pursuant to Section 13 and 15(d)

RESTRUCTURING AND OTHER CHARGES

v3.19.1
RESTRUCTURING AND OTHER CHARGES
12 Months Ended
Feb. 02, 2019
RESTRUCTURING AND OTHER CHARGES  
RESTRUCTURING AND OTHER CHARGES

4.  RESTRUCTURING AND OTHER CHARGES

During the fourth quarter of fiscal 2015, we began implementing initiatives intended to reduce costs and improve operating performance.  These initiatives included a store rationalization program as well as a profit improvement program to drive operating efficiencies and improve our expense structure.  These programs were substantially completed in fiscal 2016 and resulted in the closure of 75 Jos. A. Bank full line stores, the closure of 56 factory and outlet stores at Jos. A. Bank and Men’s Wearhouse and the closure of 102 Men’s Wearhouse and Tux stores.

No charges were incurred under these initiatives in fiscal 2018 or 2017, respectively. Cumulative pre-tax restructuring and other charges related to these programs was $109.6 million, of which approximately $68.1 million were cash expenses. 

A summary of the charges incurred are presented in the table below (amounts in thousands):

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

 

 

Fiscal Year

 

 

 

 

 

 

2016

 

Cumulative

 

Lease termination costs

 

$

43,116

 

$

43,116

 

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

 

 

1,734

 

 

24,880

 

Consulting costs

 

 

15,074

 

 

15,992

 

Inventory reserve charges

 

 

 —

 

 

11,008

 

Severance and employee-related costs

 

 

6,103

 

 

6,103

 

Favorable lease impairment charges

 

 

 —

 

 

5,533

 

Other costs

 

 

2,060

 

 

2,918

 

Total pre-tax restructuring and other charges(1)

 

$

68,087

 

$

109,550

 


(1)

For fiscal 2016, consists of $71.9 million included in SG&A offset by a $3.8 million reduction in cost of sales.  For fiscal 2016 and cumulatively since inception of the initiatives, of the total amounts recorded in the table above, $49.0 million and $88.9 million, respectively, relate to our retail segment and the remainder are recorded in shared services.

As of February 3, 2018, $0.3 million of these restructuring and other charges was included in accrued expenses and other current liabilities.  These amounts were paid in fiscal 2018.

In addition to the restructuring costs described above, we incurred integration and other costs related to Jos. A. Bank totaling $8.8 million for fiscal 2016.  Integration and other costs for fiscal 2016 include $2.1 million recorded in cost of sales with the remainder recorded in SG&A.