Annual report pursuant to section 13 and 15(d)

Ceased Operations

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Ceased Operations
12 Months Ended
Jan. 28, 2012
Ceased Operations [Abstract]  
CEASED OPERATIONS
15.

CEASED OPERATIONS

Ceased Tuxedo Rental Distribution Operations

In late August 2010, a decision was made by management to cease tuxedo rental distribution operations at four of the then ten U.S. facilities that we had used for that purpose. The tuxedo rental distribution operations at these four facilities ceased in November 2010 and were assumed by the remaining U.S. tuxedo distribution facilities, allowing us to perform tuxedo rental distribution requirements more cost effectively. Three of the facilities were converted to hub locations that redistribute tuxedo rental units and retail apparel merchandise to our Men’s Wearhouse, Men’s Wearhouse and Tux and K&G stores within limited geographic areas.

 

In fiscal 2010, we recognized retail segment pre-tax costs of $3.1 million for the ceased tuxedo rental distribution operations at these four facilities, including $0.9 million for severance payments, $0.7 million for facility remediation costs and $1.5 million for the write-off of fixed assets. In fiscal 2011, we recognized retail segment pre-tax costs of $0.8 million related to the ceased tuxedo rental distribution operations primarily for the write-off of fixed assets and facility remediation costs. These charges are included in SG&A in our consolidated statement of earnings. Net cash payments of $0.3 million and $1.5 million related to the ceased tuxedo rental distribution operations were paid in fiscal 2011 and 2010, respectively. No amounts are included in accrued expenses and other current liabilities at January 28, 2012. We do not expect to incur any additional charges in connection with the ceased tuxedo rental distribution operations at these four facilities.

The following table details information related to the accrued balance recorded during the fiscal year ended January 28, 2012 related to the ceased tuxedo rental distribution operations (in thousands):

 

         

Accrued costs at January 29, 2011

  $ 123  

Cost incurred

    793  

Net cash payments

    (341

Non-cash charges

    (575
   

 

 

 

Accrued costs at January 28, 2012

  $