RETIREMENT AND SAVINGS PLANS

12 Months Ended

Jan. 28, 2023

Retirement Benefits [Abstract]

RETIREMENT AND SAVINGS PLANS

RETIREMENT AND SAVINGS PLANS

401(k) Plan

The Company has adopted The Children’s Place 401(k) Savings Plan (the “401(k) Plan”), which qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”). The 401(k) Plan is a defined contribution plan established to provide retirement benefits for employees. The 401(k) Plan is employee funded up to an elective annual deferral amount and also provides for Company matching contributions up to a certain percentage of the employee’s salary.

The 401(k) Plan is available for all U.S. employees of the Company. Following guidance in IRS Notice 98-52 related to the design-based alternative, or “safe harbor,” 401(k) plan method, the Company modified its 401(k) Plan for Company match contributions for non-highly compensated associates, as defined in the Code. For non-highly compensated associates, the Company matches the first 3% of the participant’s contributions and 50% of the next 2% of the participant’s contributions, and the Company match contribution vests immediately. For highly compensated associates, the Company has the discretion to match the lesser of 50% of the participant’s contributions or 2.5% of the participant’s covered compensation and the Company match contribution vests over five years. Due to the COVID-19 pandemic, the Company suspended the Company's portion of the 401(k) match on June 1, 2020, which was subsequently reinstated on January 1, 2021. The Company’s matching contributions were $4.5 million in Fiscal 2022, $3.5 million in Fiscal 2021, and $1.4 million in Fiscal 2020.

Deferred Compensation Plan

The Deferred Compensation Plan liability, excluding Company stock, was $1.3 million and $2.2 million at January 28, 2023 and January 29, 2022, respectively. The value of the assets held in the rabbi trust was $1.3 million and $2.2 million at January 28, 2023 and January 29, 2022, respectively. The cost of the Company’s stock repurchased was $3.7 million and $3.4 million at January 28, 2023 and January 29, 2022, respectively.

Other Plans

Under statutory requirements, the Company contributes to retirement plans for its operations in Canada, Puerto Rico, and Asia. Contributions under these plans were $0.6 million, $0.6 million, and $0.7 million in Fiscal 2022, Fiscal 2021, and Fiscal 2020, respectively.