Store Closing and Other Operating Costs Store Closing and Other Operating Costs (Notes)

12 Months Ended

Feb. 01, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Store Closing and Other Operating Cost

On February 28, 2019, the Company announced plans to restructure the specialty fleet and revitalize the Gap brand, including closing about 230 Gap specialty stores during fiscal 2019 and fiscal 2020. The Company believes these actions will drive a healthier specialty fleet and will serve as a more appropriate foundation for brand revitalization. The Company expects that the actions will be substantially completed by the end of the Company’s 2020 fiscal year ending January 30, 2021.

For the fiscal year ended February 1, 2020, we incurred $61 million of pre-tax costs related to the store closing and other operating cost. The summary of the costs incurred are as follows:

(in millions)	Recorded in cost of goods sold and occupancy expenses		Recorded in operating expenses		Costs Incurred in fiscal 2019
Operating lease cost (1)	$	15	$	10	$	25
Impairment of long-lived assets	—		13		13
Employee related cost	—		13		13
Other	7		3		10
Total store closing and other operating cost	$	22	$	39	$	61

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(1) In accordance with ASC 842, this cost includes lease termination fees and amortization expense.

In addition to the total pre-tax amount incurred above, there was an unfavorable tax impact related to the restructuring costs incurred in certain foreign subsidiaries for which the Company was not able to recognize any tax benefit.

As of February 1, 2020, the balance for liabilities related to restructuring is not material.