Tommy Bahama Japan Restructure Charges:

6 Months Ended

Aug. 04, 2018

Restructuring and Related Activities [Abstract]

Tommy Bahama Japan Restructure Charges:

Tommy Bahama Japan Charges: During the Second Quarter of Fiscal 2018, we incurred certain charges related to the restructure and downsizing of our Tommy Bahama Japan operations, including the forthcoming closure and early lease termination of the Tommy Bahama Ginza flagship retail-restaurant location, for which the lease was previously scheduled to expire in 2022. These charges, which are an estimate of the charges that will actually be incurred, totaled $4 million in the Second Quarter of Fiscal 2018, consisting of $2 million of lease termination and premises reinstatement charges, $1 million of non-cash asset impairment charges and $1 million of other charges including inventory markdowns and employee severance. As we anticipate that substantially all of these charges will be paid in the second half of Fiscal 2018 or the First Quarter of Fiscal 2019, the amounts payable are included in current liabilities in our consolidated balance sheet as of August 4, 2018. These charges were recognized in SG&A, except for the inventory markdowns of $0.5 million which were recognized in cost of goods sold.

We plan to close the Tommy Bahama Ginza restaurant and retail store in the Third Quarter of Fiscal 2018 and Fourth Quarter of Fiscal 2018, respectively. Following the closure of the Ginza retail-restaurant location, we will retain a very limited presence in Japan, which will allow us to continue to review various alternatives for the Tommy Bahama brand in Japan.