Restructuring

12 Months Ended

Feb. 01, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING COSTS

In March 2019, we announced a transformational restructuring initiative, referred to as “Operation North Star,” to both drive growth in our net sales and reduce costs within our business. We intend to generate costs savings from this initiative through improved markdown and merchandise management, reduced management layers, optimization of store labor, improved efficiencies in our supply chain, and reduced central and other costs. With the initial implementation of this initiative in 2019, we incurred upfront costs, including employee severance costs and consultancy fees, and made payments to execute the initiative.

During the first quarter of 2019, we incurred $15.3 million in costs associated with our transformational restructuring initiative, which were recorded in selling and administrative expenses. During the second quarter of 2019, we incurred an additional $19.5 million in costs from this initiative. In the third quarter of 2019, we incurred $3.6 million in costs associated with this initiative. Transformational restructuring costs recorded in the fourth quarter of 2019 were immaterial.

The changes in our liabilities associated with severance and postemployment benefits, which are recorded in accrued operating expenses, during fiscal 2019 were as follows:

(In thousands)
Balance at February 2, 2019	$	—
Charges	14,597
Payments	(10,182		)
Other	(2,222		)
Balance at February 1, 2020	$	2,193