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EXIT ACTIVITY COSTS (Tables)
 3 Months Ended
Apr. 30, 2023
Russia Business Exit  
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Costs
Russia Business Exit Costs

As a result of the war in Ukraine, the Company made the decision in the second quarter of 2022 to exit from its Russia business, including the closure of its retail stores in Russia and the cessation of its wholesale operations in Russia and Belarus. In connection with this exit, the Company recorded pre-tax costs during 2022 as shown in the following table. All expected costs related to the exit from the Russia business were incurred during 2022.

(In millions)
Costs Incurred During 2022 (1)
Severance, termination benefits and other employee costs$2.1 
Long-lived asset impairments43.6 
Gain on lease terminations, net of contract termination and other costs (2)
(2.7)
Total$43.0 

(1) There were no costs incurred during the thirteen weeks ended May 1, 2022.
(2) Gain on lease terminations, net of contract termination and other costs includes a $7.5 million gain related to the early termination of certain store lease agreements in Russia recorded during the fourth quarter of 2022 and $4.8 million of contract termination and other costs recorded during the second quarter of 2022.
Of the charges incurred during 2022, $31.6 million relate to SG&A expenses of the Tommy Hilfiger International segment and $11.4 million relate to SG&A expenses of the Calvin Klein International segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments.
Schedule of Restructuring Reserve by Type of Cost
The liabilities at April 30, 2023 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows:

(In millions)
Liability at 1/29/23
Costs Incurred During the Thirteen Weeks Ended 4/30/23
Costs Paid During the Thirteen Weeks Ended 4/30/23
Liability at 4/30/23
Severance, termination benefits and other employee costs$0.4 $— $0.1 $0.3 
Contract termination and other costs0.5 — — 0.5 
Total$0.9 $— $0.1 $0.8 
2022 cost savings initiative  
Restructuring Cost and Reserve [Line Items]  
Restructuring and Related Costs
2022 Cost Savings Initiative

The Company announced in August 2022 it would be taking steps to streamline its organization and simplify its ways of working. The Company plans to reduce people costs in its global offices by approximately 10% by the end of 2023 to drive efficiencies and enable continued strategic investments to fuel growth, including in digital, supply chain and consumer engagement. The Company expects these reductions will generate annual cost savings of over $100 million, net of continued strategic people investments. In connection with this initiative, the Company recorded pre-tax costs during 2022 related to initial actions taken under the plan, as shown in the following table. The Company expects to incur additional costs in connection with this initiative, however the additional costs are not known at this time.

(In millions)
Costs Incurred During 2022 (1)
Severance, termination benefits and other employee costs$20.2 

(1) There were no costs incurred during the thirteen weeks ended May 1, 2022.

Of the charges incurred during 2022, $4.7 million relate to SG&A expenses of the Tommy Hilfiger North America segment, $2.5 million relate to SG&A expenses of the Tommy Hilfiger International segment, $4.6 million relate to SG&A expenses of the Calvin Klein North America segment, $3.5 million relate to SG&A expenses of the Calvin Klein International segment, $2.6 million relate to SG&A expenses of the Heritage Brands Wholesale segment and $2.3 million relate to corporate SG&A expenses not allocated to any reportable segment. Please see Note 16, “Segment Data,” for further discussion of the Company’s reportable segments.
Schedule of Restructuring Reserve by Type of Cost
The liabilities at April 30, 2023 related to these costs were principally recorded in accrued expenses in the Company’s Consolidated Balance Sheet and were as follows:

(In millions)
Liability at 1/29/23
Costs Incurred During the Thirteen Weeks Ended 4/30/23
Costs Paid During the Thirteen Weeks Ended 4/30/23
Liability at 4/30/23
Severance, termination benefits and other employee costs$13.2 $— $3.9 $9.3