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Impairment, Restructuring and Other Costs
 12 Months Ended
Jan. 28, 2023
Restructuring Costs and Asset Impairment Charges [Abstract]  
Impairment, Restructuring and Other Costs Impairment, Restructuring and Other Costs
Impairment, restructuring and other costs consist of the following:
202220212020
(millions)
Asset Impairments$15 $6 $3,280 
Restructuring5 3 224 
Other21 21 75 
$41 $30 $3,579 
During 2020, primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $3,280 million, the majority of which was recognized during the first quarter of 2020 and consisted of:
•$3,080 million of goodwill impairments, with $2,982 million attributable to the Macy’s reporting unit and $98 million attributable to the bluemercury reporting unit. During the first quarter of 2020, as a result of the sustained decline in the Company's market capitalization and changes in the Company's long-term projections driven largely by the impacts of the COVID-19 pandemic, the Company determined a triggering event had occurred that required an interim impairment assessment for all of its reporting units and indefinite lived intangible assets. The Company determined the fair value of each of its reporting units using a market approach or a combination of a market approach and income approach, as appropriate.
•$200 million of impairments primarily related to long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value.
In June 2020, the Company announced a restructuring to align its cost base with anticipated near-term sales as the business recovered from the impact of the COVID-19 pandemic. The Company reduced corporate and management headcount by approximately 3,900. Additionally, the Company reduced staffing across its store portfolio, supply chain and customer support network, which it has since adjusted as sales recovered in early 2021. During the second quarter of 2020, the Company recognized $154 million of expense for severance related to this reduction in force, of which all of this severance was paid as of January 28, 2023.
On February 4, 2020, the Company announced its Polaris strategy, a multi-year plan designed to stabilize profitability and position the Company for sustainable, profitable growth. The strategy, developed in 2019 and refined in 2020, includes initiatives focused on growing the Company’s digital channels, expanding the Company’s off-mall store presence and modernizing the Company’s technology and supply chain infrastructures.
A summary of the restructuring and other cash activity for 2022, 2021, and 2020 related to the Polaris strategy, which are included within accounts payable and accrued liabilities, is as follows:
Severance and
other benefits		Professional
fees and
other related
charges 		Total
(millions)
Balance at February 1, 2020$115 $9 $124 
Additions charged to expense55 17 72 
Cash payments(156)(24)(180)
Balance at January 30, 202114 2 16 
Additions charged to expense5 — 5 
Cash payments(18)(2)(20)
Balance at January 29, 20221 — 1 
Additions charged to expense— — — 
Cash payments(1)— (1)
Balance at January 28, 2023$— $— $—