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Impairment and Litigation Charges
12 Months Ended
Jan. 28, 2017
Impairment and Litigation Charges [Abstract]  
Impairment and Litigation Charges

3. Impairment and Litigation Charges





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

2016

2015

2014



 

($ in millions)

Impairment of long-lived assets

 

$

$

$

 —

Pension litigation charge

 

 

 —

 

100 

 

 —

Other intangible asset impairments

 

 

 —

 

 

Total impairment and litigation charges

 

$

$

105 

$



During 2016, due to the continued underperformance of our Runners Point and Sidestep stores, management determined that a triggering event had occurred and, therefore, an impairment review was conducted. This evaluation resulted in a non-cash charge of $6 million to write down store fixtures and leasehold improvements for 116 stores. As of January 28, 2017, the remaining net book value of long-lived assets totaled $12 million. In the prior year, the Company recorded a similar non-cash charge of $4 million for 61 stores. As a result of the impairment review related to long-lived assets, the Company performed a review of other intangible assets in both periods. No impairment charge of these assets was required as a result of the 2016 review; however, in 2015 a non-cash impairment charge of $1 million was recorded to fully write down the value of an ecommerce trade name resulting from a decline in sales, as the Company has shifted away from the use of this website.



The Company recorded a $100 million pension litigation charge during 2015. Please see Note 22, Legal Proceedings for further information.



Impairment charges totaling $4 million were recorded during 2014. This amount included a $2 million impairment of the former CCS ecommerce trade name to its fair value, which was realized upon sale during 2014. Also during 2014, the Company recorded additional intangible asset impairment charges totaling $2 million related to the full write down of the trade name related to stores in the Republic of Ireland and a full write down of the value of a private-label brand acquired as part of the Runners Point Group acquisition, to reflect the exit of this product line.