Impairment and Other Charges

9 Months Ended

Oct. 29, 2022

Impairment and Other Charges [Abstract]

Impairment and Other Charges

5. Impairment and Other Charges

	Thirteen weeks ended				Thirty-nine weeks ended
	October 29,		October 30,		October 29,		October 30,
($ in millions)	2022		2021		2022		2021
Transformation consulting	$	17	$	—	$	27	$	—
Impairment of long-lived assets and right-of-use assets		—		13		5		52
Acquisition and integration costs		1		14		4		14
Reorganization costs		2		—		2		2
Impairment of investments		—		30		—		32
Lease termination costs		—		—		—		4
Insurance recovery		—		—		—		(7)
Total impairment and other charges	$	20	$	57	$	38	$	97

For the thirteen and thirty-nine weeks ended October 29, 2022, we incurred $17 million and $27 million of transformation consulting expense, respectively. We recorded $1 million and $4 million in acquisition and integration costs related to WSS and atmos for the thirteen and thirty-nine weeks ended October 29, 2022, respectively. We recorded reorganization costs, primarily severance, of $2 million for both the thirteen and thirty-nine weeks ended October 29, 2022, related to the announced closure of a North American distribution center. Additionally, we recorded impairment charges of $5 million related to long-lived assets and right-of-use assets, as well as accelerated tenancy charges for the thirty-nine weeks ended October 29, 2022.

For the thirteen and thirty-nine weeks ended October 30, 2021 we recorded $13 million and $52 million of impairment charges related to the decision to exit the Footaction banner, respectively. Impairment of investments was $30 million and $32 million for the thirteen and thirty-nine weeks ended October 30, 2021, respectively, due to continued losses and updated estimates of value. In connection with the acquisitions, we recorded costs of $14 million, for the thirteen and thirty-nine weeks ended October 30, 2021. We recorded charges of $4 million in lease-related termination costs, and a severance charge of $2 million in connection with the reorganization of certain support functions, offset by $7 million of insurance recovery income related to 2020 social unrest losses for the thirty-nine weeks ended October 30, 2021.