Note 4 - Impairment and Other

12 Months Ended

Feb. 03, 2024

Notes to Financial Statements

Restructuring, Impairment, and Other Activities Disclosure [Text Block]

4. Impairment and Other

($ in millions)	2023			2022			2021
Impairment of long-lived assets and right-of-use assets	$	30		$	58		$	92
Transformation consulting		27			42			—
Reorganization costs		17			22			4
Other intangible asset impairments		9			8			2
Insurance recovery (losses) related to social unrest		1			—			(7	)
Change in fair value of contingent consideration		(4	)		(31	)		—
Litigation costs		—			9			—
Acquisition and integration costs		—			4			24
Impairment of investments		—			—			42
Lease termination costs		—			—			15
Total impairment and other	$	80		$	112		$	172

For 2023, impairment and other included impairment charges of $30 million from a review of underperforming stores and accelerated tenancy charges on right-of-use assets for closures of the Sidestep banner, certain Foot Locker Asia stores, and our U.S. atmos stores. Additionally, we incurred transformation consulting expense of $27 million and reorganization costs of $17 million primarily related to severance and the closures of the Sidestep banner, certain Foot Locker Asia stores, and a North American distribution center. This year also included intangible asset impairment of $9 million on an atmos tradename, partially offset by a $4 million reduction in the fair value of the atmos contingent consideration.

For 2022, impairment and other charges included $58 million of impairment of long-lived assets and right-of-use assets and accelerated tenancy charges, $42 million of transformation consulting, $22 million of primarily severance costs related to a reorganization, $9 million of litigation costs related to an employment matter, $8 million of Sidestep tradename asset impairment, and $4 million of acquisition integration costs related to the acquisitions of WSS and atmos, partially offset by a $31 million reduction in the fair value of the atmos contingent consideration liability.

For 2021, impairment and other charges included $92 million of impairment of long-lived assets and right-of-use assets related primarily to the decision to shut down the Footaction banner, $24 million of acquisition and integration costs primarily represented investment banking and integration consulting fees related to the WSS and atmos acquisitions and $42 million related to the write-down of certain minority investments due to their underperformance.