Restructuring Costs (Notes)

12 Months Ended

Feb. 01, 2020

During fiscal 2019, the Company implemented cost optimization initiatives to streamline our organizational structure and realign our cost base with sales declines. During the second quarter of 2019, the Company implemented and completed a cost optimization initiative, which reduced and flattened the Company's organizational structure, closed the New York office, closed the Los Angeles office and related product development initiatives, and reduced corporate overhead costs. The second quarter 2019 initiative included the elimination of 11 senior executive roles and a 20% reduction to the Company's non-variable workforce. During the third and fourth quarter of fiscal 2019, the Company completed additional reductions in the Company's organizational structure to manage the Company's costs. As a result of the fiscal 2019 cost optimization initiatives, the Company recorded restructuring charges of $9,166,000 for the year ended February 1, 2020, which relate primarily to severance and other incremental costs associated with the consolidation and elimination of positions across the Company. Both of the Company's operating segments were affected by these actions including $8,228,000 related to the ShopHQ segment and $938,000 related to the Emerging Businesses segment. These initiatives were substantially completed as of the end of fiscal 2019, with related cash payments expected to continue through the third quarter of fiscal 2020.

The following table summarizes the significant components and activity under the restructuring program for the year ended February 1, 2020:



	Balance at February 2, 2019		Charges		Cash Payments			Balance at February 1, 2020
Severance	$	—	$	8,006,000	$	(4,873,000	)	$	3,133,000
Other incremental costs	—		1,160,000		(1,033,000		)	127,000
	$	—	$	9,166,000	$	(5,906,000	)	$	3,260,000

The liability for restructuring accruals is included in current accrued liabilities within the accompanying consolidated balance sheet.