Restructuring and Strategic Charges

3 Months Ended

May 02, 2015

Restructuring and Related Activities [Abstract]

During the fourth quarter of fiscal 2014, we initiated a restructuring program, including the acceleration of domestic store closures and an organizational realignment, to ensure that resources are aligned with long-term growth initiatives, including omni-channel. These actions resulted in the impairment of certain assets, as well as the elimination of approximately 12% of the headquarters and field management employee base. In connection with this effort, in the fourth quarter of fiscal 2014, we recorded pre-tax restructuring and other charges of approximately $16.7 million related to severance, store closures and other impairment charges. During the first quarter of fiscal 2015, we recorded additional pre-tax restructuring and strategic charges of approximately $14.9 million primarily related to property and equipment impairment charges, continuing employee-related costs, severance charges and other charges, which are included in restructuring and strategic charges in the accompanying condensed consolidated statements of income.

A summary of the charges is presented in the table below:



	Thirteen Weeks Ended
	May 2, 2015		May 3, 2014

	(in thousands)
Impairment charges	$	5,952	$	—
Continuing employee-related costs	5,625		—
Severance charges	1,634		—
Other charges	1,664		—
Total restructuring and strategic charges, pre-tax	$	14,875	$	—

In connection with the restructuring program we determined to increase the rate of domestic store closures, with 135-140 under-performing stores to be closed starting in fiscal 2015 through 2017. As a result, we expect to incur lease termination expenses of approximately $2.5 million over the next 3 fiscal years. The following table summarizes the restructuring liability for each period indicated:



	Thirteen Weeks Ended
	May 2, 2015			May 3, 2014

	(in thousands)
Beginning Balance	$	8,063		$	—
Charges	3,298			—
Payments	(5,366		)	—
Ending Balance	$	5,995		$	—

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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