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Restructuring and Management Transition
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 02, 2015
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| Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Management Transition | Restructuring and Management Transition The composition of restructuring and management transition charges was as follows:
Home Office and Stores During the three months ended May 2, 2015 and May 3, 2014, we recorded $14 million and $12 million, respectively, of charges for actions taken to reduce our home office and store expenses. In January 2015, we announced the closing of 40 department stores, and as a result, during the first quarter of 2015, we incurred charges of $14 million related to employee termination benefits and lease termination costs associated with the closure of 35 of the 40 stores. Last year we also closed stores as part of our turnaround efforts. During the first quarter of 2014, we incurred charges of $12 million for employee termination benefits and lease termination costs associated with the closure of 31 of the 33 stores that closed during 2014. Management Transition During the three months ended May 2, 2015 and May 3, 2014, we implemented changes within our management leadership team that resulted in management transition costs of $6 million and $7 million, respectively, for both incoming and outgoing members of management. Other During the three months ended May 2, 2015 and May 3, 2014, we recorded $2 million and $3 million, respectively, of miscellaneous restructuring charges. The 2015 charges were related to costs associated with the closure of our Sumner, Washington store merchandise distribution center. The 2014 charges were primarily related to contract termination costs associated with our previous shops strategy. Activity for the restructuring and management transition liability for the three months ended May 2, 2015 was as follows:
The non-cash amounts represent charges primarily for stock-based compensation expense in conjunction with accelerated vesting related to terminations and for the write-off of store merchandise distribution center fixtures. |
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