Quarterly report pursuant to Section 13 or 15(d)

Restructuring and Management Transition

v3.19.1
Restructuring and Management Transition
3 Months Ended
May 04, 2019
Restructuring and Related Activities [Abstract]  
Restructuring and Management Transition
Restructuring and Management Transition

In the first quarter of 2019, the Company finalized plans to close 18 full-line stores and 9 ancillary home and furniture stores, further aligning the Company's brick-and-mortar presence with its omnichannel network, and enabling capital resources to be reallocated to locations and initiatives that offer the greatest long-term value potential. The planned store closures resulted in a $14 million asset impairment charge for store assets with limited future use and a $1 million severance charge for the expected displacement of store associates.
The components of Restructuring and management transition include:
Home office and stores — charges for actions to reduce our store and home office expenses including employee termination benefits, store lease termination and impairment charges;
Management transition — charges related to implementing changes within our management leadership team for both incoming and outgoing members of management; and
Other — charges related primarily to contract termination costs and costs related to the closure of certain supply chain locations.
The composition of Restructuring and management transition charges was as follows: 
 
Three Months Ended
 
Cumulative
Amount From Program Inception Through
May 4, 2019
($ in millions)
May 4,
2019
 
May 5,
2018
 
Home office and stores
$
19

 
$
7

 
$
505

Management transition
1

 

 
265

Other

 

 
186

Total
$
20

 
$
7

 
$
956



Activity for the Restructuring and management transition liability for the three months ended May 4, 2019 was as follows:
($ in millions)
Home Office
and Stores
 
Other
 
Total
February 2, 2019
$
16

 
$
2

 
$
18

ASC 842 (Leases) adoption (See Note 2)
(15
)
 

 
(15
)
Charges
6

 
1

 
7

Cash payments
(2
)
 
(3
)
 
(5
)
May 4, 2019
$
5

 
$

 
$
5