Charges and Credits

Charges and credits consisted of the following:



	Three Months Ended July 31,				Six Months Ended July 31,
(in thousands)	2017		2016		2017		2016
Facility closure costs	$	122	$	—	$	1,349	$	—
Impairments from disposals	—		1,385		—		1,385
Legal and professional fees related to the exploration of strategic alternatives and securities-related litigation	34		135		34		589
Employee severance	1,317		1,213		1,317		1,213
Indirect tax audit reserve	2,595		—		2,595		—
Executive management transition costs	—		162		—		234
	$	4,068	$	2,895	$	5,295	$	3,421

During the three months ended July 31, 2017, we incurred severance costs related to a change in the executive management team and a charge related to an increase in our indirect tax audit reserve. During the six months ended July 31, 2017, we incurred exit costs associated with reducing the square footage of a distribution center, severance costs related to a change in the executive management team, and a charge related to an increase in our indirect tax audit reserve. During the three and six months ended July 31, 2016, we incurred costs associated with impairments from disposals, legal and professional fees related to our securities-related litigation and severance and transition costs due to changes in the executive management team. The impairments from disposals included the write-off of leasehold improvements for one store we relocated prior to the end of the useful life of the leasehold improvements and incurred costs for a terminated store project prior to starting construction.