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Restructuring and Other Initiatives, Net
12 Months Ended
Feb. 02, 2019
Restructuring Charges [Abstract]  
Restructuring and Other Initiatives, Net
RESTRUCTURING AND OTHER INITIATIVES, NET


Acquisition, Integration and Reorganization of Men's Brands
On December 13, 2016, the Company acquired the outstanding capital stock of Allen Edmonds, as further discussed in Note 2 to the consolidated financial statements. During 2018 and 2017, the Company incurred integration and reorganization costs, primarily for professional fees and severance, totaling $5.8 million ($4.3 million on an after-tax basis, or $0.10 per diluted share) and $4.0 million ($2.6 million on an after-tax basis, or $0.06 per diluted share), respectively, related to the men's business. These charges are presented in restructuring and other special charges in the consolidated statements of earnings (loss). Of the $5.8 million of costs in 2018, $5.4 million is included in the Brand Portfolio segment and $0.4 million is reflected within the Other category. Of the $4.0 million of costs in 2017, $2.5 million is reflected within the Other category and $1.5 million is included in the Brand Portfolio segment. During 2016, the Company incurred acquisition and integration-related costs totaling $5.8 million ($5.0 million on an after-tax basis, or $0.11 per diluted share), of which $5.2 million was reflected within the Other category and $0.6 million was reflected within the Brand Portfolio segment. As of February 2, 2019 and February 3, 2018, restructuring reserves of $1.7 million and $0.2 million, respectively, were included in other accrued expenses on the consolidated balance sheets.

Acquisition and Integration-Related Costs

Vionic
On October 18, 2018, the Company acquired all of the outstanding equity interests of Vionic Group LLC and Vionic International LLC. During 2018, the Company incurred acquisition and integration-related costs associated with the acquisition totaling $4.5 million ($3.3 million on an after-tax basis, or $0.08 per diluted share), primarily for professional fees, which are reflected within the Other category and are presented as restructuring and other special charges, net in the consolidated statements of earnings (loss). As of February 2, 2019, restructuring reserves of $0.5 million were included in other accrued expenses on the consolidated balance sheets. Refer to further discussion of the acquisition in Note 2 to the consolidated financial statements.

Blowfish Malibu
On July 6, 2018, the Company acquired a controlling interest in Blowfish Malibu, as further discussed in Note 2 to the consolidated financial statements. The Company incurred acquisition and integration-related costs associated with the acquisition of Blowfish Malibu of $0.3 million ($0.3 million on an after-tax basis, or $0.01 per diluted share) during 2018, which are presented as restructuring and other special charges, net in the consolidated statements of earnings (loss) and reflected within the Other category. As of February 2, 2019, restructuring reserves of $0.1 million were included in other accrued expenses on the consolidated balance sheet.

Logistics Transition
During the fourth quarter of 2018, the Company incurred costs of $4.5 million ($3.3 million on an after-tax basis, or $0.08 per diluted share) associated with the transition from a third-party operated warehouse in Chino, California to new company-operated Brand Portfolio warehouse facilities in California, as well as the transition of the Allen Edmonds distribution center in Port Washington, Wisconsin to the Company's existing retail distribution center in Lebanon, Tennessee. These charges are presented as restructuring and other special charges within the Brand Portfolio segment.

Brand and Business Exits
During 2018, the Company incurred costs of $2.4 million ($1.8 million on an after-tax basis, or $0.04 per diluted share) related to the decision to exit the Diane von Furstenberg ("DVF") and George Brown Bilt ("GBB") brands. Of these charges within the Brand Portfolio segment, $1.8 million primarily represents incremental inventory markdowns required to reduce the value of inventory to net realizable value and is presented in cost of goods sold on the statements of earnings (loss), while the remaining $0.6 million is for severance and other related costs and presented in restructuring and other special charges.

During 2016, the Company incurred costs of $4.2 million ($3.3 million on an after-tax basis, or $0.08 per diluted share) related to the planned exit of its international e-commerce business and other restructuring. Approximately $2.6 million represents severance and closure costs and were presented within restructuring and other special charges, net within the Brand Portfolio segment. The remaining $1.6 million, which was included in cost of goods sold within the Brand Portfolio segment, represents incremental inventory markdowns required to reduce the value of inventory to net realizable value.

Retail Operations Restructuring
During 2018 and 2017, the Company incurred costs, primarily for severance expense, of $0.4 million ($0.3 million on an after-tax basis, or $0.01 per diluted share) and $0.9 million ($0.6 million on an after-tax basis, or $0.02 per diluted share), respectively, related to restructuring of its retail operations, which are presented in restructuring and other special charges in the consolidated statements of earnings (loss). All of the costs for 2018 are presented within the Famous Footwear segment. Of the $0.9 million in charges for 2017, $0.6 million is reflected within the Famous Footwear segment, $0.2 million is reflected within the Other category and $0.1 million is included in the Brand Portfolio segment.

Impairment of Note Receivable
In conjunction with the 2014 sale of Shoes.com, the Company received a $7.5 million face value secured convertible note ("convertible note") at closing. On January 27, 2017, Shoes.com announced the business had ceased operating and would be working with creditors to liquidate. In conjunction with the announcement, the Company recorded an impairment charge of $8.0 million ($4.9 million on an after-tax basis, or $0.11 per diluted share), comprised of the fair value of the convertible note of $7.3 million, and associated accounts receivable of $0.7 million. Of the $8.0 million in costs recorded in restructuring and other special charges, net during 2016, $7.3 million was reflected within the Other category and $0.7 million was reflected within the Brand Portfolio segment.

Impairment of Investment in Nonconsolidated Affiliate
During 2016, the Company determined that its $7.0 million in a nonconsolidated affiliate that was accounted for using the cost method had an other-than-temporary decline in its fair value that exceeded its carrying value. The Company recorded an impairment charge in 2016 of $7.0 million ($7.0 million on an after-tax basis, or $0.16 per diluted share) in restructuring and other special charges, net, which was included in the Other category.