Basis of Presentation (Tables)

6 Months Ended

Feb. 01, 2020

Accounting Policies [Abstract]

Summary of Discontinued Operations

Discontinued Operations

Dressbarn Wind Down

In May 2019, the Company announced the wind down of its Dressbarn brand, which was completed in the second quarter of Fiscal 2020. All Dressbarn store locations were closed as of December 31, 2019. Activities during the first and second quarter of Fiscal 2020 include additional employee related accruals, the closure of stores and the negotiation of lease terminations. In addition, during the first quarter of Fiscal 2020, the Company sold the ecommerce rights to Dressbarn intellectual property to a third-party for approximately $5 million, which was treated as a reduction of the wind down costs. In connection with the Dressbarn wind down, we have incurred cumulative costs of approximately $62 million of which approximately $9 million was incurred during the six months ending February 1, 2020 and have been included in the results disclosed below.

The following table summarizes the results of Dressbarn reclassified as discontinued operations:

	Three Months Ended						Six Months Ended
	February 1, 2020			February 2, 2019			February 1, 2020			February 2, 2019
	(millions, unaudited)
Net sales	$	149.1		$	163.6		$	326.6		$	354.7
Depreciation and amortization expense	(3.7		)	(4.8		)	(10.9		)	(8.8		)
Operating income (loss)	34.5			(16.0		)	60.2			(16.1		)
Pretax income (loss) from discontinued operations	34.5			(16.0		)	60.2			(16.1		)
Income tax benefit	—			2.9			—			2.5
Income (loss) from discontinued operations, net of tax	$	34.5		$	(13.1	)	$	60.2		$	(13.6	)

The major components of Dressbarn assets and liabilities related to discontinued operations are summarized below:

	February 1, 2020		August 3, 2019
	(millions, unaudited)
Cash and cash equivalents	$	—	$	4.2
Inventories	—		57.0
Prepaid expenses and other current assets	9.5		37.0
Property and equipment, net	—		11.5
Total assets related to discontinued operations	$	9.5	$	109.7
Accounts payable and other current liabilities	$	49.9	$	94.7
Lease-related liabilities	0.3		29.6
Other liabilities	5.5		5.9
Total liabilities related to discontinued operations	$	55.7	$	130.2

Sale of maurices

In the fourth quarter of Fiscal 2019, the Company and Maurices Incorporated, a Delaware corporation (“maurices”) and wholly owned subsidiary of ascena, completed the transaction contemplated by the previously-announced Stock Purchase Agreement with Viking Brand Upper Holdings, L.P., a Cayman Islands exempted limited partnership (“Viking”) and an affiliate of OpCapita LLP (“OpCapita”), providing for, among other things, the sale by ascena of maurices to Viking (the “Transaction”). Effective upon the closing of the Transaction, ascena received cash proceeds of approximately $210 million and a 49.6% ownership interest in the operations of maurices through its investment in Viking, consisting of interests in Viking preferred and common stock. Reference is made to Note 10 for more information about the Company’s investment in Viking.

As the sale of maurices represented a major strategic shift, as well as the Company's determination that it did not have a significant continuing involvement in the business, the Company's maurices business was classified as a discontinued operations within the condensed consolidated financial statements.

The following table summarizes the results of maurices reclassified as discontinued operations:

	Three Months Ended					Six Months Ended
	February 1, 2020		February 2, 2019			February 1, 2020		February 2, 2019
	(millions, unaudited)
Net sales	$	—	$	257.8		$	—	$	511.1
Depreciation and amortization expense	—		(7.1		)	—		(14.5		)
Operating income	—		28.1			—		65.8
Pretax income from discontinued operations	—		28.1			—		66.0
Income tax expense	—		(5.5		)	—		(13.7		)
Income from discontinued operations, net of tax	$	—	$	22.6		$	—	$	52.3

Cash Flow Information Related to Discontinued Operations

The major components of cash flows related to discontinued operations are summarized below:

	Six Months Ended
	February 1, 2020		February 2, 2019
	(millions, unaudited)
Cash provided by operations of discontinued operations	$	68.9	$	64.3
Cash provided by (used by) investing activities of discontinued operations	4.9		(3.2		)

Condensed Cash Flow Statement [Table Text Block]

Condensed Consolidated Statements of Cash Flows Reconciliation

A reconciliation of cash, cash equivalents and restricted cash in the condensed consolidated balance sheets to the amounts shown on the condensed consolidated statements of cash flows is shown below:

Reconciliation of cash, cash equivalents and restricted cash:	February 1, 2020		August 3, 2019		February 2, 2019		August 4, 2018
Cash and cash equivalents	$	373.7	$	323.8	$	210.2	$	230.2
Restricted cash included in other current assets	1.2		1.2		1.2		1.2
Cash included in discontinued operations	—		4.2		4.4		8.7
Total cash, cash equivalents and restricted cash	$	374.9	$	329.2	$	215.8	$	240.1