Asset Impairments

9 Months Ended

May 02, 2020

Property, Plant and Equipment [Abstract]

Long-lived Asset Impairments

The charges below reduced the net carrying value of certain long-lived assets to their estimated fair value, as determined using a combination of a third-party analysis (Level 2 measurement) and discounted expected cash flows (Level 3 measurement). These impairment charges arose from the Company’s routine assessment of under-performing retail stores and are included as a component of Selling, general and administrative expenses in the accompanying condensed consolidated statements of operations for all periods. Beginning with the adoption of ASC 842 in Fiscal 2020, impairment charges could include write-downs of the right-of-use assets and/or write-downs of store-related fixed assets. Impairment charges for the three and nine months ended May 2, 2020 substantially consist of write-downs of store-related fixed assets, which reflect significant reductions in near-term cash flows over the remaining useful life of certain of our retail stores, as well as planned store reductions discussed more fully in Note 6 to these condensed consolidated financial statements.

Impairment charges included in continuing operations by segment are as follows:


	Three Months Ended						Nine Months Ended
	May 2, 2020		May 4, 2019		May 2, 2020		May 4, 2019
	(millions)						(millions)
Premium Fashion	$	81.1	$	—	$	81.3	$	0.4
Plus Fashion	23.6		16.3		24.1		17.4
Kids Fashion	55.2		0.4		56.3		0.9
Total impairment charges	$	159.9	$	16.7	$	161.7	$	18.7

Additionally, a long-lived Corporate asset impairment charge of $8.4 million was recorded in the third quarter of Fiscal 2020 which reflects a write-down of the book value of the Company’s campus in Mahwah, NJ to fair market value in connection with its planned sale. The sale closed subsequent to the end of the third quarter. Refer to Note 21 for more information.