Impairment of Long-Lived Assets

3 Months Ended

May 02, 2015

Property, Plant and Equipment [Abstract]

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Based on a strategic review the Company performed in the first quarter of 2015, the Company made a decision to dispose of certain information technology assets, incurring an impairment charge of $22 million. The assets were comprised of software for which the Company concluded the fair value was not material.

In connection with the Company's Store Closure Plan (see Note C - Restructuring Charges), in the first quarter of2015 the Company identified 21 retail stores for closure, and as a result recorded long-lived asset impairment charges of $1 million. These charges relate to the Company's North American Stores & Online segment.

In the first quarter of 2014, the Company approved the closure of 112 retail stores pursuant to the Store Closure Plan. As a result, in the first quarter of 2014 the Company recorded long-lived asset impairment charges of $22 million, primarily relating to leasehold improvements, fixtures, equipment and other fixed assets at the store locations. The charges related to the Company's North American Stores & Online segment.

The charges related to store closures in the first quarters of 2014 and 2015 were based on measurements of the fair value of the impaired assets derived using the income approach, specifically the discounted cash flow method, which incorporated Level 3 inputs as defined in Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures.” The Company considered the expected net cash flows to be generated by the use of the assets through the store closure dates, as well as the expected cash proceeds from the disposition of the assets, if any. The Company determined that the fair value of the impaired assets was not material.