Impairment and Other Charges

12 Months Ended

Feb. 01, 2020

Impairment and Other Charges [Abstract]

Impairment and Other Charges

3. Impairment and Other Charges

	2019		2018		2017
	($ in millions)
Impairment of long-lived assets	$	37	$	4	$	20
Lease termination costs		13		—		—
Impairment of investments		11		—		—
Pension litigation related charges		4		18		178
Other intangible asset impairments		—		15		—
Reorganization costs		—		—		13
Total impairment and other charges	$	65	$	37	$	211

The Company and the Company’s U.S. pension plan were involved in litigation related to the conversion of the plan to a cash balance plan. The court entered its final judgment in 2018, which required the plan be reformed as directed by the court order. We recorded charges in 2019, 2018, and 2017 related to the pension matter and related plan reformation totaling $4 million, $18 million, and $178 million, respectively. These charges recorded represented the cost of the reformation and related administrative expenses.

During 2019, due to the underperformance of our Footaction stores we determined that a triggering event had occurred and, therefore, an impairment review was conducted. Additionally, we evaluated certain other underperforming stores and a vacant store that had been previously subleased. We evaluated the long-lived assets, including the right-of-use assets, of these stores and recorded non-cash charges of $37 million to write down right-of-use assets, store fixtures and leasehold improvements. During the year, we also recorded $13 million of lease termination costs related to the closure of our SIX:02 locations.

We recorded non-cash charges of $11 million related to the write-down of two minority investments in 2019. Super Heroic, a children’s athletics start up, filed for bankruptcy and, accordingly, we have fully written off the investment. Rockets of Awesome, a children’s clothing brand, has had deterioration in their future outlook and has initiated efforts to preserve cash by reducing expenses. Due to the underperformance of this investee, we have partially written down our investment to fair value, determined by utilizing revenue multiples of similar companies.

During 2018 and 2017, due to the underperformance of our SIX:02 stores, Runners Point, and Sidestep stores, we recorded non-cash impairment charges of $4 million and $20 million, respectively, to write down store fixtures and leasehold improvements. In 2018, we also performed an impairment review of other intangible assets for Runners Point and Sidestep and recorded a charge of $15 million to write down the value of the trademarks/trade names associated with Runners Point.  

During 2017, we recorded a charge of $13 million as a result of reorganizing our organizational structure by adjusting certain responsibilities between our various businesses and certain corporate staff reductions taken to improve corporate efficiency.