Restructuring Activities

6 Months Ended

Aug. 29, 2020

Restructuring and Related Activities [Abstract]

Restructuring Activities

Restructuring Activities

Fiscal 2020 Restructuring Charges

As part of the Company's ongoing business transformation, on July 6, 2020, the Board of Directors of the Company approved the planned closure of approximately 200 mostly Bed Bath & Beyond stores over the next two years as part of the Company's store network optimization program.

At this initial stage of the program, a reasonable estimate of the amount or range of amounts expected to be incurred in connection with these restructuring activities, both with respect to each major type of cost associated therewith and with respect to the total cost or estimated range of total cost, or an estimate of the amount or range of amounts that will result in future cash expenditures, cannot be made at this time.

In addition, during the second quarter of fiscal 2020, the Company announced a major realignment of its organizational structure as part of its transformation initiative, to further simplify the Company's operations, support investment in its strategic growth plans, and provide additional financial flexibility. In connection with the organization realignment, the Company implemented a workforce reduction of approximately 2,800 roles from across its corporate headquarters and retail stores. During the three months ended August 29, 2020, the Company recorded pre-tax restructuring charges of approximately $27.1 million, which is primarily related to severance and associated costs for this workforce reduction, as well as other restructuring activities, within restructuring and transformation initiative costs in its consolidated statement of operations.

Fiscal 2019 Restructuring Charges

During fiscal 2019, the Company expensed pre-tax restructuring charges of approximately $102.5 million, primarily for severance and related costs in conjunction with its transformation initiatives and extensive leadership changes, within selling, general and administrative expenses in its consolidated statement of operations. As of August 29, 2020 and February 29, 2020, the Company's restructuring accrual was approximately $32.8 million and $73.4 million, respectively, primarily reflecting payments of $39.6 million during the six months ended August 29, 2020.