In January 2019, a ship carrying five containers of Company merchandise experienced a fire while in transit to a domestic port. The merchandise was subsequently received and inspected, and it was determined that three of the containers of merchandise were a total loss. The Company insures merchandise in transit at average selling price and has received a payment for merchandise in the three damaged containers in the amount of $2,546,000. For the three months ended August 3, 2019 the Company recorded other income in the amount of $1,917,000 which represents the amount by which the $2,546,000 payment received exceeded the carrying value of the damaged merchandise (the “Insurance Claim”). The remaining two containers of merchandise are still in the process of being inspected.

Over the last several years the Company has engaged in a series of management and organizational changes and, in connection therewith, retained consulting firms to review its costs and business strategy associated with such management and organizational changes. On June 24, 2019 the Company announced a reduction in force to achieve a more efficient and profitable organization. The reduction in force resulted in a one-time severance charge of $1,289,000 recorded during the three months ended August 3, 2019. During the three and six months ended August 3, 2019 and August 4, 2018 the Company incurred $1,798,000, $2,460,000, $667,000 and $931,000, respectively, of charges related to these management and organizational changes.

In the first quarter of fiscal 2018 the Company received notification from a stockholder group of their intent to nominate a slate of alternative nominees for election to the Company’s Board of Directors at the Annual Meeting of Stockholders that was held on May 23, 2018 (the “Proxy Solicitation”). At the Company’s 2018 Annual Meeting of Stockholders the Company’s stockholders replaced the incumbent board in its entirety and elected the Company’s new Board of Directors. During the three and six months ended August 4, 2018 the Company incurred $1,256,000 and $2,142,000 of charges related to the Proxy Solicitation.

	Three Months Ended					Six Months Ended
	August 3, 2019			August 4, 2018		August 3, 2019			August 4, 2018

Insurance claim	$	(1,917	)	$	—	$	(1,917	)	$	—
Management and organizational changes		1,798			667		2,460			931
Proxy solicitation		—			1,256		—			2,142
Total other (income) charges, net	$	(119	)	$	1,923	$	543		$	3,073