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Restructuring and Strategic Charges
 6 Months Ended
Jul. 30, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Strategic Charges
Restructuring and Strategic Charges
During the fourth quarter of fiscal 2014, we initiated a restructuring program, including the acceleration of domestic store closures and an organizational realignment, to ensure that resources align with long-term growth initiatives, including omni-channel. In fiscal 2015, in connection with the restructuring program, we completed an evaluation of the Boston Proper brand, completed the sale of the Boston Proper direct-to-consumer business, and closed its stores. 
During the first quarter of fiscal 2016, we announced an expansion of our restructuring program to further align the organizational structure with long-term growth initiatives, including transition of executive leadership, and to reduce COGS and SG&A through strategic initiatives. These strategic initiatives include realigning marketing and digital commerce, improving supply chain efficiency, and reducing non-merchandise and marketing expenses. The Company recorded pre-tax restructuring and strategic charges of $3.6 million and $16.6 million in the first and second quarters, respectively. These charges primarily related to severance, proxy solicitation costs and consulting fees.
In connection with the restructuring program, we evaluated our domestic store portfolio and identified approximately 175 stores for closure, with 82 stores across our brands, including 20 Boston Proper stores, closed through the second quarter of fiscal 2016. As a result, we expect to incur additional cash charges related to lease termination expenses of approximately $1.7 million through fiscal 2017 related to these future closures.
A summary of the restructuring and strategic charges is presented in the table below:
 
Thirteen Weeks Ended
 
Twenty-Six Weeks Ended
 
July 30, 2016
 
August 1, 2015
 
July 30, 2016
 
August 1, 2015
 
 
 
 
 
 
 
 
 
(in thousands)
Impairment charges
$
1,453

 
$
14,978

 
$
1,453

 
$
20,930

Continuing employee-related costs
—

 
14

 
1,015

 
5,639

Severance charges
8,236

 
186

 
9,420

 
1,820

Proxy solicitation costs
4,524

 
—

 
5,589

 
—

Lease termination charges
127

 
1,688

 
348

 
2,757

Consulting fees
2,234

 
—

 
2,234

 
—

Other charges
(18
)
 
(700
)
 
148

 
(105
)
Total restructuring and strategic charges, pre-tax
$
16,556

 
$
16,166

 
$
20,207

 
$
31,041


As of July 30, 2016, a reserve of $17.2 million related to restructuring and strategic activities was included in other current and deferred liabilities in the accompanying condensed consolidated balance sheets. A roll-forward of the reserve is presented as follows:
 
Continuing employee-related costs
 
Severance Charges
 
Proxy Solicitation Costs
 
Lease Termination Charges
 
Consulting Fees
 
Other charges
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Beginning Balance, January 30, 2016
$
2,549

 
$
1,678

 
$
—

 
$
1,101

 
$
9

 
$
—

 
$
5,337

Charges
1,015

 
9,420

 
5,589

 
348

 
2,234

 
148

 
18,754

Payments
(3,001
)
 
(1,806
)
 
(1,056
)
 
(463
)
 
(424
)
 
(130
)
 
(6,880
)
Ending Balance, July 30, 2016
$
563

 
$
9,292

 
$
4,533

 
$
986

 
$
1,819

 
$
18

 
$
17,211