Quarterly report pursuant to Section 13 or 15(d)

Impairment, Restructuring and Other Costs

v3.21.1
Impairment, Restructuring and Other Costs
3 Months Ended
May 01, 2021
Restructuring Costs And Asset Impairment Charges [Abstract]  
Impairment, Restructuring and Other Costs

2.

Impairment, Restructuring and Other Costs

 

 

 

13 Weeks Ended

 

 

 

May 1, 2021

 

 

May 2, 2020

 

 

 

(millions)

 

Impairments

 

$

18

 

 

$

3,150

 

Restructuring

 

 

(1

)

 

 

25

 

Other

 

 

2

 

 

 

9

 

Total

 

$

19

 

 

$

3,184

 

 

During the 13 weeks ended May 1, 2021, the Company incurred non-cash impairment charges totaling $18 million primarily related to capitalized software assets.

 

During the 13 weeks ended May 2, 2020, primarily as a result of the COVID-19 pandemic, the Company incurred non-cash impairment charges totaling $3,150 million consisting of:

 

$3,070 million of goodwill impairments, with $2,972 million attributable to the Macy's reporting unit and $98 million attributable to the bluemercury reporting unit.

 

$80 million of impairments primarily related to long-lived tangible and right of use assets to adjust the carrying value of certain store locations to their estimated fair value.

A summary of the restructuring and other cash activity for the 13 weeks ended May 1, 2021 and May 2, 2020 related to the Polaris strategy, which was announced in February 2020 and included within accounts payable and accrued liabilities, is as follows:

 

 

 

Severance and

other benefits

 

 

Professional

fees and other

related charges

 

 

Total

 

 

 

(millions)

 

Balance at February 1, 2020

 

$

115

 

 

$

9

 

 

$

124

 

Additions charged to expense

 

 

25

 

 

 

7

 

 

 

32

 

Cash payments

 

 

(82

)

 

 

(6

)

 

 

(88

)

Balance at May 2, 2020

 

$

58

 

 

$

10

 

 

$

68

 

 

 

 

 

Severance and

other benefits

 

 

Professional

fees and other

related charges

 

 

Total

 

 

 

(millions)

 

Balance at January 30, 2021

 

$

14

 

 

$

2

 

 

$

16

 

Additions charged to expense

 

 

5

 

 

 

 

 

 

5

 

Cash payments

 

 

(16

)

 

 

(2

)

 

 

(18

)

Balance at May 1, 2021

 

$

3

 

 

$

 

 

$

3