Saks Fifth Avenue 2008 Annual Report Download - page 92

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
in Gross Margin, and severance costs are included in Selling, General, and Administrative expense in the
accompanying consolidated statements of income. There were no amounts payable related to these charges as of
January 31, 2009.
During the fourth quarter of 2008, the Company discontinued the operations of its CLL specialty store
business which consisted of 98 leased, mall-based stores. Along with the previous disposition of the SDSG
businesses, CLL was no longer determined to be a strategic fit for the Company. CLL generated revenues of
approximately $52,231 million for 2008 and was not profitable. The Company incurred charges of $44,521 in
2008 associated with the CLL store closings which are included in discontinued operations in the consolidated
statements of income.
The following table summarizes costs incurred and amounts payable for severance, lease termination and
other closing costs related to the discontinuation of the CLL business during the year ended January 31, 2009:
Severance and
Personel
Related Costs
Lease
Termination
Costs
Other
Closing Costs Total
Balance at February 3, 2008 ......................... $ — $ — $ — $ —
2008 expenses .................................... 5,074 17,746(1) 1,444 24,264
Paid in 2008 ...................................... (1,423) (7,966) (1,272) (10,661)
Balance at January 31, 2009 ......................... $3,651 $ 9,780 $ 172 $ 13,603
(1) Excludes a non-cash deferred rent benefit of $3,701.
The amounts payable relating to the disposition of the CLL business as of January 31, 2009 are expected to
be paid during the year ending January 30, 2010. In addition to the amounts in the table above, the Company
incurred charges of approximately $6,965 for inventory liquidation costs and $16,993 for asset impairments in
2008. The Company expects to incur nominal charges and complete its restructuring plan relating to CLL in
2009.
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