Toys R US layoffs, on the record
Every job cut, severance charge and restructuring Toys R US reported in its annual reports, 2015 to 2017, quoted from the filings. Headcount went from 66,000 to 64,000.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2015 | 66,000 | January 31, 2015 |
| 10-K for 2016 | 62,000 | As of January 30, 2016 |
| 10-K for 2017 | 64,000 | January 28, 2017 |
Job cuts, severance and restructuring
Our summaryThe filing reports severance expense in the Adjusted EBITDA reconciliation for fiscal 2014, reflecting severance and store closure costs net of lease surrender payments.
Word for word“Severance (c) 17 13 3 7 4 Impairment of long-lived assets (d) 13 44 11 6 11 Certain accounting transaction costs (e) 13 1 6 6 — Obsolete inventory clearance (f) 9 51 — — — Net earnings (loss) attributable to noncontrolling interest (g) 4 3 1 2 (1 ) Store closure costs (c) 4 2 7 5 5 Property losses, net of insurance recoveries (h) (9 ) — 8 11 — Litigation (i) (8 ) 23 1 8 23 Net gains on sales of properties (j) (5 ) (8 ) (4 ) (3 ) (10 ) Goodwill impairment (k) — 378 — — — Prior period adjustments (l) — 16 — — 16 Restructuring (m) — — 2 3 3 Transfer tax (benefit) expense (n) — — (1 ) — 6 Acquisition costs (o) — — — 4 — Loss on liquidation of TRU (HK) Limited (p) — — — 1 — Adjusted EBITDA $ 642 $ 583 $ 1,019 $ 1,054 $ 1,118 24 (a) Represents the incremental compensation expense related to certain one-time awards and modifications (net of forfeitures of certain officers’ awards) , the fair market value remeasurement of existing liability awards and the repurchase of awards by the Company upon termination.” 10-K for 2015
Our summaryThe filing reports restructuring charges in the reconciliation, stating they consist primarily of costs from its 2003 and 2005 restructuring initiatives, with no restructuring charge in fiscal 2014.
Word for word“(m) Restructuring and other charges consist primarily of costs incurred from the Company’s 2003 and 2005 restructuring initiatives.” 10-K for 2015
Our summaryThe filing states the company may be forced to restructure its indebtedness if cash flows are insufficient to fund debt service.
Word for word“If our cash flows and capital resources are insufficient to fund our debt service obligations or we are unable to refinance our indebtedness, we could face substantial liquidity problems, and we may be forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital or restructure our indebtedness.” 10-K for 2015
Our summaryCompany reported severance expense in its Adjusted EBITDA reconciliation for fiscal 2015.
Word for word“Adjustments: Severance 24 17 13 3 7 Compensation expense (a) 24 22 3 2 1 Impairment of long-lived assets (b) 16 13 44 11 6 Certain transaction costs (c) 13 (2 ) 1 5 7 Foreign currency re-measurement (d) 11 15 — — — Store closure costs (e) 7 4 2 7 5 Sponsors’ management and advisory fees (f) 6 18 22 21 20 Net earnings attributable to noncontrolling interest (g) 6 4 3 1 2 Net gains on sales of properties (h) (20 ) (5 ) (8 ) (4 ) (3 ) Litigation (i) (1 ) (8 ) 23 1 8 Property losses, net of insurance recoveries (j) (1 ) (9 ) — 8 11 Goodwill impairment (k) — — 378 — — Obsolete inventory clearance (l) — 9 51 — — Prior period adjustments (m) — — 16 — — Restructuring (n) — — — 2 3 Acquisition costs (o) — — — — 4 Adjusted EBITDA $ 800 $ 642 $ 583 $ 1,019 $ 1,054 (a) Primarily represents the incremental compensation expense related to certain one-time awards and modifications (net of forfeitures of certain officers’ awards).” 10-K for 2016
Our summaryCompany recorded store closure costs as an adjustment in its EBITDA reconciliation.
Word for word“Store closure costs (e) 7 4 2 7 5 Sponsors’ management and advisory fees (f) 6 18 22 21 20 Net earnings attributable to noncontrolling interest (g) 6 4 3 1 2 Net gains on sales of properties (h) (20 ) (5 ) (8 ) (4 ) (3 ) Litigation (i) (1 ) (8 ) 23 1 8 Property losses, net of insurance recoveries (j) (1 ) (9 ) — 8 11 Goodwill impairment (k) — — 378 — — Obsolete inventory clearance (l) — 9 51 — — Prior period adjustments (m) — — 16 — — Restructuring (n) — — — 2 3 Acquisition costs (o) — — — — 4 Adjusted EBITDA $ 800 $ 642 $ 583 $ 1,019 $ 1,054 (a) Primarily represents the incremental compensation expense related to certain one-time awards and modifications (net of forfeitures of certain officers’ awards).” 10-K for 2016
Our summaryCompany disclosed that a named executive officer received a lump-sum severance payment after employment ended.
Word for word“Pursuant to her employment agreement, Ms. Derby received a severance payment of a lump sum amount of $1,400,000.” 10-K for 2016
Our summaryCompany disclosed restructuring charges as a category of SG&A expense and noted restructuring-related deferred tax assets.
Word for word“• store payroll and related payroll benefits; • rent and other store operating expenses; • advertising and promotional expenses; • costs associated with operating our distribution network, including costs related to transporting merchandise from distribution centers to stores; • restructuring charges; and • other corporate-related expenses.” 10-K for 2016
Toys R US has filed no restructuring notice (Form 8-K, Item 2.05) since 2016. Companies file one only for a cut they judge material, so many announced layoffs never appear as one. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Toys R US’s annual reports (10-K for 2017, 10-K for 2016, 10-K for 2015) and the financial data it files with the SEC, as of 2017-04-12. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.