99 Cents Only Stores 10-Q 9 Jun 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 28, 2017	Jun. 07, 2017
Document and Entity Information
Entity Registrant Name	99 CENTS ONLY STORES LLC
Entity Central Index Key	1,011,290
Document Type	10-Q
Document Period End Date	Apr. 28, 2017
Amendment Flag	false
Current Fiscal Year End Date	--02-02
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		100
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Current Assets:
Cash	$ 2,420	$ 2,448
Accounts receivable, net of allowance for doubtful accounts of $73 and $122 at April 28, 2017 and January 27, 2017, respectively	3,353	3,510
Income taxes receivable	3,861	3,876
Inventories, net	184,663	175,892
Assets held for sale	4,903	4,903
Other	18,878	10,307
Total current assets	218,078	200,936
Property and equipment, net	485,854	507,620
Deferred financing costs, net	2,984	3,488
Intangible assets, net	445,622	447,027
Goodwill	380,643	380,643
Deposits and other assets	8,607	8,592
Total assets	1,541,788	1,548,306
Current Liabilities:
Accounts payable	111,565	86,588
Payroll and payroll-related	25,571	24,110
Sales tax	16,574	19,389
Other accrued expenses	55,513	46,082
Workers' compensation	69,408	69,169
Current portion of long-term debt	6,138	6,138
Current portion of capital and financing lease obligations	1,214	31,330
Total current liabilities	285,983	282,806
Long-term debt, net of current portion	858,850	865,375
Unfavorable lease commitments, net	3,674	3,988
Deferred rent	30,791	30,360
Deferred compensation liability	868	816
Capital and financing lease obligation, net of current portions	53,775	47,195
Deferred income taxes	161,450	161,450
Other liabilities	10,995	12,297
Total liabilities	1,406,386	1,404,287
Commitments and contingencies (Note 11)
Member's Equity:
Member units - 100 units issued and outstanding at April 28, 2017 and January 27, 2017	551,054	550,918
Investment in Number Holdings, Inc. preferred stock	(19,200)	(19,200)
Accumulated deficit	(396,452)	(387,699)
Total equity	135,402	144,019
Total liabilities and equity	$ 1,541,788	$ 1,548,306

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 73	$ 122
Member units, units issued	100	100
Member units, units outstanding	100	100

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Net Sales:
99 Only Stores	$ 537,992	$ 501,766
Bargain Wholesale	9,520	11,163
Total sales	547,512	512,929
Cost of sales	385,159	363,962
Gross profit	162,353	148,967
Selling, general and administrative expenses	153,751	157,229
Operating income (loss)	8,602	(8,262)
Other (income) expense:
Interest income	(2)	(2)
Interest expense	17,342	16,526
Loss on extinguishment		335
Total other expense, net	17,340	16,859
Loss before provision for income taxes	(8,738)	(25,121)
Provision for income taxes	15	73
Net loss	(8,753)	(25,194)
Other comprehensive income, net of tax:
Unrealized losses on interest rate cash flow hedge		(214)
Less: reclassification adjustment included in net income		379
Other comprehensive income, net of tax		165
Comprehensive loss	$ (8,753)	$ (25,029)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Cash flows from operating activities:
Net loss	$ (8,753)	$ (25,194)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	16,939	16,302
Amortization of deferred financing costs and accretion of OID	1,714	1,304
Amortization of intangible assets	438	437
Amortization of favorable/unfavorable leases, net	661	587
Loss on extinguishment of debt		335
Gain on disposal of fixed assets	(17,896)	(34)
Loss on interest rate hedge		409
Stock-based compensation	136	164
Changes in assets and liabilities associated with operating activities:
Accounts receivable	157	13
Inventories	(8,771)	29,686
Deposits and other assets	(8,508)	1,758
Accounts payable	22,298	(5,170)
Accrued expenses	8,077	3,403
Accrued workers' compensation	239	117
Income taxes	15	1,443
Deferred rent	431	176
Other long-term liabilities	(2,719)	(166)
Net cash provided by operating activities	4,458	25,570
Cash flows from investing activities:
Purchases of property and equipment	(7,367)	(13,373)
Proceeds from sale of property and fixed assets	4,064	4
Net cash used in investing activities	(3,303)	(13,369)
Cash flows from financing activities:
Payments of long-term debt	(1,535)	(1,535)
Proceeds under revolving credit facility	46,400	64,800
Payments under revolving credit facility	(52,600)	(72,600)
Payments of debt issuance costs		(4,594)
Proceeds from financing lease obligations	6,840	2,031
Payments of capital and financing lease obligations	(288)	(239)
Net cash used in financing activities	(1,183)	(12,137)
Net (decrease) increase in cash	(28)	64
Cash - beginning of period	2,448	2,312
Cash - end of period	2,420	2,376
Supplemental cash flow information:
Income taxes refunded		(1,370)
Interest paid	8,304	8,365
Non-cash investing activities for purchases of property and equipment	$ (2,679)	$ (536)

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 28, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	1. Basis of Presentation and Summary of Significant Accounting Policies Nature of Business The Company is organized under the laws of the State of California. Effective October 18, 2013, 99¢ Only Stores converted from a California corporation to a California limited liability company, 99 Cents Only Stores LLC, that is managed by its sole member, Number Holdings, Inc., a Delaware corporation (“Parent”). The term “Company” refers to 99¢ Only Stores and its consolidated subsidiaries prior to the Conversion (as described in Note 1 to the Annual Report on Form 10-K for the fiscal year ended January 27, 2017) and to 99 Cents Only Stores LLC and its consolidated subsidiaries at the time of or after the Conversion. The Company is an extreme value retailer of consumable and general merchandise and seasonal products. As of April 28, 2017, the Company operated 390 retail stores with 283 in California, 48 in Texas, 38 in Arizona, and 21 in Nevada. The Company is also a wholesale distributor of various products. Merger On January 13, 2012, the Company was acquired through a merger (the “Merger”) with a subsidiary of Parent with the Company surviving. In connection with the Merger, the Company became a subsidiary of Parent, which is controlled by affiliates of Ares Management, L.P. (“Ares”) and Canada Pension Plan Investment Board (“CPPIB” and, together with Ares, the “Sponsors”). As a result of the Merger, the Company’s common stock was delisted from the New York Stock Exchange and the Company ceased to be a publicly held and traded equity company. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). However, certain information and footnote disclosures normally included in financial statements prepared in conformity with GAAP have been omitted or condensed pursuant to the rules and regulations of the Securities and Exchange Commission. These statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2017. In the opinion of the Company’s management, these interim unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the consolidated financial position and results of operations for each of the periods presented. The results of operations and cash flows for such periods are not necessarily indicative of results to be expected for the full fiscal year ending February 2, 2018 (“fiscal 2018”). Fiscal Year The Company follows a fiscal calendar consisting of four quarters with 91 days, each ending on the Friday closest to the last day of April, July, October or January, as applicable, and a 52-week fiscal year with 364 days, with a 53-week year every five to six years. Unless otherwise stated, references to years in this Report relate to fiscal years rather than calendar years. The Company’s fiscal 2018 began on January 28, 2017, will end on February 2, 2018 and will consist of 53 weeks. The Company’s fiscal year 2017 (“fiscal 2017”) began on January 30, 2016, ended on January 27, 2017 and consisted of 52 weeks. The first quarter ended April 28, 2017 (the “first quarter of fiscal 2018”) and the first quarter ended April 29, 2016 (the “first quarter of fiscal 2017”) were each comprised of 91 days. Use of Estimates The preparation of the unaudited consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash For purposes of reporting cash flows, cash includes cash on hand, cash at the stores and cash in financial institutions. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions are processed within three business days and therefore are also classified as cash. Cash balances held at financial institutions are generally in excess of federally insured limits. These accounts are only insured by the Federal Deposit Insurance Corporation up to $250,000. The Company historically has not experienced any losses in such accounts. The Company places its temporary cash investments with what it believes to be high credit, quality financial institutions. Under the Company’s cash management system, checks issued but not presented to the bank may result in book cash overdraft balances for accounting purposes. The Company reclassifies book overdrafts to accounts payable, which are reflected as an operating activity in its unaudited consolidated statements of cash flows. Book overdrafts included in accounts payable were $6.5 million and $7.0 million as of April 28, 2017 and January 27, 2017, respectively. Allowance for Doubtful Accounts In connection with its wholesale business, the Company evaluates the collectability of accounts receivable based on a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s or tenant’s ability to meet its financial obligations subsequent to the original sale, the Company will record an allowance against amounts due and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers and tenants, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, industry and geographic concentrations, the current business environment and the Company’s historical experiences. Inventories Inventories are valued at the lower of cost or net realizable value. Inventory costs are established using a methodology that approximates first in, first out, which for store inventories is based on a retail inventory method. Valuation allowances for shrinkage as well as excess and obsolete inventory are also recorded. The Company includes spoilage, scrap and shrink in its definition of shrinkage. Shrinkage is estimated as a percentage of sales for the period from the last physical inventory date to the end of the applicable period. Such estimates are based on experience and the most recent physical inventory results. Physical inventory counts are completed at each of the Company’s retail stores at least once a year by an outside inventory service company. The Company performs inventory cycle counts at its warehouses throughout the year. The Company also performs inventory reviews and analysis on a quarterly basis for both warehouse and store inventory to determine inventory valuation allowances for excess and obsolete inventory. The valuation allowances for excess and obsolete inventory are based on the age of the inventory, sales trends and future merchandising plans. The valuation allowances for excess and obsolete inventory require management judgment and estimates that may impact the ending inventory valuation and valuation allowances that may have a material effect on the reported gross margin for the period. These estimates are subject to change based on management’s evaluation of, and response to, a variety of factors and trends, including, but not limited to, consumer preferences and buying patterns, age of inventory, increased competition, inventory management, merchandising strategies and historical sell through trends. The Company’s ability to adequately evaluate the impact of inventory management and merchandising strategies executed in response to such factors and trends in future periods could have a material impact on such estimates. In order to obtain inventory at attractive prices, the Company takes advantage of large volume purchases, closeouts and other similar purchase opportunities. Consequently, the Company’s inventory fluctuates from period to period and the inventory balances vary based on the timing and availability of such opportunities. Property and Equipment Property and equipment are carried at cost and are depreciated or amortized on a straight-line basis over the following useful lives: Owned buildings and improvements Lesser of 30 years or the estimated useful life of the improvement Leasehold improvements Lesser of the estimated useful life of the improvement or remaining lease term Fixtures and equipment 3-5 years Transportation equipment 3-5 years Information technology systems For major corporate systems, estimated useful life up to 7 years; for functional standalone systems, estimated useful life up to 5 years The Company’s policy is to capitalize expenditures that materially increase asset lives and expense ordinary repairs and maintenance as incurred. Long-Lived Assets The Company assesses the impairment of depreciable long-lived assets when events or changes in circumstances indicate that the carrying value may not be recoverable. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual identifiable cash flows are available. Recoverability is measured by comparing the carrying amount of an asset to expected future net cash flows generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, the carrying amount is compared to its fair value and an impairment charge is recognized to the extent of the difference. Factors that the Company considers important that could individually or in combination trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business; and (3) significant changes in the Company’s business strategies and/or negative industry or economic trends. On a quarterly basis, the Company assesses whether events or changes in circumstances occur that potentially indicate that the carrying value of long-lived assets may not be recoverable (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). Considerable management judgment is necessary to estimate projected future operating cash flows. Accordingly, if actual results fall short of such estimates, significant future impairments could result. During the first quarter of each of fiscal 2017 and fiscal 2016, the Company did not record any long-lived asset impairment charges. Goodwill and Other Intangible Assets In connection with the Merger purchase price allocation, the fair values of long-lived and intangible assets were determined based upon assumptions related to the future cash flows, discount rates and asset lives using then available information, and in some cases were obtained from independent professional valuation experts. The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on undiscounted cash flows, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Significant judgment is required in determining whether a potential indicator of impairment of long-lived assets exists and in estimating future cash flows used in the impairment tests (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). Goodwill and indefinite-lived intangible assets are not amortized but instead tested annually for impairment or more frequently when events or changes in circumstances indicate that the assets might be impaired. Goodwill is tested for impairment by comparing the carrying amount of the reporting unit to the fair value of the reporting unit to which the goodwill is assigned. The Company has the option of performing a qualitative assessment before calculating the fair value of the reporting unit (i.e., step zero of the goodwill impairment test). If the Company does not perform a qualitative assessment, or determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two-step impairment test would be required. The first step is to compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is considered not impaired; otherwise, goodwill is impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of goodwill. Management has determined that the Company has two reporting units, the retail reporting unit and the wholesale reporting unit. The Company, assisted by an independent third party valuation firm, performs the annual test for impairment in January of the fiscal year and determines fair value based on a combination of the income approach and the market approach. The income approach is based on discounted cash flows to determine fair value. The market approach uses a selection of comparable companies and transactions in determining fair value. The fair value of the trade name is also tested for impairment in the fourth quarter by comparing the carrying value to the fair value. Fair value of a trade name is determined using a relief from royalty method under the income approach, which uses projected revenue allocable to the trade name and an assumed royalty rate (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). These approaches involve making key assumptions about future cash flows, discount rates and asset lives using then best available information. These assumptions are subject to a high degree of complexity and judgment and are subject to change. During the third quarter of fiscal 2016, the Company determined that indicators of impairment existed to require an interim impairment analysis of goodwill and trade name. The first step evaluation concluded that the fair value of the retail reporting unit was below its carrying value. The Company performed step two of the goodwill impairment test. As a result of the preliminary analysis and based on best estimate, the Company recorded a $120.0 million non-cash goodwill impairment charge in the third quarter of fiscal 2016, which was reflected as goodwill impairment in the consolidated statements of comprehensive income (loss). The finalization of the preliminary goodwill impairment test was completed in the fourth quarter of fiscal 2016 and resulted in a $20.9 million adjustment in goodwill, lowering the estimated third quarter of fiscal 2016 goodwill impairment charge from $120.0 million to $99.1 million. The remaining amount of goodwill allocated to the retail reporting unit and wholesale reporting unit was $368.1 million and $12.5 million, respectively, as of January 29, 2016. During the fourth quarter of fiscal 2017, the Company completed step one of its annual goodwill impairment test for the two reporting units and determined that there was no impairment of goodwill since the fair value of the Company’s reporting units exceeded their carrying amounts. The results of this test showed that the fair value of our retail reporting unit exceeded its carrying value by a substantial amount. The results of this test showed that the fair value of wholesale reporting unit exceeded carrying value by approximately 18%. As discussed above, considerable management judgment is necessary in estimating future cash flows, market interest rates, discount rates and other factors affecting the valuation of goodwill. The Company’s forecasts used in its fiscal 2017 annual impairment test include growth in net sales, new store openings and same-store sales, positive trends in cost of sales and selling, general and administrative expense. In each case, these estimates and assumptions could be materially affected by factors such as unforeseen events or changes in general economic conditions, a decline in comparable company market multiples, changes to discount rates, increased competitive forces, inability to maintain pricing structure, deterioration of vendor relationships, failure to adequately manage and improve inventory processes and procedures and changes in customer behavior which could result in changes to management’s strategies. If operating results continue to change versus the Company’s expectations, additional impairment charges may be recorded in the future. Additionally, during the fourth quarter of fiscal 2017, the Company completed its annual indefinite-lived intangible asset impairment test and determined there was no impairment to the trade name since the fair value of the trade name exceeded its carrying amount. The results of this test showed that the fair value of trade name exceeded carrying value by approximately 18%. The relief from royalty method estimates our theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model included sales projections, discount rates and royalty rates, and considerable management judgment is necessary in developing and evaluating such assumptions. If future results are not consistent with current estimates and assumptions, impairment charges maybe recorded in future. During the first quarter of fiscal 2018, the Company did not record any impairment charges related to goodwill or other intangible assets. Derivatives The Company accounts for derivative financial instruments in accordance with authoritative guidance for derivative instrument and hedging activities. Financial instrument positions taken by the Company are primarily intended to be used to manage risks associated with interest rate exposures. The Company’s derivative financial instruments are recorded on the balance sheet at fair value, and are recorded in either current or noncurrent assets or liabilities based on their maturity. Changes in the fair values of derivatives are recorded in net earnings or other comprehensive income (“OCI”), based on whether the instrument is designated and effective as a hedge transaction and, if so, the type of hedge transaction. Gains or losses on derivative instruments reported in accumulated other comprehensive income (“AOCI”) are reclassified to earnings in the period the hedged item affects earnings. Any ineffectiveness is recognized in earnings in the period incurred. Income Taxes The Company uses the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s ability to realize deferred tax assets is assessed throughout the year and a valuation allowance is established accordingly. The Company recognizes the impact of a tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense. Refer to Note 10, “Income Taxes,” for further discussion of income taxes. Stock-Based Compensation The Company accounts for stock-based payment awards based on their fair value. The value of the portion of the award that is ultimately expected to vest is recognized as an expense ratably over the requisite service periods. For awards classified as equity, the Company estimates the fair value for each option award as of the date of grant using the Black-Scholes option pricing model or other appropriate valuation models. The Black-Scholes model considers, among other factors, the expected life of the award and the expected volatility of the stock price. Stock options are generally granted to employees at exercise prices equal to or greater than the fair market value of the stock at the dates of grant. The fair value of options that vest based on the Company’s and Parent’s achievement of certain performance hurdles were valued using a Monte Carlo simulation method. The fair value of options granted to the current Chief Executive Officer were valued using a binomial model and the Monte Carlo simulation method. Refer to Note 8, “Stock-Based Compensation” for further discussion of the Company’s stock-based compensation. Revenue Recognition The Company recognizes retail sales in its retail stores at the time the customer takes possession of merchandise. All sales are net of discounts and returns and exclude sales tax. Wholesale sales are recognized in accordance with the shipping terms agreed upon on the purchase order. Wholesale sales are typically recognized free on board origin, where title and risk of loss pass to the buyer when the merchandise leaves the Company’s distribution facility. The Company has a gift card program. The Company does not charge administrative fees on gift cards and the Company’s gift cards do not have expiration dates. The Company records the sale of gift cards as a current liability and recognizes a sale when a customer redeems a gift card. The liability for outstanding gift cards is recorded in accrued expenses. Cost of Sales Cost of sales includes the cost of inventory, freight in, obsolescence, spoilage, scrap and inventory shrink, and is net of discounts and allowances. Cost of sales also includes receiving, warehouse costs and distribution costs (which include payroll and associated costs, occupancy, transportation to and from stores and depreciation expense). Cash discounts for satisfying early payment terms are recognized when payment is made, and allowances and rebates based upon milestone achievements such as reaching a certain volume of purchases of a vendor’s products are included as a reduction of cost of sales when such contractual milestones are reached or based on other systematic and rational approaches where possible. Selling, General and Administrative Expenses Selling, general and administrative expenses include the costs of selling merchandise in stores (which include payroll and associated costs, occupancy and other store-level costs) and corporate costs (which include payroll and associated costs, occupancy, advertising, professional fees and other corporate administrative costs). Selling, general and administrative expenses also include depreciation and amortization expense relating to these costs. Leases The Company follows the policy of capitalizing allowable expenditures that relate to the acquisition and signing of its retail store leases. These costs are amortized on a straight-line basis over the applicable lease term. The Company recognizes rent expense for operating leases on a straight-line basis (including the effect of reduced or free rent and rent escalations) over the applicable lease term. The difference between the cash paid to the landlord and the amount recognized as rent expense on a straight-line basis is included in deferred rent. Cash reimbursements received from landlords for leasehold improvements and other cash payments received from landlords as lease incentives are recorded as deferred rent. Deferred rent related to landlord incentives is amortized as an offset to rent expense using the straight-line method over the applicable lease term. In certain lease arrangements, the Company can be involved with the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in property and equipment, net and the related financing obligation as part of current and non-current liabilities. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company amortizes the obligation over the lease term and depreciates the asset over the life of the lease. The Company does not report rent expense for the portion of the rent payment determined to be related to the assets which are owned for accounting purposes. Rather, this portion of the rent payment under the lease is recognized as a reduction of the financing obligation and interest expense. For store closures where a lease obligation still exists, the Company records the estimated future liability associated with the rental obligation on the cease use date (when the store is closed). Liabilities are established at the cease use date for the present value of any remaining operating lease obligations, net of estimated sublease income, and at the communication date for severance and other exit costs. Key assumptions in calculating the liability include the timeframe expected to terminate lease agreements, estimates related to the sublease potential of closed locations, and estimates of other related exit costs. If actual timing and potential termination costs or realization of sublease income differ from the Company’s estimates, the resulting liabilities could vary from recorded amounts. These liabilities are reviewed periodically and adjusted when necessary. During the first quarter of fiscal 2018, the Company sold and concurrently leased back a future store site with an aggregate carrying value of $1.4 million and received net proceeds from this transaction of $6.8 million, which will be applied towards the construction of the future store. The Company was deemed to have “continuing involvement,” which precluded the de-recognition of the assets from the consolidated balance sheet when the transaction closed. The Company has concluded that it is the “deemed owner” of the construction project (for accounting purposes) during the construction period. Upon completion of construction, the Company will evaluate the de-recognition of the asset and liability under sale-leaseback accounting guidance. As of April 28, 2017, the Company has recorded a financing lease obligation of $6.9 million (as a component of current and non-current liabilities). During the first quarter of fiscal 2018, the Company sold and concurrently leased back a store with a carrying value of $2.2 million and received net proceeds from this transaction of $4.0 million. The resulting lease qualifies as and is accounted for as an operating lease. The Company will amortize the deferred gain of $1.8 million relating to the sale-leaseback transaction over the lease term. Self-Insured Workers’ Compensation Liability The Company self-insures for workers’ compensation claims in California and Texas. The Company establishes a liability for losses from both estimated known and incurred but not reported insurance claims based on reported claims and actuarial valuations of estimated future costs of known and incurred but not yet reported claims. Should an amount of claims greater than anticipated occur, the liability recorded may not be sufficient and additional workers’ compensation costs, which may be significant, could be incurred. The Company has not discounted the projected future cash outlays for the time value of money for claims and claim-related costs when establishing its workers’ compensation liability in its financial reports for each of April 28, 2017 and January 27, 2017. Self-Insured Health Insurance Liability The Company self-insures for a portion of its employee medical benefit claims. The liability for the self-funded portion of the Company health insurance program is determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported. The Company maintains stop loss insurance coverage to limit its exposure for the self-funded portion of its health insurance program. Pre-Opening Costs The Company expenses, as incurred, pre-opening costs such as payroll, rent and marketing related to the opening of new retail stores. Advertising The Company expenses advertising costs as incurred. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash, accounts receivable, interest rate and other derivatives, accounts payable, accruals, debt, and other liabilities. Cash and derivatives are measured and recorded at fair value. Accounts receivable and other receivables are financial assets with carrying values that approximate fair value. Accounts payable and other accrued expenses are financial liabilities with carrying values that approximate fair value. Refer to Note 7, “Fair Value of Financial Instruments” for further discussion of the fair value of debt. The Company uses the authoritative guidance for fair value, which includes the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model. Comprehensive Income OCI includes unrealized gains or losses on interest rate derivatives designated as cash flow hedges.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	3 Months Ended
	Apr. 28, 2017
Goodwill and Other Intangibles
Goodwill and Other Intangibles	2. Goodwill and Other Intangibles The following tables set forth the value of the goodwill and other intangible assets and unfavorable leases (in thousands): April 28, 2017 January 27, 2017 Gross Impairment Accumulated Net Gross Amount Impairment Losses Accumulated Amortization Net Indefinite lived intangible assets: Goodwill $ $ ) $ — $ $ $ ) $ — $ Trade name — — — — Total indefinite lived intangible assets $ $ ) $ — $ $ $ ) $ — $ Finite lived intangible assets: Trademarks $ $ ) $ ) $ $ $ ) $ ) $ Bargain Wholesale customer relationships — ) — ) Favorable leases ) ) ) ) Total finite lived intangible assets ) ) ) ) Total goodwill and other intangible assets $ $ ) $ ) $ $ $ ) $ ) $ April 28, 2017 January 27, 2017 Gross Accumulated Net Gross Accumulated Net Unfavorable leases $ $ ) $ $ $ ) $

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Apr. 28, 2017
Property and Equipment, net
Property and Equipment, net	3. Property and Equipment, net The following table provides details of property and equipment (in thousands): April 28, January 27, Land $ $ Buildings Buildings improvements Leasehold improvements Fixtures and equipment Transportation equipment Construction in progress Total property and equipment Less: accumulated depreciation and amortization ) ) Property and equipment, net $ $

Comprehensive Loss

Comprehensive Loss	3 Months Ended
	Apr. 28, 2017
Comprehensive Loss
Comprehensive Loss	4. Comprehensive Loss The following table sets forth the calculation of comprehensive loss, net of tax effects (in thousands): For the First Quarter Ended April 28, April 29, Net loss $ ) $ ) Unrealized loss on interest rate cash flow hedge, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively — ) Reclassification adjustment, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively — Total gains, net — Total comprehensive loss $ ) $ ) Amounts in accumulated other comprehensive loss as of January 29, 2016 consisted of unrealized losses on interest rate cash flow hedges. Reclassifications out of accumulated other comprehensive loss in the first quarter of fiscal 2017 presented in Note 6, “Derivative Financial Instruments.”

Debt

Debt	3 Months Ended
	Apr. 28, 2017
Debt
Debt	5. Debt Short and long-term debt consists of the following (in thousands): April 28, January 27, ABL Facility $ $ First Lien Term Loan Facility , maturing on January 13, 2019, payable in quarterly installments of $1,535, plus interest through December 31, 2018, with unpaid principal and accrued interest due on January 13, 2019, net of unamortized OID of $2,534 and $2,888 as of April 28, 2017 and January 27, 2017, respectively Senior Notes (unsecured) maturing on December 15, 2019, unpaid principal and accrued interest due on December 15, 2019 Deferred financing costs ) ) Total debt Less: current portion Long-term debt, net of current portion $ $ As of April 28, 2017 and January 27, 2017, the net deferred financing costs are as follows (in thousands): Deferred financing costs April 28, January 27, ABL Facility (included in non-current deferred financing costs) $ $ First Lien Term Loan Facility (included in long-term debt, net of current portion) Senior Notes (included in long-term debt, net of current portion) Total deferred financing costs, net $ $ On January 13, 2012 (the “Original Closing Date”), in connection with the Merger, the Company obtained Credit Facilities (as defined below) provided by a syndicate of lenders arranged by Royal Bank of Canada as administrative agent, as well as other agents and lenders that are parties to the agreements governing these Credit Facilities. The Credit Facilities include (a) a first lien asset based revolving credit facility (as amended, the “ABL Facility”), and (b) a first lien term loan facility (as amended, the “First Lien Term Loan Facility” and together with the ABL Facility, the “Credit Facilities”). First Lien Term Loan Facility Under the First Lien Term Loan Facility, (i) $525.0 million of term loans were incurred on the Original Closing Date and (ii) $100.0 million of additional term loans were incurred pursuant to an incremental facility effected through an amendment entered into on October 8, 2013 (the “Second Amendment”) (all such term loans, collectively, the “Term Loans”). The First Lien Term Loan Facility has a maturity date of January 13, 2019. All obligations under the First Lien Term Loan Facility are guaranteed by Parent and the Company’s direct or indirect 100% owned domestic subsidiaries (with customary exceptions, including immaterial subsidiaries) (collectively, the “Credit Facilities Guarantors”). In addition, the First Lien Term Loan Facility is secured by substantially all of the Company’s assets and the assets of the Credit Facilities Guarantors, including a first priority pledge of all of the Company’s equity interests and the equity interests of the Credit Facilities Guarantors and a first priority security interest in certain other fixed assets, and a second priority security interest in certain current assets. The Company is required to make scheduled quarterly payments each equal to 0.25% of the principal amount of the Term Loans, with the balance due on the maturity date. Borrowings under the First Lien Term Loan Facility bear interest at an annual rate equal to an applicable margin plus, at the Company’s option, either (i) a base rate (the “Base Rate”) determined by reference to the highest of (a) the interest rate in effect determined by the administrative agent as the “Prime Rate” (4.00% as of April 28, 2017), (b) the federal funds effective rate plus 0.50% and (c) an adjusted Eurocurrency rate for one month (determined by reference to the greater of the Eurocurrency rate for the interest period subject to certain adjustments) plus 1.00%, or (ii) a Eurocurrency rate determined by reference to the London Interbank Offered Rate (“LIBOR”), adjusted for statutory reserve requirements, for the interest period relevant to such borrowing. On April 4, 2012, the Company amended the terms of the First Lien Term Loan Facility (the “First Amendment”) and incurred related refinancing costs of $11.2 million. The First Amendment, among other things, (i) decreased the applicable margin from LIBOR plus 5.50% (or Base Rate plus 4.50%) to LIBOR plus 4.00% (or Base Rate plus 3.00%) and (ii) decreased the LIBOR floor from 1.50% to 1.25%. On October 8, 2013, the Company entered into the Second Amendment, which among other things, (i) provided $100.0 million of additional term loans as described above, (ii) decreased the applicable margin from LIBOR plus 4.00% (or Base Rate plus 3.00%) to LIBOR plus 3.50% (or Base Rate plus 2.50%) and (iii) decreased the LIBOR floor from 1.25% to 1.00%. Upon the occurrence of the Second Amendment, the Company’s obligation to make scheduled quarterly payments on the Term Loans was increased to require the Company to make scheduled quarterly payments each equal to 0.25% of the amended principal amount of the Term Loans (approximately $1.5 million). In addition, the Second Amendment (i) amended certain restricted payment provisions, (ii) removed the maximum capital expenditures covenant from the agreement governing the First Lien Term Loan Facility, (iii) modified the existing provision restricting the Company’s ability to make dividend and other payments so that from and after March 31, 2013, the permitted payment amount represents the sum of (a) a calculation based on 50% of Consolidated Net Income (as defined in the First Lien Term Loan Facility agreement), if positive, or a deficit of 100% of Consolidated Net Income, if negative, and (b) $20.0 million, and (iv) permitted proceeds of any sale leasebacks of any assets acquired after January 13, 2012, to be reinvested in the Company’s business without restriction. As of April 28, 2017, the interest rate charged on the First Lien Term Loan Facility was 4.61% (1.11% Eurocurrency rate, plus the Eurocurrency loan margin of 3.50%). As of April 28, 2017, the gross amount outstanding under the First Lien Term Loan Facility was $592.3 million. Following the end of each fiscal year, the Company is required to make prepayments on the First Lien Term Loan Facility in an amount equal to (i) 50% of Excess Cash Flow (as defined in the agreement governing the First Lien Term Loan Facility), with the ability to step down to 25% and 0% upon achievement of specified total leverage ratios, minus (ii) the amount of certain voluntary prepayments made on the First Lien Term Loan Facility and/or the ABL Facility during such fiscal year. There was no Excess Cash Flow payment required for fiscal 2017. The First Lien Term Loan Facility includes certain customary restrictions, among other things, on the Company’s ability and the ability of Parent, the Credit Facilities Guarantors (including the Company’s subsidiary 99 Cents Only Stores Texas Inc.) and certain future subsidiaries of the Company to incur or guarantee additional indebtedness, make certain restricted payments, acquisitions or investments, materially change the Company’s business, incur or permit to exist certain liens, enter into transactions with affiliates, sell assets, make capital expenditures or merge or consolidate with or into, another company. As of April 28, 2017, the Company was in compliance with the terms of the First Lien Term Loan Facility. ABL Facility The ABL Facility initially was to mature on January 13, 2017 and provided for up to $175.0 million of borrowings, subject to certain borrowing base limitations. Subject to certain conditions, the Company could increase the commitments under the ABL Facility by up to $50.0 million. All obligations under the ABL Facility are guaranteed by Parent and the other Credit Facilities Guarantors. The ABL Facility is secured by substantially all of the Company’s assets and the assets of the Credit Facilities Guarantors, including a first priority security interest in certain current assets, and a second priority pledge of all of the Company’s equity interests and the equity interest of the Credit Facilities Guarantors and a second priority security interest in certain other fixed assets. Borrowings under the ABL Facility bear interest at a rate based, at the Company’s option, on (i) LIBOR plus an applicable margin to be determined (3.25% as of April 28, 2017) or (ii) the determined base rate (Prime Rate) plus an applicable margin to be determined (2.25% at April 28, 2017), in each case based on a pricing grid depending on average daily excess availability for the most recently ended quarter. In addition to paying interest on outstanding principal under the Credit Facilities, the Company is required to pay a commitment fee to the lenders under the ABL Facility on unused commitments. The commitment fee is adjusted at the beginning of each quarter based upon the average historical excess availability of the prior quarter (0.50% for the quarter ended April 28, 2017). The Company must also pay customary letter of credit fees and agency fees. As of April 28, 2017, borrowings under the ABL Facility were $33.1 million, outstanding letters of credit were $32.4 million and availability under the ABL Facility subject to the borrowing base, was $50.8 million. As of January 27, 2017, borrowings under the ABL Facility were $39.3 million, outstanding letters of credit were $31.6 million and availability under the ABL Facility subject to the borrowing base, was $37.2 million. The ABL Facility includes restrictions on the Company’s ability and the ability of Parent and certain of the Company’s restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends on, or redeem or repurchase, its capital stock, make certain acquisitions or investments, materially change its business, incur or permit to exist certain liens, enter into transactions with affiliates, sell assets or merge or consolidate with or into another company. On October 8, 2013, the ABL Facility was amended to among other things, modify the provision restricting the Company’s ability to make dividend and other payments. Such payments are subject to achievement of Excess Availability (as defined in the agreement governing the ABL Facility) and a ratio of EBITDA (as defined in the agreement governing the ABL Facility) to fixed charges. On August 24, 2015, the Company amended its ABL Facility to increase commitments available under the ABL Facility by $10.0 million, resulting in an aggregate ABL Facility size of $185.0 million. The additional commitments implemented pursuant to the amendment have terms identical to the existing commitments under the ABL Facility, including as to interest rate and other pricing terms. The Company paid amendment fees of $0.5 million to lenders under the ABL Facility. In addition, the amendment to the ABL Facility (i) modified certain springing covenants triggered by reference to excess availability under the ABL Facility agreement so that, from August 24, 2015 to April 30, 2016, the occurrence of any such excess availability trigger is determined solely by reference to the available borrowing base under the ABL Facility rather than by reference to the lesser of the available borrowing base and the available aggregate commitments under the ABL Facility, (ii) increased the inventory advance rate during such period for purposes of calculating the borrowing base from 90% to 92.5%, (iii) provided for certain additional inspection rights by the administrative agent if there is a material increase in the amount of inventory that is not eligible inventory for purposes of the borrowing base and (iv) provided for certain additional technical waivers and amendments in order to effect the foregoing. On April 8, 2016, the Company amended its ABL Facility to, among other things, decrease the commitments available under the ABL Facility by $25.0 million, resulting in an aggregate facility size of $160.0 million, and extend the maturity date of the ABL Facility to April 8, 2021; provided however, the ABL Facility will mature on the earlier of (i) the date that is 90 days prior to the stated maturity date in respect of the First Lien Term Loan Facility and (ii) the date that is 90 days prior to the stated maturity date in respect of the Senior Notes (as defined below), unless the First Lien Term Loan Facility and Senior Notes have been repaid or refinanced in full or amended to extend the final maturity dates thereof to a date that is at least 180 days after April 8, 2021 (the date of such repayment or refinancing, the “Term/Notes Refinancing Date”) (such amendment, the “Fourth Amendment”). The Fourth Amendment also modified the interest rate margins payable under the ABL Facility. The initial applicable margin for borrowings under the ABL Facility is 2.0% with respect to base rate borrowings and 3.0% with respect to Eurocurrency rate borrowings. Commencing with the first day of the first fiscal quarter commencing after the closing of the Fourth Amendment, the applicable margin for borrowings thereunder is subject to adjustment each fiscal quarter, based on average historical excess availability during the preceding fiscal quarter. Furthermore, the applicable margin will be reduced by 0.50% after the Term/Notes Refinancing Date. In addition, the Fourth Amendment (i) reduced the incremental revolving commitment capacity from $50.0 million to $25.0 million, but provides that any such incremental revolving commitment may take the form of a “last-out” term loan, (ii) added restrictions on certain negative covenants in respect of investments, restricted payments and prepayments of indebtedness, including the First Lien Term Loan Facility and the Senior Notes, in each case, until the occurrence of Term/Notes Refinancing Date, (iii) reduced the letter of credit sublimit from $50.0 million to $45.0 million and (iv) provided for certain additional technical waivers and amendments in order to effect the foregoing. In connection with the Fourth Amendment and in the first quarter of fiscal 2017, the Company recognized a loss on debt extinguishment of approximately $0.3 million related to a portion of the unamortized debt issuance costs. The Company recorded $4.7 million of debt issuance costs in connection with the Fourth Amendment in the first quarter of fiscal 2017 as part of non-current deferred financing costs. As of April 28, 2017, the Company was in compliance with the terms of the ABL Facility. Senior Notes On December 29, 2011, the Company issued $250.0 million aggregate principal amount of 11% Senior Notes that mature on December 15, 2019 (the “Senior Notes”). The Senior Notes are guaranteed by the same subsidiaries that guarantee the Credit Facilities (the “Subsidiary Guarantors”). Pursuant to the terms of the indenture governing the Senior Notes (the “Indenture”), the Company may redeem all or a part of the Senior Notes at certain redemption prices that vary based on the date of redemption. The Company is not required to make any mandatory redemptions or sinking fund payments, and may at any time or from time to time purchase notes in the open market. The Indenture contains covenants that, among other things, limit the Company’s ability and the ability of certain of its subsidiaries to incur or guarantee additional indebtedness, create or incur certain liens, pay dividends or make other restricted payments and investments, incur restrictions on the payment of dividends or other distributions from restricted subsidiaries, sell assets, engage in transactions with affiliates, or merge or consolidate with other companies. As of April 28, 2017, the Company was in compliance with the terms of the Indenture. The significant components of interest expense are as follows (in thousands): For the First Quarter Ended April 28, April 29, First Lien Term Loan Facility $ $ ABL Facility Senior Notes Amortization of deferred financing costs and OID Other interest expense Interest expense $ $

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Apr. 28, 2017
Derivative Financial Instruments
Derivative Financial Instruments	6. Derivative Financial Instruments The Company entered into derivative instruments for risk management purposes and uses these derivatives to manage exposure to fluctuation in interest rates. Interest Rate Swap In May 2012, the Company entered into a floating-to-fixed interest rate swap agreement for an initial aggregate notional amount of $261.8 million to limit exposure to interest rate increases related to a portion of the Company’s floating rate indebtedness once the Company’s interest rate cap agreement expires. The swap agreement, effective November 2013, hedged a portion of contractual floating rate interest commitments through the expiration of the swap agreement in May 2016. As a result of the agreement, the Company’s effective fixed interest rate on the notional amount of floating rate indebtedness was 1.36% plus an applicable margin of 3.50%. The Company designated the interest rate swap agreement as a cash flow hedge. The interest rate swap agreement was highly correlated to the changes in interest rates to which the Company is exposed. Unrealized gains and losses on the interest rate swap were designated as effective or ineffective. The effective portion of such gains or losses was recorded as a component of AOCI or loss, while the ineffective portion of such gains or losses was recorded as a component of interest expense. Realized gains and losses in connection with each required interest payment were reclassified from AOCI or loss to interest expense. Payments In September 2015, the Company entered into an employment agreement with Geoffrey J. Covert as the President and Chief Executive Officer of each of the Company and Parent. In connection with this agreement, Mr. Covert is entitled to receive amounts under a transition program based on the value of certain equity awards from his former employer that he forfeited in connection with his previous employment. The maximum amount of payments due under this agreement is approximately $5.0 million, payable over a period of four years. The Company accounts for these transition payments as derivatives that are not designated as hedging instruments and has measured the obligation at fair value at April 28, 2017 and January 27, 2017. The Company recognizes the expense associated with these payments over the requisite service period. Fair Value The fair value of the transition payments is estimated using a valuation model that includes unobservable inputs (Level 3, as defined in Note 7, “Fair Value of Financial Instruments”). A summary of the recorded amounts included in the consolidated balance sheets is as follows (in thousands): April 28, January 27, Derivatives not designated as hedging instruments Transition payments (included in other current liabilities) $ $ Transition payments (included in other long-term liabilities) $ $ A summary of recorded amounts included in the unaudited consolidated statements of comprehensive income (loss) is as follows (in thousands): For the First Quarter Ended April 28, April 29, Derivatives designated as cash flow hedging instruments: Loss related to effective portion of derivative recognized in OCI $ — $ Loss related to effective portion of derivatives reclassified from AOCI to interest expense $ — $ (Loss) gain related to ineffective portion of derivative recognized in interest expense $ — $ Derivatives not designated as hedging instruments: Loss recognized in selling, general and administrative expenses $ $

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Apr. 28, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	7. Fair Value of Financial Instruments The Company complies with authoritative guidance for fair value measurement and disclosures which establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1: Defined as observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2: Defined as observable inputs other than Level 1 prices. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company uses the best available information in measuring fair value. The following table summarizes, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis (in thousands) as of April 28, 2017: April 28, 2017 Total Level 1 Level 2 Level 3 ASSETS Other assets — assets that fund deferred compensation $ $ $ — $ — LIABILITIES Other current liabilities — transition payments $ $ — $ — $ Other long-term liabilities — transition payments $ $ — $ — $ Other long-term liabilities — deferred compensation $ $ $ — $ — Level 1 measurements include $0.9 million of deferred compensation assets that fund the liabilities related to the Company’s deferred compensation plan, including investments in trust funds. The fair values of these funds are based on quoted market prices in an active market. There were no Level 2 assets or liabilities as of April 28, 2017. Level 3 measurements include transition payments to Mr. Covert (See Note 6, “Derivative Financial Instruments”) estimated using a valuation model that includes Level 3 unobservable inputs. Significant assumptions used in the analysis include projected stock prices, stock volatility and the Company’s credit spread. The Company did not have any transfers in and out of Levels 1 and 2 during the first quarter of fiscal 2018. The following table summarizes, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis (in thousands) as of January 27, 2017: January 27, 2017 Total Level 1 Level 2 Level 3 ASSETS Other assets — assets that fund deferred compensation $ $ $ — $ — LIABILITIES Other current liabilities — transition payments $ $ — $ — $ Other long-term liabilities — transition payments $ $ — $ — $ Other long-term liabilities — deferred compensation $ $ $ — $ — Level 1 measurements include $0.8 million of deferred compensation assets that fund the liabilities related to the Company’s deferred compensation plan, including investments in trust funds. The fair values of these funds are based on quoted market prices in an active market. There were no Level 2 assets or liabilities as of January 27, 2017. Level 3 measurements include transition payments to Mr. Covert estimated using a valuation model that includes Level 3 unobservable inputs. Significant assumptions used in the analysis include projected stock prices, stock volatility and the Company’s credit spread. The following table summarizes the activity for the period of changes in fair value of the Company’s Level 3 instruments (in thousands): For the First Quarter Ended Transition Payments April 28, 2017 April 29, 2016 Description Beginning balance $ ) $ ) Transfers in and/or out of Level 3 — — Total realized/unrealized gains (loss): Included in earnings (1) ) ) Included in other comprehensive loss — — Purchases, sales, issues and settlements: Settlements Ending balance $ ) $ ) Total amount of unrealized losses for the period included in earnings relating to liabilities held at the reporting period $ ) $ ) (1) Losses are included in selling, general and administrative expenses. The outstanding debt under the Credit Facilities and the Senior Notes is recorded in the financial statements at historical cost, net of applicable unamortized discounts and deferred financing costs. The ABL Facility is tied directly to market rates and fluctuates as market rates change; as a result, the carrying value of the ABL Facility approximates fair value as of April 28, 2017 and January 27, 2017. The fair value of the First Lien Term Loan Facility was estimated at $561.2 million, or $31.1 million lower than its carrying value, as of April 28, 2017, based on quoted market prices of the debt (Level 1 inputs). The fair value of the First Lien Term Loan Facility was estimated at $516.7 million, or $77.2 million lower than its carrying value, as of January 27, 2017, based on quoted market prices of the debt (Level 1 inputs). The fair value of the Senior Notes was estimated at $211.3 million, or $38.8 million lower than the carrying value, as of April 28, 2017, based on quoted market prices of the debt (Level 1 inputs). The fair value of the Senior Notes was estimated at $166.9 million, or $83.1 million lower than the carrying value, as of January 27, 2017, based on quoted market prices of the debt (Level 1 inputs). See Note 5, “Debt” for more information on the Company’s debt.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 28, 2017
Stock-Based Compensation
Stock-Based Compensation	8. Stock-Based Compensation Number Holdings, Inc. 2012 Equity Incentive Plan On February 27, 2012, the board of directors of Parent (the “Board”) adopted the Number Holdings, Inc. 2012 Stock Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes equity awards to be granted for up to 87,500 shares of Class A Common Stock of Parent and 87,500 shares of Class B Common Stock of Parent. As of April 28, 2017, options for 81,935 shares of each of Class A Common Stock and Class B Common Stock were outstanding and held by employees, members of management and directors. Options upon vesting may be exercised only for units consisting of an equal number of Class A Common Stock and Class B Common Stock. Class B Common Stock has de minimis economic rights and the right to vote solely for election of directors. Employee Option Grants Options subject to time-vesting conditions granted to employees generally become exercisable over a four or five year service period and have terms of ten years from the date of grant. Options with performance-vesting conditions granted to employees generally become exercisable based on the achievement of certain performance targets and have terms of ten years from the date of grant. Under the standard form of option award agreement for the 2012 Plan, Parent has a right to repurchase from the participant all or a portion of (i) Class A and Class B Common Stock of Parent issued upon the exercise of the options awarded to a participant and still held by such participant or his or her transferee and (ii) vested but unexercised options. The repurchase price for the shares of Class A and Class B Common Stock of Parent received from option exercises prior to termination of employment is the fair market value of such shares as of the date of such termination, and, for the vested but unexercised options, the repurchase price is the difference between the fair market value of the Class A and Class B Common Stock of Parent as of the date of termination of employment and the exercise price of the option. However, upon (i) a termination of employment for cause, (ii) a voluntary resignation without good reason, or (iii) upon discovery that the participant engaged in detrimental activity, the repurchase price is the lesser of the exercise price paid by the participant to exercise the option or the fair market value of the Class A and Class B Common Stock of Parent. If Parent elects to exercise its repurchase right for any shares acquired pursuant to the exercise of an option, it must do so no later than (i) 180 days after the date of participant’s termination of employment if the option is exercised prior to the date of termination, or (ii) no later than 90 days from the latest date that such option can be exercised if the option is exercised after the date of termination. If Parent elects to exercise its repurchase right for any vested and unexercised option, it must do so for no longer than the latest date that such option can be exercised. The options also contain transfer restrictions that lapse upon registration of an offering of Parent common stock under the Securities Act of 1933 (a “liquidity event”). The Company defers recognition of substantially all of the stock-based compensation expense related to these stock options. The nature of repurchase rights and transfer restrictions create a performance condition that is not considered probable of being achieved until a liquidity event or certain employment termination events are probable of occurrence. Additionally, the Company has deferred recognition of the stock-based compensation expense for performance-based options until it is probable that the performance targets will be achieved. These options are accounted for as equity-based awards. The fair value of these stock options was estimated at the date of grant using the Black-Scholes pricing model. There were 21,770 time-based and 17,915 performance-based employee options outstanding (for individuals other than board members, Mr. Covert and Ms. Thornton) as of April 28, 2017. Director Option Grants Options granted to board members generally become exercisable over a three, four or five year service period and have terms of ten years from the date of grant. Options granted to board members do not contain repurchase rights that would allow the Parent to repurchase these options at less than fair value. The Company recognizes stock-based compensation expense for these option grants over the service period. These options are accounted for as equity awards. The fair value of these stock options was estimated at the date of grant using the Black-Scholes pricing model. On July 26, 2016, the Compensation Committee of Parent amended 1,000 previously granted board member options with exercise prices in excess of $757 per share to lower the exercise price to $757 per share. The reduction in the exercise price was treated as a modification of stock options for accounting purposes. The modification, based on the fair value of the options both immediately before and after such modification, resulted in a total incremental compensation expense of less than $0.1 million in the second quarter of fiscal 2017. Chief Financial Officer Equity Awards In October 2015, the Company entered into an employment agreement with Felicia Thornton as the Chief Financial Officer and Treasurer of each of the Company and Parent. In connection with this agreement, Ms. Thornton was granted options to purchase 10,000 shares of Class A and Class B Common Stock of Parent. One-half of the options vest on each of the first four anniversaries of Ms. Thornton’s start date, and the other half of the options vest based on the achievement of certain performance targets. Options granted to Ms. Thornton contain repurchase rights as described above that would allow the Parent to repurchase these options at less than fair value, except that repurchase rights at less than fair value in the case of voluntary resignation without good reason lapse after November 2, 2017. The Company records stock-based compensation for the time-based options in accordance with the four year vesting period. The Company has deferred recognition of the stock-based compensation expense for the performance-based options until it is probable that the performance targets will be achieved. The time-based and performance-based options are accounted for as equity awards. The fair value of these time-based and performance-based options was estimated at the date of grant using the Black-Scholes pricing model. On July 26, 2016, the Compensation Committee of Parent amended Ms. Thornton’s performance-based options to conform the vesting conditions for the performance-vested options with those granted to other employees. The amendment of the performance targets was treated as a modification of stock options for accounting purposes and had no impact on compensation expense. The Company has continued to defer recognition of the stock-based compensation expense for the amended performance-based options. The fair value of these amended performance-based options was estimated at the date of modification using the Black-Scholes pricing model. Chief Executive Officer Equity Awards In September 2015, the Company entered into an employment agreement with Geoffrey J. Covert as the President and Chief Executive Officer of each of the Company and Parent. In connection with this agreement, Mr. Covert was granted two options, each to purchase 15,500 shares of Class A and Class B Common Stock of Parent. One of the grants has an exercise price of $1,000 per share. The other grant has an exercise price equal to $750 per share plus the amount by which the fair market value of the underlying share exceeds $1,000 on the date of exercise. One-half of each grant vests on each of the first four installments of the grant date, and the other half of each grant vests based on the achievement of certain performance targets. The vesting of the options is subject to Mr. Covert’s continued employment through the applicable vesting date. The options are subject to the terms of the 2012 Plan and the award agreements under which they were granted. The Company has deferred recognition of the stock-based compensation expense for these time-based and performance-based stock options due to repurchase rights and transfer restrictions included in the terms of the award. The nature of the repurchase rights and transfer restrictions create a performance condition that is not considered probable of being achieved until a liquidity event or certain employment termination events are probable of occurrence. Additionally, the Company has deferred recognition of the stock-based compensation expense for performance-based options until it is probable that the performance targets will be achieved. The fair value of the grant with an exercise price of $1,000 per share was estimated at the date of grant using a binomial model. The fair value of the other grant was estimated at the date of grant using a Monte Carlo simulation method. On July 26, 2016, the Compensation Committee of Parent amended Mr. Covert’s performance-based options to conform the vesting conditions for the performance-vested options with those granted to other employees. The amendment of the performance hurdles was treated as a modification of stock options for accounting purposes and had no impact on compensation expense. The Company has continued to defer recognition of the stock-based compensation expense for the amended performance-based options. The fair value of the grant with an exercise price of $1,000 per share was estimated at the date of modification using a binomial model. The fair value of the other grant was estimated at the date of modification using a Monte Carlo simulation method. Accounting for stock-based compensation Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise and the associated volatility. In accordance with the adoption of ASU No. 2016-09, “Compensation — Stock Compensation, Improvements to Employee Share-Based Payment Accounting” in the first quarter of fiscal 2018, the Company elected to recognize forfeitures in the period they occur as a reversal of previously recognized compensation expense. The reduction in compensation expense is determined based on the specific options forfeited during that period. Prior to the adoption of ASU 2016-09, the Company applied an estimated forfeiture rate as a reduction of current period stock-based compensation expense. During the first quarter of fiscal 2018 and 2017, the Company recorded stock-based compensation expense of $0.1 million and $0.2 million, respectively. There were no stock option grants in the first quarter of fiscal 2018. The following summarizes stock option activity in the first quarter of fiscal 2018: Number of Weighted Average Weighted Average Options outstanding at the beginning of the period $ Granted — $ — Exercised — $ — Cancelled ) $ Outstanding at the end of the period $ Exercisable at the end of the period $ The following table summarizes the stock awards available for grant under the 2012 Plan as of April 28, 2017: Number of Shares Available for grant as of January 27, 2017 Authorized — Granted — Cancelled Available for grant at April 28, 2017

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Apr. 28, 2017
Related-Party Transactions
Related-Party Transactions	9. Related-Party Transactions Management Services Agreements Upon completion of the Merger, the Company and Parent entered into management services agreements with affiliates of the Sponsors (the “Management Services Agreements”). Under each of the Management Services Agreements, the Company and Parent agreed to, among other things, retain and reimburse affiliates of the Sponsors for certain expenses incurred in connection with the provision by Sponsors of certain management and financial services and provide customary indemnification to the Sponsors and their affiliates. In the first quarter of fiscal 2018, the Company reimbursed affiliates of the Sponsors their expenses in the amount of less than $0.1 million. First Lien Term Loan Facility In connection with the Merger, the Company entered into the First Lien Term Loan Facility, under which various funds affiliated with Ares were lenders. As of April 28, 2017 and January 27, 2017, funds affiliated with Ares and CPPIB held approximately $130.2 million and $130.5 million, respectively, of term loans under the First Lien Term Loan Facility. The terms of the term loans are the same as those held by unaffiliated third party lenders under the First Lien Term Loan Facility. Senior Notes As of April 28, 2017 and January 27, 2017 various funds affiliated with Ares and CPPIB have collectively acquired $102.1 million aggregate principal amount of the Company’s Senior Notes in open market transactions. From time to time, these or other affiliated funds may acquire additional Senior Notes.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 28, 2017
Income Taxes
Income Taxes	10. Income Taxes The effective income tax rate for the first quarter of fiscal 2018 was a provision rate of (0.2)% compared to a provision rate of rate of (0.3)% for the first quarter of fiscal 2017. Income tax expense for the interim periods was computed using the effective tax rate estimated to be applicable for the full fiscal year. The effective tax rate reflects the tax effect of the establishment of a valuation allowance against deferred tax assets in the second quarter of fiscal 2016, and the effect of not recognizing the benefit of losses incurred in fiscal 2018 and 2017 in jurisdictions where the Company concluded it is more likely than not that such benefits would not be realized. The Company assesses its ability to realize deferred tax assets throughout the fiscal year. As a result of this assessment during the second quarter of fiscal 2016, the Company concluded that it was more likely than not that the Company would not realize its deferred tax assets. Therefore, in the second quarter of fiscal 2016, the Company recorded a $31.7 million increase to provision for income taxes in order to establish a valuation allowance against such net deferred tax assets. As of January 27, 2017, the valuation allowance increased to $137.7 million, which was primarily related to an increase in losses incurred during fiscal 2017. The Company will continue to evaluate all of the positive and negative evidence in future periods and will make a determination as to whether it is more likely than not that all or a portion of its deferred tax assets will be realized in such future periods. At such time as the Company determines that it is more likely than not that all or a portion of its deferred tax assets are realizable, the valuation allowance will be reduced or released in its entirety, and the corresponding benefit will be reflected in the Company’s tax provision. Deferred tax liabilities associated with indefinite-lived intangibles cannot be considered a source of taxable income to support the realization of deferred tax assets because these deferred tax liabilities will not reverse until some indefinite future period when these assets are either sold or impaired for book purposes. The establishment of a valuation allowance does not have any impact on cash, nor does such an allowance preclude the Company from using its loss carryforwards or utilizing other deferred tax assets in the future. As of April 28, 2017 and January 27, 2017, the Company had not accrued any liabilities related to unrecognized tax benefits, and had also not accrued any interest and penalties related to uncertain tax positions for the relevant periods. The Company files income tax returns in the U.S. federal jurisdiction and in various states. The Company is subject to examinations by the major tax jurisdictions in which it files for the tax years 2011 forward.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 28, 2017
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Credit Facilities The Company’s Credit Facilities and commitments are discussed in detail in Note 5, “Debt.” Mid-Term Cash Incentive Plan and Special Bonus Letters On July 26, 2016, the Compensation Committee of the Board (the “Compensation Committee”) adopted the 99 Cents Only Stores LLC 2016 Mid-Term Cash Incentive Plan (the “Mid-Term Cash Incentive Plan”). The Mid-Term Cash Incentive Plan is intended to promote the success of the Company by rewarding certain employees for their service to the Company and to provide incentives for such employees to remain in the employ or other service of the Company and to contribute to the performance of the Company. Under the Mid-Term Cash Incentive Plan, if the Company achieves an initial Adjusted EBITDA (as defined in the Mid-Term Cash Incentive Plan) goal for either fiscal 2017 or the fiscal year ending January 26, 2018 (the “Initial Mid-Term Plan Goal”), 50% of a participant’s award will be eligible for payment. No amounts will be paid under the Mid-Term Cash Incentive Plan if the Initial Mid-Term Plan Goal is not achieved. If the Company achieves the Initial Mid-Term Plan Goal and then achieves the same Adjusted EBITDA goal for the fiscal year immediately following the year in which the Initial Mid-Term Plan Goal was achieved, the remaining 50% of the participant’s award will be eligible for payment. Payment of eligible awards will only be made to the extent the Company’s Free Cash Flow (as defined in the Mid-Term Cash Incentive Plan) exceeds the amount eligible for payment, as measured at the end of each second quarter and fourth quarter of each fiscal year after an amount becomes eligible for payment until the end of the fiscal year ending January 31, 2020. The Company does not expect to maintain the Mid-Term Cash Incentive Plan for periods after the fiscal year ending July 31, 2020. The maximum payout under the Mid-Term Cash Incentive Plan is $22.5 million. The Company recognizes the expense associated with this Mid-Term Cash Incentive Plan over the requisite service periods and has accrued $8.9 million and $6.0 million as of April 28, 2017 and January 27, 2017, respectively. On July 26, 2016, the Compensation Committee approved special bonus letters for three executives. Pursuant to the terms thereof, if a Refinancing Transaction (as defined in the special bonus letters) occurs prior to October 1, 2018, each of the applicable executives will be eligible to receive a special bonus payable within 30 days of such transaction. The special bonuses to be earned by the applicable executives total $4.0 million. No amounts have been accrued as of April 28, 2017. Workers’ Compensation The Company self-insures its workers’ compensation claims in California and Texas and provides for losses of estimated known and incurred but not reported insurance claims. The Company does not discount the projected future cash outlays for the time value of money for claims and claim related costs when establishing its workers’ compensation liability. As of April 28, 2017 and January 27, 2017, the Company had recorded a liability of $69.3 million and $69.1 million, respectively, for estimated workers’ compensation claims in California. The Company has limited self-insurance exposure in Texas and had recorded a liability of less than $0.1 million as of each of April 28, 2017 and January 27, 2017 for workers’ compensation claims in Texas. The Company purchases workers’ compensation insurance coverage in Arizona and Nevada and is not self-insured in those states. Self-Insured Health Insurance Liability The Company self-insures for a portion of its employee medical benefit claims. As of each of April 28, 2017 and January 27, 2017, the Company had recorded a liability of $0.7 million and $0.9 million, respectively, for estimated health insurance claims. The Company maintains stop loss insurance coverage to limit its exposure for the self-funded portion of its health insurance program. Sale of Warehouse Facility On July 6, 2016, the Company sold and concurrently licensed (through March 31, 2017) a warehouse facility in the City of Commerce, California with a carrying value of $12.1 million and received net proceeds from this transaction of $28.5 million. In addition to the proceeds, $1.0 million purchase price consideration had been held in escrow for the buyer to make certain repairs, and any amount not used for such repairs would be paid to the Company. The repairs were completed in January 2017 and the Company received $0.6 million from amounts held in escrow. The Company was deemed to have “continuing involvement,” which precluded the de-recognition of the assets from the consolidated balance sheet when the transactions closed. The resulting lease was accounted for as a financing lease and the Company recorded a financing lease obligation of $30.1 million (as a component of current liabilities) as of January 27, 2017. The Company exited the warehouse facility in March 2017, de-recognized the assets and financing lease obligation and recorded a gain on sale of $18.5 million as part of selling, general and administrative expenses in the first quarter of fiscal 2018. Legal Matters Wage and Hour Matters Shelley Pickett v. 99¢ Only Stores. Plaintiff Shelley Pickett, a former cashier for the Company, filed a representative action complaint against the Company on November 4, 2011 in the Superior Court of the State of California, County of Los Angeles alleging a Private Attorneys General Act of 2004 (“PAGA”) claim that the Company violated section 14 of Wage Order 7-2001 by failing to provide seats for its cashiers behind checkout counters. Pickett seeks civil penalties of $100 to $200 per violation, per each pay period for each affected employee, and attorney’s fees. The court denied the Company’s motion to compel arbitration of Pickett’s individual claims or, in the alternative, to strike the representative action allegations in the complaint, and the Court of Appeals affirmed the trial court’s ruling. On June 27, 2013, Pickett entered into a settlement agreement and release with the Company in another matter. Payment has been made to the plaintiff under that agreement and the other action has been dismissed. The Company’s position is that the release Pickett executed in that matter waives the claims she asserts in this action, waives her right to proceed on a class or representative basis or as a private attorney general and requires her to dismiss this action with prejudice as to her individual claims. The Company notified Pickett of its position by a letter dated as of July 30, 2013, but she refused to dismiss the lawsuit. On February 11, 2014, the Company answered the complaint, denying all material allegations, and filed a cross-complaint against Pickett seeking to enforce her agreement to dismiss this action. Through the cross-complaint, the Company seeks declaratory relief, specific performance and damages. Pickett has answered the cross-complaint, asserting a general denial of all material allegations and various affirmative defenses. On September 30, 2014, the court denied the Company’s motion for judgment on the pleadings as to its cross-complaint and granted leave to Pickett to amend her complaint to add another representative plaintiff, Tracy Humphrey. Plaintiffs filed their amended complaint on October 8, 2014, and the Company answered on October 10, 2014, denying all material allegations. On April 4, 2016, in an unrelated matter involving similar claims against a different employer, the California Supreme Court issued a ruling that provides guidance to lower courts as to California’s employee seating requirement, which is a largely untested area of law. The instant action had been stayed pending the issuance of the California Supreme Court ruling. The stay has been lifted and the parties mediated this matter on October 19, 2016. The mediation did not result in a settlement. A bench trial was originally scheduled for May 31, 2017, and had been continued by the Court to June 6, 2017. The Court bifurcated the trial so that it will address liability in the first phase, and penalties in a second phase, if necessary. The Company filed a motion to strike the representative allegations in the complaint and focus the trial on the two stores where the named Plaintiffs worked. That motion was heard on May 9, 2017, and, on May 25, 2017, the motion to strike was denied and the motion to phase trial was granted. The parties are engaged in settlement discussions and any settlement will be subject to statutory notice requirements and conditioned upon court approval. The Court has continued the trial to July 12, 2017, to allow time to prepare settlement documentation. The Company accrued an immaterial amount related to this matter as of April 28, 2017. If the settlement is not finalized or not approved by the Court, the Company will not be able to predict the outcome of this lawsuit or the amount of potential loss, if any, that could result from such lawsuit. Sofia Wilton Barriga v. 99¢ Only Stores. Plaintiff, a former store associate, filed an action against the Company on August 5, 2013, in the Superior Court of the State of California, County of Riverside alleging on behalf of the plaintiff and all others allegedly similarly situated under the California Labor Code that the Company failed to pay wages for all hours worked, provide meal periods, pay wages timely upon termination, and provide accurate wage statements. The plaintiff also asserted a derivative claim for unfair competition under the California Business and Professions Code. The plaintiff seeks to represent a class of all non-exempt employees who were employed in California in the Company’s retail stores who worked the graveyard shift at any time from January 1, 2012, through the date of trial or settlement. Although the class period as originally pled would extend back to August 5, 2009, the parties have agreed that any class period would run beginning January 1, 2012, because of the preclusive effect of a judgment in a previous matter. The plaintiff seeks to recover alleged unpaid wages, statutory penalties, interest, attorney’s fees and costs, and restitution. On September 23, 2013, the Company filed an answer denying all material allegations. A case management conference was held on October 4, 2013, at which the court ordered that discovery may proceed as to class certification issues only. After discovery commenced, a mediation was held on March 12, 2015, resulting in a confidential mediator’s proposal, which the parties verbally accepted. The parties were unable to negotiate and finalize a written settlement agreement. Subsequent settlement discussions directly and through the mediator, as well as a court-ordered settlement conference, were unsuccessful. Discovery resumed and plaintiff’s motion for class certification was fully briefed. Plaintiff also brought a motion to strike the evidence submitted in support of the Company’s opposition to class certification. At the Court’s request the parties mediated this matter prior to any ruling on the class certification motion and the motion to strike. That mediation took place on March 2, 2017, and did not result in a settlement. The motion for class certification and motion to strike were heard on April 20, 2017, and on April 26, 2017, the Court denied both motions. On October 26, 2015, plaintiffs’ counsel filed another action in Los Angeles Superior Court, entitled Ivan Guerra v. 99 Cents Only Stores LLC (Case No. BC599119), which asserts PAGA claims based in part on the allegations at issue in the Barriga action. By stipulation of the parties, the Guerra action has been transferred to Riverside Superior Court and was mediated along with the Barriga action on March 2, 2017. The Company cannot predict the outcome of these lawsuits or the amount of potential loss, if any, that could result from such lawsuits. Phillip Clavel v. 99 Cents Only Stores LLC, et al. Former warehouse worker Phillip Clavel filed an action against the Company on March 30, 2016, in the Superior Court of the State of California, County of Los Angeles on behalf of himself and all other alleged aggrieved employees, seeking civil penalties under the PAGA for the following alleged Labor Code violations: failure to pay regular, overtime and minimum wages for all hours worked, failure to provide proper meal and rest periods, failure to pay wages timely during employment and upon termination, failure to provide proper wage statements, failure to reimburse business expenses, and failure to provide notice of the material terms of employment under the Wage Theft Prevention Act. Mr. Clavel alleges that his claims arose during two periods of employment—one from March 2015 through mid-October 2015, during which he was employed by the Company as a forklift operator in the Commerce Distribution Center, and a second period from late October 2015 through February 2016, when he was similarly employed (through a staffing agency, BaronHR) at the Company’s Washington Boulevard warehouse. On June 9, 2016, Plaintiff filed a First Amended Complaint. The Company answered the First Amended Complaint on June 14, 2016, generally denying the allegations in the complaint and asserting a number of affirmative defenses. BaronHR has also answered the First Amended Complaint. Trial has been set to commence on July 18, 2017. A mediation took place on January 19, 2017, and at the conclusion of the mediation, the parties executed a term sheet settlement agreement to resolve the alleged PAGA claims. The parties have now executed a long-form settlement agreement reflecting the final terms; however, the settlement is contingent on Court approval. The Company accrued an immaterial amount related to this matter as of January 27, 2017 and April 28, 2017. If the proposed settlement is not finalized or not approved by the Court, the Company will not be able to predict the outcome of this lawsuit or the amount of potential loss, if any, that could result from such lawsuit. Jimmy Mejia, et al. v. 99 Cents Only Stores LLC . Former store associates Jimmy Mejia and Yamilet Serrano filed an action against the Company on September 16, 2016, in the Superior Court of the State of California, County of Los Angeles on behalf of themselves and all other alleged aggrieved employees, seeking civil penalties under the PAGA for the following alleged Labor Code violations: failure to pay overtime and minimum wages for all hours worked, failure to provide proper meal and rest periods, failure to pay timely wages during employment and upon termination, and failure to provide proper wage statements. On November 14, 2016, the Company answered the complaint, generally denying the allegations in the complaint and asserting a number of affirmative defenses. Trial has been scheduled for January 8, 2018. The Company cannot predict the outcome of this lawsuit or the amount of potential loss, if any, that could result from such lawsuit. Venzel Bradford v. BaronHR, Inc., et al. Former warehouse worker Venzel Bradford filed a putative class action complaint against BaronHR, Inc., Solvis Staffing Services, Inc., Personnel Staffing Group, LLC, and the Company on April 26, 2017, in the Superior Court of the State of California, County of Los Angeles. On behalf of himself and all others alleged to be similarly situated, Bradford is asserting claims for failure to pay overtime wages, failure to provide meal and rest periods, waiting time penalties, failure to provide proper wage statements, and unfair competition. Bradford was not employed by the Company; he was employed by one or more of the staffing agencies named as defendants. The Company has not yet been served with the complaint and intends to seek indemnity from the employing agency(ies). The Company cannot predict the outcome of this lawsuit or the amount of potential loss, if any, that could result from such lawsuit. Environmental Matters People of the State of California v. 99 Cents Only Stores LLC. This action was brought by the San Joaquin District Attorney and a number of other public prosecutors against the Company alleging that the Company had violated hazardous waste statutory and regulatory requirements at its retail stores in California. The Company settled this case through the entry of a stipulated judgment in December 2014 which contained injunctive relief requiring the Company to comply with applicable hazardous waste requirements at these stores. On June 29, 2015, the District Attorney informed the Company of alleged hazardous waste violations identified during a March 2015 inspection of a recently-opened store in Sonora, Tuolumne County and requested a meeting with the Company. Since that time, the Company has been cooperating with the District Attorney to provide information regarding the alleged violations. In May 2016, the discussions with the District Attorney were extended to include non-compliance issues identified at an existing store in San Jose during an inspection on March 16, 2016. In connection with this matter, the Company has accrued an immaterial amount. Although any monetary damages ultimately paid by the Company may exceed the accrued amount, it is not currently possible to estimate the amount of any such excess or the impact that any injunctive relief may have on the Company’s business, financial condition and results of operations. Other Matters The Company is also subject to other private lawsuits, administrative proceedings and claims that arise in its ordinary course of business. A number of these lawsuits, proceedings and claims may exist at any given time. While the resolution of such a lawsuit, proceeding or claim may have an impact on the Company’s financial results for the period in which it is resolved, and litigation is inherently unpredictable, in management’s opinion, none of these matters arising in the ordinary course of business is expected to have a material adverse effect on the Company’s financial position, results of operations or overall liquidity.

Assets Held for Sale

Assets Held for Sale	3 Months Ended
	Apr. 28, 2017
Assets Held for Sale
Assets Held for Sale	12. Assets Held for Sale Assets held for sale as of April 28, 2017 and January 27, 2017 consisted of vacant land in Rancho Mirage and Los Angeles, California and land in Bullhead, Arizona with an aggregate carrying value of $4.9 million.

Other Accrued Expenses

Other Accrued Expenses	3 Months Ended
	Apr. 28, 2017
Other Accrued Expenses
Other Accrued Expenses	13. Other Accrued Expenses Other accrued expenses as of April 28, 2017 and January 27, 2017 are as follows (in thousands): April 28, January 27, Accrued interest $ $ Accrued occupancy costs Accrued legal reserves and fees Accrued California Redemption Value Accrued transportation Other Total other accrued expenses $ $

New Authoritative Standards

New Authoritative Standards	3 Months Ended
	Apr. 28, 2017
New Authoritative Standards
New Authoritative Standards	14. New Authoritative Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU also requires expanded disclosures about revenue recognition. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 was to be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date”, which defers the effective date of ASU 2014-09 for all entities by one year, while allowing early adoption as of the original public entity date. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” which amends the revenue recognition guidance on accounting for licenses of intellectual property and identifying performance obligations as well as clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients,” which provides clarifying guidance in certain narrow areas such as an assessment of collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition as well as adds some practical expedients. In December 2016, the FASB issued ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” to clarify or to correct unintended application of the Topic 606, including disclosure requirements related to performance obligations. The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, “Revenue from Contracts with Customers,” as amended by the one-year deferral and early adoption provisions in ASU 2015-14. The Company is primarily engaged in the business of selling consumable and general merchandise and seasonal products. Revenues from the sale of such products are recognized at the point of sale. To date, the Company has performed a preliminary detailed review of key contracts and compared historical accounting policies and practices to the new standard. While the Company is still evaluating this standard, it is not expected that this standard will have a material impact on the Company’s consolidated financial statements. The Company will continue to evaluate ASU 2014-09 and other amendments and related interpretive guidance through the date of adoption. The Company expects to adopt ASU 2014-09 under the modified retrospective approach in the first quarter of fiscal 2019. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This ASU simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost or net realizable value test. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. This ASU should be applied prospectively. The Company adopted this standard in the first quarter of fiscal 2018 and such adoption did not have an impact on the Company or its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU revises an entity’s accounting on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU becomes effective for public entities in the fiscal year beginning after December 15, 2017. Early adoption is not permitted except for the provisions related to the presentation of certain fair value changes for financial liabilities measured at fair value. The Company will adopt ASU 2016-01 in the first quarter of fiscal 2019 and such adoption is not expected to have a material impact on the Company or its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires lessees to recognize right-of-use assets and lease liabilities, for all leases, with the exception of short-term leases, at the commencement date of each lease. This ASU requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. Early adoption is permitted. The amendments of this update should be applied using a modified retrospective approach, which requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and is anticipating a material impact on its consolidated financial statements because the Company is party to a significant number of lease contracts. In March 2016, the FASB issued ASU 2016-04 , “ Recognition of Breakage for Certain Prepaid Stored-Value Products,” which is designed to provide guidance and eliminate diversity in the accounting for the de-recognition of financial liabilities related to certain prepaid stored-value products using a revenue-like breakage model. Breakage should be recognized in proportion to the pattern of rights expected to be exercised by the product holder to the extent that it is probable a significant reversal of the recognized breakage amount will not subsequently occur. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, and is to be applied retrospectively or using a modified retrospective approach. The Company will adopt ASU 2016-04 in the first quarter of fiscal 2019 and such adoption is not expected to have a material impact on the Company or its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting”. This ASU requires companies to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The guidance requires companies to present excess tax benefits as an operating activity and cash paid to a taxing authority to satisfy statutory withholding as a financing activity on the statement of cash flows. The guidance will also allow entities to make an alternative policy election to account for forfeitures as they occur. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. The Company adopted this standard in the first quarter of fiscal 2018. The Company made a policy election to account for forfeitures of share-based payments as they occur and implemented this provision using a modified retrospective transition. There was no impact on retained earnings. The Company also adopted other provisions of ASU 2016-09 in the first quarter of fiscal 2018 and the adoption of these provisions did not have an impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments”. This ASU replaces the current incurred loss impairment methodology of recognizing credit losses when a loss is probable, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. The standard will be effective for fiscal years beginning after December 15, 2019, with early adoption permitted for periods after December 15, 2018. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments”, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted, and is to be applied retrospectively. The adoption is not expected to have a material impact on the Company or its consolidated financial statements. In October 2016, the FASB has issued ASU No. 2016-17, “Interest Held through Related Parties that are under Common Control”, which provides guidance on the evaluation of whether a reporting entity is the primary beneficiary of a variable interest entity (“VIE”) by amending how a reporting entity, that is a single decision maker of a VIE, treats indirect interests in that entity held through related parties that are under common control. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2018 and such adoption did not have an impact on the Company or its consolidated financial statements. In October 2016 the FASB has issued ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory”, which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted as of the beginning of a fiscal year. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Restricted Cash,” which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU do not provide a definition of restricted cash or restricted cash equivalents. The guidance is effective for periods beginning after December 15, 2017 on a retrospective basis, with early adoption permitted. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. On December 2016, FASB issued ASU 2016-19, “Technical Corrections and Improvements”, which includes amendments related to differences between original guidance and the Accounting Standards Codification, guidance clarification and reference corrections, simplifications to the Accounting Standards Codification, and minor improvements to the guidance. The amendments of the standard that require transition guidance are effective for annual and interim reporting periods beginning after December 15, 2016, and early adoption is permitted. All other amendments were effective immediately. The Company adopted this standard in the first quarter of fiscal 2018 and such adoption did not have an impact on the Company or its consolidated financial statements. In January 2017 the FASB issued ASU No. 2017-01 “Business Combinations: Clarifying the Definition of a Business”, revises the definition of a business and may affect acquisitions, disposals, goodwill impairment and consolidation. The new guidance specifies that when substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets), the assets acquired would not represent a business. The changes to the definition of a business in this guidance will likely result in more acquisitions being accounted for as asset acquisitions and would also affect the accounting for disposal transactions. This guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The adoption is not expected to have a material impact on the Company or its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment”, which simplifies the goodwill impairment testing by eliminating Step 2 from the goodwill impairment testing required, should an impairment be discovered during its annual or interim assessment. The new standard is effective for annual or interim impairment tests beginning after December 15, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, “Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets”, which provides clarification about the term “in substance nonfinancial asset” and guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets. The new standard is effective for public entities for annual periods beginning after December 15, 2017 and interim periods therein. Entities may use either a full or modified approach to adopt the standard. The Company is currently in the process of evaluating the impact of this standard on its consolidated financial statements.

Financial Guarantees

Financial Guarantees	3 Months Ended
	Apr. 28, 2017
Financial Guarantees
Financial Guarantees	15. Financial Guarantees On December 29, 2011, the Company issued $250.0 million principal amount of the Senior Notes. The Senior Notes are irrevocably and unconditionally guaranteed, jointly and severally, by each of the Company’s existing and future restricted subsidiaries that are guarantors under the Credit Facilities and certain other indebtedness. As of April 28, 2017 and January 27, 2017, the Senior Notes are fully and unconditionally guaranteed by the Subsidiary Guarantors. The tables in the following pages present the condensed consolidating financial information for the Company and the Subsidiary Guarantors together with consolidating entries, as of and for the periods indicated. The subsidiaries that are not Subsidiary Guarantors are minor. The condensed consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Company, and the Subsidiary Guarantors operated as independent entities. CONDENSED CONSOLIDATING BALANCE SHEETS As of April 28, 2017 (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated ASSETS Current Assets: Cash $ $ $ $ — $ Accounts receivable, net — — Income taxes receivable (payable) ) — — Inventories, net — — Assets held for sale — — — Other — Total current assets — Property and equipment, net — Deferred financing costs, net — — — Equity investments and advances to subsidiaries ) — Intangible assets, net — — Goodwill — — — Deposits and other assets — Total assets $ $ $ $ ) $ LIABILITIES AND MEMBER’S EQUITY Current Liabilities: Accounts payable $ $ $ — $ — $ Intercompany payable ) — Payroll and payroll-related — — Sales tax — — Other accrued expenses — Workers’ compensation — — Current portion of long-term debt — — — Current portion of capital and financing lease obligation — — — Total current liabilities ) Long-term debt, net of current portion — — — Unfavorable lease commitments, net — — Deferred rent — Deferred compensation liability — — — Capital and financing lease obligation, net of current portion — — — Deferred income taxes — — — Other liabilities — — — Total liabilities ) Member’s Equity: Member units — ) Additional paid-in capital — — ) — Investment in Number Holdings, Inc. preferred stock ) — — — ) Accumulated deficit ) ) ) ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ CONDENSED CONSOLIDATING BALANCE SHEETS As of January 27, 2017 (In thousands) Issuer Subsidiary Non- Consolidating Consolidated ASSETS Current Assets: Cash $ $ $ $ — $ Accounts receivable, net — — Income taxes receivable (payable) ) — — Inventories, net — — Assets held for sale — — — Other — Total current assets — Property and equipment, net — Deferred financing costs, net — — — Equity investments and advances to subsidiaries ) — Intangible assets, net — — Goodwill — — — Deposits and other assets — Total assets $ $ $ $ ) $ LIABILITIES AND MEMBER’S EQUITY Current Liabilities: Accounts payable $ $ $ — $ — $ Intercompany payable ) — Payroll and payroll-related — — Sales tax — — Other accrued expenses — Workers’ compensation — — Current portion of long-term debt — — — Current portion of capital and financing lease obligation — — — Total current liabilities ) Long-term debt, net of current portion — — — Unfavorable lease commitments, net — — Deferred rent — Deferred compensation liability — — — Capital and financing lease obligation, net of current portion — — — Deferred income taxes — — — Other liabilities — — — Total liabilities ) Member’s Equity: Member units — ) Additional paid-in capital — — ) — Investment in Number Holdings, Inc. preferred stock ) — — — ) Accumulated deficit ) ) ) ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Net Sales: Total sales $ $ $ $ ) $ Cost of sales — — Gross profit ) Selling, general and administrative expenses ) Operating income (loss) ) — Other (income) expense: Interest income ) — — — ) Interest expense — — — Loss on extinguishment of debt — — — — — Equity in loss (earnings) of subsidiaries — — ) — Total other expense, net — — ) (Loss) income before provision for income taxes ) ) ) Provision for income taxes — — — Net (loss) income $ ) $ ) $ $ $ ) Comprehensive (loss) income $ ) $ ) $ $ $ ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Net Sales: Total sales $ $ $ — $ — $ Cost of sales — — Gross profit — — Selling, general and administrative expenses — Operating loss ) ) ) — ) Other (income) expense: Interest income ) — — — ) Interest expense — — — Loss on extinguishment of debt — — — Equity in loss (earnings) of subsidiaries — — ) — Total other expense, net — — ) (Loss) income before provision for income taxes ) ) ) ) Provision for income taxes — — — Net (loss) income $ ) $ ) $ ) $ $ ) Comprehensive (loss) income $ ) $ ) $ ) $ $ ) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ $ $ ) $ — $ Cash flows from investing activities: Purchases of property and equipment ) ) — — ) Proceeds from sales of property and fixed assets — — — Net cash used in investing activities ) ) — — ) Cash flows from financing activities: Payments of long-term debt ) — — — ) Proceeds under revolving credit facility — — — Payments under revolving credit facility ) — — — ) Proceeds from financing lease obligations — — — Payments of capital and financing lease obligations ) — — — ) Net cash used in financing activities ) — — — ) Net decrease in cash ) ) ) — ) Cash — beginning of period — Cash — end of period $ $ $ $ — $ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ $ $ ) $ — $ Cash flows from investing activities: Purchases of property and equipment ) ) ) — ) Proceeds from sales of property and fixed assets — — — Net cash used in investing activities ) ) ) — ) Cash flows from financing activities: Payments of long-term debt ) — — — ) Proceeds under revolving credit facility — — — Payments under revolving credit facility ) — — — ) Payments of debt issuance costs ) — — — ) Proceeds from financing lease obligations — — — Payments of capital and financing lease obligations ) — — — ) Net cash used in financing activities ) — — — ) Net increase (decrease) in cash ) — Cash — beginning of period — Cash — end of period $ $ $ $ — $

Basis of Presentation and Sum21

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 28, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). However, certain information and footnote disclosures normally included in financial statements prepared in conformity with GAAP have been omitted or condensed pursuant to the rules and regulations of the Securities and Exchange Commission. These statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2017. In the opinion of the Company’s management, these interim unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the consolidated financial position and results of operations for each of the periods presented. The results of operations and cash flows for such periods are not necessarily indicative of results to be expected for the full fiscal year ending February 2, 2018 (“fiscal 2018”).
Fiscal Year	Fiscal Year The Company follows a fiscal calendar consisting of four quarters with 91 days, each ending on the Friday closest to the last day of April, July, October or January, as applicable, and a 52-week fiscal year with 364 days, with a 53-week year every five to six years. Unless otherwise stated, references to years in this Report relate to fiscal years rather than calendar years. The Company’s fiscal 2018 began on January 28, 2017, will end on February 2, 2018 and will consist of 53 weeks. The Company’s fiscal year 2017 (“fiscal 2017”) began on January 30, 2016, ended on January 27, 2017 and consisted of 52 weeks. The first quarter ended April 28, 2017 (the “first quarter of fiscal 2018”) and the first quarter ended April 29, 2016 (the “first quarter of fiscal 2017”) were each comprised of 91 days.
Use of Estimates	Use of Estimates The preparation of the unaudited consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash	Cash For purposes of reporting cash flows, cash includes cash on hand, cash at the stores and cash in financial institutions. The majority of payments due from financial institutions for the settlement of debit card and credit card transactions are processed within three business days and therefore are also classified as cash. Cash balances held at financial institutions are generally in excess of federally insured limits. These accounts are only insured by the Federal Deposit Insurance Corporation up to $250,000. The Company historically has not experienced any losses in such accounts. The Company places its temporary cash investments with what it believes to be high credit, quality financial institutions. Under the Company’s cash management system, checks issued but not presented to the bank may result in book cash overdraft balances for accounting purposes. The Company reclassifies book overdrafts to accounts payable, which are reflected as an operating activity in its unaudited consolidated statements of cash flows. Book overdrafts included in accounts payable were $6.5 million and $7.0 million as of April 28, 2017 and January 27, 2017, respectively.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts In connection with its wholesale business, the Company evaluates the collectability of accounts receivable based on a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s or tenant’s ability to meet its financial obligations subsequent to the original sale, the Company will record an allowance against amounts due and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers and tenants, the Company recognizes allowances for doubtful accounts based on the length of time the receivables are past due, industry and geographic concentrations, the current business environment and the Company’s historical experiences.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Inventory costs are established using a methodology that approximates first in, first out, which for store inventories is based on a retail inventory method. Valuation allowances for shrinkage as well as excess and obsolete inventory are also recorded. The Company includes spoilage, scrap and shrink in its definition of shrinkage. Shrinkage is estimated as a percentage of sales for the period from the last physical inventory date to the end of the applicable period. Such estimates are based on experience and the most recent physical inventory results. Physical inventory counts are completed at each of the Company’s retail stores at least once a year by an outside inventory service company. The Company performs inventory cycle counts at its warehouses throughout the year. The Company also performs inventory reviews and analysis on a quarterly basis for both warehouse and store inventory to determine inventory valuation allowances for excess and obsolete inventory. The valuation allowances for excess and obsolete inventory are based on the age of the inventory, sales trends and future merchandising plans. The valuation allowances for excess and obsolete inventory require management judgment and estimates that may impact the ending inventory valuation and valuation allowances that may have a material effect on the reported gross margin for the period. These estimates are subject to change based on management’s evaluation of, and response to, a variety of factors and trends, including, but not limited to, consumer preferences and buying patterns, age of inventory, increased competition, inventory management, merchandising strategies and historical sell through trends. The Company’s ability to adequately evaluate the impact of inventory management and merchandising strategies executed in response to such factors and trends in future periods could have a material impact on such estimates. In order to obtain inventory at attractive prices, the Company takes advantage of large volume purchases, closeouts and other similar purchase opportunities. Consequently, the Company’s inventory fluctuates from period to period and the inventory balances vary based on the timing and availability of such opportunities.
Property and Equipment	Property and Equipment Property and equipment are carried at cost and are depreciated or amortized on a straight-line basis over the following useful lives: Owned buildings and improvements Lesser of 30 years or the estimated useful life of the improvement Leasehold improvements Lesser of the estimated useful life of the improvement or remaining lease term Fixtures and equipment 3-5 years Transportation equipment 3-5 years Information technology systems For major corporate systems, estimated useful life up to 7 years; for functional standalone systems, estimated useful life up to 5 years The Company’s policy is to capitalize expenditures that materially increase asset lives and expense ordinary repairs and maintenance as incurred.
Long-Lived Assets	Long-Lived Assets The Company assesses the impairment of depreciable long-lived assets when events or changes in circumstances indicate that the carrying value may not be recoverable. The Company groups and evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual identifiable cash flows are available. Recoverability is measured by comparing the carrying amount of an asset to expected future net cash flows generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, the carrying amount is compared to its fair value and an impairment charge is recognized to the extent of the difference. Factors that the Company considers important that could individually or in combination trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business; and (3) significant changes in the Company’s business strategies and/or negative industry or economic trends. On a quarterly basis, the Company assesses whether events or changes in circumstances occur that potentially indicate that the carrying value of long-lived assets may not be recoverable (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). Considerable management judgment is necessary to estimate projected future operating cash flows. Accordingly, if actual results fall short of such estimates, significant future impairments could result. During the first quarter of each of fiscal 2017 and fiscal 2016, the Company did not record any long-lived asset impairment charges.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets In connection with the Merger purchase price allocation, the fair values of long-lived and intangible assets were determined based upon assumptions related to the future cash flows, discount rates and asset lives using then available information, and in some cases were obtained from independent professional valuation experts. The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on undiscounted cash flows, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Significant judgment is required in determining whether a potential indicator of impairment of long-lived assets exists and in estimating future cash flows used in the impairment tests (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). Goodwill and indefinite-lived intangible assets are not amortized but instead tested annually for impairment or more frequently when events or changes in circumstances indicate that the assets might be impaired. Goodwill is tested for impairment by comparing the carrying amount of the reporting unit to the fair value of the reporting unit to which the goodwill is assigned. The Company has the option of performing a qualitative assessment before calculating the fair value of the reporting unit (i.e., step zero of the goodwill impairment test). If the Company does not perform a qualitative assessment, or determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, the two-step impairment test would be required. The first step is to compare the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is considered not impaired; otherwise, goodwill is impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of goodwill. Management has determined that the Company has two reporting units, the retail reporting unit and the wholesale reporting unit. The Company, assisted by an independent third party valuation firm, performs the annual test for impairment in January of the fiscal year and determines fair value based on a combination of the income approach and the market approach. The income approach is based on discounted cash flows to determine fair value. The market approach uses a selection of comparable companies and transactions in determining fair value. The fair value of the trade name is also tested for impairment in the fourth quarter by comparing the carrying value to the fair value. Fair value of a trade name is determined using a relief from royalty method under the income approach, which uses projected revenue allocable to the trade name and an assumed royalty rate (Level 3 measurement, see Note 7, “Fair Value of Financial Instruments”). These approaches involve making key assumptions about future cash flows, discount rates and asset lives using then best available information. These assumptions are subject to a high degree of complexity and judgment and are subject to change. During the third quarter of fiscal 2016, the Company determined that indicators of impairment existed to require an interim impairment analysis of goodwill and trade name. The first step evaluation concluded that the fair value of the retail reporting unit was below its carrying value. The Company performed step two of the goodwill impairment test. As a result of the preliminary analysis and based on best estimate, the Company recorded a $120.0 million non-cash goodwill impairment charge in the third quarter of fiscal 2016, which was reflected as goodwill impairment in the consolidated statements of comprehensive income (loss). The finalization of the preliminary goodwill impairment test was completed in the fourth quarter of fiscal 2016 and resulted in a $20.9 million adjustment in goodwill, lowering the estimated third quarter of fiscal 2016 goodwill impairment charge from $120.0 million to $99.1 million. The remaining amount of goodwill allocated to the retail reporting unit and wholesale reporting unit was $368.1 million and $12.5 million, respectively, as of January 29, 2016. During the fourth quarter of fiscal 2017, the Company completed step one of its annual goodwill impairment test for the two reporting units and determined that there was no impairment of goodwill since the fair value of the Company’s reporting units exceeded their carrying amounts. The results of this test showed that the fair value of our retail reporting unit exceeded its carrying value by a substantial amount. The results of this test showed that the fair value of wholesale reporting unit exceeded carrying value by approximately 18%. As discussed above, considerable management judgment is necessary in estimating future cash flows, market interest rates, discount rates and other factors affecting the valuation of goodwill. The Company’s forecasts used in its fiscal 2017 annual impairment test include growth in net sales, new store openings and same-store sales, positive trends in cost of sales and selling, general and administrative expense. In each case, these estimates and assumptions could be materially affected by factors such as unforeseen events or changes in general economic conditions, a decline in comparable company market multiples, changes to discount rates, increased competitive forces, inability to maintain pricing structure, deterioration of vendor relationships, failure to adequately manage and improve inventory processes and procedures and changes in customer behavior which could result in changes to management’s strategies. If operating results continue to change versus the Company’s expectations, additional impairment charges may be recorded in the future. Additionally, during the fourth quarter of fiscal 2017, the Company completed its annual indefinite-lived intangible asset impairment test and determined there was no impairment to the trade name since the fair value of the trade name exceeded its carrying amount. The results of this test showed that the fair value of trade name exceeded carrying value by approximately 18%. The relief from royalty method estimates our theoretical royalty savings from ownership of the intangible asset. Key assumptions used in this model included sales projections, discount rates and royalty rates, and considerable management judgment is necessary in developing and evaluating such assumptions. If future results are not consistent with current estimates and assumptions, impairment charges maybe recorded in future. During the first quarter of fiscal 2018, the Company did not record any impairment charges related to goodwill or other intangible assets.
Derivatives	Derivatives The Company accounts for derivative financial instruments in accordance with authoritative guidance for derivative instrument and hedging activities. Financial instrument positions taken by the Company are primarily intended to be used to manage risks associated with interest rate exposures. The Company’s derivative financial instruments are recorded on the balance sheet at fair value, and are recorded in either current or noncurrent assets or liabilities based on their maturity. Changes in the fair values of derivatives are recorded in net earnings or other comprehensive income (“OCI”), based on whether the instrument is designated and effective as a hedge transaction and, if so, the type of hedge transaction. Gains or losses on derivative instruments reported in accumulated other comprehensive income (“AOCI”) are reclassified to earnings in the period the hedged item affects earnings. Any ineffectiveness is recognized in earnings in the period incurred.
Income Taxes	Income Taxes The Company uses the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company’s ability to realize deferred tax assets is assessed throughout the year and a valuation allowance is established accordingly. The Company recognizes the impact of a tax position only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The Company recognizes potential interest and penalties related to uncertain tax positions in income tax expense. Refer to Note 10, “Income Taxes,” for further discussion of income taxes.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based payment awards based on their fair value. The value of the portion of the award that is ultimately expected to vest is recognized as an expense ratably over the requisite service periods. For awards classified as equity, the Company estimates the fair value for each option award as of the date of grant using the Black-Scholes option pricing model or other appropriate valuation models. The Black-Scholes model considers, among other factors, the expected life of the award and the expected volatility of the stock price. Stock options are generally granted to employees at exercise prices equal to or greater than the fair market value of the stock at the dates of grant. The fair value of options that vest based on the Company’s and Parent’s achievement of certain performance hurdles were valued using a Monte Carlo simulation method. The fair value of options granted to the current Chief Executive Officer were valued using a binomial model and the Monte Carlo simulation method. Refer to Note 8, “Stock-Based Compensation” for further discussion of the Company’s stock-based compensation.
Revenue Recognition	Revenue Recognition The Company recognizes retail sales in its retail stores at the time the customer takes possession of merchandise. All sales are net of discounts and returns and exclude sales tax. Wholesale sales are recognized in accordance with the shipping terms agreed upon on the purchase order. Wholesale sales are typically recognized free on board origin, where title and risk of loss pass to the buyer when the merchandise leaves the Company’s distribution facility. The Company has a gift card program. The Company does not charge administrative fees on gift cards and the Company’s gift cards do not have expiration dates. The Company records the sale of gift cards as a current liability and recognizes a sale when a customer redeems a gift card. The liability for outstanding gift cards is recorded in accrued expenses.
Cost of Sales	Cost of Sales Cost of sales includes the cost of inventory, freight in, obsolescence, spoilage, scrap and inventory shrink, and is net of discounts and allowances. Cost of sales also includes receiving, warehouse costs and distribution costs (which include payroll and associated costs, occupancy, transportation to and from stores and depreciation expense). Cash discounts for satisfying early payment terms are recognized when payment is made, and allowances and rebates based upon milestone achievements such as reaching a certain volume of purchases of a vendor’s products are included as a reduction of cost of sales when such contractual milestones are reached or based on other systematic and rational approaches where possible.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general and administrative expenses include the costs of selling merchandise in stores (which include payroll and associated costs, occupancy and other store-level costs) and corporate costs (which include payroll and associated costs, occupancy, advertising, professional fees and other corporate administrative costs). Selling, general and administrative expenses also include depreciation and amortization expense relating to these costs.
Leases	Leases The Company follows the policy of capitalizing allowable expenditures that relate to the acquisition and signing of its retail store leases. These costs are amortized on a straight-line basis over the applicable lease term. The Company recognizes rent expense for operating leases on a straight-line basis (including the effect of reduced or free rent and rent escalations) over the applicable lease term. The difference between the cash paid to the landlord and the amount recognized as rent expense on a straight-line basis is included in deferred rent. Cash reimbursements received from landlords for leasehold improvements and other cash payments received from landlords as lease incentives are recorded as deferred rent. Deferred rent related to landlord incentives is amortized as an offset to rent expense using the straight-line method over the applicable lease term. In certain lease arrangements, the Company can be involved with the construction of the building. If it is determined that the Company has substantially all of the risks of ownership during construction of the leased property and therefore is deemed to be the owner of the construction project, the Company records an asset for the amount of the total project costs and an amount related to the value attributed to the pre-existing leased building in property and equipment, net and the related financing obligation as part of current and non-current liabilities. Once construction is complete, if it is determined that the asset does not qualify for sale-leaseback accounting treatment, the Company amortizes the obligation over the lease term and depreciates the asset over the life of the lease. The Company does not report rent expense for the portion of the rent payment determined to be related to the assets which are owned for accounting purposes. Rather, this portion of the rent payment under the lease is recognized as a reduction of the financing obligation and interest expense. For store closures where a lease obligation still exists, the Company records the estimated future liability associated with the rental obligation on the cease use date (when the store is closed). Liabilities are established at the cease use date for the present value of any remaining operating lease obligations, net of estimated sublease income, and at the communication date for severance and other exit costs. Key assumptions in calculating the liability include the timeframe expected to terminate lease agreements, estimates related to the sublease potential of closed locations, and estimates of other related exit costs. If actual timing and potential termination costs or realization of sublease income differ from the Company’s estimates, the resulting liabilities could vary from recorded amounts. These liabilities are reviewed periodically and adjusted when necessary. During the first quarter of fiscal 2018, the Company sold and concurrently leased back a future store site with an aggregate carrying value of $1.4 million and received net proceeds from this transaction of $6.8 million, which will be applied towards the construction of the future store. The Company was deemed to have “continuing involvement,” which precluded the de-recognition of the assets from the consolidated balance sheet when the transaction closed. The Company has concluded that it is the “deemed owner” of the construction project (for accounting purposes) during the construction period. Upon completion of construction, the Company will evaluate the de-recognition of the asset and liability under sale-leaseback accounting guidance. As of April 28, 2017, the Company has recorded a financing lease obligation of $6.9 million (as a component of current and non-current liabilities). During the first quarter of fiscal 2018, the Company sold and concurrently leased back a store with a carrying value of $2.2 million and received net proceeds from this transaction of $4.0 million. The resulting lease qualifies as and is accounted for as an operating lease. The Company will amortize the deferred gain of $1.8 million relating to the sale-leaseback transaction over the lease term.
Self-Insured Workers' Compensation Liability	Self-Insured Workers’ Compensation Liability The Company self-insures for workers’ compensation claims in California and Texas. The Company establishes a liability for losses from both estimated known and incurred but not reported insurance claims based on reported claims and actuarial valuations of estimated future costs of known and incurred but not yet reported claims. Should an amount of claims greater than anticipated occur, the liability recorded may not be sufficient and additional workers’ compensation costs, which may be significant, could be incurred. The Company has not discounted the projected future cash outlays for the time value of money for claims and claim-related costs when establishing its workers’ compensation liability in its financial reports for each of April 28, 2017 and January 27, 2017.
Self-Insured Health Insurance Liability	Self-Insured Health Insurance Liability The Company self-insures for a portion of its employee medical benefit claims. The liability for the self-funded portion of the Company health insurance program is determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported. The Company maintains stop loss insurance coverage to limit its exposure for the self-funded portion of its health insurance program.
Pre-Opening Costs	Pre-Opening Costs The Company expenses, as incurred, pre-opening costs such as payroll, rent and marketing related to the opening of new retail stores.
Advertising	Advertising The Company expenses advertising costs as incurred.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash, accounts receivable, interest rate and other derivatives, accounts payable, accruals, debt, and other liabilities. Cash and derivatives are measured and recorded at fair value. Accounts receivable and other receivables are financial assets with carrying values that approximate fair value. Accounts payable and other accrued expenses are financial liabilities with carrying values that approximate fair value. Refer to Note 7, “Fair Value of Financial Instruments” for further discussion of the fair value of debt. The Company uses the authoritative guidance for fair value, which includes the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model.
Comprehensive Income	Comprehensive Income OCI includes unrealized gains or losses on interest rate derivatives designated as cash flow hedges.

Basis of Presentation and Sum22

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 28, 2017
Basis of Presentation and Summary of Significant Accounting Policies
Schedule of property and equipment useful lives	Owned buildings and improvements Lesser of 30 years or the estimated useful life of the improvement Leasehold improvements Lesser of the estimated useful life of the improvement or remaining lease term Fixtures and equipment 3-5 years Transportation equipment 3-5 years Information technology systems For major corporate systems, estimated useful life up to 7 years; for functional standalone systems, estimated useful life up to 5 years

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	3 Months Ended
	Apr. 28, 2017
Goodwill and Other Intangibles
Schedule of goodwill and other intangible assets and unfavorable leases	The following tables set forth the value of the goodwill and other intangible assets and unfavorable leases (in thousands): April 28, 2017 January 27, 2017 Gross Impairment Accumulated Net Gross Amount Impairment Losses Accumulated Amortization Net Indefinite lived intangible assets: Goodwill $ $ ) $ — $ $ $ ) $ — $ Trade name — — — — Total indefinite lived intangible assets $ $ ) $ — $ $ $ ) $ — $ Finite lived intangible assets: Trademarks $ $ ) $ ) $ $ $ ) $ ) $ Bargain Wholesale customer relationships — ) — ) Favorable leases ) ) ) ) Total finite lived intangible assets ) ) ) ) Total goodwill and other intangible assets $ $ ) $ ) $ $ $ ) $ ) $ April 28, 2017 January 27, 2017 Gross Accumulated Net Gross Accumulated Net Unfavorable leases $ $ ) $ $ $ ) $

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Apr. 28, 2017
Property and Equipment, net
Schedule of details of property and equipment	The following table provides details of property and equipment (in thousands): April 28, January 27, Land $ $ Buildings Buildings improvements Leasehold improvements Fixtures and equipment Transportation equipment Construction in progress Total property and equipment Less: accumulated depreciation and amortization ) ) Property and equipment, net $ $

Comprehensive Loss (Tables)

Comprehensive Loss (Tables)	3 Months Ended
	Apr. 28, 2017
Comprehensive Loss
Schedule of comprehensive loss, net of tax effects	The following table sets forth the calculation of comprehensive loss, net of tax effects (in thousands): For the First Quarter Ended April 28, April 29, Net loss $ ) $ ) Unrealized loss on interest rate cash flow hedge, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively — ) Reclassification adjustment, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively — Total gains, net — Total comprehensive loss $ ) $ )

Debt (Tables)

Debt (Tables)	3 Months Ended
	Apr. 28, 2017
Debt
Schedule of short and long-term debt	Short and long-term debt consists of the following (in thousands): April 28, January 27, ABL Facility $ $ First Lien Term Loan Facility , maturing on January 13, 2019, payable in quarterly installments of $1,535, plus interest through December 31, 2018, with unpaid principal and accrued interest due on January 13, 2019, net of unamortized OID of $2,534 and $2,888 as of April 28, 2017 and January 27, 2017, respectively Senior Notes (unsecured) maturing on December 15, 2019, unpaid principal and accrued interest due on December 15, 2019 Deferred financing costs ) ) Total debt Less: current portion Long-term debt, net of current portion $ $
Schedule of net deferred financing costs	As of April 28, 2017 and January 27, 2017, the net deferred financing costs are as follows (in thousands): Deferred financing costs April 28, January 27, ABL Facility (included in non-current deferred financing costs) $ $ First Lien Term Loan Facility (included in long-term debt, net of current portion) Senior Notes (included in long-term debt, net of current portion) Total deferred financing costs, net $ $
Schedule of significant components of interest expense	The significant components of interest expense are as follows (in thousands): For the First Quarter Ended April 28, April 29, First Lien Term Loan Facility $ $ ABL Facility Senior Notes Amortization of deferred financing costs and OID Other interest expense Interest expense $ $

Derivative Financial Instrume27

Derivative Financial Instruments (Tables)	3 Months Ended
	Apr. 28, 2017
Derivative Financial Instruments
Summary of the recorded amounts included in the consolidated balance sheet	A summary of the recorded amounts included in the consolidated balance sheets is as follows (in thousands): April 28, January 27, Derivatives not designated as hedging instruments Transition payments (included in other current liabilities) $ $ Transition payments (included in other long-term liabilities) $ $
Summary of recorded amounts included in the consolidated statements of comprehensive income (loss)	A summary of recorded amounts included in the unaudited consolidated statements of comprehensive income (loss) is as follows (in thousands): For the First Quarter Ended April 28, April 29, Derivatives designated as cash flow hedging instruments: Loss related to effective portion of derivative recognized in OCI $ — $ Loss related to effective portion of derivatives reclassified from AOCI to interest expense $ — $ (Loss) gain related to ineffective portion of derivative recognized in interest expense $ — $ Derivatives not designated as hedging instruments: Loss recognized in selling, general and administrative expenses $ $

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Apr. 28, 2017
Fair Value of Financial Instruments
Schedule of financial assets and liabilities recorded at fair value on a recurring basis, by level within the fair value hierarchy	The following table summarizes, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis (in thousands) as of April 28, 2017: April 28, 2017 Total Level 1 Level 2 Level 3 ASSETS Other assets — assets that fund deferred compensation $ $ $ — $ — LIABILITIES Other current liabilities — transition payments $ $ — $ — $ Other long-term liabilities — transition payments $ $ — $ — $ Other long-term liabilities — deferred compensation $ $ $ — $ — The following table summarizes, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis (in thousands) as of January 27, 2017: January 27, 2017 Total Level 1 Level 2 Level 3 ASSETS Other assets — assets that fund deferred compensation $ $ $ — $ — LIABILITIES Other current liabilities — transition payments $ $ — $ — $ Other long-term liabilities — transition payments $ $ — $ — $ Other long-term liabilities — deferred compensation $ $ $ — $ —
Summary of activity for the period of changes in fair value of the Company's Level 3 instruments	The following table summarizes the activity for the period of changes in fair value of the Company’s Level 3 instruments (in thousands): For the First Quarter Ended Transition Payments April 28, 2017 April 29, 2016 Description Beginning balance $ ) $ ) Transfers in and/or out of Level 3 — — Total realized/unrealized gains (loss): Included in earnings (1) ) ) Included in other comprehensive loss — — Purchases, sales, issues and settlements: Settlements Ending balance $ ) $ ) Total amount of unrealized losses for the period included in earnings relating to liabilities held at the reporting period $ ) $ ) (1) Losses are included in selling, general and administrative expenses.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 28, 2017
Stock-Based Compensation
Summary of stock option activity	The following summarizes stock option activity in the first quarter of fiscal 2018: Number of Weighted Average Weighted Average Options outstanding at the beginning of the period $ Granted — $ — Exercised — $ — Cancelled ) $ Outstanding at the end of the period $ Exercisable at the end of the period $
Summary of stock awards available for grant	Number of Shares Available for grant as of January 27, 2017 Authorized — Granted — Cancelled Available for grant at April 28, 2017

Other Accrued Expenses (Tables)

Other Accrued Expenses (Tables)	3 Months Ended
	Apr. 28, 2017
Other Accrued Expenses
Schedule of other accrued expenses	Other accrued expenses as of April 28, 2017 and January 27, 2017 are as follows (in thousands): April 28, January 27, Accrued interest $ $ Accrued occupancy costs Accrued legal reserves and fees Accrued California Redemption Value Accrued transportation Other Total other accrued expenses $ $

Financial Guarantees (Tables)

Financial Guarantees (Tables)	3 Months Ended
	Apr. 28, 2017
Financial Guarantees
Schedule of condensed consolidating balance sheets	CONDENSED CONSOLIDATING BALANCE SHEETS As of April 28, 2017 (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated ASSETS Current Assets: Cash $ $ $ $ — $ Accounts receivable, net — — Income taxes receivable (payable) ) — — Inventories, net — — Assets held for sale — — — Other — Total current assets — Property and equipment, net — Deferred financing costs, net — — — Equity investments and advances to subsidiaries ) — Intangible assets, net — — Goodwill — — — Deposits and other assets — Total assets $ $ $ $ ) $ LIABILITIES AND MEMBER’S EQUITY Current Liabilities: Accounts payable $ $ $ — $ — $ Intercompany payable ) — Payroll and payroll-related — — Sales tax — — Other accrued expenses — Workers’ compensation — — Current portion of long-term debt — — — Current portion of capital and financing lease obligation — — — Total current liabilities ) Long-term debt, net of current portion — — — Unfavorable lease commitments, net — — Deferred rent — Deferred compensation liability — — — Capital and financing lease obligation, net of current portion — — — Deferred income taxes — — — Other liabilities — — — Total liabilities ) Member’s Equity: Member units — ) Additional paid-in capital — — ) — Investment in Number Holdings, Inc. preferred stock ) — — — ) Accumulated deficit ) ) ) ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ CONDENSED CONSOLIDATING BALANCE SHEETS As of January 27, 2017 (In thousands) Issuer Subsidiary Non- Consolidating Consolidated ASSETS Current Assets: Cash $ $ $ $ — $ Accounts receivable, net — — Income taxes receivable (payable) ) — — Inventories, net — — Assets held for sale — — — Other — Total current assets — Property and equipment, net — Deferred financing costs, net — — — Equity investments and advances to subsidiaries ) — Intangible assets, net — — Goodwill — — — Deposits and other assets — Total assets $ $ $ $ ) $ LIABILITIES AND MEMBER’S EQUITY Current Liabilities: Accounts payable $ $ $ — $ — $ Intercompany payable ) — Payroll and payroll-related — — Sales tax — — Other accrued expenses — Workers’ compensation — — Current portion of long-term debt — — — Current portion of capital and financing lease obligation — — — Total current liabilities ) Long-term debt, net of current portion — — — Unfavorable lease commitments, net — — Deferred rent — Deferred compensation liability — — — Capital and financing lease obligation, net of current portion — — — Deferred income taxes — — — Other liabilities — — — Total liabilities ) Member’s Equity: Member units — ) Additional paid-in capital — — ) — Investment in Number Holdings, Inc. preferred stock ) — — — ) Accumulated deficit ) ) ) ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $
Schedule of condensed consolidated statements of comprehensive income (loss)	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Net Sales: Total sales $ $ $ $ ) $ Cost of sales — — Gross profit ) Selling, general and administrative expenses ) Operating income (loss) ) — Other (income) expense: Interest income ) — — — ) Interest expense — — — Loss on extinguishment of debt — — — — — Equity in loss (earnings) of subsidiaries — — ) — Total other expense, net — — ) (Loss) income before provision for income taxes ) ) ) Provision for income taxes — — — Net (loss) income $ ) $ ) $ $ $ ) Comprehensive (loss) income $ ) $ ) $ $ $ ) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Net Sales: Total sales $ $ $ — $ — $ Cost of sales — — Gross profit — — Selling, general and administrative expenses — Operating loss ) ) ) — ) Other (income) expense: Interest income ) — — — ) Interest expense — — — Loss on extinguishment of debt — — — Equity in loss (earnings) of subsidiaries — — ) — Total other expense, net — — ) (Loss) income before provision for income taxes ) ) ) ) Provision for income taxes — — — Net (loss) income $ ) $ ) $ ) $ $ ) Comprehensive (loss) income $ ) $ ) $ ) $ $ )
Schedule of condensed consolidated statements of cash flows	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ $ $ ) $ — $ Cash flows from investing activities: Purchases of property and equipment ) ) — — ) Proceeds from sales of property and fixed assets — — — Net cash used in investing activities ) ) — — ) Cash flows from financing activities: Payments of long-term debt ) — — — ) Proceeds under revolving credit facility — — — Payments under revolving credit facility ) — — — ) Proceeds from financing lease obligations — — — Payments of capital and financing lease obligations ) — — — ) Net cash used in financing activities ) — — — ) Net decrease in cash ) ) ) — ) Cash — beginning of period — Cash — end of period $ $ $ $ — $ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Issuer Subsidiary Non- Consolidating Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ $ $ ) $ — $ Cash flows from investing activities: Purchases of property and equipment ) ) ) — ) Proceeds from sales of property and fixed assets — — — Net cash used in investing activities ) ) ) — ) Cash flows from financing activities: Payments of long-term debt ) — — — ) Proceeds under revolving credit facility — — — Payments under revolving credit facility ) — — — ) Payments of debt issuance costs ) — — — ) Proceeds from financing lease obligations — — — Payments of capital and financing lease obligations ) — — — ) Net cash used in financing activities ) — — — ) Net increase (decrease) in cash ) — Cash — beginning of period — Cash — end of period $ $ $ $ — $

Basis of Presentation and Sum32

Basis of Presentation and Summary of Significant Accounting Policies - General Information (Details)	3 Months Ended	12 Months Ended
	Apr. 28, 2017storeitem	Feb. 02, 2018item	Jan. 27, 2017item
Nature of Business
Stores in operation	390
Change in Fiscal Year
Days in each fiscal quarter	91 days
Number of weeks in period | item	52	53	52
Number of days in a fiscal year	364 days
Number of weeks in a fiscal year every five to six years | item	53
Minimum
Change in Fiscal Year
Period during which fiscal years includes 53 weeks	5 years
Maximum
Change in Fiscal Year
Period during which fiscal years includes 53 weeks	6 years
California
Nature of Business
Stores in operation	283
Texas
Nature of Business
Stores in operation	48
Arizona
Nature of Business
Stores in operation	38
Nevada
Nature of Business
Stores in operation	21

Basis of Presentation and Sum33

Basis of Presentation and Summary of Significant Accounting Policies - Cash (Details) - USD ($)	3 Months Ended	12 Months Ended
	Apr. 28, 2017	Jan. 27, 2017
Cash
Number of business days within which the majority of payments are due for the settlement of debit and credit card transactions	3 days
Book overdrafts included in accounts payable	$ 6,500,000	$ 7,000,000
Maximum
Cash
Cash, FDIC Insured Amount	$ 250,000

Basis of Presentation and Sum34

Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment and Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	May 01, 2015
Long-Lived Assets
Asset impairment charges		$ 0	$ 0
Owned buildings and improvements | Maximum
Property and equipment
Property, Plant and Equipment, Useful Life	30 years
Fixtures and equipment | Minimum
Property and equipment
Property, Plant and Equipment, Useful Life	3 years
Fixtures and equipment | Maximum
Property and equipment
Property, Plant and Equipment, Useful Life	5 years
Transportation equipment | Minimum
Property and equipment
Property, Plant and Equipment, Useful Life	3 years
Transportation equipment | Maximum
Property and equipment
Property, Plant and Equipment, Useful Life	5 years
Information technology major corporate systems | Maximum
Property and equipment
Property, Plant and Equipment, Useful Life	7 years
Information technology standalone systems | Maximum
Property and equipment
Property, Plant and Equipment, Useful Life	5 years

Basis of Presentation and Sum35

Basis of Presentation and Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets and Leases (Details)	3 Months Ended
	Apr. 28, 2017USD ($)item	Jan. 27, 2017USD ($)item	Apr. 29, 2016USD ($)	Jan. 29, 2016USD ($)	Oct. 30, 2015USD ($)
Goodwill and Other Intangible assets
Number of reporting units | item	2	2
Goodwill impairment loss	$ 0	$ 0
Goodwill	380,643,000	$ 380,643,000
Leases
Net proceeds from the sale-leaseback transactions	6,840,000		$ 2,031,000
Leased back future store site
Leases
Carrying value of sale-leaseback transactions	1,400,000
Net proceeds from the sale-leaseback transactions	6,800,000
Sale Leaseback obligation	6,900,000
Leased back one store
Leases
Carrying value of sale-leaseback transactions	2,200,000
Net proceeds from the sale-leaseback transactions	4,000,000
Deferred gain	$ 1,800,000
Retail
Goodwill and Other Intangible assets
Goodwill impairment loss					$ 120,000,000
Goodwill impairment adjustment				$ 20,900,000
Goodwill impairment loss after preliminary analysis					$ 99,100,000
Goodwill				368,100,000
Wholesale
Goodwill and Other Intangible assets
Goodwill				$ 12,500,000
Fair value in excess of carrying value (as a percent)		18.00%
Trade name
Goodwill and Other Intangible assets
Indefinite-lived intangible asset impairment loss		$ 0
Fair value in excess of carrying value (as a percent)		18.00%

Goodwill and Other Intangible36

Goodwill and Other Intangibles - Finite and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Indefinite lived intangible assets:
Goodwill Gross Carrying Amount	$ 479,745	$ 479,745
Goodwill Impairment Losses	(99,102)	(99,102)
Goodwill Net Carrying Amount	380,643	380,643
Indefinite Lived Assets Gross Carrying Amount	889,745	889,745
Indefinite Lived Assets Impairment Losses	(99,102)	(99,102)
Indefinite Lived Assets Net Carrying Amount	790,643	790,643
Finite lived intangible assets:
Gross Carrying Amount	67,871	67,871
Finite Lived Intangible Assets Impairment Losses	(1,136)	(1,136)
Accumulated Amortization	(31,113)	(29,708)
Net Carrying Amount	35,622	37,027
Total goodwill and other intangible assets, Gross Carrying Amount	957,616	957,616
Total goodwill and other intangible assets, Impairment Losses	(100,238)	(100,238)
Total goodwill and other intangible assets, accumulated amortization	(31,113)	(29,708)
Total goodwill and other intangible assets, Net Carrying Amount	826,265	827,670
Trademarks
Finite lived intangible assets:
Gross Carrying Amount	2,000	2,000
Finite Lived Intangible Assets Impairment Losses	(570)	(570)
Accumulated Amortization	(485)	(470)
Net Carrying Amount	945	960
Bargain Wholesale customer relationships
Finite lived intangible assets:
Gross Carrying Amount	20,000	20,000
Accumulated Amortization	(8,822)	(8,408)
Net Carrying Amount	11,178	11,592
Favorable leases
Finite lived intangible assets:
Gross Carrying Amount	45,871	45,871
Finite Lived Intangible Assets Impairment Losses	(566)	(566)
Accumulated Amortization	(21,806)	(20,830)
Net Carrying Amount	23,499	24,475
Trade name
Indefinite lived intangible assets:
Net Carrying Amount	$ 410,000	$ 410,000

Goodwill and Other Intangible37

Goodwill and Other Intangibles - Unfavorable Leases (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Unfavorable leases
Gross Carrying Amount	$ 19,835	$ 19,835
Accumulated Amortization	(16,161)	(15,847)
Net Carrying Amount	$ 3,674	$ 3,988

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Property and equipment
Total property and equipment	$ 790,620	$ 798,467
Less: accumulated depreciation and amortization	(304,766)	(290,847)
Property and equipment, net	485,854	507,620
Land
Property and equipment
Total property and equipment	155,009	167,544
Buildings
Property and equipment
Total property and equipment	108,089	110,327
Buildings improvements
Property and equipment
Total property and equipment	76,438	77,246
Leasehold improvements
Property and equipment
Total property and equipment	208,102	205,336
Fixtures and equipment
Property and equipment
Total property and equipment	215,649	209,397
Transportation equipment
Property and equipment
Total property and equipment	11,893	11,893
Construction in progress
Property and equipment
Total property and equipment	$ 15,440	$ 16,724

Comprehensive Loss (Details)

Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Comprehensive Loss
Net loss	$ (8,753)	$ (25,194)
Unrealized loss on interest rate cash flow hedge, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively		(214)
Reclassification adjustment, net of tax effects of $0 for the first quarter of each of fiscal 2018 and fiscal 2017, respectively		379
Other comprehensive income, net of tax		165
Comprehensive loss	(8,753)	(25,029)
Tax effects of unrealized loss on interest rate cash flow hedge	0	0
Tax effects of reclassification adjustment	$ 0	$ 0

Debt (Details)

Debt (Details) - USD ($) $ in Thousands

Apr. 08, 2016

Aug. 24, 2015

Oct. 08, 2013

Apr. 04, 2012

Apr. 03, 2012

Jan. 13, 2012

Apr. 28, 2017

Apr. 29, 2016

Oct. 28, 2016

Jan. 27, 2017

Apr. 07, 2016

Dec. 29, 2011

Debt

Deferred financing costs

$ 10,890

$ 12,249

Total debt

864,988

871,513

Less: current portion

6,138

6,138

Long-term debt, net of current portion

858,850

865,375

Debt Instruments

Loss on extinguishment

$ 335

Significant components of interest expense

Amortization of deferred financing costs and OID

1,714

1,302

Other interest expense

1,085

565

Interest expense

17,342

16,526

Long term debt

Debt

Deferred financing costs

7,906

8,761

ABL Facility

Debt

Debt

33,100

39,300

Debt Instruments

Increase in borrowing capacity available under certain circumstances

$ 50,000

Amount outstanding

33,100

39,300

Maximum borrowing capacity

175,000

Commitment fee on unused commitments (as a percent)

0.50%

Outstanding letters of credit

32,400

31,600

Amount available

50,800

37,200

Significant components of interest expense

Interest debt expense

781

555

ABL Facility | Non-current deferred financing costs

Debt

Deferred financing costs

$ 2,984

3,488

ABL Facility | Minimum

Debt Instruments

Inventory advance rate (as a percent)

90.00%

ABL Facility | Maximum

Debt Instruments

Inventory advance rate (as a percent)

92.50%

ABL Facility | Base Rate

Debt Instruments

Applicable margin (as a percent)

2.25%

ABL Facility | LIBOR

Debt Instruments

Applicable margin (as a percent)

3.25%

First Lien Term Loan Facility

Debt

Debt

$ 589,794

590,974

Scheduled quarterly payments

1,535

Unamortized OID

$ 2,534

2,888

Debt Instruments

Term loan

$ 525,000

Scheduled quarterly payments as a percentage of original principal amount

0.25%

Interest rate at the end of the period (as a percent)

4.61%

Amount outstanding

$ 592,300

Percentage of excess cash flow to be used for prepayment of debt

50.00%

Step down percentage one of excess cash flow to be used for prepayment of debt

25.00%

Stepdown percentage two of excess cash flow to be used for prepayment of debt (as a percent)

0.00%

Excess cash flow payment required

0

Significant components of interest expense

Interest debt expense

$ 6,811

7,229

First Lien Term Loan Facility | Long term debt

Debt

Deferred financing costs

$ 2,601

2,964

First Lien Term Loan Facility | Prime rate

Debt Instruments

Interest rate (as a percent)

4.00%

First Lien Term Loan Facility | Base Rate

Debt Instruments

Applicable margin (as a percent)

4.50%

First Lien Term Loan Facility | Federal funds rate

Debt Instruments

Applicable margin (as a percent)

0.50%

First Lien Term Loan Facility | One month adjusted Eurocurrency rate

Debt Instruments

Applicable margin (as a percent)

1.00%

First Lien Term Loan Facility | LIBOR

Debt Instruments

Applicable margin (as a percent)

5.50%

Interest rate, variable interest rate floor (as a percent)

1.50%

Senior Notes

Debt

Debt

$ 250,000

250,000

$ 250,000

Debt Instruments

Interest rate (as a percent)

11.00%

Significant components of interest expense

Interest debt expense

6,951

6,875

Senior Notes | Long term debt

Debt

Deferred financing costs

$ 5,305

$ 5,797

ABL Facility Amended April 2016

Debt Instruments

Maximum borrowing capacity

$ 160,000

Amount of increase (decrease) in available credit facility due to amendment

$ (25,000)

Maturity period prior to First Lien Term Loan Facility maturity date

90 days

Maturity period prior to Senior Notes maturity date

90 days

Minimum period after the maturity date of the credit facility that other refinanced debt obligations maturity date must exceed

180 days

Decrease in applicable margin upon refinancing of debt (as a percent)

0.50%

Maximum borrowing capacity of letters of credit

$ 45,000

$ 50,000

Loss on extinguishment

300

Additional debt issuance costs

$ 4,700

ABL Facility Amended April 2016 | Revolving Credit Facility

Debt Instruments

Increase in borrowing capacity available under certain circumstances

$ 25,000

$ 50,000

ABL Facility Amended April 2016 | Base Rate

Debt Instruments

Applicable margin (as a percent)

2.00%

ABL Facility Amended April 2016 | Eurocurrency loan

Debt Instruments

Applicable margin (as a percent)

3.00%

ABL Facility Amended August 2015

Debt Instruments

Maximum borrowing capacity

$ 185,000

Amount of increase (decrease) in available credit facility due to amendment

10,000

Amendment fees

$ 500

Eurocurrency loans | Eurocurrency loan

Debt Instruments

Variable rate at the end of the period (as a percent)

1.11%

Applicable margin at the end of the period (as a percent)

3.50%

First Lien Term Loan Facility Amended April 2012

Debt Instruments

Refinancing costs

$ 11,200

First Lien Term Loan Facility Amended April 2012 | Base Rate

Debt Instruments

Applicable margin (as a percent)

3.00%

First Lien Term Loan Facility Amended April 2012 | LIBOR

Debt Instruments

Applicable margin (as a percent)

4.00%

Interest rate, variable interest rate floor (as a percent)

1.25%

First Lien Term Loan Facility

Debt

Scheduled quarterly payments

$ 1,500

Debt Instruments

Term loan

$ 100,000

Scheduled quarterly payments as a percentage of original principal amount

0.25%

Increase in borrowing capacity available under certain circumstances

$ 100,000

Percentage of positive consolidated net income to determine a restricted payment under terms of debt instruments

50.00%

Percentage of negative consolidated net income to determine a restricted payment under terms of debt instruments

100.00%

Amount used to determine dividend and other payments

$ 20,000

First Lien Term Loan Facility | Base Rate

Debt Instruments

Applicable margin (as a percent)

2.50%

First Lien Term Loan Facility | LIBOR

Debt Instruments

Applicable margin (as a percent)

3.50%

Interest rate, variable interest rate floor (as a percent)

1.00%

99 Cents Only Stores Texas, Inc.

Debt Instruments

Ownership percentage in subsidiary

100.00%

Derivative Financial Instrume41

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Jan. 27, 2017	May 31, 2012
Derivatives not designated as hedging instruments | Chief Executive Officer
Derivative Financial Instruments
Payment period	4 years
Derivatives not designated as hedging instruments | Maximum | Chief Executive Officer
Derivative Financial Instruments
Derivative liabilities	$ 5,000
Derivatives not designated as hedging instruments | Selling, general and administrative expenses
Recorded amounts included in the consolidated statements of comprehensive income (loss)
Loss recognized in selling, general and administrative expenses	136	$ 869
Derivatives designated as cash flow hedging instruments | OCI
Recorded amounts included in the consolidated statements of comprehensive income (loss)
Loss related to effective portion of derivative recognized in OCI		214
Derivatives designated as cash flow hedging instruments | Interest expense
Recorded amounts included in the consolidated statements of comprehensive income (loss)
Loss related to effective portion of derivatives reclassified from AOCI to interest expense		379
(Loss) gain related to ineffective portion of derivative recognized in interest expense		$ 30
Interest Rate Swap | Derivatives designated as cash flow hedging instruments
Derivative Financial Instruments
Aggregate notional amount				$ 261,800
Effective fixed interest rate (as a percent)				1.36%
Applicable margin (as a percent)				3.50%
Transition Payments | Derivatives not designated as hedging instruments | other current liabilities
Fair Value
Derivative liabilities	549		$ 831
Transition Payments | Derivatives not designated as hedging instruments | other long-term liabilities
Fair Value
Derivative liabilities	$ 210		$ 217

Fair Value of Financial Instr42

Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017	Oct. 28, 2016
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net [Abstract]
Transfer of assets from level 1 to 2	$ 0
Transfer of assets from level 2 to 1	0
Transfer of liabilities from level 1 to 2	0
Transfer of liabilities from level 2 to 1	0
Level 2
Fair value of financial instruments
Assets	0	$ 0	$ 0
Liabilities	0	0
Fair value measurements on a recurring basis
ASSETS
Other assets - assets that fund deferred compensation	868	816
LIABILITIES
Other long-term liabilities - deferred compensation	868	816
Fair value measurements on a recurring basis | Transition Payments
LIABILITIES
Other current liabilities - transition payments	549	831
Other long-term liabilities - transition payments	210	217
Fair value measurements on a recurring basis | Level 1
ASSETS
Other assets - assets that fund deferred compensation	868	816
LIABILITIES
Other long-term liabilities - deferred compensation	868	816
Fair value measurements on a recurring basis | Level 3 | Transition Payments
LIABILITIES
Other current liabilities - transition payments	549	831
Other long-term liabilities - transition payments	$ 210	$ 217

Fair Value of Financial Instr43

Fair Value of Financial Instruments - Change in level 3 investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Fair Value Measurements Using Significant Unobservable Inputs
Beginning balance	$ (1,048)	$ (1,205)
Total realized/unrealized gains (loss):
Included in earnings	(136)	(869)
Purchases, sales, issues and settlements:
Settlements	425	852
Ending balance	(759)	(1,222)
Total amount of unrealized losses for the period included in earnings relating to liabilities held at the reporting period	$ (88)	$ (570)

Fair Value of Financial Instr44

Fair Value of Financial Instruments - Estimated Fair Value and Fair Value Adjustment (Details) - Level 1 - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Apr. 28, 2017	Jan. 27, 2017
Senior Notes
Fair value of financial instruments
Estimated fair value of debt instrument	$ 211.3	$ 166.9
Fair value adjustment to liability incurred or settled	(38.8)	(83.1)
First Lien Term Loan Facility
Fair value of financial instruments
Estimated fair value of debt instrument	561.2	516.7
Fair value adjustment to liability incurred or settled	$ (31.1)	$ (77.2)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands	Jul. 26, 2016$ / sharesshares	Oct. 30, 2015shares	Oct. 02, 2015item$ / sharesshares	Apr. 28, 2017USD ($)$ / sharesshares	Jul. 29, 2016USD ($)	Apr. 29, 2016USD ($)	Apr. 28, 2017$ / sharesshares
Stock awards available for grant under the 2012 Plan
Total incremental compensation expense | $				$ 136		$ 164
2012 Plan
Number of Shares
Cancelled (in shares)				(205)
Stock awards available for grant under the 2012 Plan
Available for grant at the beginning of the period (in shares)				4,670
Cancelled (in shares)				205
Available for grant at the end of the period (in shares)				4,875
Class A Common Stock | 2012 Plan | Number Holdings, Inc.
Stock-based compensation
Number of shares authorized under the plan							87,500
Class B Common Stock | 2012 Plan | Number Holdings, Inc.
Stock-based compensation
Number of shares authorized under the plan							87,500
Employee Option Grants
Stock-based compensation
Expiration term				10 years
Employee Option Grants | Options vesting on the achievement of performance
Stock-based compensation
Options outstanding (in shares)				17,915			17,915
Expiration term				10 years
Number of Shares
Outstanding at the end of the period (in shares)				17,915
Employee Option Grants | Time-based service options
Stock-based compensation
Options outstanding (in shares)				21,770			21,770
Number of Shares
Outstanding at the end of the period (in shares)				21,770
Employee Option Grants | Maximum
Stock-based compensation
Vesting period				5 years
Stock awards available for grant under the 2012 Plan
Vesting period				5 years
Employee Option Grants | Minimum
Stock-based compensation
Vesting period				4 years
Stock awards available for grant under the 2012 Plan
Vesting period				4 years
Employee Option Grants | Number Holdings, Inc.
Stock-based compensation
Options outstanding (in shares)				82,140			81,935
Number of Shares
Options outstanding at the beginning of the period (in shares)				82,140
Cancelled (in shares)				(205)
Outstanding at the end of the period (in shares)				81,935
Exercisable at the end of the period (in shares)							16,049
Weighted Average Exercise Price
Options outstanding at the beginning of the period (in dollars per share) | $ / shares				$ 800
Cancelled (in dollars per share) | $ / shares				757
Outstanding at the end of the period (in dollars per share) | $ / shares				$ 800
Exercisable at the end of the period (in dollars per share) | $ / shares							$ 784
Weighted Average Remaining Contractual Life
Outstanding at the end of the period				8 years 8 months 12 days
Exercisable at the end of the period				8 years 8 months 12 days
Stock awards available for grant under the 2012 Plan
Cancelled (in shares)				205
Employee Option Grants | Director
Stock-based compensation
Expiration term				10 years
Employee Option Grants | Director | Tranche One Member
Stock-based compensation
Vesting period				3 years
Stock awards available for grant under the 2012 Plan
Vesting period				3 years
Employee Option Grants | Director | Tranche Two Member
Stock-based compensation
Vesting period				4 years
Stock awards available for grant under the 2012 Plan
Vesting period				4 years
Employee Option Grants | Director | Tranche Three Member
Stock-based compensation
Vesting period				5 years
Stock awards available for grant under the 2012 Plan
Vesting period				5 years
Employee Option Grants | Felicia Thornton
Stock-based compensation
Vesting percentage		50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage		50.00%
Employee Option Grants | Felicia Thornton | Options vesting on the achievement of performance
Stock-based compensation
Vesting percentage		50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage		50.00%
Employee Option Grants | Felicia Thornton | Number Holdings, Inc. | Time-based service options
Stock-based compensation
Vesting period		4 years
Stock awards available for grant under the 2012 Plan
Vesting period		4 years
Employee Option Grants | 2012 Plan | Number Holdings, Inc.
Stock-based compensation
Period of rights repurchases after the date of participant's termination of employment				180 days
Period of rights repurchases from the latest date that an option can be exercised				90 days
Employee Option Grants | 2012 Plan | Chief Executive Officer
Stock awards available for grant under the 2012 Plan
Number of grants issued | item			2
Employee Option Grants | Class A Common Stock | Employees, Management and Directors | Number Holdings, Inc.
Stock-based compensation
Options outstanding (in shares)				81,935			81,935
Number of Shares
Outstanding at the end of the period (in shares)				81,935
Employee Option Grants | Class B Common Stock | Employees, Management and Directors | Number Holdings, Inc.
Stock-based compensation
Options outstanding (in shares)				82,155			82,155
Number of Shares
Outstanding at the end of the period (in shares)				82,155
Employee Option Grants | Class A and Class B Common Stock | Director
Stock awards available for grant under the 2012 Plan
Number of options amended	1,000
Minimum exercise price of options amended (in dollars per share) | $ / shares	$ 757
Exercise price of amended options (in dollars per share) | $ / shares	757
Employee Option Grants | Class A and Class B Common Stock | Director | Maximum
Stock awards available for grant under the 2012 Plan
Total incremental compensation expense | $					$ 100
Employee Option Grants | Class A and Class B Common Stock | Felicia Thornton | Number Holdings, Inc.
Stock-based compensation
Granted (in shares)		10,000
Number of Shares
Granted (in shares)		10,000
Stock awards available for grant under the 2012 Plan
Granted (in shares)		(10,000)
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Exercise price 1
Stock-based compensation
Granted (in shares)			15,500
Number of Shares
Granted (in shares)			15,500
Stock awards available for grant under the 2012 Plan
Exercise price of options (in dollars per share) | $ / shares			$ 1,000
Granted (in shares)			(15,500)
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Exercise price 2
Stock-based compensation
Granted (in shares)			15,500
Number of Shares
Granted (in shares)			15,500
Stock awards available for grant under the 2012 Plan
Granted (in shares)			(15,500)
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Options vesting on the achievement of performance
Stock awards available for grant under the 2012 Plan
Exercise price of options (in dollars per share) | $ / shares	$ 1,000						$ 1,000
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Options vesting on the achievement of performance | Exercise price 1
Stock-based compensation
Vesting percentage			50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage			50.00%
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Options vesting on the achievement of performance | Exercise price 2
Stock-based compensation
Vesting percentage			50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage			50.00%
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Time-based service options | Exercise price 1
Stock-based compensation
Vesting period			4 years
Vesting percentage			50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage			50.00%
Vesting period			4 years
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Time-based service options | Exercise price 2
Stock-based compensation
Vesting period			4 years
Vesting percentage			50.00%
Stock awards available for grant under the 2012 Plan
Vesting percentage			50.00%
Vesting period			4 years
Employee Option Grants | Class A and Class B Common Stock | 2012 Plan | Chief Executive Officer | Minimum | Exercise price 2
Stock awards available for grant under the 2012 Plan
Exercise price of options (in dollars per share) | $ / shares			$ 750
Fair value base for exercise price adjustment (in dollars per share) | $ / shares			$ 1,000

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2017	Jan. 27, 2017
Management Services Agreements | Maximum
Related-Party Transactions
Reimbursement of expenses by entity and its parent to affiliates of the sponsors	$ 0.1
Ares and CPPIB | First Lien Term Loan Facility
Related-Party Transactions
Debt owned by affiliate	130.2	$ 130.5
Ares and CPPIB | Senior Notes
Related-Party Transactions
Debt owned by affiliate	$ 102.1	$ 102.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016	Jul. 31, 2015	Jan. 27, 2017
Income Taxes
Effective income tax rate (as a percent)	(0.20%)	(0.30%)
Increase in provision for income tax			$ 31.7
Valuation Allowance				$ 137.7

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jul. 26, 2016USD ($)item	Jul. 06, 2016USD ($)	Apr. 28, 2017USD ($)store	Apr. 29, 2016USD ($)	Jan. 27, 2017USD ($)	Mar. 30, 2016item
Commitments and contingencies
Estimated workers' compensation claims			$ 69,408,000		$ 69,169,000
Net proceeds from sale-leaseback transactions			6,840,000	$ 2,031,000
Warehouse Facility
Commitments and contingencies
Carrying value		$ 12,100,000
Net proceeds from sale-leaseback transactions		28,500,000
Escrow deposit amount		$ 1,000,000
Amount received from deposit held in escrow					600,000
Finance lease obligation					30,100,000
Warehouse Facility | Selling, general and administrative expenses
Commitments and contingencies
Gain on sale recorded			18,500,000
Mid-Term Cash Incentive Plan
Commitments and contingencies
Percentage of participant's award eligible for payment based on initial EBITDA achievement	50.00%
Amount paid under the incentive plan	$ 0
Percentage of participant's award eligible for payment based on subsequent EBITDA achievement	50.00%
Amount accrued under the incentive plan			8,900,000		6,000,000
Mid-Term Cash Incentive Plan | Maximum
Commitments and contingencies
Maximum payout under the incentive plan			22,500,000
Special Bonus Letters
Commitments and contingencies
Number of executives approved for special bonus letters | item	3
Number of days within which executives eligible to receive special bonus after the refinancing transaction	30 days
Total amount of special bonuses to be earned by the executives	$ 4,000,000
Amount accrued under the special bonus letters			0
Health Insurance
Commitments and contingencies
Self Insured Health Insurance Liability			$ 700,000		900,000
Wage and Hour Matters | Shelley Pickett v. 99 Cents Only Stores
Commitments and contingencies
Number of stores where the named plaintiffs worked | store			2
Wage and Hour Matters | Shelley Pickett v. 99 Cents Only Stores | Minimum
Commitments and contingencies
Civil penalties per violation, per each pay period for each affected employee			$ 100
Wage and Hour Matters | Shelley Pickett v. 99 Cents Only Stores | Maximum
Commitments and contingencies
Civil penalties per violation, per each pay period for each affected employee			200
Wage and Hour Matters | Phillip Clavel v. 99 Cents Only Stores
Commitments and contingencies
Number of periods of employment | item						2
California | Workers' Compensation
Commitments and contingencies
Estimated workers' compensation claims			69,300,000		69,100,000
Texas | Workers' Compensation | Maximum
Commitments and contingencies
Estimated workers' compensation claims			$ 100,000		$ 100,000

Assets Held for Sale (Details)

Assets Held for Sale (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Assets held for sale
Carrying value of land held for sale	$ 4,903	$ 4,903
Rancho Mirage land, Bullhead land and Los Angeles land | Held for sale
Assets held for sale
Carrying value of land held for sale	$ 4,900	$ 4,900

Other Accrued Expenses (Details

Other Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017
Other accrued expenses
Accrued interest	$ 13,792	$ 6,840
Accrued occupancy costs	9,921	9,438
Accrued legal reserves and fees	11,426	10,624
Accrued California Redemption Value	2,557	2,343
Accrued transportation	4,821	4,598
Other	12,996	12,239
Total other accrued expenses	$ 55,513	$ 46,082

Financial Guarantees - CONDENSE

Financial Guarantees - CONDENSED CONSOLIDATING BALANCE SHEETS (Details) - USD ($) $ in Thousands	Apr. 28, 2017	Jan. 27, 2017	Apr. 29, 2016	Jan. 29, 2016	Dec. 29, 2011
Current Assets:
Cash	$ 2,420	$ 2,448	$ 2,376	$ 2,312
Accounts receivable, net	3,353	3,510
Income taxes receivable (payable)	3,861	3,876
Inventories, net	184,663	175,892
Assets held for sale	4,903	4,903
Other	18,878	10,307
Total current assets	218,078	200,936
Property and equipment, net	485,854	507,620
Deferred financing costs, net	2,984	3,488
Intangible assets, net	445,622	447,027
Goodwill	380,643	380,643
Deposits and other assets	8,607	8,592
Total assets	1,541,788	1,548,306
Current Liabilities:
Accounts payable	111,565	86,588
Payroll and payroll-related	25,571	24,110
Sales tax	16,574	19,389
Other accrued expenses	55,513	46,082
Workers' compensation	69,408	69,169
Current portion of long-term debt	6,138	6,138
Current portion of capital and financing lease obligation	1,214	31,330
Total current liabilities	285,983	282,806
Long-term debt, net of current portion	858,850	865,375
Unfavorable lease commitments, net	3,674	3,988
Deferred rent	30,791	30,360
Deferred compensation liability	868	816
Capital and financing lease obligation, net of current portion	53,775	47,195
Deferred income taxes	161,450	161,450
Other liabilities	10,995	12,297
Total liabilities	1,406,386	1,404,287
Member's Equity
Member units	551,054	550,918
Investment in Number Holdings, Inc. preferred stock	(19,200)	(19,200)
Accumulated deficit	(396,452)	(387,699)
Total equity	135,402	144,019
Total liabilities and equity	1,541,788	1,548,306
Consolidating Adjustments
Current Assets:
Equity investments and advances to subsidiaries	(1,557,731)	(1,465,345)
Total assets	(1,557,731)	(1,465,345)
Current Liabilities:
Intercompany payable	(1,515,506)	(1,420,484)
Total current liabilities	(1,515,506)	(1,420,484)
Total liabilities	(1,515,506)	(1,420,484)
Member's Equity
Member units	(1)	(1)
Additional paid-in capital	(99,943)	(99,943)
Accumulated deficit	57,719	55,083
Total equity	(42,225)	(44,861)
Total liabilities and equity	(1,557,731)	(1,465,345)
Issuer
Current Assets:
Cash	1,193	1,207	1,285	1,266
Accounts receivable, net	3,312	3,478
Income taxes receivable (payable)	3,870	3,885
Inventories, net	158,554	148,429
Assets held for sale	4,903	4,903
Other	17,655	9,571
Total current assets	189,487	171,473
Property and equipment, net	435,850	456,020
Deferred financing costs, net	2,984	3,488
Equity investments and advances to subsidiaries	809,919	766,276
Intangible assets, net	443,965	445,302
Goodwill	380,643	380,643
Deposits and other assets	8,274	8,246
Total assets	2,271,122	2,231,448
Current Liabilities:
Accounts payable	102,037	78,835
Intercompany payable	746,289	697,590
Payroll and payroll-related	23,877	22,370
Sales tax	15,892	18,867
Other accrued expenses	52,714	43,962
Workers' compensation	69,336	69,094
Current portion of long-term debt	6,138	6,138
Current portion of capital and financing lease obligation	1,214	31,330
Total current liabilities	1,017,497	968,186
Long-term debt, net of current portion	858,850	865,375
Unfavorable lease commitments, net	3,657	3,969
Deferred rent	28,628	28,141
Deferred compensation liability	868	816
Capital and financing lease obligation, net of current portion	53,775	47,195
Deferred income taxes	161,450	161,450
Other liabilities	10,995	12,297
Total liabilities	2,135,720	2,087,429
Member's Equity
Member units	551,054	550,918
Investment in Number Holdings, Inc. preferred stock	(19,200)	(19,200)
Accumulated deficit	(396,452)	(387,699)
Total equity	135,402	144,019
Total liabilities and equity	2,271,122	2,231,448
Issuer | Senior Notes | Predecessor
Supplemental financial information
Principal amount of debt instrument issued					$ 250,000
Subsidiary Guarantors
Current Assets:
Cash	1,096	1,105	1,061	1,009
Accounts receivable, net	41	32
Income taxes receivable (payable)	(9)	(9)
Inventories, net	26,109	27,463
Other	1,210	723
Total current assets	28,447	29,314
Property and equipment, net	49,977	51,571
Equity investments and advances to subsidiaries	744,795	696,162
Intangible assets, net	1,657	1,725
Deposits and other assets	318	331
Total assets	825,194	779,103
Current Liabilities:
Accounts payable	9,528	7,753
Intercompany payable	765,619	719,397
Payroll and payroll-related	1,694	1,740
Sales tax	682	522
Other accrued expenses	2,781	2,103
Workers' compensation	72	75
Total current liabilities	780,376	731,590
Unfavorable lease commitments, net	17	19
Deferred rent	2,162	2,216
Total liabilities	782,555	733,825
Member's Equity
Additional paid-in capital	99,943	99,943
Accumulated deficit	(57,304)	(54,665)
Total equity	42,639	45,278
Total liabilities and equity	825,194	779,103
Non-Guarantor Subsidiaries
Current Assets:
Cash	131	136	$ 30	$ 37
Other	13	13
Total current assets	144	149
Property and equipment, net	27	29
Equity investments and advances to subsidiaries	3,017	2,907
Deposits and other assets	15	15
Total assets	3,203	3,100
Current Liabilities:
Intercompany payable	3,598	3,497
Other accrued expenses	18	17
Total current liabilities	3,616	3,514
Deferred rent	1	3
Total liabilities	3,617	3,517
Member's Equity
Member units	1	1
Accumulated deficit	(415)	(418)
Total equity	(414)	(417)
Total liabilities and equity	$ 3,203	$ 3,100

Financial Guarantees - CONDEN52

Financial Guarantees - CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Net Sales:
Total sales	$ 547,512	$ 512,929
Cost of sales	385,159	363,962
Gross profit	162,353	148,967
Selling, general and administrative expenses	153,751	157,229
Operating income (loss)	8,602	(8,262)
Other (income) expense:
Interest income	(2)	(2)
Interest expense	17,342	16,526
Loss on extinguishment of debt		335
Total other expense, net	17,340	16,859
Loss before provision for income taxes	(8,738)	(25,121)
Provision for income taxes	15	73
Net loss	(8,753)	(25,194)
Comprehensive loss	(8,753)	(25,029)
Consolidating Adjustments
Net Sales:
Total sales	(66)
Gross profit	(66)
Selling, general and administrative expenses	(66)
Other (income) expense:
Equity in loss (earnings) of subsidiaries	(2,636)	(2,879)
Total other expense, net	(2,636)	(2,879)
Loss before provision for income taxes	2,636	2,879
Net loss	2,636	2,879
Comprehensive loss	2,636	2,879
Issuer
Net Sales:
Total sales	498,242	469,222
Cost of sales	347,331	330,342
Gross profit	150,911	138,880
Selling, general and administrative expenses	139,673	144,263
Operating income (loss)	11,238	(5,383)
Other (income) expense:
Interest income	(2)	(2)
Interest expense	17,342	16,526
Loss on extinguishment of debt		335
Equity in loss (earnings) of subsidiaries	2,636	2,879
Total other expense, net	19,976	19,738
Loss before provision for income taxes	(8,738)	(25,121)
Provision for income taxes	15	73
Net loss	(8,753)	(25,194)
Comprehensive loss	(8,753)	(25,029)
Subsidiary Guarantors
Net Sales:
Total sales	49,270	43,707
Cost of sales	37,828	33,620
Gross profit	11,442	10,087
Selling, general and administrative expenses	14,081	12,913
Operating income (loss)	(2,639)	(2,826)
Other (income) expense:
Loss before provision for income taxes	(2,639)	(2,826)
Net loss	(2,639)	(2,826)
Comprehensive loss	(2,639)	(2,826)
Non-Guarantor Subsidiaries
Net Sales:
Total sales	66
Gross profit	66
Selling, general and administrative expenses	63	53
Operating income (loss)	3	(53)
Other (income) expense:
Loss before provision for income taxes	3	(53)
Net loss	3	(53)
Comprehensive loss	$ 3	$ (53)

Financial Guarantees - CONDEN53

Financial Guarantees - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 28, 2017	Apr. 29, 2016
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 4,458	$ 25,570
Cash flows from investing activities:
Purchases of property and equipment	(7,367)	(13,373)
Proceeds from sales of property and fixed assets	4,064	4
Net cash used in investing activities	(3,303)	(13,369)
Cash flows from financing activities:
Payments of long-term debt	(1,535)	(1,535)
Proceeds under revolving credit facility	46,400	64,800
Payments under revolving credit facility	(52,600)	(72,600)
Payments of debt issuance costs		(4,594)
Proceeds from financing lease obligations	6,840	2,031
Payments of capital and financing lease obligations	(288)	(239)
Net cash used in financing activities	(1,183)	(12,137)
Net (decrease) increase in cash	(28)	64
Cash - beginning of period	2,448	2,312
Cash - end of period	2,420	2,376
Issuer
Cash flows from operating activities:
Net cash provided by (used in) operating activities	4,071	24,784
Cash flows from investing activities:
Purchases of property and equipment	(6,966)	(12,632)
Proceeds from sales of property and fixed assets	4,064	4
Net cash used in investing activities	(2,902)	(12,628)
Cash flows from financing activities:
Payments of long-term debt	(1,535)	(1,535)
Proceeds under revolving credit facility	46,400	64,800
Payments under revolving credit facility	(52,600)	(72,600)
Payments of debt issuance costs		(4,594)
Proceeds from financing lease obligations	6,840	2,031
Payments of capital and financing lease obligations	(288)	(239)
Net cash used in financing activities	(1,183)	(12,137)
Net (decrease) increase in cash	(14)	19
Cash - beginning of period	1,207	1,266
Cash - end of period	1,193	1,285
Subsidiary Guarantors
Cash flows from operating activities:
Net cash provided by (used in) operating activities	392	792
Cash flows from investing activities:
Purchases of property and equipment	(401)	(740)
Net cash used in investing activities	(401)	(740)
Cash flows from financing activities:
Net (decrease) increase in cash	(9)	52
Cash - beginning of period	1,105	1,009
Cash - end of period	1,096	1,061
Non-Guarantor Subsidiaries
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(5)	(6)
Cash flows from investing activities:
Purchases of property and equipment		(1)
Net cash used in investing activities		(1)
Cash flows from financing activities:
Net (decrease) increase in cash	(5)	(7)
Cash - beginning of period	136	37
Cash - end of period	$ 131	$ 30