Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 22, 2016 | Aug. 02, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Childrens Place, Inc. | ||
Entity Central Index Key | 1,041,859 | ||
Current Fiscal Year End Date | --01-30 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 30, 2016 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,104,280,537 | ||
Entity Common Stock, Shares Outstanding | 19,125,551 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 187,534 | $ 173,291 |
Short-term Investments | 40,100 | 52,000 |
Accounts receivable | 26,315 | 31,928 |
Inventories | 268,831 | 297,631 |
Prepaid expenses and other current assets | 43,042 | 39,349 |
Deferred income taxes | 15,486 | 15,080 |
Total current assets | 581,308 | 609,279 |
Long-term assets: | ||
Property and equipment, net | 290,980 | 310,301 |
Deferred income taxes | 22,230 | 35,580 |
Other assets | 3,430 | 3,458 |
Total assets | 897,948 | 958,618 |
Current liabilities: | ||
Accounts payable | 154,541 | 155,323 |
Income taxes payable | 1,611 | 420 |
Accrued expenses and other current liabilities | 118,870 | 118,724 |
Total current liabilities | 275,022 | 274,467 |
Long-term liabilities: | ||
Deferred rent liabilities | 70,250 | 80,214 |
Other tax liabilities | 9,713 | 6,446 |
Other long-term liabilities | 15,170 | 8,373 |
Total liabilities | 370,155 | 369,500 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $1.00 par value, 1,000 shares authorized, 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.10 par value, 100,000 shares authorized; 19,479 and 21,075 issued; 19,440 and 21,040 outstanding | 1,948 | 2,108 |
Additional paid-in capital | 232,182 | 230,429 |
Treasury stock, at cost (39 and 35 shares) | (1,939) | (1,682) |
Deferred compensation | 1,939 | 1,682 |
Foreign currency translation adjustment | (27,485) | (17,493) |
Retained earnings | 321,148 | 374,074 |
Total stockholders' equity | 527,793 | 589,118 |
Total liabilities and stockholders' equity | $ 897,948 | $ 958,618 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 30, 2016 | Jan. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 19,479,000 | 21,075,000 |
Common Stock, Shares Outstanding | 19,440,000 | 21,040,000 |
Treasury Stock, Shares | 39,000 | 35,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net sales | $ 1,725,777 | $ 1,761,324 | $ 1,765,789 |
Cost of sales | 1,100,645 | 1,139,024 | 1,110,268 |
Gross profit | 625,132 | 622,300 | 655,521 |
Selling, general and administrative expenses | 469,898 | 470,686 | 485,653 |
Asset impairment charges | 2,371 | 11,145 | 29,633 |
Business Exit Costs | 98 | (68) | (906) |
Depreciation and amortization | 62,685 | 60,494 | 64,858 |
Operating income (loss) | 90,080 | 80,043 | 76,283 |
Interest (expense), net | (698) | (168) | 265 |
Income (loss) from continuing operations before income taxes | 89,382 | 79,875 | 76,548 |
Provision (benefit) for income taxes | 31,498 | 22,987 | 23,522 |
Net income (loss) | $ 57,884 | $ 56,888 | $ 53,026 |
Basic earnings (loss) per share amounts | |||
Income (loss) from continuing operations (in dollars per share) | $ 2.83 | $ 2.62 | $ 2.35 |
Basic weighted average common shares outstanding (in shares) | 20,438 | 21,681 | 22,537 |
Diluted earnings (loss) per share amounts | |||
Income (loss) from continuing operations (in dollars per share) | $ 2.80 | $ 2.59 | $ 2.32 |
Diluted weighted average common shares outstanding (in shares) | 20,702 | 21,924 | 22,835 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 57,884 | $ 56,888 | $ 53,026 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | (10,444) | (15,964) | (14,787) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 452 | 0 | 0 |
Comprehensive income | $ 47,892 | $ 40,924 | $ 38,239 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Deferred Compensation, Share-based Payments [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Stockholders' Equity, Total [Member] |
Total stockholders' equity at Feb. 02, 2013 | $ 2,318 | $ 215,691 | $ 1,119 | $ 389,682 | $ 13,258 | $ (1,119) | $ 620,949 | |
Common Stock, Shares Issued Balance at Feb. 02, 2013 | 23,179,000 | |||||||
Treasury Stock, Shares at Feb. 02, 2013 | (24,000) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 49,000 | |||||||
Stock Issued During Period, Value, Stock Options Exercised | 5 | 1,474 | 1,479 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 300,000 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 30 | (30) | 0 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | capitalizedstock-basedcompensation [Member] | 520 | 520 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 21,210 | 21,210 | ||||||
Stock Repurchased and Retired During Period, Shares | (1,298,000) | |||||||
Stock Repurchased and Retired During Period, Value | (130) | (12,555) | (53,145) | (65,830) | ||||
Payments of Ordinary Dividends, Common Stock | $ 0 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (14,787) | (14,787) | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 53,026 | 53,026 | 53,026 | |||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 211 | 211 | ||||||
Stock Issued During Period, Value, Employee Benefit Plan | 456 | |||||||
Total stockholders' equity at Feb. 01, 2014 | 2,223 | 226,521 | 1,575 | 389,563 | (1,529) | $ (1,575) | 616,778 | |
Common Stock, Shares Issued Balance at Feb. 01, 2014 | 22,230,000 | (9,000) | ||||||
Treasury Stock, Shares at Feb. 01, 2014 | (33,000) | |||||||
Common Stock Issued, Employee Trust, Deferred | $ (456) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,000 | |||||||
Stock Issued During Period, Value, Stock Options Exercised | 0 | 55 | 55 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 336,000 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 34 | (34) | 0 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | capitalizedstock-basedcompensation [Member] | 930 | 930 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 17,783 | 17,783 | ||||||
Stock Repurchased and Retired During Period, Shares | (1,493,000) | |||||||
Stock Repurchased and Retired During Period, Value | (149) | (15,600) | (60,380) | (76,129) | ||||
Payments of Ordinary Dividends, Common Stock | $ (11,491) | (11,491) | (11,491) | |||||
Dividendsunvestedshares | (500) | 506 | (506) | 0 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (15,964) | (15,964) | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 56,888 | 56,888 | 56,888 | |||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 268 | 268 | ||||||
Stock Issued During Period, Value, Employee Benefit Plan | 107 | |||||||
Total stockholders' equity at Jan. 31, 2015 | $ 589,118 | 2,108 | 230,429 | 1,682 | 374,074 | (17,493) | $ (1,682) | 589,118 |
Common Stock, Shares Issued Balance at Jan. 31, 2015 | 21,075,000 | (2,000) | ||||||
Treasury Stock, Shares at Jan. 31, 2015 | 35,000 | (35,000) | ||||||
Common Stock Issued, Employee Trust, Deferred | $ (1,682) | $ (107) | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 15,000 | |||||||
Stock Issued During Period, Value, Stock Options Exercised | 2 | 436 | 438 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 397,000 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 40 | (40) | 0 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | capitalizedstock-basedcompensation [Member] | 697 | 697 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 21,119 | 21,119 | ||||||
Stock Repurchased and Retired During Period, Shares | (2,008,000) | |||||||
Stock Repurchased and Retired During Period, Value | 202 | 22,643 | (98,048) | 120,893 | ||||
Payments of Ordinary Dividends, Common Stock | $ (12,217) | 12,217 | 12,217 | |||||
Dividendsunvestedshares | (600) | (545) | 545 | 0 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (10,444) | (10,444) | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 452 | |||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 57,884 | 57,884 | 57,884 | |||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 1,639 | 1,639 | ||||||
Stock Issued During Period, Value, Employee Benefit Plan | 257 | |||||||
Total stockholders' equity at Jan. 30, 2016 | $ 527,793 | $ 1,948 | $ 232,182 | $ 1,939 | $ 321,148 | $ (27,485) | $ (1,939) | 527,793 |
Common Stock, Shares Issued Balance at Jan. 30, 2016 | 19,479,000 | (4,000) | ||||||
Treasury Stock, Shares at Jan. 30, 2016 | 39,000 | (39,000) | ||||||
Common Stock Issued, Employee Trust, Deferred | $ (1,939) | $ (257) | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 57,884 | $ 56,888 | $ 53,026 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 62,685 | 60,494 | 64,858 |
Stock-based compensation | 21,119 | 17,783 | 21,210 |
Excess tax benefits from stock-based compensation | (1,639) | (268) | (211) |
Asset impairment charges | 2,371 | 11,145 | 29,633 |
Deferred taxes | 12,166 | 5,627 | (3,552) |
Deferred rent expense and lease incentives | (9,519) | (8,889) | (11,999) |
Other | 1,216 | 2,208 | 6,891 |
Changes in operating assets and liabilities: | |||
Inventories | 26,121 | 21,022 | (58,941) |
Prepaid expenses and other assets | 2,318 | (6,268) | (6,039) |
Income taxes payable, net of prepayments | 1,845 | (7,341) | 3,441 |
Accounts payable and other current liabilities | (4,040) | 6,049 | 73,609 |
Deferred rent and other liabilities | 10,123 | 2,960 | 1,544 |
Total adjustments | 124,766 | 104,522 | 120,444 |
Net cash provided by operating activities | 182,650 | 161,410 | 173,470 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property and equipment purchases, lease acquisition and software costs | (42,145) | (72,212) | (72,606) |
Payments to Acquire Short-term Investments | (99,680) | (81,000) | (97,500) |
Proceeds from Sale of Short-term Investments | 111,580 | 91,500 | 50,000 |
Purchase of company-owned life insurance policies | (379) | 5 | 406 |
Net cash used in investing activities | (30,624) | (61,707) | (119,700) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 556,856 | 320,230 | 124,289 |
Repayments under revolving credit facilities | (556,856) | (320,230) | (124,289) |
Purchase and retirement of common stock, including transaction costs | (120,893) | (76,129) | (65,830) |
Payments of Ordinary Dividends, Common Stock | (12,217) | (11,491) | 0 |
Exercise of stock options | 438 | 55 | 1,479 |
Excess tax benefits from stock-based compensation | 1,639 | 268 | 211 |
Deferred financing costs | (320) | (306) | 0 |
Net cash provided by (used in) financing activities | (131,353) | (87,603) | (64,140) |
Effect of exchange rate changes on cash | (6,430) | (12,806) | (9,761) |
Net increase (decrease) in cash and cash equivalents | 14,243 | (706) | (20,131) |
Cash and cash equivalents, beginning of period | 173,291 | 173,997 | 194,128 |
Cash and cash equivalents, end of period | 187,534 | 173,291 | 173,997 |
OTHER CASH FLOW INFORMATION: | |||
Net cash paid during the year for income taxes | 13,887 | 23,598 | 24,826 |
Cash paid during the year for interest | 1,399 | 936 | 499 |
Payments for (Proceeds from) Productive Assets | $ (462) | $ 3,611 | $ (5,924) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business The Children's Place, Inc. and subsidiaries (the “Company”) is the largest pure-play children's specialty apparel retailer in North America. The Company provides apparel, accessories, footwear and other items for children. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell trend right, high-quality merchandise at value prices, the substantial majority of which is under our proprietary “The Children's Place”, "Place" and "Baby Place" brand names. As of January 30, 2016, the Company operated 1,069 The Children's Place stores throughout North America and an Internet business at www.childrensplace.com . As part of its merchandise procurement process, the Company maintains business operations in Asia. The Company's corporate offices are in New Jersey and it has one distribution facility in the United States and one in Canada. The Company classifies its business into two segments: The Children’s Place U.S. and The Children’s Place International. Included in The Children’s Place U.S. segment are the Company's U.S. and Puerto Rico based stores and revenue from its U.S. based wholesale customers. Included in The Children's Place International segment are its Canadian based stores, revenue from the Company's Canada wholesale customer, as well as revenue from international franchisees. Each segment includes an e-commerce business located at www.childrensplace.com . As of January 30, 2016, The Children’s Place U.S. operated 937 stores and The Children’s Place International operated 132 stores. Certain reclassifications have been made to prior period financial statements to conform to the current period presentation. Terms that are commonly used in the Company's notes to consolidated financial statements are defined as follows: • Fiscal 2015 - The fifty-two weeks ended January 30, 2016 • Fiscal 2014 - The fifty-two weeks ended January 31, 2015 • Fiscal 2013 - The fifty-two weeks ended February 1, 2014 • Fiscal 2016 - The Company's next fiscal year representing the fifty-two weeks ending January 28, 2017 • SEC- The U.S. Securities and Exchange Commission • GAAP - Generally Accepted Accounting Principles • FASB- Financial Accounting Standards Board • FASB ASC - FASB Accounting Standards Codification, which serves as the source for authoritative U.S. GAAP, except that rules and interpretive releases by the SEC are also sources of authoritative U.S. GAAP for SEC registrants Fiscal Year The Company's fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. All years presented were 52-week years. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company's financial position or results of operations. Consolidation The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. Intercompany balances and transactions have been eliminated. As of January 30, 2016 , the Company does not have any investments in unconsolidated affiliates. The “ Consolidation ” topic of the FASB ASC is considered when determining whether an entity is subject to consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Short-term Investments Short-term investments consist of investments which the Company expects to convert into cash within one year, including time deposits, which have original maturities greater than 90 days. The Company classifies its investments in securities at the time of purchase as held-to-maturity and reevaluates such classifications on a quarterly basis. Held-to-maturity investments consist of securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost and adjusted for the amortization of premiums and discounts, which approximates fair value. Cash inflows and outflows related to the sale and purchase of investments are classified as investing activities in the Company's consolidated statements of cash flows. All of the Company's short-term investments are U.S. dollar denominated time deposits with banking institutions in Hong Kong that have six month maturity dates. Revenue Recognition The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company's retail stores or when received by the customer if the product was purchased via the Internet, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $0.4 million and $0.3 million as of January 30, 2016 and January 31, 2015, respectively, for Internet sales shipped but not yet received by the customer. Sales tax collected from customers is excluded from revenue. An allowance for estimated sales returns is calculated based upon the Company's sales return experience and is recorded in accrued expenses and other current liabilities. The allowance for estimated sales returns was approximately $1.1 million and $1.9 million as of January 30, 2016 and January 31, 2015, respectively. The Company's policy with respect to gift cards is to record revenue as the gift cards are redeemed for merchandise. Prior to their redemption, gift cards are recorded as a liability, included in accrued expenses and other current liabilities. After one year, the Company recognizes breakage income for the estimated portion of unredeemed gift cards that is unlikely to be redeemed. Prior to Fiscal 2015 the Company recognized breakage income after two years. The impact on the Company's net income as a result of the change was $0.5 million during Fiscal 2015. The Company recognized gift card breakage income of approximately $3.3 million , $1.6 million and $1.5 million during Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, and is recorded in selling, general and administrative expenses. In October 2012, the Company launched a new points based customer loyalty program to replace the old program that was restricted to the Company's private label credit card customers. In this program, customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. The Company has developed an estimated value of each point earned based on the awards customers can attain less a reasonable breakage rate. The value of each point earned is recorded as deferred revenue. Deferred revenue for loyalty points as of January 30, 2016 and January 31, 2015 was $5.0 million and $9.0 million , respectively, and is included in accrued expenses and other current liabilities. This change reflects the accelerated conversion of loyalty points in the current program in anticipation of transition to a new customer loyalty program in Fiscal 2016. The Company has an international expansion program through territorial agreements with franchisees. At January 30, 2016, the Company's franchisees had a total of 102 international points of distribution. The Company generates revenues from the franchisees from the sale of product and sales royalties. The Company records gross sales and cost of goods sold on the sale of product to franchisees when the franchisor takes ownership of the product. The Company records gross sales for royalties when the franchisee sells the product to their customers. Under certain agreements the Company receives a fee from each franchisee for exclusive territorial rights. The Company records this territorial fee as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. Deferred revenue for franchisees as of January 30, 2016 and January 31, 2015 was $1.2 million and $0.8 million , respectively. Inventories Inventories, which consist primarily of finished goods, are stated at the lower of cost or market, with cost determined on an average cost basis. The Company capitalizes supply chain costs in inventory and these costs are reflected in cost of sales as the inventories are sold. Inventory includes items that have been marked down to the Company's best estimate of their lower of cost or market value and an estimate for inventory shrinkage. The Company bases its decision to mark down merchandise upon its current rate of sale, the season and the expected sell-through of the item. The Company adjusts its inventory based upon an annual 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) physical inventory and shrinkage is estimated in interim periods based upon the historical results of physical inventories in the context of current year facts and circumstances. Cost of Sales (exclusive of depreciation and amortization) In addition to the cost of inventory sold, the Company includes buying, design and distribution expenses, shipping and handling costs on merchandise sold directly to customers, and letter of credit fees in its cost of sales. The Company records all occupancy costs in its cost of sales, except administrative office buildings, which are recorded in selling, general and administrative expenses. All depreciation is reported on a separate line on the Company's consolidated statements of operations. Stock-based Compensation The Company's stock-based compensation plans are administered by the Compensation Committee of the Board of Directors (the “Board”). The Compensation Committee is comprised of independent members of the Board. Effective May 20, 2011, the shareholders approved the 2011 Equity Incentive Plan (the "Equity Plan"). Upon adoption of the Equity Plan, the Company ceased granting awards under its 2005 Equity Incentive Plan. The Equity Plan allows the Compensation Committee to grant multiple forms of stock‑based compensation such as stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance stock awards. The Company accounts for its stock‑based compensation in accordance with the provisions of the “Compensation-Stock Compensation” topic of the FASB ASC. These provisions require, among other things: (a) the fair value of all stock awards be expensed over their respective vesting periods; (b) the amount of cumulative compensation cost recognized at any date must at least be equal to the portion of the grant-date value of the award that is vested at that date and (c) that compensation expense include a forfeiture estimate for those shares not expected to vest. Also in accordance with these provisions, for those awards with multiple vest dates, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. Earnings per Common Share The Company reports its earnings (loss) per share in accordance with the “ Earnings Per Share ” topic of the FASB ASC, which requires the presentation of both basic and diluted earnings (loss) per share on the statements of operations. The diluted weighted average common shares includes adjustments for the potential effects of outstanding stock options, Deferred Awards and Performance Awards (as both terms are used in Note 3 to these consolidated financial statements), but only in the periods in which such effect is dilutive under the treasury stock method. Included in our basic and diluted weighted average common shares are those shares due to participants in the deferred compensation plan, which are held in treasury stock. Antidilutive stock awards are comprised of stock options and unvested deferred, restricted and performance shares which would have been antidilutive in the application of the treasury stock method in accordance with “Earnings Per Share” topic of FASB ASC. In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Net income $ 57,884 $ 56,888 $ 53,026 Basic weighted average common shares 20,438 21,681 22,537 Dilutive effect of stock awards 264 243 298 Diluted weighted average common shares 20,702 21,924 22,835 Antidilutive stock awards — — 32 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts Receivable Accounts receivable consists of credit and debit card receivables, franchisee and wholesale receivables, landlord construction allowance receivables and other miscellaneous items. Credit and debit card receivables represent credit and debit card sales for which the respective third party service company has yet to remit the cash. The unremitted balance approximates the last few days of related sales for each reporting period. Bad debt associated with these sales is not material. Franchisee and wholesale receivables represent product sales and sale royalties in which cash has not yet been remitted from our partners. Landlord construction allowance receivables represent landlord contributions to our construction costs of building out the related real estate, primarily new and remodeled stores. Total construction costs are capitalized as property and equipment and the landlord construction allowances are recorded as a lease incentive, a component of deferred rent, which is amortized as a reduction of rent expense over the lease term. Insurance and Self-Insurance Reserves The Company self-insures and purchases insurance policies to provide for workers' compensation, general liability and property losses, cyber-security coverage, as well as director and officer's liability, vehicle liability and employee medical benefits. The Company estimates risks and records a liability based on historical claim experience, insurance deductibles, severity factors and other actuarial assumptions. The Company records the current portions of employee medical benefits, workers compensation and general liability reserves in accrued expenses and other current liabilities. As of January 30, 2016 and January 31, 2015 , the current portions of these reserves were approximately $7.0 million and $6.5 million , respectively. The Company records the long-term portions of employee medical benefits, workers' compensation and general liability reserves in other long-term liabilities. As of January 30, 2016 and January 31, 2015 , the long-term portions of these reserves were approximately $5.8 million and $6.5 million , respectively. Property and Equipment Property and equipment are stated at cost. Leasehold improvements are depreciated on a straight-line basis over the shorter of the life of the lease or the estimated useful life of the asset. All other property and equipment is depreciated on a straight-line basis based upon their estimated useful lives, which generally range from three to twenty-five years. Repairs and maintenance are expensed as incurred. The Company accounts for internally developed software intended for internal use in accordance with provisions of the “ Intangibles-Goodwill and Other ” topic of the FASB ASC. The Company capitalizes development‑stage costs such as direct external costs and direct payroll related costs. When development is substantially complete, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software. Preliminary project costs and post-implementation costs such as training, maintenance and support are expensed as incurred. Accounting for Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include a history trend or projected trend of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In that regard, the Company groups its assets into two categories: corporate-related and store-related. Corporate-related assets consist of those associated with the Company's corporate offices, distribution centers and its information technology systems. Store-related assets consist of leasehold improvements, furniture and fixtures, certain computer equipment and lease related assets associated with individual stores. For store-related assets, the Company reviews all stores that have been open or not remodeled for at least two years, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting two years allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of operating losses, the Company projects future cash flows over the remaining life of the lease and compares the total undiscounted cash flows to the net book value of the related long-lived assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily determines fair market value to be the discounted future cash flows associated with those assets. In evaluating future 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic, competition, and their effect on sales trends. Internal factors include the Company's ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll, and in certain cases, its ability to renegotiate lease costs. Exit or Disposal Cost Obligations In accordance with the “ Exit or Disposal Cost Obligations ” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term, or when costs will be incurred without future economic benefit to the Company, on the date the Company ceased using the leased property. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: • management, having the authority to approve the action, commits to a plan of termination; • the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; • the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. During the first quarter of Fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased this facility through March 2016. During the third quarter of Fiscal 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company has subleased this facility through January 2021. The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.5 million was included in accrued expenses and other current liabilities and approximately $0.3 million was included in other long-term liabilities (dollars in thousands): Lease Termination Costs Other Associated Costs Total Balance at February 1, 2014 $ 2,679 $ — $ 2,679 Restructuring costs (222 ) 154 (68 ) Payments and other adjustments (949 ) (154 ) (1,103 ) Balance at January 31, 2015 1,508 — 1,508 Restructuring costs 62 36 98 Payments and other adjustments (800 ) (36 ) (836 ) Balance at January 30, 2016 $ 770 $ — $ 770 Deferred Financing Costs The Company capitalizes costs directly associated with acquiring third party financing. Deferred financing costs are included in other assets and are amortized as interest expense over the term of the related indebtedness. At January 30, 2016, deferred financing costs, net of accumulated amortization of $3.1 million , were approximately $1.2 million . At January 31, 2015, deferred financing costs, net of accumulated amortization of $2.7 million , were approximately $1.2 million . 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Treasury Stock Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. When treasury shares are retired and returned to authorized but unissued status, the carrying value in excess of par is allocated to additional paid-in capital and retained earnings on a pro rata basis. Pre-opening Costs Store pre-opening costs consist primarily of occupancy costs, payroll, supply, and marketing expenses, and are expensed as incurred in selling, general and administrative expenses. Pre-opening costs were $0.3 million , $1.4 million and $3.3 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Advertising and Marketing Costs The Company expenses the cost of advertising over the period the advertising is run or displayed. Included in selling, general and administrative expenses for Fiscal 2015, Fiscal 2014 and Fiscal 2013 are advertising and other marketing costs of approximately $27.9 million , $30.9 million and $33.8 million , respectively. Rent Expense and Deferred Rent Rent expense and lease incentives, including landlord construction allowances, are recognized on a straight-line basis over the lease term, commencing generally on the date the Company takes possession of the leased property. The Company records rent expense and the impact of lease incentives for its stores and distribution centers as a component of cost of sales. The unamortized portion of deferred rent is included in deferred rent liabilities. Income Taxes We utilize the liability method of accounting for income taxes as set forth in the “Income Taxes” topic of the FASB ASC. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which the basis differences and tax assets are expected to be realized. A valuation allowance is recorded when it is more likely than not that any of the deferred tax assets will not be realized. In determining the need for valuation allowances we consider projected future taxable income and the availability of tax planning strategies. If in the future we determine that we would not be able to realize our recorded deferred tax assets, an increase in the valuation allowance would decrease earnings in the period in which such determination is made. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Accumulated Other Comprehensive Income Accumulated other comprehensive income primarily consists of cumulative translation adjustments. Foreign Currency Translation The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with the “ Foreign Currency Matters ” topic of the FASB ASC, the assets and liabilities denominated in foreign currency are translated into U.S. dollars at the current rate of exchange existing at period-end and revenues and expenses are translated at average monthly exchange rates. Related translation adjustments are reported as a separate component of stockholders' equity. The Company also transacts certain business in foreign denominated currencies primarily with its Canadian subsidiary purchasing inventory in U.S. Dollars, and there are intercompany charges between various 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) subsidiaries. In Fiscal 2015, Fiscal 2014 and Fiscal 2013, the Company recorded realized and unrealized gains (losses) on such transactions of approximately $0.1 million , $(0.5) million and $0.5 million , respectively. Derivative Instruments The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates attributable to inventory purchases denominated in a foreign currency. Specifically, its Canadian subsidiary’s functional currency is the Canadian dollar, but purchases inventory from suppliers in US dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, the Company began entering into foreign exchange forward contracts in the second quarter of fiscal 2015. These contracts typically mature within 12 months. The Company does not use forward contracts to engage in currency speculation and we do not enter into derivative financial instruments for trading purposes. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Other Comprehensive Income (“OCI”) and reclassified into earnings within cost of sales (exclusive of depreciation and amortization) in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in earnings within selling, general & administrative expenses, consistent with where the Company records realized and unrealized foreign currency gains and losses on transactions in foreign denominated currencies. All derivative instruments are presented at gross fair value on the Consolidated Balance Sheets within either prepaid expenses and other current assets or accrued expenses and other current liabilities. As of January 30, 2016 the Company had foreign exchange forward contracts with an aggregate notional amount of $26.5 million and the fair value of the derivative instruments was an asset of $0.8 million and a liability of $0.1 million . Legal Contingencies The Company reserves for the outcome of litigation and contingencies when it determines an adverse outcome is probable and can estimate losses. Estimates are adjusted as facts and circumstances require. The Company expenses the costs to resolve litigation as incurred, net of amounts, if any, recovered through our insurance coverage. Retained Earnings There are no restrictions on the Company's retained earnings. Fair Value Measurement and Financial Instruments The “ Fair Value Measurements and Disclosure ” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities The Company’s cash and cash equivalents, short-term investments, assets of the Company’s Deferred Compensation Plan, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Our derivative assets and liabilities include foreign exchange forward contracts that are measured at fair value using observable market inputs such as forward rates, our credit risk and our counterparties’ credit risks. Based on these inputs, our derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 inputs. Long-lived assets, primarily comprised of property and equipment, held and used with a carrying amount of $4.6 million were written down to their fair value, resulting in an impairment charge of $2.4 million , which was included in earnings for Fiscal 2015. For Fiscal 2014, long-lived assets held and used with a carrying amount of $15.9 million were written down to their fair value, resulting in an impairment charge of $11.1 million , which was included in earnings for Fiscal 2014. For Fiscal 2013, long-lived assets held and used with a carrying amount of $44.4 million were written down to their fair value, resulting in an impairment charge of $29.6 million , which was included in earnings for Fiscal 2013. Recently Issued Accounting Updates In February 2016, the FASB issued guidance relating to the accounting for leases. This guidance applies a right of use model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset for the lease term and a liability to make lease payments. The lease term is the noncancellable period of the lease, and includes both periods covered by an option to extend the lease, if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that termination option. The standard is effective for the Company beginning in its fiscal year 2019, including interim periods within those fiscal years, and early adoption is permitted. We are currently reviewing the potential impact of this standard. In November 2015, the FASB issued guidance relating to balance sheet classification of deferred taxes. Currently, entities are required to present deferred tax assets and li |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The Company's Board of Directors has authorized the following share repurchase programs: (1) $100.0 million on November 26, 2012 (the “2012 Share Repurchase Program”); (2) $100.0 million on March 3, 2014 (the “2014 Share Repurchase Program”); (3) $100.0 million on January 7, 2015 (the “2015 Share Repurchase Program”); and (4) $250.0 million on December 8, 2015 (the “2015 $250 Million Share Repurchase Program”). The 2012 Share Repurchase Program and 2014 Share Repurchase Program have been completed. At January 30, 2016, there was approximately $270.8 million remaining on the 2015 Share Repurchase Program and the 2015 $250 Million Share Repurchase Program. Under the 2015 Share Repurchase Program and the 2015 $250 Million Share Repurchase Program, the Company may repurchase shares in the open market at current market prices at the time of purchase or in privately negotiated transactions. The timing and actual number of shares repurchased under the program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. We may suspend or discontinue the program at any time, and may thereafter reinstitute purchases, all without prior announcement. Pursuant to restrictions imposed by the Company's equity plan during black-out periods, the Company withholds and retires shares of vesting stock awards in exchange for payments to satisfy minimum withholding tax requirements. The Company's payment of the withholding taxes in exchange for the shares constitutes a purchase of its common stock. The Company acquires shares of its common stock in conjunction with liabilities owed under a deferred compensation plan, which are held in treasury. The following table summarizes the Company's share repurchases (in thousands): Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Shares Value Shares Value Shares Value Share repurchases related to (1): 2012 Share buyback program — — 282 14,671 1,296 65,691 2014 Share buyback program 640 39,791 1,189 60,209 — — 2015 Share buyback program 1,338 79,274 — — — — Withholding taxes and other 30 1,828 22 1,249 2 139 Shares acquired and held in treasury 4 257 2 107 9 456 (1) Subsequent to January 30, 2016 and through March 22, 2016, the Company repurchased an additional 0.3 million shares for approximately $22.3 million . In accordance with the “Equity” topic of the FASB ASC, the par value of the shares retired is charged against common stock and the remaining purchase price is allocated between additional paid-in capital and retained earnings. The portion charged against additional paid-in capital is done using a pro rata allocation based on total shares outstanding. Related to all shares retired for Fiscal 2015, Fiscal 2014 and Fiscal 2013, approximately $98.0 million , $60.4 million and $53.1 million was charged to retained earnings, respectively. Related to Fiscal 2015 dividends, $12.8 million was charged to retained earnings, of which $12.2 million related to cash dividends paid and $0.6 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. Related to Fiscal 2014 dividends, $12.0 million was charged to retained earnings, of which $11.5 million related to cash dividends paid and $0.5 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. On February 12, 2016, the Board of Directors authorized a quarterly cash dividend of $0.20 per share to be paid on April 28, 2016 to shareholders of record on the close of business on April 7, 2016. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s future financial performance and other investment priorities. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following table summarizes the Company’s stock-based compensation expense (in thousands): Fiscal Year Ended January 30, January 31, February 1, Deferred Awards $ 10,653 $ 10,529 $ 12,873 Performance Awards 10,466 7,254 8,337 Total stock-based compensation expense (1) $ 21,119 $ 17,783 $ 21,210 ____________________________________________ (1) A portion of stock-based compensation is included in cost of sales. Approximately $2.5 million , $1.6 million and $2.8 million in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. The Company recognized a tax benefit related to stock-based compensation expense of $8.3 million , $7.0 million and $8.5 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. The Company generally grants time vesting stock awards ("Deferred Awards") and performance-based stock awards ("Performance Awards") to employees at management levels. The Company also grants Deferred Awards to its non-employee directors. Deferred Awards are granted in the form of restricted stock units that require each recipient to complete a service period. Deferred Awards generally vest ratably over three years, except for those granted to non-employee directors, which generally vest over one year. Performance Awards are granted in the form of restricted stock units which have performance criteria that must be achieved for the awards to vest in addition to a service period requirement. With the approval of the Board's Compensation Committee, the Company may settle vested Deferred Awards and Performance Awards to the employee in shares, in a cash amount equal to the market value of such shares at the time all requirements for delivery of the award have been met, or in part shares and cash. For Performance Awards issued during Fiscal 2013 each award has a defined number of shares that an employee can earn (the “Target Shares”), and based on the adjusted operating income level achieved for the three-fiscal year period, the employee can earn from 0% to 200% of their Target Shares. The fair value of these Performance Awards and all Deferred Awards granted is based on the closing price of our common stock on the grant date. The Fiscal 2013 Performance Awards cliff vest, if earned, after completion of the three year performance period. For Performance Awards issued during Fiscal 2014 and Fiscal 2015 (the “2014 and 2015 Performance Awards”), the Target Shares earned can range from 0% to 300% and depend on the achievement of adjusted earnings per share for the three-fiscal year performance period and our total shareholder return (“TSR”) relative to that of companies in our peer group for the same period. The 2014 and 2015 Performance Awards cliff vest, if earned, after a three year service period. The 2014 and 2015 Performance Awards grant date fair value was estimated using a Monte Carlo simulation covering the period from the valuation date through the end of the performance period using our simulated stock price as well as the TSR of companies in our peer group. Stock-based compensation expense is recognized ratably over the related service period reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Stock- based compensation expense, as it relates to Performance Awards, is also adjusted based on the Company's estimate of the percentage of the aggregate Target Shares expected to be earned. At January 30, 2016, the Company had 605,499 shares available for grant under the Equity Plan. Changes in the Company’s Unvested Stock Awards during Fiscal 2015, Fiscal 2014 and Fiscal 2013 Deferred Awards Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (in thousands) (in thousands) (in thousands) Unvested Deferred Awards at beginning of year 592 $ 49.02 691 $ 49.27 560 $ 49.53 Granted 196 64.62 273 48.50 395 48.93 Vested (1) (250 ) 49.02 (229 ) 48.97 (205 ) 49.46 Forfeited (65 ) 55.35 (143 ) 49.31 (59 ) 48.82 Unvested Deferred Awards at end of year 473 $ 54.62 592 $ 49.02 691 $ 49.27 ____________________________________________ (1) In Fiscal 2015, Fiscal 2014 and Fiscal 2013, the Company withheld shares of 29,654 , 21,788 and 2,089 , respectively, to satisfy minimum withholding tax requirements. These shares were immediately retired. Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $13.3 million as of January 30, 2016, which will be recognized over a weighted average period of approximately 1.9 years. The fair value of Deferred Awards held by the Company's employees that vested during Fiscal 2015, Fiscal 2014 and Fiscal 2013 was approximately $15.5 million , $11.4 million and $9.8 million , respectively. Performance Awards Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Performance Shares (1) Weighted Average Grant Date Fair Value Number of Performance Shares (1) Weighted Average Grant Date Fair Value Number of Performance Shares (1) Weighted Average Grant Date Fair Value (in thousands) (in thousands) (in thousands) Unvested Performance Awards at beginning of year 345 $ 50.18 267 $ 47.67 172 $ 48.59 Granted 195 70.91 245 50.91 204 47.89 Vested shares (147 ) 48.02 (107 ) 46.34 (95 ) 49.84 Forfeited (18 ) 59.49 (60 ) 48.87 (14 ) 47.55 Unvested Performance Awards at end of year 375 $ 61.37 345 $ 50.18 267 $ 47.67 ____________________________________________ (1) For those awards in which the performance period is complete, the number of unvested shares is based on actual shares that will vest upon completion of the service period. For those awards in which the performance period is not yet complete, the number of unvested shares in the table above is based on the participants earning their Target Shares at 100%; however, the cumulative expense recognized reflects changes in estimated adjusted operating income and adjusted earnings per share as they occur. Based on the current number of Performance Awards expected to be earned, the total unrecognized stock-based compensation expense related to unvested Performance Awards approximated $15.4 million as of January 30, 2016, which will be recognized over a weighted average period of approximately 2.1 years. The fair value of Performance Awards held by the Company's employees that vested during Fiscal 2015, Fiscal 2014 and Fiscal 2013 was approximately $2.3 million , $5.5 million and $5.0 million , respectively. Stock Options No stock options were issued during Fiscal 2015, Fiscal 2014 and Fiscal 2013 and at January 30, 2016, there were no unvested stock options. Outstanding Stock Options Changes in the Company’s outstanding stock options for Fiscal 2015 were as follows: Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price (in thousands) (in thousands) (in thousands) Options outstanding at beginning of year 30 $ 29.05 34 $ 28.77 84 $ 30.08 Granted — — — — — — Exercised (1) (15 ) 29.05 (2 ) 24.54 (49 ) 31.06 Forfeited — — (2 ) 29.54 (1 ) 27.11 Options outstanding at end of year (2) 15 $ 29.05 30 $ 29.05 34 $ 28.77 Options exercisable at end of year (2) 15 $ 29.05 30 $ 29.05 34 $ 28.77 ____________________________________________ (1) The aggregate intrinsic value of options exercised was approximately $0.5 million , $0.1 million and $0.9 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. (2) The aggregate intrinsic value of options outstanding and exercisable at the end of Fiscal 2015, Fiscal 2014 and Fiscal 2013 was approximately $0.5 million , $0.9 million and $0.8 million , respectively. The following table summarizes information regarding options outstanding at January 30, 2016: Options Outstanding and Exercisable Range of Exercise Prices Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life $22.02 $31.63 15 29.05 2.3 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): Asset Life January 30, 2016 January 31, 2015 Property and equipment: Land and land improvements — $ 3,403 $ 3,403 Building and improvements 20-25 yrs 35,548 35,548 Material handling equipment 10-15 yrs 48,345 48,479 Leasehold improvements 3-15 yrs 317,410 339,474 Store fixtures and equipment 3-10 yrs 218,566 231,797 Capitalized software 3-10 yrs 177,849 120,054 Construction in progress — 8,357 24,644 809,478 803,399 Less accumulated depreciation and amortization (518,498 ) (493,098 ) Property and equipment, net $ 290,980 $ 310,301 The Company conducted a review of its store portfolio using business hurdles management designed to enhance profitability and improve overall operating results. Based on this review, the Company compiled a list of underperforming stores targeted for closure (the “Disposition List”). As a result of this review the Company closed 32 stores in Fiscal 2015, 35 stores in Fiscal 2014 and 41 stores in Fiscal 2013. The Company also identified additional underperforming stores for which the Company will review its options for improving their financial performance, including but not limited to negotiating occupancy relief, in order to achieve the business hurdles. If these stores are unable to do so, then the Company will move them to the Disposition List. At January 30, 2016, the Company performed impairment testing on 1,069 stores with a total net book value of $114.5 million . During Fiscal 2015, the Company recorded $2.4 million of impairment charges primarily related to 22 underperforming stores, of which 10 were fully impaired and 12 were partially impaired. Of the 22 underperforming stores 17 were in the U.S. and five were in Canada. As of January 30, 2016, the aggregate net book value of the stores that were partially impaired was approximately $1.2 million , which the Company determined to be recoverable based on an estimate of discounted future cash flows. Consistent with its impairment policy, the Company concluded that changes in circumstances affecting the carrying value of stores included on the Disposition List required the Company to review all stores included on the Disposition List regardless of whether the store had been open for at least two years. Impairment charges for all stores were recorded as a result of revenue and/or gross margins not meeting targeted levels and accelerated store lease termination dates. At January 31, 2015, the Company performed impairment testing on 1,063 stores with a total net book value of $138.9 million . During Fiscal 2014, the Company recorded $11.1 million of impairment charges primarily related to 74 underperforming stores, of which 44 were fully impaired and 30 were partially impaired. Of the 74 underperforming stores 69 were in the U.S. and five were in Canada. 4. PROPERTY AND EQUIPMENT (Continued) At February 1, 2014, the Company performed impairment testing on 1,066 stores with a total net book value of $156.9 million . During Fiscal 2013, the Company recorded $20.5 million of store impairment charges primarily related to 127 underperforming stores, of which 106 were fully impaired and 21 were partially impaired. Of the 127 underperforming stores 109 were in the U.S. and 18 were in Canada. Company management continues to believe that making progress on its systems implementations will be one of the key drivers to improve its operations and strengthen its financial performance. During the second quarter of Fiscal 2013 the Company established a strategic long term systems plan. As part of this plan, the Company concluded that certain development costs previously incurred were no longer relevant and deemed certain systems to be obsolete and needed to be replaced by enhanced capabilities in order to incorporate industry best practices as well as service our international franchisees and wholesale business partners. Accordingly, the Company recorded asset impairment charges of $9.1 million and incurred $1.2 million of selling, general and administrative expenses related to the write-down of some previously capitalized development costs and obsolete systems. During Fiscal 2015, the Company capitalized approximately $28.4 million of external software costs and approximately $13.0 million of internal programming and development costs, of which $0.7 million was related to stock-based compensation. During Fiscal 2014, the Company capitalized approximately $42.4 million of external software costs and approximately $11.6 million of internal programming and development costs, of which $0.9 million was related to stock-based compensation. During Fiscal 2013, the Company capitalized approximately $19.5 million of external software costs and approximately $8.7 million of internal programming and development costs, of which $0.5 million was related to stock-based compensation. Amortization expense of capitalized software was approximately $20.1 million , $11.1 million and $7.0 million in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. As of January 30, 2016, the Company had approximately $6.1 million in property and equipment for which payment had not been made, which was included in accrued expenses and other current liabilities. |
CREDIT FACILITY
CREDIT FACILITY | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY | CREDIT FACILITY The Company and certain of its domestic subsidiaries maintain a credit agreement with Wells Fargo Bank, National Association (“Wells Fargo”), Bank of America, N.A., HSBC Business Credit (USA) Inc., and JPMorgan Chase Bank, N.A. as lenders (collectively, the “Lenders”) and Wells Fargo, as Administrative Agent, Collateral Agent and Swing Line Lender (the “Credit Agreement”). The Credit Agreement was amended on September 15, 2015 and the provisions below reflect the amended and extended Credit Agreement. The Credit Agreement, which expires in September 2020, consists of a $250 million asset based revolving credit facility, with a $50 million sublimit for standby and documentary letters of credit and an uncommitted accordion feature that could provide up to $50 million of additional availability. Revolving credit loans outstanding under the Credit Agreement bear interest, at the Company’s option, at: (i) the prime rate plus a margin of 0.50% to 0.75% based on the amount of the Company’s average excess availability under the facility; or (ii) the London InterBank Offered Rate, or “LIBOR”, for an interest period of one, two, three or six months, as selected by the Company, plus a margin of 1.25% to 1.50% based on the amount of the Company’s average excess availability under the facility. The Company is charged an unused line fee of 0.25% on the unused portion of the commitments. Letter of credit fees range from 0.625% to 0.750% for commercial letters of credit and range from 0.75% to 1.00% for standby letters of credit. Letter of credit fees are determined based on the amount of the Company's average excess availability under the facility. The amount available for loans and letters of credit under the Credit Agreement is determined by a borrowing base consisting of certain credit card receivables, certain trade and franchise receivables, certain inventory and the fair market value of certain real estate, subject to certain reserves. The outstanding obligations under the Credit Agreement may be accelerated upon the occurrence of certain events, including, among others, non-payment, breach of covenants, the institution of insolvency proceedings, defaults under other material indebtedness and a change of control, subject, in the case of certain defaults, to the expiration of applicable grace periods. The Company is not subject to any early termination fees. The Credit Agreement contains covenants, which include conditions on stock buybacks and the payment of cash dividends or similar payments. Credit extended under the Credit Agreement is secured by a first priority security interest in substantially all of the Company’s U.S. assets excluding intellectual property, software, equipment and fixtures. As of January 30, 2016, the Company has capitalized an aggregate of approximately $4.3 million in deferred financing costs related to the Credit Agreement. The unamortized balance of deferred financing costs at January 30, 2016 was approximately $1.2 million . Unamortized deferred financing costs are amortized over the remaining term of the Credit Agreement. In conjunction with amending the agreement in September 2015, we paid approximately $0.3 million in additional deferred financing costs. The table below presents the components (in millions) of the Company’s credit facility: January 30, January 31, Credit facility maximum $ 250.0 $ 200.0 Borrowing base 211.7 183.2 Outstanding borrowings — — Letters of credit outstanding—merchandise — — Letters of credit outstanding—standby 7.1 9.1 Utilization of credit facility at end of period 7.1 9.1 Availability (1) $ 204.6 $ 174.1 Interest rate at end of period 4.0 % 3.8 % Fiscal 2015 Fiscal 2014 Average end of day loan balance during the period $ 28.5 $ 9.4 Highest end of day loan balance during the period 67.5 40.9 Average interest rate 2.7 % 3.2 % ____________________________________________ (1) The sublimit availability for letters of credit was $42.9 million and $40.9 million at January 30, 2016 and January 31, 2015, respectively. |
INTEREST INCOME (EXPENSE), NET
INTEREST INCOME (EXPENSE), NET | 12 Months Ended |
Jan. 30, 2016 | |
Other Income and Expenses [Abstract] | |
INTEREST INCOME (EXPENSE), NET | INTEREST (EXPENSE) INCOME, NET The following table presents the components of the Company’s interest expense, net (in thousands): Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, Interest income $ 1,019 $ 1,120 $ 1,123 Less: Interest expense – revolver 789 313 — Interest expense – credit facilities 68 92 120 Unused line fee 463 447 305 Amortization of deferred financing fees 318 352 364 Other interest and fees 79 84 69 Total interest expense 1,717 1,288 858 Interest (expense) income, net $ (698 ) $ (168 ) $ 265 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Jan. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses And Other Current Assets [Text Block] | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets are comprised of the following (in thousands): January 30, 2016 January 31, 2015 Prepaid property expense $ 20,148 $ 20,781 Prepaid income taxes 11,458 10,289 Prepaid marketing 3,898 1,385 Prepaid maintenance contracts 3,411 3,664 Prepaid insurance 2,279 2,393 Other 1,848 837 Prepaid expenses and other current assets $ 43,042 $ 39,349 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities are comprised of the following (in thousands): January 30, 2016 January 31, 2015 Accrued salaries and benefits $ 36,108 $ 33,633 Customer liabilities 24,357 32,794 Accrued professional fees 12,647 7,802 Sales taxes and other taxes payable 6,193 6,369 Accrued marketing 5,350 5,794 Accrued store expenses 4,742 4,573 Accrued construction-in-progress 4,736 3,631 Accrued freight 4,581 6,622 Accrued insurance 4,224 3,759 Accrued real estate expenses 2,258 3,717 Accrued short-term restructuring costs 475 798 Other 13,199 9,232 Accrued expenses and other current liabilities $ 118,870 $ 118,724 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company leases all of its stores, offices and distribution facilities (except the Ft. Payne, Alabama distribution center which the Company owns), and certain office equipment, store fixtures and automobiles, under operating leases expiring through 2026. The leases require fixed minimum annual rental payments plus, under the terms of certain leases, additional payments for taxes, other expenses and additional rent based upon sales. Store, office and distribution facilities minimum rent, contingent rent and sublease income are as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Minimum rentals 159,641 164,510 168,112 Additional rent based upon sales 751 797 943 Sublease income (2,766 ) (2,967 ) (1,138 ) 9. COMMITMENTS AND CONTINGENCIES (Continued) Future minimum annual lease payments under the Company's operating leases at January 30, 2016 were as follows (in thousands): Minimum Operating Lease Payments 2016 $ 155,352 2017 139,682 2018 119,065 2019 103,482 2020 88,279 Thereafter 168,225 Total minimum lease payments $ 774,085 Purchase Commitments As of January 30, 2016, the Company has entered into various purchase commitments for merchandise for re-sale of approximately $319.4 million and approximately $15.9 million for equipment, construction and other non-merchandise commitments. Employment Agreements The Company has an employment agreement with its President and Chief Executive Officer, which provides for severance of two times the sum of base salary plus bonus, and certain other payments and benefits following any termination without cause or for “good reason”. As of January 30, 2016, these cash severance benefits approximated $6.3 million . In the event of a change in control of the Company, certain executives will receive, in the aggregate, approximately $23.7 million of cash severance benefits should they either be terminated or voluntarily terminate their employment due to a degradation of duties as defined in their change in control agreements. |
LEGAL AND REGULATORY MATTERS
LEGAL AND REGULATORY MATTERS | 12 Months Ended |
Jan. 30, 2016 | |
LEGAL AND REGULATORY MATTERS [Abstract] | |
Legal Matters and Contingencies [Text Block] | LEGAL AND REGULATORY MATTERS The Company is involved in various legal proceedings arising in the normal course of business. In the opinion of management, any ultimate liability arising out of these proceedings will not have a material effect on the Company's financial position , results of operations or cash flows. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before taxes are as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 U.S. $ 46,053 $ 47,888 $ 36,487 Foreign 43,329 31,987 40,061 Total $ 89,382 $ 79,875 $ 76,548 11. INCOME TAXES (Continued) The components of the Company's provision for income taxes consisted of the following (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Current - Federal $ 7,248 $ 8,212 $ 13,240 State 2,275 3,691 4,371 Foreign 9,809 5,457 9,463 Total current 19,332 17,360 27,074 Deferred - Federal 9,649 5,260 (1,513 ) State 2,548 1,426 (731 ) Foreign (31 ) (1,059 ) (1,308 ) Total deferred 12,166 5,627 (3,552 ) Tax provision as shown on the consolidated statements of operations $ 31,498 $ 22,987 $ 23,522 Effective tax rate 35.2 % 28.8 % 30.7 % A reconciliation between the calculated tax provision on income based on statutory rates in effect and the effective tax rate for is as follows (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Calculated income tax provision at federal statutory rate $ 31,284 $ 27,956 $ 26,792 State income taxes, net of federal benefit 3,052 3,326 2,366 Foreign tax rate differential (1) (9,744 ) (8,849 ) (7,224 ) Nondeductible expenses 2,729 1,685 1,792 Unrecognized tax benefit 3,892 807 (1,347 ) Change in valuation allowance 399 (1,472 ) 447 Other (114 ) (466 ) 696 Total tax provision $ 31,498 $ 22,987 $ 23,522 (1) The foreign tax rate differential is due to the Company having a lower foreign effective tax rate as compared to its U.S. federal statutory tax rate of 35%. The Company has substantial operations in both Hong Kong and Canada which have lower statutory income tax rates as compared to the U.S. The Company's foreign effective tax rates for Fiscal 2015, Fiscal 2014 and Fiscal 2013 were 22.6%, 13.7% and 20.4%, respectively. This rate will fluctuate from year to year in response to changes in the mix of pre-tax earnings by country as well as changes in foreign jurisdiction tax laws. 11. INCOME TAXES (Continued) The tax effects of temporary differences which give rise to deferred tax assets and liabilities are as follows (in thousands): January 30, January 31, Current – Assets Inventory 4,472 4,128 Reserves 15,965 15,169 Hedging transactions (223 ) — Total current assets 20,214 19,297 Liabilities-prepaid expenses (4,728 ) (4,217 ) Total current, net 15,486 15,080 Noncurrent – Property and equipment (6,855 ) 7,654 Deferred rent 14,548 14,830 Equity compensation 9,757 7,101 Reserves and other 4,780 5,995 Net operating loss carryover and other tax credits 2,293 1,930 Total noncurrent, gross 24,523 37,510 Valuation allowance (2,293 ) (1,930 ) Net noncurrent 22,230 35,580 Total deferred tax asset, net $ 37,716 $ 50,660 As of January 30, 2016, the Company has not provided Federal taxes on approximately $268.6 million of unremitted earnings of its foreign subsidiaries. The Company intends to reinvest these earnings to fund expansion in these and other markets outside the U.S. Accordingly, the Company has not provided any provision for income tax expense in excess of foreign jurisdiction income tax requirements relative to such unremitted earnings in the accompanying financial statements. Due to the complexities associated with the hypothetical calculation, including the availability of foreign tax credits, the Company has concluded it is not practicable to determine the unrecognized deferred tax liability related to the undistributed earnings. The Company has foreign net operating loss carryforwards of approximately $5.9 million which do not expire. The Company also has an Alternative Minimum Tax credit ("AMT") in Puerto Rico of approximately $0.8 million which does not expire. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the need for a valuation allowance. The Company has concluded that it is more likely than not that certain deferred tax assets cannot be used in the foreseeable future, principally the foreign net operating loss carryforwards and the AMT credit in Puerto Rico. Accordingly, a valuation allowance has been established for these tax benefits. However, to the extent that tax benefits related to these are realized in the future, the reduction of the valuation allowance will reduce income tax expense accordingly. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. The Company's income taxes payable have been reduced by the tax benefits from employee stock plan awards. For stock options, the Company receives an income tax benefit calculated as the tax effect of the difference between the fair market value of the stock issued at the time of the exercise and the exercise price. For Deferred Awards and Performance Awards, the 11. INCOME TAXES (Continued) Company receives an income tax benefit upon the award's vesting equal to the tax effect of the underlying stock's fair market value. Uncertain Tax Positions Tax positions are evaluated in a two step process. The Company first determines whether it is more-likely-than-not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. A reconciliation of the gross amounts of unrecognized tax benefits, excluding accrued interest and penalties, is as follows (in thousands): January 30, January 31, Beginning Balance $ 5,479 $ 4,412 Additions for current year tax positions 3,800 833 Additions for prior year tax positions — 1,070 Reductions for prior year tax positions (242 ) (156 ) Settlements (60 ) (43 ) Reductions due to a lapse of the applicable statute of limitations (596 ) (637 ) $ 8,381 $ 5,479 Approximately $8.7 million of unrecognized tax benefits at January 30, 2016 would affect the Company's effective tax rate if recognized. The Company believes it is reasonably possible that there may be a reduction of approximately $2.1 million of unrecognized tax benefits in the next 12 months as a result of settlements with taxing authorities and statute of limitations expirations. The Company accrued interest and penalties related to unrecognized tax benefits as part of the provision for income taxes. At January 30, 2016 and January 31, 2015 accrued interest and penalties included in unrecognized tax benefits were approximately $1.3 million and $1.0 million , respectively. Interest, penalties and reversals, thereof, net of taxes, was a benefit of $0.4 million in each of Fiscal 2015, Fiscal 2014 and Fiscal 2013. The Company is subject to tax in the United States and foreign jurisdictions, including Canada and Hong Kong. The Company, joined by its domestic subsidiaries, files a consolidated income tax return for Federal income tax purposes. The Company, with certain exceptions, is no longer subject to income tax examinations by U.S. Federal, state and local or foreign tax authorities for tax years fiscal 2011 and prior. |
SAVINGS AND INVESTMENT PLANS
SAVINGS AND INVESTMENT PLANS | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
SAVINGS AND INVESTMENT PLANS | RETIREMENT AND SAVINGS PLANS 401(k) Plan The Company has adopted The Children's Place 401(k) Savings Plan (the “401(k) Plan”), which qualifies under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”). The 401(k) Plan is a defined contribution plan established to provide retirement benefits for employees. The 401(k) Plan is employee funded up to an elective annual deferral and also provides for Company matching contributions up to a certain percentage amount of the employee's salary. The 401(k) Plan is available for all U.S. employees who have completed 90 days of service with the Company. Following guidance in IRS Notice 98-52 related to the design‑based alternative, or “safe harbor,” 401(k) plan method, the Company modified its 401(k) Plan for Company match contributions for non-highly compensated associates, as defined in the Code. For non-highly compensated associates, the Company matches the first 3% of the participant's contribution and 50% of the next 2% of the participant's contribution and the Company match contribution vests immediately. For highly compensated associates, the Company has the discretion to match the lesser of 50% of the participant's contribution or 2.5% of the participant's covered compensation and the Company match contribution vests over 5 years. The Company's matching contributions were approximately $2.2 million , in each of Fiscal 2015, Fiscal 2014 and Fiscal 2013. Deferred Compensation Plan The Company has a deferred compensation plan (the “Deferred Compensation Plan”), which is a nonqualified, unfunded plan, for eligible senior level employees. Under the plan, participants may elect to defer up to 80% of his or her base salary and/or up to 100% of his or her bonus to be earned for the year following the year in which the deferral election is made. The Deferred Compensation Plan also permits members of the Board of Directors to elect to defer payment of all or a portion of their retainer and other fees to be earned for the year following the year in which a deferral election is made. In addition, eligible employees and directors of the Company may also elect to defer payment of any shares of Company stock that is earned with respect to deferred stock awards. The Company may, but is not required to, credit participants with additional Company contribution amounts. Deferred amounts are not subject to forfeiture and are deemed invested among investment funds offered under the Deferred Compensation Plan, as directed by each participant. Payments of deferred amounts (as adjusted for earnings and losses) are payable following separation from service or at a date or dates elected by the participant at the time the deferral is elected. Payments of deferred amounts are generally made in either a lump sum or in annual installments over a period not exceeding 15.0 years. During fiscal 2010, the Deferred Compensation Plan was amended to allow for cash deferrals made by members of the Board of Directors to be invested in shares of the Company’s common stock. Such elections are irrevocable and will be settled in shares of common stock. All other deferred amounts are payable in the form in which they were made; cash deferrals are payable in cash and stock deferrals are payable in stock. Earlier distributions are not permitted except in the case of an unforeseen hardship. The Company has established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability; however, the assets of the rabbi trust are general assets of the Company and as such, would be subject to the claims of creditors in the event of bankruptcy or insolvency. The investments of the rabbi trust consist of mutual funds and Company stock. The Deferred Compensation Plan liability, excluding Company stock, is included in other long-term liabilities and changes in the balance are recognized as compensation expense. The values of the mutual funds are included in other assets and related earnings and losses are recognized as investment income or loss, which is included in selling, general and administrative expenses. Company stock deferrals are included in the equity section of the Company’s consolidated balance sheet as treasury stock and as a deferred compensation liability. Deferred stock is recorded at fair market value at the time of deferral and any subsequent changes in fair market value are not recognized. The Deferred Compensation Plan liability, excluding Company stock, at fair value, was approximately $0.7 million and $0.5 million at January 30, 2016 and January 31, 2015, respectively. The value of the Deferred Compensation Plan assets was approximately $0.7 million and $0.3 million at January 30, 2016 and January 31, 2015, respectively. Company stock was $1.9 million and $1.7 million at January 30, 2016 and January 31, 2015, respectively. Other Plans Under statutory requirements, the Company contributes to retirement plans for its Canadian, Puerto Rican and Asian operations. Contributions under these plans were approximately $0.4 million in Fiscal 2015 and $0.3 million in Fiscal 2014 and Fiscal 2013. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 12 Months Ended |
Jan. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates attributable to inventory purchases denominated in a foreign currency. Specifically, our Canadian subsidiary’s functional currency is the Canadian dollar, but purchases inventory from suppliers in US dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, we began entering into foreign exchange forward contracts in the second quarter of Fiscal 2015. These contracts typically mature within 12 months. We do not use forward contracts to engage in currency speculation and we do not enter into derivative financial instruments for trading purposes. The Company accounts for all of its derivatives and hedging activity under the “Derivatives and Hedging” topic of the FASB ASC. Under the Company’s risk management policy and in accordance with guidance under the topic, in order to qualify for hedge accounting treatment, a derivative must be considered highly effective at offsetting changes in either the hedged item’s cash flows or fair value. Additionally, the hedge relationship must be documented to include the risk management objective and strategy, the hedging instrument, the hedged item, the risk exposure, and how hedge effectiveness will be assessed prospectively and retrospectively. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis. The Company would discontinue hedge accounting under a foreign exchange forward contract prospectively (i) if management determines that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is terminated, (iii) if the forecasted transaction being hedged by the derivative is no longer probable of occurring, or (iv) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. All derivative instruments are presented at gross fair value on the Consolidated Balance Sheets within either prepaid expenses and other current assets or accrued expenses and other current liabilities. As of January 30, 2016 the Company had foreign exchange forward contracts with an aggregate notional amount of $26.5 million and the fair value of the derivative instruments was an asset of $0.8 million and a liability of less than $0.1 million . As these foreign exchange forward contracts are measured at fair value using observable market inputs such as forward rates, the Company's credit risk and our counterparties’ credit risks, they are classified within Level 2 of the valuation hierarchy. Cash settlements related to these forward contracts are recorded in Cash Flows from Operating Activities within the Consolidated Statements of Cash Flows. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Other Comprehensive Income (“OCI”) and reclassified into earnings within cost of sales (exclusive of depreciation and amortization) in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in earnings within selling, general & administrative expenses, consistent with where the Company records realized and unrealized foreign currency gains and losses on transactions in foreign denominated currencies. Gains related to hedge effectiveness during Fiscal 2015 were approximately $0.3 million and recognized in earnings within selling, general & administrative expenses. During Fiscal 2015 approximately $0.5 million of the effective portion of the gain on the derivative was reclassified into earnings within cost of sales. As of January 30, 2016 the gross value related to hedges of these transactions in OCI was approximately $0.7 million . Assuming January 30, 2016 exchange rates remain constant, $0.5 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified from OCI into earnings over the next 12 months. Changes in fair value associated with derivatives that are not designated and qualified as cash flow hedges are recognized in earnings within selling, general & administrative expenses. The Company enters into foreign exchange forward contracts with major banks and has risk exposure in the event of nonperformance by either party. However, based on our assessment, the Company believes that obligations under the contracts will be fully satisfied. Accordingly, there was no requirement to post collateral or other security to support the contracts as of January 30, 2016. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION In accordance with the “ Segment Reporting ” topic of the FASB ASC, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com . Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico based stores and U.S. revenue from the Company's wholesale customers. Included in The Children's Place International segment are the Company's Canadian based stores, revenue from the Company's Canada wholesale customer and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales from external customers are derived from merchandise sales and the Company has no major customers that account for more than 10% of its net sales. As of January 30, 2016, The Children’s Place U.S. operated 937 stores and The Children’s Place International operated 132 stores. As of January 31, 2015, The Children’s Place U.S. operated 963 stores and The Children’s Place International operated 134 stores. The following tables provide segment level financial information for Fiscal 2015, Fiscal 2014 and Fiscal 2013 (dollars in thousands): Fiscal Year Ended January 30, January 31, February 1, Net sales: The Children’s Place U.S. $ 1,518,117 $ 1,528,762 $ 1,528,276 The Children’s Place International (1) 207,660 232,562 237,513 Total net sales $ 1,725,777 $ 1,761,324 $ 1,765,789 Gross profit: The Children’s Place U.S. $ 539,030 $ 535,226 $ 558,156 The Children’s Place International 86,102 87,074 97,365 Total gross profit $ 625,132 $ 622,300 $ 655,521 Gross Margin: The Children’s Place U.S. 35.5 % 35.0 % 36.5 % The Children’s Place International 41.5 % 37.4 % 41.0 % Total gross margin 36.2 % 35.3 % 37.1 % Operating income: The Children’s Place U.S. (2) $ 65,221 $ 63,586 $ 60,267 The Children’s Place International (3) 24,859 16,457 16,016 Total operating income $ 90,080 $ 80,043 $ 76,283 Operating income as a percent of net sales: The Children’s Place U.S. 4.3 % 4.2 % 3.9 % The Children’s Place International 12.0 % 7.1 % 6.7 % Total operating income 5.2 % 4.5 % 4.3 % Depreciation and amortization: The Children’s Place U.S. $ 55,937 $ 52,565 $ 55,595 The Children’s Place International 6,748 7,929 9,263 Total depreciation and amortization $ 62,685 $ 60,494 $ 64,858 Capital expenditures: The Children’s Place U.S. $ 41,304 $ 68,847 $ 64,486 The Children’s Place International 841 3,365 8,120 Total capital expenditures $ 42,145 $ 72,212 $ 72,606 13. SEGMENT INFORMATION (Continued) (1) Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on net sales was a decrease of $29.9 million. (2) Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $0.1 million , $(0.1) million and $(0.9) million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes a $1.7 million , $10.5 million and a $25.4 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $6.0 million , $7.1 million and $4.2 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Fiscal 2015 also includes costs incurred related to a class action wage and hour legal settlement, proxy contest costs and a sales tax audit of approximately $12.1 million . (3) Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on operating income was a decrease of $1.9 million. Includes a $0.7 million , $0.6 million and $4.2 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. January 30, January 31, 2015 Total assets: The Children’s Place U.S. $ 748,975 $ 805,462 The Children’s Place International 148,973 153,156 Total assets $ 897,948 $ 958,618 Geographic Information The Company's long-lived assets are located in the following countries: January 30, January 31, 2015 Long-lived assets (1): United States $ 276,612 $ 289,820 Canada 16,212 22,697 Asia 1,586 1,242 Total long-lived assets $ 294,410 $ 313,759 ____________________________________________ (1) The Company's long-lived assets are comprised of net property and equipment and other assets. |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA | QUARTERLY FINANCIAL DATA (UNAUDITED) In the opinion of management, the unaudited consolidated financial statements presented below contain all material adjustments, consisting of normal recurring accruals, necessary to present fairly the Company's financial position and results of operations and have been prepared in a manner consistent with the audited financial statements contained herein. Due to the seasonal nature of the Company's business, the results of operations in any given interim period are not indicative of operating results for a full fiscal year. 14. QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) The following tables reflect quarterly consolidated statements of income for the periods indicated (unaudited): Fiscal Year Ended January 30, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 404,865 $ 366,455 $ 455,913 $ 498,544 Gross profit 152,109 115,004 180,513 177,506 Selling, general and administrative expenses 114,514 118,342 105,797 131,245 Asset impairment charges — 1,452 919 — Other costs (income) (3 ) 76 14 11 Depreciation and amortization 14,394 15,252 16,136 16,903 Operating income (loss) 23,204 (20,118 ) 57,647 29,347 Income (loss) before income taxes 23,028 (20,323 ) 57,393 29,284 Provision (benefit) for income taxes 7,421 (6,628 ) 18,898 11,807 Net income (loss) 15,607 (13,695 ) 38,495 17,477 Diluted earnings (loss) per share $ 0.73 $ (0.67 ) $ 1.88 $ 0.87 Diluted weighted average common shares outstanding 21,366 20,576 20,517 20,174 Cash dividends declared and paid per common share $ 0.1500 $ 0.1500 $ 0.1500 $ 0.1500 ____________________________________________ (1) Items impacting the fourth quarter of Fiscal 2015 include approximately $4.4 million of additional costs related to corporate severance and reorganizations partially offset by approximately $2.8 million of income related to the accelerated conversion of loyalty points in the Company's current loyalty program in anticipation of transition to a new customer loyalty program in Fiscal 2016. Fiscal Year Ended January 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 410,149 $ 384,628 $ 487,304 $ 479,243 Gross profit 148,261 119,118 190,111 164,810 Selling, general and administrative expenses 113,720 117,111 116,120 123,735 Asset impairment charges — 3,045 3,306 4,794 Other costs (income) 231 (98 ) (286 ) 85 Depreciation and amortization 14,227 15,557 15,168 15,542 Operating income (loss) 20,083 (16,497 ) 55,803 20,654 Income (loss) before income taxes 20,102 (16,557 ) 55,721 20,609 Provision (benefit) for income taxes 6,506 (5,870 ) 18,779 3,572 Net income (loss) 13,596 (10,687 ) 36,942 17,037 Diluted earnings (loss) per share $ 0.61 $ (0.49 ) $ 1.70 $ 0.79 Diluted weighted average common shares outstanding 22,419 21,837 21,756 21,512 Cash dividends declared and paid per common share $ 0.1325 $ 0.1325 $ 0.1325 $ 0.1325 ____________________________________________ 14. QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) (1) Items impacting the fourth quarter of Fiscal 2014 include approximately $4.8 million of asset impairment charges and $3.2 million of additional costs related to corporate severance and reorganizations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Subsequent to January 30, 2016 and through March 22, 2016, the Company repurchased an additional 0.3 million shares for approximately $22.3 million , which completed the 2015 Share Repurchase Program and brought the total under the 2015 $250 Million Share Repurchase Program to approximately $1.6 million . On February 12, 2016, the Company's Board of Directors authorized a quarterly cash dividend of $0.20 per share to be paid April 28, 2016 for shareholders of record on the close of business on April 7, 2016. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Company’s Board of Directors based on a number of factors, including business and market conditions, the Company’s future financial performance and other investment priorities. |
SCHEDULE II
SCHEDULE II | 12 Months Ended |
Jan. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II | THE CHILDREN'S PLACE, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in thousands) Column A Column B Column C Column D Column E Balance at beginning of year Charged to expense Deductions Balance at end of year Lower of cost or market reserve (1) Fiscal year ended January 30, 2016 $ 1,925 $ 2,356 $ (585 ) $ 3,696 Fiscal year ended January 31, 2015 $ 4,268 $ — $ (2,343 ) $ 1,925 Fiscal year ended February 1, 2014 $ 2,413 $ 1,881 $ (26 ) $ 4,268 (1) Reflects adjustment of out-of-season merchandise inventories to realizable value. Column C represents increases to the reserve and Column D represents decreases to the reserve based on quarterly assessments of the reserve. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Derivatives, Policy [Policy Text Block] | Derivative Instruments The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates attributable to inventory purchases denominated in a foreign currency. Specifically, its Canadian subsidiary’s functional currency is the Canadian dollar, but purchases inventory from suppliers in US dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, the Company began entering into foreign exchange forward contracts in the second quarter of fiscal 2015. These contracts typically mature within 12 months. The Company does not use forward contracts to engage in currency speculation and we do not enter into derivative financial instruments for trading purposes. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of Other Comprehensive Income (“OCI”) and reclassified into earnings within cost of sales (exclusive of depreciation and amortization) in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in earnings within selling, general & administrative expenses, consistent with where the Company records realized and unrealized foreign currency gains and losses on transactions in foreign denominated currencies. All derivative instruments are presented at gross fair value on the Consolidated Balance Sheets within either prepaid expenses and other current assets or accrued expenses and other current liabilities. As of January 30, 2016 the Company had foreign exchange forward contracts with an aggregate notional amount of $26.5 million and the fair value of the derivative instruments was an asset of $0.8 million and a liability of $0.1 million . |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year The Company's fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to January 31. All years presented were 52-week years. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and amounts of revenues and expenses reported during the period. Actual results could differ from the assumptions used and estimates made by management, which could have a material impact on the Company's financial position or results of operations. |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of the Company and its wholly‑owned subsidiaries. Intercompany balances and transactions have been eliminated. As of January 30, 2016 , the Company does not have any investments in unconsolidated affiliates. The “ Consolidation ” topic of the FASB ASC is considered when determining whether an entity is subject to consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Stock-based Compensation | Stock-based Compensation The Company's stock-based compensation plans are administered by the Compensation Committee of the Board of Directors (the “Board”). The Compensation Committee is comprised of independent members of the Board. Effective May 20, 2011, the shareholders approved the 2011 Equity Incentive Plan (the "Equity Plan"). Upon adoption of the Equity Plan, the Company ceased granting awards under its 2005 Equity Incentive Plan. The Equity Plan allows the Compensation Committee to grant multiple forms of stock‑based compensation such as stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance stock awards. The Company accounts for its stock‑based compensation in accordance with the provisions of the “Compensation-Stock Compensation” topic of the FASB ASC. These provisions require, among other things: (a) the fair value of all stock awards be expensed over their respective vesting periods; (b) the amount of cumulative compensation cost recognized at any date must at least be equal to the portion of the grant-date value of the award that is vested at that date and (c) that compensation expense include a forfeiture estimate for those shares not expected to vest. Also in accordance with these provisions, for those awards with multiple vest dates, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share The Company reports its earnings (loss) per share in accordance with the “ Earnings Per Share ” topic of the FASB ASC, which requires the presentation of both basic and diluted earnings (loss) per share on the statements of operations. The diluted weighted average common shares includes adjustments for the potential effects of outstanding stock options, Deferred Awards and Performance Awards (as both terms are used in Note 3 to these consolidated financial statements), but only in the periods in which such effect is dilutive under the treasury stock method. Included in our basic and diluted weighted average common shares are those shares due to participants in the deferred compensation plan, which are held in treasury stock. Antidilutive stock awards are comprised of stock options and unvested deferred, restricted and performance shares which would have been antidilutive in the application of the treasury stock method in accordance with “Earnings Per Share” topic of FASB ASC. In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Net income $ 57,884 $ 56,888 $ 53,026 Basic weighted average common shares 20,438 21,681 22,537 Dilutive effect of stock awards 264 243 298 Diluted weighted average common shares 20,702 21,924 22,835 Antidilutive stock awards — — 32 |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable consists of credit and debit card receivables, franchisee and wholesale receivables, landlord construction allowance receivables and other miscellaneous items. Credit and debit card receivables represent credit and debit card sales for which the respective third party service company has yet to remit the cash. The unremitted balance approximates the last few days of related sales for each reporting period. Bad debt associated with these sales is not material. Franchisee and wholesale receivables represent product sales and sale royalties in which cash has not yet been remitted from our partners. Landlord construction allowance receivables represent landlord contributions to our construction costs of building out the related real estate, primarily new and remodeled stores. Total construction costs are capitalized as property and equipment and the landlord construction allowances are recorded as a lease incentive, a component of deferred rent, which is amortized as a reduction of rent expense over the lease term. |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Insurance and Self-Insurance Reserves The Company self-insures and purchases insurance policies to provide for workers' compensation, general liability and property losses, cyber-security coverage, as well as director and officer's liability, vehicle liability and employee medical benefits. The Company estimates risks and records a liability based on historical claim experience, insurance deductibles, severity factors and other actuarial assumptions. The Company records the current portions of employee medical benefits, workers compensation and general liability reserves in accrued expenses and other current liabilities. As of January 30, 2016 and January 31, 2015 , the current portions of these reserves were approximately $7.0 million and $6.5 million , respectively. The Company records the long-term portions of employee medical benefits, workers' compensation and general liability reserves in other long-term liabilities. As of January 30, 2016 and January 31, 2015 , the long-term portions of these reserves were approximately $5.8 million and $6.5 million , respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Leasehold improvements are depreciated on a straight-line basis over the shorter of the life of the lease or the estimated useful life of the asset. All other property and equipment is depreciated on a straight-line basis based upon their estimated useful lives, which generally range from three to twenty-five years. Repairs and maintenance are expensed as incurred. The Company accounts for internally developed software intended for internal use in accordance with provisions of the “ Intangibles-Goodwill and Other ” topic of the FASB ASC. The Company capitalizes development‑stage costs such as direct external costs and direct payroll related costs. When development is substantially complete, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software. Preliminary project costs and post-implementation costs such as training, maintenance and support are expensed as incurred. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Accounting for Impairment of Long-Lived Assets The Company periodically reviews its long-lived assets when events indicate that their carrying value may not be recoverable. Such events include a history trend or projected trend of cash flow losses or a future expectation that the Company will sell or dispose of an asset significantly before the end of its previously estimated useful life. In reviewing for impairment the Company groups its long-lived assets at the lowest possible level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In that regard, the Company groups its assets into two categories: corporate-related and store-related. Corporate-related assets consist of those associated with the Company's corporate offices, distribution centers and its information technology systems. Store-related assets consist of leasehold improvements, furniture and fixtures, certain computer equipment and lease related assets associated with individual stores. For store-related assets, the Company reviews all stores that have been open or not remodeled for at least two years, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting two years allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed. For each store that shows indications of operating losses, the Company projects future cash flows over the remaining life of the lease and compares the total undiscounted cash flows to the net book value of the related long-lived assets. If the undiscounted cash flows are less than the related net book value of the long-lived assets, they are written down to their fair market value. The Company primarily determines fair market value to be the discounted future cash flows associated with those assets. In evaluating future 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) cash flows, the Company considers external and internal factors. External factors comprise the local environment in which the store resides, including mall traffic, competition, and their effect on sales trends. Internal factors include the Company's ability to gauge the fashion taste of its customers, control variable costs such as cost of sales and payroll, and in certain cases, its ability to renegotiate lease costs. |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Exit or Disposal Cost Obligations In accordance with the “ Exit or Disposal Cost Obligations ” topic of the FASB ASC, the Company records its exit and disposal costs at fair value to terminate an operating lease or contract when termination occurs before the end of its term, or when costs will be incurred without future economic benefit to the Company, on the date the Company ceased using the leased property. In cases of employee termination benefits, the Company recognizes an obligation only when all of the following criteria are met: • management, having the authority to approve the action, commits to a plan of termination; • the plan identifies the number of employees to be terminated, their job classifications or functions and their locations, and the expected completion date; • the plan establishes the terms of the benefit arrangement, including the benefits that employees will receive upon termination (including but not limited to cash payments), in sufficient detail to enable employees to determine the type and amount of benefits they will receive if they are involuntarily terminated; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. During the first quarter of Fiscal 2012, management approved a plan to exit its distribution center in Ontario, California (the "West Coast DC") and move the operations to its distribution center in Fort Payne, Alabama (the "Southeast DC"). The Company ceased operations at the West Coast DC in May 2012. The lease of the West Coast DC expires in March 2016 and the Company has subleased this facility through March 2016. During the third quarter of Fiscal 2012, management approved a plan to close the Company's distribution center in Dayton, New Jersey ("Northeast DC") and move the operations to its Southeast DC. The Company ceased operations in the Northeast DC during the fourth quarter of fiscal 2012. The lease of its Northeast DC expires in January 2021 and the Company has subleased this facility through January 2021. The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.5 million was included in accrued expenses and other current liabilities and approximately $0.3 million was included in other long-term liabilities (dollars in thousands): Lease Termination Costs Other Associated Costs Total Balance at February 1, 2014 $ 2,679 $ — $ 2,679 Restructuring costs (222 ) 154 (68 ) Payments and other adjustments (949 ) (154 ) (1,103 ) Balance at January 31, 2015 1,508 — 1,508 Restructuring costs 62 36 98 Payments and other adjustments (800 ) (36 ) (836 ) Balance at January 30, 2016 $ 770 $ — $ 770 |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs The Company capitalizes costs directly associated with acquiring third party financing. Deferred financing costs are included in other assets and are amortized as interest expense over the term of the related indebtedness. At January 30, 2016, deferred financing costs, net of accumulated amortization of $3.1 million , were approximately $1.2 million . At January 31, 2015, deferred financing costs, net of accumulated amortization of $2.7 million , were approximately $1.2 million . |
Start-up Activities, Cost Policy [Policy Text Block] | Pre-opening Costs Store pre-opening costs consist primarily of occupancy costs, payroll, supply, and marketing expenses, and are expensed as incurred in selling, general and administrative expenses. Pre-opening costs were $0.3 million , $1.4 million and $3.3 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising and Marketing Costs The Company expenses the cost of advertising over the period the advertising is run or displayed. Included in selling, general and administrative expenses for Fiscal 2015, Fiscal 2014 and Fiscal 2013 are advertising and other marketing costs of approximately $27.9 million , $30.9 million and $33.8 million , respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes We utilize the liability method of accounting for income taxes as set forth in the “Income Taxes” topic of the FASB ASC. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using currently enacted tax rates that apply to taxable income in effect for the years in which the basis differences and tax assets are expected to be realized. A valuation allowance is recorded when it is more likely than not that any of the deferred tax assets will not be realized. In determining the need for valuation allowances we consider projected future taxable income and the availability of tax planning strategies. If in the future we determine that we would not be able to realize our recorded deferred tax assets, an increase in the valuation allowance would decrease earnings in the period in which such determination is made. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with the “ Foreign Currency Matters ” topic of the FASB ASC, the assets and liabilities denominated in foreign currency are translated into U.S. dollars at the current rate of exchange existing at period-end and revenues and expenses are translated at average monthly exchange rates. Related translation adjustments are reported as a separate component of stockholders' equity. The Company also transacts certain business in foreign denominated currencies primarily with its Canadian subsidiary purchasing inventory in U.S. Dollars, and there are intercompany charges between various 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) subsidiaries. In Fiscal 2015, Fiscal 2014 and Fiscal 2013, the Company recorded realized and unrealized gains (losses) on such transactions of approximately $0.1 million , $(0.5) million and $0.5 million , respectively. |
Legal Costs, Policy [Policy Text Block] | Legal Contingencies The Company reserves for the outcome of litigation and contingencies when it determines an adverse outcome is probable and can estimate losses. Estimates are adjusted as facts and circumstances require. The Company expenses the costs to resolve litigation as incurred, net of amounts, if any, recovered through our insurance coverage |
Retained Earnings [Policy Text Block] | Retained Earnings There are no restrictions on the Company's retained earnings. |
Fair Value Measurement and Financial Instruments | Fair Value Measurement and Financial Instruments The “ Fair Value Measurements and Disclosure ” topic of the FASB ASC provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. This topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three-level hierarchy, which encourages an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of the hierarchy are defined as follows: • Level 1 - inputs to the valuation techniques that are quoted prices in active markets for identical assets or liabilities • Level 2 - inputs to the valuation techniques that are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly • Level 3 - inputs to the valuation techniques that are unobservable for the assets or liabilities The Company’s cash and cash equivalents, short-term investments, assets of the Company’s Deferred Compensation Plan, accounts receivable, accounts payable and credit facility are all short-term in nature. As such, their carrying amounts approximate fair value and fall within Level 1 of the fair value hierarchy. The Company stock included in the Deferred Compensation Plan is not subject to fair value measurement. 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Our derivative assets and liabilities include foreign exchange forward contracts that are measured at fair value using observable market inputs such as forward rates, our credit risk and our counterparties’ credit risks. Based on these inputs, our derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The resulting fair value measurements of the assets are considered to be Level 3 inputs. Long-lived assets, primarily comprised of property and equipment, held and used with a carrying amount of $4.6 million were written down to their fair value, resulting in an impairment charge of $2.4 million , which was included in earnings for Fiscal 2015. For Fiscal 2014, long-lived assets held and used with a carrying amount of $15.9 million were written down to their fair value, resulting in an impairment charge of $11.1 million , which was included in earnings for Fiscal 2014. For Fiscal 2013, long-lived assets held and used with a carrying amount of $44.4 million were written down to their fair value, resulting in an impairment charge of $29.6 million , which was included in earnings for Fiscal 2013. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue, including shipping and handling fees billed to customers, upon purchase at the Company's retail stores or when received by the customer if the product was purchased via the Internet, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $0.4 million and $0.3 million as of January 30, 2016 and January 31, 2015, respectively, for Internet sales shipped but not yet received by the customer. Sales tax collected from customers is excluded from revenue. An allowance for estimated sales returns is calculated based upon the Company's sales return experience and is recorded in accrued expenses and other current liabilities. The allowance for estimated sales returns was approximately $1.1 million and $1.9 million as of January 30, 2016 and January 31, 2015, respectively. The Company's policy with respect to gift cards is to record revenue as the gift cards are redeemed for merchandise. Prior to their redemption, gift cards are recorded as a liability, included in accrued expenses and other current liabilities. After one year, the Company recognizes breakage income for the estimated portion of unredeemed gift cards that is unlikely to be redeemed. Prior to Fiscal 2015 the Company recognized breakage income after two years. The impact on the Company's net income as a result of the change was $0.5 million during Fiscal 2015. The Company recognized gift card breakage income of approximately $3.3 million , $1.6 million and $1.5 million during Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, and is recorded in selling, general and administrative expenses. In October 2012, the Company launched a new points based customer loyalty program to replace the old program that was restricted to the Company's private label credit card customers. In this program, customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. The Company has developed an estimated value of each point earned based on the awards customers can attain less a reasonable breakage rate. The value of each point earned is recorded as deferred revenue. Deferred revenue for loyalty points as of January 30, 2016 and January 31, 2015 was $5.0 million and $9.0 million , respectively, and is included in accrued expenses and other current liabilities. This change reflects the accelerated conversion of loyalty points in the current program in anticipation of transition to a new customer loyalty program in Fiscal 2016. The Company has an international expansion program through territorial agreements with franchisees. At January 30, 2016, the Company's franchisees had a total of 102 international points of distribution. The Company generates revenues from the franchisees from the sale of product and sales royalties. The Company records gross sales and cost of goods sold on the sale of product to franchisees when the franchisor takes ownership of the product. The Company records gross sales for royalties when the franchisee sells the product to their customers. Under certain agreements the Company receives a fee from each franchisee for exclusive territorial rights. The Company records this territorial fee as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. Deferred revenue for franchisees as of January 30, 2016 and January 31, 2015 was $1.2 million and $0.8 million , respectively |
Inventory, Policy [Policy Text Block] | Inventories Inventories, which consist primarily of finished goods, are stated at the lower of cost or market, with cost determined on an average cost basis. The Company capitalizes supply chain costs in inventory and these costs are reflected in cost of sales as the inventories are sold. Inventory includes items that have been marked down to the Company's best estimate of their lower of cost or market value and an estimate for inventory shrinkage. The Company bases its decision to mark down merchandise upon its current rate of sale, the season and the expected sell-through of the item. The Company adjusts its inventory based upon an annual 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) physical inventory and shrinkage is estimated in interim periods based upon the historical results of physical inventories in the context of current year facts and circumstances. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales (exclusive of depreciation and amortization) In addition to the cost of inventory sold, the Company includes buying, design and distribution expenses, shipping and handling costs on merchandise sold directly to customers, and letter of credit fees in its cost of sales. The Company records all occupancy costs in its cost of sales, except administrative office buildings, which are recorded in selling, general and administrative expenses. All depreciation is reported on a separate line on the Company's consolidated statements of operations. |
BASIS OF PRESENTATION Earnings
BASIS OF PRESENTATION Earnings per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Schedule of Restructuring and Related Costs [Table Text Block] | The following table provides details of the remaining accruals for the West Coast DC and Northeast DC, of which approximately $0.5 million was included in accrued expenses and other current liabilities and approximately $0.3 million was included in other long-term liabilities (dollars in thousands): Lease Termination Costs Other Associated Costs Total Balance at February 1, 2014 $ 2,679 $ — $ 2,679 Restructuring costs (222 ) 154 (68 ) Payments and other adjustments (949 ) (154 ) (1,103 ) Balance at January 31, 2015 1,508 — 1,508 Restructuring costs 62 36 98 Payments and other adjustments (800 ) (36 ) (836 ) Balance at January 30, 2016 $ 770 $ — $ 770 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share (in thousands): Fiscal Year Ended January 30, January 31, February 1, 2014 Net income $ 57,884 $ 56,888 $ 53,026 Basic weighted average common shares 20,438 21,681 22,537 Dilutive effect of stock awards 264 243 298 Diluted weighted average common shares 20,702 21,924 22,835 Antidilutive stock awards — — 32 |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Repurchase Agreements [Table Text Block] | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Shares Value Shares Value Shares Value Share repurchases related to (1): 2012 Share buyback program — — 282 14,671 1,296 65,691 2014 Share buyback program 640 39,791 1,189 60,209 — — 2015 Share buyback program 1,338 79,274 — — — — Withholding taxes and other 30 1,828 22 1,249 2 139 Shares acquired and held in treasury 4 257 2 107 9 456 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Fiscal Year Ended January 30, January 31, February 1, Deferred Awards $ 10,653 $ 10,529 $ 12,873 Performance Awards 10,466 7,254 8,337 Total stock-based compensation expense (1) $ 21,119 $ 17,783 $ 21,210 _ |
Schedule of changes in unvested deferred awards | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (in thousands) (in thousands) (in thousands) Unvested Deferred Awards at beginning of year 592 $ 49.02 691 $ 49.27 560 $ 49.53 Granted 196 64.62 273 48.50 395 48.93 Vested (1) (250 ) 49.02 (229 ) 48.97 (205 ) 49.46 Forfeited (65 ) 55.35 (143 ) 49.31 (59 ) 48.82 Unvested Deferred Awards at end of year 473 $ 54.62 592 $ 49.02 691 $ 49.27 |
Schedule of unvested performance awards | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Performance Shares (1) Weighted Average Grant Date Fair Value Number of Performance Shares (1) Weighted Average Grant Date Fair Value Number of Performance Shares (1) Weighted Average Grant Date Fair Value (in thousands) (in thousands) (in thousands) Unvested Performance Awards at beginning of year 345 $ 50.18 267 $ 47.67 172 $ 48.59 Granted 195 70.91 245 50.91 204 47.89 Vested shares (147 ) 48.02 (107 ) 46.34 (95 ) 49.84 Forfeited (18 ) 59.49 (60 ) 48.87 (14 ) 47.55 Unvested Performance Awards at end of year 375 $ 61.37 345 $ 50.18 267 $ 47.67 |
Schedule of stock option activity | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price (in thousands) (in thousands) (in thousands) Options outstanding at beginning of year 30 $ 29.05 34 $ 28.77 84 $ 30.08 Granted — — — — — — Exercised (1) (15 ) 29.05 (2 ) 24.54 (49 ) 31.06 Forfeited — — (2 ) 29.54 (1 ) 27.11 Options outstanding at end of year (2) 15 $ 29.05 30 $ 29.05 34 $ 28.77 Options exercisable at end of year (2) 15 $ 29.05 30 $ 29.05 34 $ 28.77 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding and Exercisable Range of Exercise Prices Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life $22.02 $31.63 15 29.05 2.3 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Asset Life January 30, 2016 January 31, 2015 Property and equipment: Land and land improvements — $ 3,403 $ 3,403 Building and improvements 20-25 yrs 35,548 35,548 Material handling equipment 10-15 yrs 48,345 48,479 Leasehold improvements 3-15 yrs 317,410 339,474 Store fixtures and equipment 3-10 yrs 218,566 231,797 Capitalized software 3-10 yrs 177,849 120,054 Construction in progress — 8,357 24,644 809,478 803,399 Less accumulated depreciation and amortization (518,498 ) (493,098 ) Property and equipment, net $ 290,980 $ 310,301 |
CREDIT FACILITY (Tables)
CREDIT FACILITY (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Components of credit facility | January 30, January 31, Credit facility maximum $ 250.0 $ 200.0 Borrowing base 211.7 183.2 Outstanding borrowings — — Letters of credit outstanding—merchandise — — Letters of credit outstanding—standby 7.1 9.1 Utilization of credit facility at end of period 7.1 9.1 Availability (1) $ 204.6 $ 174.1 Interest rate at end of period 4.0 % 3.8 % Fiscal 2015 Fiscal 2014 Average end of day loan balance during the period $ 28.5 $ 9.4 Highest end of day loan balance during the period 67.5 40.9 Average interest rate 2.7 % 3.2 % ____________________________________________ (1) The sublimit availability for letters of credit was $42.9 million and $40.9 million at January 30, 2016 and January 31, 2015, respectively. |
INTEREST INCOME (EXPENSE), NET
INTEREST INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Other Income and Expenses [Abstract] | |
Components of interest income (expense) | The following table presents the components of the Company’s interest expense, net (in thousands): Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, Interest income $ 1,019 $ 1,120 $ 1,123 Less: Interest expense – revolver 789 313 — Interest expense – credit facilities 68 92 120 Unused line fee 463 447 305 Amortization of deferred financing fees 318 352 364 Other interest and fees 79 84 69 Total interest expense 1,717 1,288 858 Interest (expense) income, net $ (698 ) $ (168 ) $ 265 |
PREPAID EXPENSES AND OTHER CU32
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets are comprised of the following (in thousands): January 30, 2016 January 31, 2015 Prepaid property expense $ 20,148 $ 20,781 Prepaid income taxes 11,458 10,289 Prepaid marketing 3,898 1,385 Prepaid maintenance contracts 3,411 3,664 Prepaid insurance 2,279 2,393 Other 1,848 837 Prepaid expenses and other current assets $ 43,042 $ 39,349 |
ACCRUED EXPENSES AND OTHER CU33
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
ACCRUED [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | January 30, 2016 January 31, 2015 Accrued salaries and benefits $ 36,108 $ 33,633 Customer liabilities 24,357 32,794 Accrued professional fees 12,647 7,802 Sales taxes and other taxes payable 6,193 6,369 Accrued marketing 5,350 5,794 Accrued store expenses 4,742 4,573 Accrued construction-in-progress 4,736 3,631 Accrued freight 4,581 6,622 Accrued insurance 4,224 3,759 Accrued real estate expenses 2,258 3,717 Accrued short-term restructuring costs 475 798 Other 13,199 9,232 Accrued expenses and other current liabilities $ 118,870 $ 118,724 |
COMMITMENTS AND CONTINGENCIES S
COMMITMENTS AND CONTINGENCIES Sublease (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Rent Expense [Table Text Block] | Fiscal Year Ended January 30, January 31, February 1, 2014 Minimum rentals 159,641 164,510 168,112 Additional rent based upon sales 751 797 943 Sublease income (2,766 ) (2,967 ) (1,138 ) |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum Operating Lease Payments 2016 $ 155,352 2017 139,682 2018 119,065 2019 103,482 2020 88,279 Thereafter 168,225 Total minimum lease payments $ 774,085 |
INCOME TAXES Taxes by Country (
INCOME TAXES Taxes by Country (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
INCOME TAXES [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Fiscal Year Ended January 30, January 31, February 1, 2014 U.S. $ 46,053 $ 47,888 $ 36,487 Foreign 43,329 31,987 40,061 Total $ 89,382 $ 79,875 $ 76,548 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended January 30, January 31, February 1, 2014 Current - Federal $ 7,248 $ 8,212 $ 13,240 State 2,275 3,691 4,371 Foreign 9,809 5,457 9,463 Total current 19,332 17,360 27,074 Deferred - Federal 9,649 5,260 (1,513 ) State 2,548 1,426 (731 ) Foreign (31 ) (1,059 ) (1,308 ) Total deferred 12,166 5,627 (3,552 ) Tax provision as shown on the consolidated statements of operations $ 31,498 $ 22,987 $ 23,522 Effective tax rate 35.2 % 28.8 % 30.7 % |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended January 30, January 31, February 1, 2014 Calculated income tax provision at federal statutory rate $ 31,284 $ 27,956 $ 26,792 State income taxes, net of federal benefit 3,052 3,326 2,366 Foreign tax rate differential (1) (9,744 ) (8,849 ) (7,224 ) Nondeductible expenses 2,729 1,685 1,792 Unrecognized tax benefit 3,892 807 (1,347 ) Change in valuation allowance 399 (1,472 ) 447 Other (114 ) (466 ) 696 Total tax provision $ 31,498 $ 22,987 $ 23,522 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | January 30, January 31, Current – Assets Inventory 4,472 4,128 Reserves 15,965 15,169 Hedging transactions (223 ) — Total current assets 20,214 19,297 Liabilities-prepaid expenses (4,728 ) (4,217 ) Total current, net 15,486 15,080 Noncurrent – Property and equipment (6,855 ) 7,654 Deferred rent 14,548 14,830 Equity compensation 9,757 7,101 Reserves and other 4,780 5,995 Net operating loss carryover and other tax credits 2,293 1,930 Total noncurrent, gross 24,523 37,510 Valuation allowance (2,293 ) (1,930 ) Net noncurrent 22,230 35,580 Total deferred tax asset, net $ 37,716 $ 50,660 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | January 30, January 31, Beginning Balance $ 5,479 $ 4,412 Additions for current year tax positions 3,800 833 Additions for prior year tax positions — 1,070 Reductions for prior year tax positions (242 ) (156 ) Settlements (60 ) (43 ) Reductions due to a lapse of the applicable statute of limitations (596 ) (637 ) $ 8,381 $ 5,479 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment level financial information | Fiscal Year Ended January 30, January 31, February 1, Net sales: The Children’s Place U.S. $ 1,518,117 $ 1,528,762 $ 1,528,276 The Children’s Place International (1) 207,660 232,562 237,513 Total net sales $ 1,725,777 $ 1,761,324 $ 1,765,789 Gross profit: The Children’s Place U.S. $ 539,030 $ 535,226 $ 558,156 The Children’s Place International 86,102 87,074 97,365 Total gross profit $ 625,132 $ 622,300 $ 655,521 Gross Margin: The Children’s Place U.S. 35.5 % 35.0 % 36.5 % The Children’s Place International 41.5 % 37.4 % 41.0 % Total gross margin 36.2 % 35.3 % 37.1 % Operating income: The Children’s Place U.S. (2) $ 65,221 $ 63,586 $ 60,267 The Children’s Place International (3) 24,859 16,457 16,016 Total operating income $ 90,080 $ 80,043 $ 76,283 Operating income as a percent of net sales: The Children’s Place U.S. 4.3 % 4.2 % 3.9 % The Children’s Place International 12.0 % 7.1 % 6.7 % Total operating income 5.2 % 4.5 % 4.3 % Depreciation and amortization: The Children’s Place U.S. $ 55,937 $ 52,565 $ 55,595 The Children’s Place International 6,748 7,929 9,263 Total depreciation and amortization $ 62,685 $ 60,494 $ 64,858 Capital expenditures: The Children’s Place U.S. $ 41,304 $ 68,847 $ 64,486 The Children’s Place International 841 3,365 8,120 Total capital expenditures $ 42,145 $ 72,212 $ 72,606 13. SEGMENT INFORMATION (Continued) (1) Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on net sales was a decrease of $29.9 million. (2) Includes exit costs (income) associated with the closures of the West Coast DC and Northeast DC of approximately $0.1 million , $(0.1) million and $(0.9) million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes a $1.7 million , $10.5 million and a $25.4 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Also includes additional costs incurred related to corporate severance and reorganizations of approximately $6.0 million , $7.1 million and $4.2 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. Fiscal 2015 also includes costs incurred related to a class action wage and hour legal settlement, proxy contest costs and a sales tax audit of approximately $12.1 million . (3) Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars. For Fiscal 2015, the effects of these translation rate changes on operating income was a decrease of $1.9 million. Includes a $0.7 million , $0.6 million and $4.2 million asset impairment charge for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. January 30, January 31, 2015 Total assets: The Children’s Place U.S. $ 748,975 $ 805,462 The Children’s Place International 148,973 153,156 Total assets $ 897,948 $ 958,618 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Company's long-lived assets are located in the following countries: January 30, January 31, 2015 Long-lived assets (1): United States $ 276,612 $ 289,820 Canada 16,212 22,697 Asia 1,586 1,242 Total long-lived assets $ 294,410 $ 313,759 ___ |
QUARTERLY FINANCIAL DATA Quarte
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Tables) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal Year Ended January 30, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 404,865 $ 366,455 $ 455,913 $ 498,544 Gross profit 152,109 115,004 180,513 177,506 Selling, general and administrative expenses 114,514 118,342 105,797 131,245 Asset impairment charges — 1,452 919 — Other costs (income) (3 ) 76 14 11 Depreciation and amortization 14,394 15,252 16,136 16,903 Operating income (loss) 23,204 (20,118 ) 57,647 29,347 Income (loss) before income taxes 23,028 (20,323 ) 57,393 29,284 Provision (benefit) for income taxes 7,421 (6,628 ) 18,898 11,807 Net income (loss) 15,607 (13,695 ) 38,495 17,477 Diluted earnings (loss) per share $ 0.73 $ (0.67 ) $ 1.88 $ 0.87 Diluted weighted average common shares outstanding 21,366 20,576 20,517 20,174 Cash dividends declared and paid per common share $ 0.1500 $ 0.1500 $ 0.1500 $ 0.1500 ____________________________________________ (1) Items impacting the fourth quarter of Fiscal 2015 include approximately $4.4 million of additional costs related to corporate severance and reorganizations partially offset by approximately $2.8 million of income related to the accelerated conversion of loyalty points in the Company's current loyalty program in anticipation of transition to a new customer loyalty program in Fiscal 2016. | Fiscal Year Ended January 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Net sales $ 410,149 $ 384,628 $ 487,304 $ 479,243 Gross profit 148,261 119,118 190,111 164,810 Selling, general and administrative expenses 113,720 117,111 116,120 123,735 Asset impairment charges — 3,045 3,306 4,794 Other costs (income) 231 (98 ) (286 ) 85 Depreciation and amortization 14,227 15,557 15,168 15,542 Operating income (loss) 20,083 (16,497 ) 55,803 20,654 Income (loss) before income taxes 20,102 (16,557 ) 55,721 20,609 Provision (benefit) for income taxes 6,506 (5,870 ) 18,779 3,572 Net income (loss) 13,596 (10,687 ) 36,942 17,037 Diluted earnings (loss) per share $ 0.61 $ (0.49 ) $ 1.70 $ 0.79 Diluted weighted average common shares outstanding 22,419 21,837 21,756 21,512 Cash dividends declared and paid per common share $ 0.1325 $ 0.1325 $ 0.1325 $ 0.1325 ____________________________________________ 14. QUARTERLY FINANCIAL DATA (UNAUDITED) (Continued) (1) Items impacting the fourth quarter of Fiscal 2014 include approximately $4.8 million of asset impairment charges and $3.2 million of additional costs related to corporate severance and reorganizations. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)shares | Jan. 31, 2015USD ($)shares | Feb. 01, 2014USD ($)shares | Feb. 02, 2013USD ($) | |||
Stock awards | ||||||||||||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 4,600 | $ 15,900 | $ 4,600 | $ 15,900 | $ 44,400 | |||||||||
Asset impairment charges | 0 | [1] | $ 919 | $ 1,452 | $ 0 | 4,794 | [2] | $ 3,306 | $ 3,045 | $ 0 | $ 2,371 | $ 11,145 | $ 29,633 | |
Dilutive effect of stock awards | shares | 264 | 243 | 298 | |||||||||||
Antidilutive stock awards | shares | 0 | 0 | 32 | |||||||||||
Deferred Revenue, Current | 400 | 300 | $ 400 | $ 300 | ||||||||||
Self Insurance Reserve, Current | 7,000 | 6,500 | 7,000 | 6,500 | ||||||||||
Business Exit Costs | 11 | $ 14 | $ 76 | $ (3) | 85 | $ (286) | $ (98) | $ 231 | 98 | (68) | $ (906) | |||
Amortization of Financing Costs | (3,100) | (2,700) | (3,100) | (2,700) | ||||||||||
Deferred Finance Costs, Net | $ 1,200 | 1,200 | 1,200 | 1,200 | ||||||||||
Pre-Opening Costs | 300 | 1,400 | 3,300 | |||||||||||
Advertising Expense | 27,900 | 30,900 | 33,800 | |||||||||||
Foreign Currency Transaction Gain (Loss), before Tax | $ 100 | (500) | 500 | |||||||||||
Number of Stores | 1,069,000 | 1,069,000 | ||||||||||||
Deferred Compensation Plan | ||||||||||||||
Maximum percentage of base salary elected to be deferred (as a percent) | 80.00% | |||||||||||||
Maximum percentage of bonus elected to be deferred (as a percent) | 100.00% | |||||||||||||
Maximum period over which annual installments of deferred payments are made (in years) | 15 years 12 days | |||||||||||||
Deferred compensation plan liability | $ 700 | 500 | $ 700 | 500 | ||||||||||
Cash Surrender Value of Life Insurance | 700 | 300 | 700 | 300 | ||||||||||
Deferred compensation - Company stock | (1,939) | (1,682) | (1,939) | (1,682) | ||||||||||
Self Insurance Reserve, Noncurrent | 5,800 | 6,500 | 5,800 | 6,500 | ||||||||||
Sales Returns and Allowances, Goods | 1,100 | 1,900 | ||||||||||||
Revenue Recognition, Gift Cards, Breakage | 3,300 | 1,600 | $ 1,500 | |||||||||||
Derivative Asset, Notional Amount | 26,500 | 26,500 | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 800 | 800 | ||||||||||||
Derivative Liability, Fair Value, Gross Asset | 100 | 100 | ||||||||||||
loyaltypoints [Member] | ||||||||||||||
Stock awards | ||||||||||||||
Deferred Revenue, Current | 5,000 | 9,000 | 5,000 | 9,000 | ||||||||||
deferredrevfranchisees [Member] | ||||||||||||||
Stock awards | ||||||||||||||
Deferred Revenue, Current | $ 1,200 | $ 800 | $ 1,200 | $ 800 | ||||||||||
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[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246RDcwMEM5NDUxMDlBRDJBNTNENjlDNjM3QUE3M0E0MTMM} |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details 2) number in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | Feb. 02, 2013USD ($) | |
Property, Plant, and Equipment, Fair Value Disclosure | $ 4,600 | $ 15,900 | $ 4,600 | $ 15,900 | $ 44,400 | |||||||
Accruedexitcosts | 770 | 1,508 | 770 | 1,508 | 2,679 | |||||||
Deferred Revenue, Current | 400 | 300 | 400 | 300 | ||||||||
Business Exit Costs | $ 11 | $ 14 | $ 76 | $ (3) | 85 | $ (286) | $ (98) | $ 231 | 98 | (68) | $ (906) | |
Paymentsanadjustments | $ (836) | (1,103) | ||||||||||
Number of Stores | 1,069 | 1,069 | ||||||||||
Accumulated Amortization, Deferred Finance Costs | $ (3,100) | (2,700) | $ (3,100) | (2,700) | ||||||||
Document Period End Date | Jan. 30, 2016 | |||||||||||
loyaltypoints [Member] | ||||||||||||
Deferred Revenue, Current | 5,000 | 9,000 | $ 5,000 | 9,000 | ||||||||
deferredrevfranchisees [Member] | ||||||||||||
Deferred Revenue, Current | 1,200 | 800 | 1,200 | 800 | ||||||||
Leasetermcosts [Domain] | ||||||||||||
Accruedexitcosts | 770 | 1,508 | 770 | 1,508 | 2,679 | |||||||
Business Exit Costs | 62 | (222) | ||||||||||
Paymentsanadjustments | (800) | (949) | ||||||||||
Otherassociatedexitcosts [Domain] | ||||||||||||
Business Exit Costs | 36 | 154 | ||||||||||
Otherassociatedcosts [Domain] | ||||||||||||
Accruedexitcosts | 0 | $ 0 | 0 | 0 | $ 0 | |||||||
Paymentsanadjustments | (36) | $ (154) | ||||||||||
Other Current Liabilities [Member] | ||||||||||||
Accruedexitcosts | 500 | 500 | ||||||||||
Other Noncurrent Liabilities [Member] | ||||||||||||
Accruedexitcosts | $ 300 | $ 300 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Mar. 24, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
STOCKHOLDERS' EQUITY | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | $ 200,000 | ||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | (2,008,000) | (1,493,000) | (1,298,000) | |
Number of shares exchanged in payment of withholding taxes (in shares) | 29,654 | 21,788 | 2,089 | |
Share-based compensation withholding tax payments | $ 1,828 | $ 1,249 | $ 139 | |
Treasury Stock, Shares, Acquired | 4,000 | 2,000 | 9,000 | |
Treasury Stock, Value, Acquired, Cost Method | $ 257 | $ 107 | $ 456 | |
Number of shares deferred into deferred compensation plan (in shares) | 4,000 | 2,000 | 9,000 | |
Shares deferred into deferred compensation plan, aggregate cost | $ 257 | $ 107 | $ 456 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 270,800 | |||
Dividends | 12,800 | 12,000 | ||
Dividends, Common Stock, Cash | 12,200 | 11,500 | ||
Dividendsunvestedshares | 600 | 500 | ||
2015 Share Repurchase Program [Member] [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | $ (79,274) | |||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 1,338,000 | |||
2014 Share Repurchase Program [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | $ (39,791) | $ (60,209) | ||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 640,000 | 1,189,000 | ||
2012 $100 Share Repurchase Program [Member] [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ (14,671) | $ (65,691) | |
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 0 | 282,000 | 1,296,000 | |
Retained Earnings [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | $ (98,048) | $ (60,380) | $ (53,145) | |
Shares repurchases related to: | ||||
Dividendsunvestedshares | (545) | $ 506 | ||
2014 Share Repurchase Program [Member] [Member] | ||||
STOCKHOLDERS' EQUITY | ||||
Stock Repurchased and Retired During Period, Value | $ (22,300) | $ (1,600) | ||
Shares repurchases related to: | ||||
Shares repurchased (in shares) | 300,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Stock-based compensation expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $ 500 | $ 100 | $ 900 | ||
Shares Paid for Tax Withholding for Share Based Compensation | 29,654 | 21,788 | 2,089 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 605,499,000 | ||||
Total stock- based compensation expense | [1] | $ 21,119 | $ 17,783 | $ 21,210 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 500 | 900 | 800 | ||
Tax benefit related to stock-based compensation | 8,300 | 7,000 | 8,500 | ||
Restricted stock | |||||
Stock-based compensation expense | |||||
Total stock- based compensation expense | 10,653 | 10,529 | 12,873 | ||
Performance awards | |||||
Stock-based compensation expense | |||||
Total stock- based compensation expense | 10,466 | 7,254 | 8,337 | ||
Stock Option Plans | |||||
Stock-based compensation expense | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | [2] | (49) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 84 | ||||
Cost of Sales [Member] | |||||
Stock-based compensation expense | |||||
Total stock- based compensation expense | $ 2,500 | $ 1,600 | $ 2,800 | ||
[1] | A portion of stock-based compensation is included in cost of sales. Approximately $2.5 million, $1.6 million and $2.8 million in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. | ||||
[2] | he aggregate intrinsic value of options exercised was approximately $0.5 million, $0.1 million and $0.9 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. |
STOCK-BASED COMPENSATION (Det42
STOCK-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | [1] | $ 21,119 | $ 17,783 | $ 21,210 |
Deferred and Performance Awards | ||||
Forfeited (in shares) | 59 | |||
Unrecognized costs and period of recognition | ||||
Options outstanding at the beginning of the period (in shares) | [2] | 30 | 34 | |
Exercised (in shares) | (15) | (2) | (49) | |
Options outstanding at the end of the period (in shares) | [2] | 15 | 30 | 34 |
Weighted Average Exercise Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 29.05 | $ 28.77 | ||
Options outstanding at the end of the period (in dollars per share) | 29.05 | $ 28.77 | ||
Weighted Average Remaining Contractual Life (in years) | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 29.05 | $ 28.77 | ||
Aggregate Intrinsic Value | ||||
Options outstanding at the beginning of the period (in dollars) | $ 900 | $ 800 | ||
Exercised (in dollars) | 500 | 100 | $ 900 | |
Options outstanding at the end of the period (in dollars) | $ 500 | $ 900 | $ 800 | |
Stock Option Plans | ||||
Unrecognized costs and period of recognition | ||||
Options outstanding at the beginning of the period (in shares) | 30 | 34 | ||
Exercised (in shares) | [3] | (15) | (2) | |
Forfeited (in shares) | 0 | (2) | ||
Options outstanding at the end of the period (in shares) | 30 | 34 | ||
Granted (in shares) | 0 | 0 | 0 | |
Options exercisable (in shares) | [4] | 30 | 34 | |
Weighted Average Exercise Price | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 29.05 | $ 28.77 | $ 30.08 | |
Exercised (in dollars per share) | 29.05 | 24.54 | 31.06 | |
Forfeited (in dollars per share) | 0 | 29.54 | 27.11 | |
Options outstanding at the end of the period (in dollars per share) | 29.05 | 29.05 | 28.77 | |
Granted (in dollars per share) | 0 | 0 | 0 | |
Weighted Average Remaining Contractual Life (in years) | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 29.05 | $ 28.77 | $ 30.08 | |
Aggregate Intrinsic Value | ||||
Options outstanding at the beginning of the period (in dollars) | $ 84 | |||
Exercised (in dollars) | [3] | (49) | ||
Forfeited (in dollars) | $ (1) | |||
Deferred and Restricted Stock (Deferred Awards) Member | ||||
Deferred and Performance Awards | ||||
Unvested awards at the beginning of the period (in shares) | 592 | 691 | 560 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 196 | 273 | 395 | |
Vested (in shares) | [5] | (250) | 229 | 205 |
Forfeited (in shares) | (65) | 143 | ||
Unvested awards at the end of the period (in shares) | 473 | 592 | 691 | |
Weighted Average Grant Date Fair Value | ||||
Unvested awards at the beginning of the period (in dollars per share) | $ 49.02 | $ 49.27 | $ 49.53 | |
Granted (in shares) | 64.62 | 48.50 | 48.93 | |
Vested (in dollars per share) | 49.02 | 48.97 | 49.46 | |
Forfeited (in dollars per share) | 55.35 | 49.31 | 48.82 | |
Unvested awards at the end of the period (in dollars per share) | $ 54.62 | $ 49.02 | $ 49.27 | |
Unrecognized costs and period of recognition | ||||
Unrecognized stock-based compensation expense (in dollars) | $ 13,300 | |||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 1 year 11 months 12 days | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 10,653 | $ 10,529 | $ 12,873 | |
Weighted Average Grant Date Fair Value, unvested stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 15,500 | 11,400 | 9,800 | |
Performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 10,466 | $ 7,254 | $ 8,337 | |
Deferred and Performance Awards | ||||
Unvested awards at the beginning of the period (in shares) | 345 | 267 | 172 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 195 | 245 | 204 | |
Vested (in shares) | (147) | 107 | 95 | |
Forfeited (in shares) | (18) | 60 | 14 | |
Unvested awards at the end of the period (in shares) | 375 | 345 | 267 | |
Weighted Average Grant Date Fair Value | ||||
Unvested awards at the beginning of the period (in dollars per share) | $ 50.18 | $ 47.67 | $ 48.59 | |
Granted (in shares) | 70.91 | 50.91 | 47.89 | |
Vested (in dollars per share) | 48.02 | 46.34 | 49.84 | |
Forfeited (in dollars per share) | 59.49 | 48.87 | 47.55 | |
Unvested awards at the end of the period (in dollars per share) | $ 61.37 | $ 50.18 | $ 47.67 | |
Unrecognized costs and period of recognition | ||||
Unrecognized stock-based compensation expense (in dollars) | $ 15,400 | |||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 2 years 1 month 12 days | |||
Weighted Average Grant Date Fair Value, unvested stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 2,300 | $ 5,500 | $ 5,000 | |
Exercise Price Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 22.02 | |||
Unrecognized costs and period of recognition | ||||
Options exercisable (in shares) | 15 | |||
Weighted Average Exercise Price | ||||
Options exercisable (in dollars per share) | $ 29.05 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 3 months 12 days | |||
Weighted Average Grant Date Fair Value, unvested stock options | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 31.63 | |||
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 2,500 | $ 1,600 | $ 2,800 | |
[1] | A portion of stock-based compensation is included in cost of sales. Approximately $2.5 million, $1.6 million and $2.8 million in Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general & administrative expense. | |||
[2] | he aggregate intrinsic value of options outstanding and exercisable at the end of Fiscal 2015, Fiscal 2014 and Fiscal 2013 was approximately $0.5 million, $0.9 million and $0.8 million, respectively. | |||
[3] | he aggregate intrinsic value of options exercised was approximately $0.5 million, $0.1 million and $0.9 million for Fiscal 2015, Fiscal 2014 and Fiscal 2013, respectively. | |||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246NTE5MkJEOEFDNEVGMjU2RENFOTNDNjM3QUE3MjBGQ0QM} | |||
[5] | n Fiscal 2015, Fiscal 2014 and Fiscal 2013, the Company withheld shares of 29,654, 21,788 and 2,089, respectively, to satisfy minimum withholding tax requirements. These shares were immediately retired. |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |||
Property, Plant and Equipment [Line Items] | |||||||||||||
numberofstorestestedforimpairment | 1,069 | 1,063 | 1,069 | 1,063 | 1,066 | ||||||||
net book value | $ 114,500 | $ 138,900 | $ 114,500 | $ 138,900 | $ 156,900 | ||||||||
Less accumulated depreciation and amortization | (518,498) | (493,098) | (518,498) | (493,098) | |||||||||
Property and equipment, net | 290,980 | 310,301 | 290,980 | 310,301 | |||||||||
Asset impairment charges | 0 | [1] | $ 919 | $ 1,452 | $ 0 | $ 4,794 | [2] | $ 3,306 | $ 3,045 | $ 0 | $ 2,371 | $ 11,145 | $ 29,633 |
Number of underperforming stores | 22 | 74 | 127 | ||||||||||
netbookvauepartiallyimpairedstores | $ 1,200 | $ 1,200 | |||||||||||
fullyimpairedstores | 10 | 44 | 10 | 44 | 106 | ||||||||
partiallyimpairedstores | 12 | 30 | 12 | 30 | 21 | ||||||||
Payments for Software | $ 28,400 | $ 42,400 | $ 19,500 | ||||||||||
Payments to Develop Software | 13,000 | 11,600 | 8,700 | ||||||||||
Capitalized Computer Software, Amortization | 20,100 | 11,100 | 7,000 | ||||||||||
Property and equipment, outstanding | 6,100 | ||||||||||||
Land and land improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | $ 3,403 | $ 3,403 | $ 3,403 | 3,403 | |||||||||
Building and improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 20-25 yrs | ||||||||||||
Property and equipment, gross | 35,548 | 35,548 | $ 35,548 | 35,548 | |||||||||
Material handling equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 10-15 yrs | ||||||||||||
Property and equipment, gross | 48,345 | 48,479 | $ 48,345 | 48,479 | |||||||||
Leasehold improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-15 yrs | ||||||||||||
Property and equipment, gross | 317,410 | 339,474 | $ 317,410 | 339,474 | |||||||||
Store fixtures and equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-10 yrs | ||||||||||||
Property and equipment, gross | 218,566 | 231,797 | $ 218,566 | 231,797 | |||||||||
Capitalized software | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and Equipment, Useful Life (in years) | 3-10 yrs | ||||||||||||
Property and equipment, gross | 177,849 | 120,054 | $ 177,849 | 120,054 | |||||||||
Construction in progress | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | $ 8,357 | $ 24,644 | $ 8,357 | $ 24,644 | |||||||||
storeimpairment [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | 20,500 | ||||||||||||
ITimpairment [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | 9,100 | ||||||||||||
sgawritedown [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Asset impairment charges | $ 1,200 | ||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246MTREQTE1QkNGRjk1MDlDNEI3MDFDNjM3QUE3MzFBMDQM} | ||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246RDcwMEM5NDUxMDlBRDJBNTNENjlDNjM3QUE3M0E0MTMM} |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Credit facilities | ||||
Interest expense – revolver | $ 789 | $ 313 | $ 0 | |
Sublimit availability | 42,900 | 40,900 | ||
Borrowing capacity, accordion feature | 50,000 | |||
Deferred financing costs, remaining unamortized balance | 1,200 | 1,200 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | 200,000 | ||
Line of credit facility, current borrowing capacity | 211,700 | 183,200 | ||
Outstanding borrowings | 0 | 0 | ||
Utilization of credit facility at end of period | 7,100 | 9,100 | ||
Availability | [1] | $ 204,600 | $ 174,100 | |
Interest rate at end of period (as a percent) | 4.00% | 3.80% | ||
Average loan balance during the period | $ 28,500 | $ 9,400 | ||
Highest end of day loan balance during the period | $ 67,500 | $ 40,900 | ||
Average interest rate (as a percent) | 2.70% | 3.20% | ||
Letter of Credit [Member] | ||||
Credit facilities | ||||
Letters of credit outstanding | $ 0 | $ 0 | ||
Standby Letters of Credit [Member] | ||||
Credit facilities | ||||
Letters of credit outstanding | 7,100 | $ 9,100 | ||
Credit Agreement | ||||
Credit facilities | ||||
Letters of Credit sublimit | $ 50,000 | |||
Line of credit facility, unused line fee percentage (as a percent) | 0.25% | |||
Deferred financing costs gross | $ 4,300 | |||
Deferred financing costs, remaining unamortized balance | 1,200 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | |||
Credit Agreement | Prime rate | ||||
Credit facilities | ||||
Basis spread on variable rate, low end of range (as a percent) | 0.50% | |||
Basis spread on variable rate, high end of range (as a percent) | 0.75% | |||
Credit Agreement | LIBOR | ||||
Credit facilities | ||||
Basis spread on variable rate, low end of range (as a percent) | 1.25% | |||
Basis spread on variable rate, high end of range (as a percent) | 1.50% | |||
Debt Instrument, Description of Variable Rate Basis | one, two, three or six | |||
Credit Agreement | Letter of Credit [Member] | ||||
Credit facilities | ||||
Letters of credit facility fee, low end of range (as a percent) | 0.625% | |||
Letters of credit facility fee, high end of range (as a percent) | 0.75% | |||
Credit Agreement | Standby Letters of Credit [Member] | ||||
Credit facilities | ||||
Letters of credit facility fee, low end of range (as a percent) | 0.75% | |||
Letters of credit facility fee, high end of range (as a percent) | 1.00% | |||
2008 Credit Agreement 2014 Amendment [Member] | ||||
Credit facilities | ||||
Deferred financing costs gross | $ 0 | |||
[1] | The sublimit availability for letters of credit was $42.9 million and $40.9 million at January 30, 2016 and January 31, 2015, respectively. |
INTEREST INCOME (EXPENSE), NE45
INTEREST INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | ||
Components of interest income (expense), net | ||||
Interest income | $ 1,019 | $ 1,120 | $ 1,123 | |
Less: | ||||
Interest expense – revolver | 789 | 313 | 0 | |
Interest expense - credit facilities | 68 | 92 | 120 | |
Unused line fee | 463 | 447 | 305 | |
Amortization of deferred financing costs | 318 | 352 | 364 | [1] |
Other interest and fees | 79 | 84 | 69 | [2] |
Total interest expense | 1,717 | 1,288 | 858 | |
Interest (expense), net | $ (698) | $ (168) | $ 265 | |
[1] | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014Interest income$1,019 $1,120 $1,123 Less: Interest expense – revolver789 313 —Interest expense – credit facilities68 92 120Unused line fee463 447 305Amortization of deferred financing fees318 352 364Other interest and fees79 84 69Total interest expense1,717 1,288 858Interest (expense) income, net$(698) $(168) $265 | |||
[2] | Fiscal Year Ended January 30, 2016 January 31, 2015 February 1, 2014Interest income$1,019 $1,120 $1,123 Less: Interest expense – revolver789 313 —Interest expense – credit facilities68 92 120Unused line fee463 447 305Amortization of deferred financing fees318 352 364Other interest and fees79 84 69Total interest expense1,717 1,288 858Interest (expense) income, net$(698) $(168) $265 |
PREPAID EXPENSES AND OTHER CU46
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Prepaid property expense | $ 20,148 | $ 20,781 |
Prepaid income taxes | 11,458 | 10,289 |
Prepaid marketing | 3,898 | 1,385 |
Prepaid maintenance contracts | 3,411 | 3,664 |
Prepaid insurance | 2,279 | 2,393 |
Other | 1,848 | 837 |
Prepaid expenses and other current assets | $ 43,042 | $ 39,349 |
ACCRUED EXPENSES AND OTHER CU47
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Accrued Expenses [Abstract] | ||
Customer liabilities | $ 24,357 | $ 32,794 |
Accrued salaries and benefits | 36,108 | 33,633 |
Sales taxes and other taxes payable | 6,193 | 6,369 |
Accrued store expenses | 4,742 | 4,573 |
Accrued real estate expenses | 2,258 | 3,717 |
Accrued construction-in-progress | 4,736 | 3,631 |
Short Term Exit Costs Accual | 475 | 798 |
Accrued insurance | 4,224 | 3,759 |
Accrued marketing | 5,350 | 5,794 |
Accrued freight | 4,581 | 6,622 |
Accrued professional fees | 12,647 | 7,802 |
Other | 13,199 | 9,232 |
Accrued expenses and other current liabilities | $ 118,870 | $ 118,724 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating Leased Assets [Line Items] | |||
Minimum rentals | $ 159,641 | $ 164,510 | $ 168,112 |
Additional rent based upon sales | 751 | 797 | 943 |
Sublease income | (2,766) | $ (2,967) | $ (1,138) |
2,012 | 155,352 | ||
2,013 | 139,682 | ||
2,014 | 119,065 | ||
2,015 | 103,482 | ||
2,016 | 88,279 | ||
Thereafter | 168,225 | ||
Total minimum lease payments | 774,085 | ||
Severance Benefits Non-change in Control | 6,300 | ||
Severance Benefits Change in Control | 23,700 | ||
Purchase Commitments Construction [Member] | |||
Operating Leased Assets [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | 15,900 | ||
Purchase Commitments Merchandise [Member] | |||
Operating Leased Assets [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $ 319,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||
U.S. | $ 46,053 | $ 47,888 | $ 36,487 | ||||||||||
Foreign | 43,329 | 31,987 | 40,061 | ||||||||||
Income (loss) from continuing operations before income taxes | $ 29,284 | [1] | $ 57,393 | $ (20,323) | $ 23,028 | $ 20,609 | [2] | $ 55,721 | $ (16,557) | $ 20,102 | 89,382 | 79,875 | 76,548 |
Federal | 7,248 | 8,212 | 13,240 | ||||||||||
State | 2,275 | 3,691 | 4,371 | ||||||||||
Foreign | 9,809 | 5,457 | 9,463 | ||||||||||
Total current | 19,332 | 17,360 | 27,074 | ||||||||||
Federal | 9,649 | 5,260 | (1,513) | ||||||||||
State | 2,548 | 1,426 | (731) | ||||||||||
Foreign | (31) | (1,059) | (1,308) | ||||||||||
Total deferred | 12,166 | 5,627 | (3,552) | ||||||||||
Total tax provision | 11,807 | [1] | 18,898 | (6,628) | 7,421 | 3,572 | [2] | 18,779 | (5,870) | 6,506 | $ 31,498 | $ 22,987 | $ 23,522 |
Effective tax rate from continuing operations (as a percent) | 35.20% | 28.80% | 30.70% | ||||||||||
Deferred Income Taxes, Current – | |||||||||||||
Calculated income tax provision at federal statutory rate | $ 31,284 | $ 27,956 | $ 26,792 | ||||||||||
State income taxes, net of federal benefit | 3,052 | 3,326 | 2,366 | ||||||||||
Foreign tax rate differential | (9,744) | (8,849) | (7,224) | ||||||||||
Nondeductible expenses | 2,729 | 1,685 | 1,792 | ||||||||||
Unrecognized tax expense (benefit) | (3,892) | (807) | 1,347 | ||||||||||
Foreign tax credits | 399 | (1,472) | 447 | ||||||||||
Other | (114) | (466) | 696 | ||||||||||
Total tax provision | 11,807 | [1] | $ 18,898 | $ (6,628) | 7,421 | 3,572 | [2] | $ 18,779 | $ (5,870) | 6,506 | 31,498 | 22,987 | 23,522 |
Assets | |||||||||||||
Inventory | 4,472 | 4,128 | 4,472 | 4,128 | |||||||||
Reserves | 15,965 | 15,169 | 15,965 | 15,169 | |||||||||
Hedging transactions | (223) | 0 | (223) | 0 | |||||||||
Total current assets | 20,214 | 19,297 | 20,214 | 19,297 | |||||||||
Liabilities-prepaid expenses | (4,728) | (4,217) | (4,728) | (4,217) | |||||||||
Total current assets | 15,486 | 15,080 | 15,486 | 15,080 | |||||||||
Noncurrent – | |||||||||||||
Property and equipment | (6,855) | 7,654 | (6,855) | 7,654 | |||||||||
Deferred rent | 14,548 | 14,830 | 14,548 | 14,830 | |||||||||
Equity compensation | 9,757 | 7,101 | 9,757 | 7,101 | |||||||||
Reserves and other | 4,780 | 5,995 | 4,780 | 5,995 | |||||||||
Net Operating Loss Carryover | 2,293 | 1,930 | 2,293 | 1,930 | |||||||||
Total noncurrent, gross | 24,523 | 37,510 | 24,523 | 37,510 | |||||||||
Valuation allowance | (2,293) | (1,930) | (2,293) | (1,930) | |||||||||
Net noncurrent | 22,230 | 35,580 | 22,230 | 35,580 | |||||||||
Total deferred tax asset, net | 37,716 | 50,660 | 37,716 | 50,660 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 5,900 | 5,900 | |||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 800 | 800 | |||||||||||
Undistributed Earnings of Foreign Subsidiaries | 268,600 | 268,600 | |||||||||||
Beginning Balance | $ 5,479 | $ 4,412 | 5,479 | 4,412 | |||||||||
Additions for current year tax positions | 3,800 | 833 | |||||||||||
Additions for prior year tax positions | 0 | 1,070 | |||||||||||
Reductions for prior year tax positions | (242) | (156) | |||||||||||
Settlements | (60) | (43) | |||||||||||
Reductions due to a lapse of the applicable statute of limitations | (596) | (637) | |||||||||||
Unrecognized Tax Benefits, Ending Balance | 8,381 | 5,479 | 8,381 | 5,479 | $ 4,412 | ||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 8,700 | 8,700 | |||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 2,100 | 2,100 | |||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 1,300 | $ 1,000 | 1,300 | $ 1,000 | |||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 400 | ||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246MTREQTE1QkNGRjk1MDlDNEI3MDFDNjM3QUE3MzFBMDQM} | ||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246RDcwMEM5NDUxMDlBRDJBNTNENjlDNjM3QUE3M0E0MTMM} |
SAVINGS AND INVESTMENT PLANS SA
SAVINGS AND INVESTMENT PLANS SAVINGS AND INVESTMENT PLANS (Details) | 12 Months Ended | ||
Jan. 30, 2016USD ($) | Feb. 01, 2014USD ($) | Jan. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
First Three Percent of Company Match | 3.00% | ||
Fifty Percent of Next Two Percent Company Match | 50.00% | ||
Next Two Percent of Company Match | 2.00% | ||
Highly Compensated 401k Match | 50.00% | ||
Highly Compensated 2.5 Percent Match | 2.50% | ||
highlycompensatedvestyears | 5 | ||
Defined Benefit Plan, Contributions by Employer | $ 2,200,000 | ||
Deferred Compensation Arrangements Maximum Percentage of Base Salary | 80.00% | ||
Deferred Compensation Arrangements Maximum Percentage of Bonus | 100.00% | ||
Maximum period over which annual installments of deferred payments are made (in years) | 15 years 12 days | ||
Deferred compensation plan liability | $ 700,000 | $ 500,000 | |
Cash Surrender Value of Life Insurance | 700,000 | 300,000 | |
Common Stock Issued, Employee Trust, Deferred | (1,939,000) | $ (1,682,000) | |
Foreign Plan Contributions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $ 400,000 | $ 300,000 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Derivative Asset, Notional Amount | $ 26,500 | ||
Derivative Asset, Fair Value, Gross Asset | 800 | ||
Derivative Liability, Fair Value, Gross Asset | 100 | ||
Gain on Cash Flow Hedge Ineffectiveness | 300 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 452 | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |||||
Segment information | |||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 0 | [1] | $ 919 | $ 1,452 | $ 0 | $ 4,794 | [2] | $ 3,306 | $ 3,045 | $ 0 | $ 2,371 | $ 11,145 | $ 29,633 | ||
Severance Costs | $ 4,400 | ||||||||||||||
Restructuring Charges | $ 12,100 | ||||||||||||||
Percentage of entity-wide sales qualifying purchaser as major customer (as a percent) | 10.00% | ||||||||||||||
Number of Stores | 1,069,000 | 1,069,000 | |||||||||||||
Net sales: | |||||||||||||||
Total net sales | $ 498,544 | [1] | 455,913 | 366,455 | 404,865 | 479,243 | [2] | 487,304 | 384,628 | 410,149 | $ 1,725,777 | 1,761,324 | 1,765,789 | ||
Gross Profit: | |||||||||||||||
Gross Profit | 177,506 | [1] | 180,513 | 115,004 | 152,109 | 164,810 | [2] | 190,111 | 119,118 | 148,261 | $ 625,132 | $ 622,300 | $ 655,521 | ||
Gross Margin: | |||||||||||||||
Total Gross Margin (as a percent) | 36.20% | 35.30% | 37.10% | ||||||||||||
Operating income (loss): | |||||||||||||||
Total operating income (loss) | 29,347 | [1] | 57,647 | (20,118) | 23,204 | 20,654 | [2] | 55,803 | (16,497) | 20,083 | $ 90,080 | $ 80,043 | $ 76,283 | ||
Operating income (loss) as a percent of net sales: | |||||||||||||||
Total operating income (loss) (as a percent) | 5.21968% | 4.54448% | 4.32005% | ||||||||||||
Depreciation and amortization: | |||||||||||||||
Total depreciation and amortization | 16,903 | [1] | 16,136 | 15,252 | 14,394 | 15,542 | [2] | 15,168 | 15,557 | 14,227 | $ 62,685 | $ 60,494 | $ 64,858 | ||
Capital expenditures: | |||||||||||||||
Total capital expenditures | 42,145 | 72,212 | 72,606 | ||||||||||||
Business Exit Costs | 11 | $ 14 | $ 76 | $ (3) | 85 | $ (286) | $ (98) | $ 231 | 98 | (68) | (906) | ||||
Total assets: | |||||||||||||||
Total assets | 897,948 | 958,618 | 897,948 | 958,618 | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | $ 294,410 | $ 313,759 | 294,410 | 313,759 | ||||||||||
The Children's Place U.S. | |||||||||||||||
Segment information | |||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 1,700 | 10,500 | 25,400 | ||||||||||||
Severance Costs | $ 6,000 | $ 7,100 | 4,200 | ||||||||||||
Number of Stores | 937 | 963 | 937 | 963 | |||||||||||
Net sales: | |||||||||||||||
Total net sales | $ 1,518,117 | $ 1,528,762 | 1,528,276 | ||||||||||||
Gross Profit: | |||||||||||||||
Gross Profit | $ 539,030 | $ 535,226 | $ 558,156 | ||||||||||||
Gross Margin: | |||||||||||||||
Total Gross Margin (as a percent) | 35.50% | 35.00% | 36.50% | ||||||||||||
Operating income (loss): | |||||||||||||||
Total operating income (loss) | $ 65,221 | $ 63,586 | $ 60,267 | [4] | |||||||||||
Operating income (loss) as a percent of net sales: | |||||||||||||||
Total operating income (loss) (as a percent) | 4.29618% | 4.15931% | 3.94346% | ||||||||||||
Depreciation and amortization: | |||||||||||||||
Total depreciation and amortization | $ 55,937 | $ 52,565 | $ 55,595 | ||||||||||||
Capital expenditures: | |||||||||||||||
Total capital expenditures | 41,304 | 68,847 | 64,486 | ||||||||||||
Total assets: | |||||||||||||||
Total assets | $ 748,975 | $ 805,462 | 748,975 | 805,462 | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | $ 276,612 | $ 289,820 | 276,612 | 289,820 | ||||||||||
The Children's Place Canada [Member] | |||||||||||||||
Segment information | |||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 700 | $ 600 | 4,200 | ||||||||||||
Number of Stores | 132 | 134 | 132 | 134 | |||||||||||
Net sales: | |||||||||||||||
Total net sales | [5] | $ 207,660 | $ 232,562 | 237,513 | |||||||||||
Gross Profit: | |||||||||||||||
Gross Profit | $ 86,102 | $ 87,074 | $ 97,365 | ||||||||||||
Gross Margin: | |||||||||||||||
Total Gross Margin (as a percent) | 41.50% | 37.40% | 41.00% | ||||||||||||
Operating income (loss): | |||||||||||||||
Total operating income (loss) | $ 24,859 | $ 16,457 | $ 16,016 | ||||||||||||
Operating income (loss) as a percent of net sales: | |||||||||||||||
Total operating income (loss) (as a percent) | 11.97101% | 7.07639% | 6.74321% | ||||||||||||
Depreciation and amortization: | |||||||||||||||
Total depreciation and amortization | $ 6,748 | $ 7,929 | $ 9,263 | ||||||||||||
Capital expenditures: | |||||||||||||||
Total capital expenditures | 841 | 3,365 | $ 8,120 | ||||||||||||
Total assets: | |||||||||||||||
Total assets | $ 148,973 | $ 153,156 | 148,973 | 153,156 | |||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | 16,212 | 22,697 | 16,212 | 22,697 | ||||||||||
The Children's Place Asia [Member] [Member] | |||||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | |||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | $ 1,586 | 1,242 | $ 1,586 | $ 1,242 | ||||||||||
EastCoastDCSeveranceOther [Member] | |||||||||||||||
Segment information | |||||||||||||||
Impairment of Long-Lived Assets Held-for-use | 4,800 | ||||||||||||||
Severance Costs | $ 3,200 | ||||||||||||||
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[3] | raphic InformationThe Company's long-lived assets are located in the following countries: January 30, 2016 January 31, 2015Long-lived assets (1): United States $276,612 $289,820Canada 16,212 22,697Asia 1,586 1,242Total long-lived assets $294,410 $313,759____________________________________________(1)The Company's long-lived assets are comprised of net property and equipment and other assets. | ||||||||||||||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246OTExOEE1OEEyQUE5RjRBMDREQTNDNjM3QUE3M0Y0MzMM} | ||||||||||||||
[5] | Net sales from The Children's Place International are primarily derived from revenues from Canadian operations. |
QUARTERLY FINANCIAL DATA Quar53
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |||
Net sales | $ 498,544 | [1] | $ 455,913 | $ 366,455 | $ 404,865 | $ 479,243 | [2] | $ 487,304 | $ 384,628 | $ 410,149 | $ 1,725,777 | $ 1,761,324 | $ 1,765,789 |
Gross profit | 177,506 | [1] | 180,513 | 115,004 | 152,109 | 164,810 | [2] | 190,111 | 119,118 | 148,261 | 625,132 | 622,300 | 655,521 |
Selling, general and administrative expenses | 131,245 | [1] | 105,797 | 118,342 | 114,514 | 123,735 | [2] | 116,120 | 117,111 | 113,720 | 469,898 | 470,686 | 485,653 |
Asset impairment charges | 0 | [1] | 919 | 1,452 | 0 | 4,794 | [2] | 3,306 | 3,045 | 0 | 2,371 | 11,145 | 29,633 |
Other costs (income) | 11 | 14 | 76 | (3) | 85 | (286) | (98) | 231 | 98 | (68) | (906) | ||
Depreciation and amortization | 16,903 | [1] | 16,136 | 15,252 | 14,394 | 15,542 | [2] | 15,168 | 15,557 | 14,227 | 62,685 | 60,494 | 64,858 |
Operating income (loss) | 29,347 | [1] | 57,647 | (20,118) | 23,204 | 20,654 | [2] | 55,803 | (16,497) | 20,083 | 90,080 | 80,043 | 76,283 |
Income (loss) from continuing operations before income taxes | 29,284 | [1] | 57,393 | (20,323) | 23,028 | 20,609 | [2] | 55,721 | (16,557) | 20,102 | 89,382 | 79,875 | 76,548 |
Provision (benefit) for income taxes | 11,807 | [1] | 18,898 | (6,628) | 7,421 | 3,572 | [2] | 18,779 | (5,870) | 6,506 | $ 31,498 | $ 22,987 | $ 23,522 |
Income (loss) from continuing operations | $ 17,477 | [1] | $ 38,495 | $ (13,695) | $ 15,607 | $ 17,037 | [2] | $ 36,942 | $ (10,687) | $ 13,596 | |||
Diluted earnings (loss) per share from continuing operations | $ 0 | [1] | $ 1.88 | $ (0.67) | $ 0.73 | $ 0.79 | [2] | $ 1.70 | $ 0 | $ 0.61 | $ 2.80 | $ 2.59 | $ 2.32 |
Diluted weighted average common shares outstanding (in shares) | 20,174 | 20,517 | 20,576 | 21,366 | 21,512 | 21,756 | 21,837 | 22,419 | 20,702 | 21,924 | 22,835 | ||
State | $ 2,275 | $ 3,691 | $ 4,371 | ||||||||||
Share-based Compensation | $ 21,119 | $ 17,783 | $ 21,210 | ||||||||||
Severance Costs | $ 4,400 | ||||||||||||
Cash dividends declared and paid per common share | $ 0.1500 | $ 0.1500 | $ 0.1500 | $ 0.1500 | $ 0.20 | ||||||||
Disposition stores [Member] | |||||||||||||
Asset impairment charges | $ 4,800 | ||||||||||||
Severance Costs | $ 3,200 | ||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246MTREQTE1QkNGRjk1MDlDNEI3MDFDNjM3QUE3MzFBMDQM} | ||||||||||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjE0MzVkNTRjZDQ4MzQwOWU4NGE1YjJmYTcwOWZiMjNhfFRleHRTZWxlY3Rpb246RDcwMEM5NDUxMDlBRDJBNTNENjlDNjM3QUE3M0E0MTMM} |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 24, 2015 | Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Subsequent Events | ||||||||||||
Stock Repurchased and Retired During Period, Shares | (2,008) | (1,493) | (1,298) | |||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.1500 | $ 0.1500 | $ 0.1500 | $ 0.1500 | $ 0.20 | |||||||
Business Exit Costs | $ 11 | $ 14 | $ 76 | $ (3) | $ 85 | $ (286) | $ (98) | $ 231 | $ 98 | $ (68) | $ (906) | |
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | $ 200,000 | 250,000 | $ 200,000 | ||||||||
Line Of Credit Facility Accordion Borrowing Capacity | $ 50,000 | 50,000 | ||||||||||
2014 Share Repurchase Program [Member] [Member] | ||||||||||||
Subsequent Events | ||||||||||||
Stock Repurchased and Retired During Period, Shares | 300 | |||||||||||
Value of shares repurchased | $ 22,300 | $ 1,600 | ||||||||||
2014 Share Repurchase Program [Member] [Member] | ||||||||||||
Subsequent Events | ||||||||||||
Stock Repurchased and Retired During Period, Shares | 1,338 | |||||||||||
Value of shares repurchased | $ 79,274 |
SCHEDULE II SCHEUDLE II (Detail
SCHEDULE II SCHEUDLE II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Valuation Allowances and Reserves, Balance | [1] | $ 3,696 | $ 1,925 | $ 4,268 | $ 2,413 |
Valuation Allowances and Reserves, Charged to Cost and Expense | [1] | 2,356 | 0 | 1,881 | |
Valuation Allowances and Reserves, Deductions | [1] | $ (585) | $ (2,343) | $ (26) | |
[1] | Reflects adjustment of out-of-season merchandise inventories to realizable value. Column C represents increases to the reserve and Column D represents decreases to the reserve based on quarterly assessments of the reserve. |