Cover Page Cover Page
Cover Page Cover Page - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Mar. 17, 2020 | Aug. 03, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 1, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-23071 | ||
Entity Registrant Name | THE CHILDRENS PLACE, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 31-1241495 | ||
Entity Address, Address Line One | 500 Plaza Drive | ||
Entity Address, City or Town | Secaucus, | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07094 | ||
City Area Code | 201 | ||
Local Phone Number | 558‑2400 | ||
Title of 12(b) Security | Common Stock, $0.10 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,346,515,001 | ||
Entity Common Stock, Shares Outstanding | 14,509,215 | ||
Entity Central Index Key | 0001041859 | ||
Current Fiscal Year End Date | --02-01 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 68,487 | $ 69,136 |
Accounts receivable | 32,812 | 35,123 |
Inventories | 327,165 | 303,466 |
Prepaid expenses and other current assets | 21,416 | 27,670 |
Total current assets | 449,880 | 435,395 |
Long-term assets: | ||
Property and equipment, net | 236,898 | 260,357 |
Deferred income taxes | 12,941 | 17,750 |
Other assets | 14,567 | 13,544 |
Total assets | 1,181,397 | 727,046 |
Current liabilities: | ||
Revolving loan | 170,808 | 48,861 |
Accounts payable | 213,115 | 194,786 |
Operating Lease, Liability, Current | 121,868 | |
Income taxes payable | 5,607 | 997 |
Accrued expenses and other current liabilities | 83,609 | 86,755 |
Total current liabilities | 595,007 | 331,399 |
Long-term liabilities: | ||
Deferred rent liabilities | 0 | 44,329 |
Operating Lease, Liability, Noncurrent | 311,908 | |
Other tax liabilities | 6,782 | 5,080 |
Other long-term liabilities | 14,924 | 12,862 |
Total liabilities | 946,210 | 412,609 |
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; 14,762 and 15,873 issued; 14,711 and 15,827 outstanding | 1,476 | 1,588 |
Additional paid-in capital | 139,041 | 146,991 |
Treasury stock, at cost (51 and 47 shares) | (2,956) | (2,685) |
Deferred compensation | 2,956 | 2,685 |
Foreign currency translation adjustment | (13,545) | (14,934) |
Retained earnings | 108,215 | 180,792 |
Total stockholders' equity | 235,187 | 314,437 |
Total liabilities and stockholders' equity | 1,181,397 | $ 727,046 |
Operating Lease, Right-of-Use Asset | 393,820 | |
Intangible Assets, Net (Excluding Goodwill) | $ 73,291 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
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 | 14,762,000 | 15,873,000 |
Common Stock, Shares Outstanding | 14,711,000 | 15,827,000 |
Treasury Stock, Shares | 51,000 | 47,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Document Period End Date | Feb. 1, 2020 | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,870,667 | $ 1,938,084 | $ 1,870,275 |
Gross profit | 655,305 | 683,596 | 711,355 |
Selling, general and administrative expenses | 478,120 | 498,343 | 476,486 |
Asset impairment charges | 6,039 | 6,096 | 5,190 |
Business Exit Costs | 0 | (1,055) | 10 |
Depreciation and amortization | 74,788 | 68,884 | 68,159 |
Operating income (loss) | 96,358 | 111,328 | 161,510 |
Interest (expense), net | (8,194) | (3,534) | (2,222) |
Interest income | 253 | 730 | 1,915 |
Income (loss) from continuing operations before income taxes | 88,417 | 108,524 | 161,203 |
Provision (benefit) for income taxes | 15,117 | 7,564 | 76,505 |
Net income (loss) | $ 73,300 | $ 100,960 | $ 84,698 |
Basic earnings (loss) per share amounts | |||
Income (loss) from continuing operations (in dollars per share) | $ 4.71 | $ 6.10 | $ 4.82 |
Basic weighted average common shares outstanding (in shares) | 15,547 | 16,542 | 17,569 |
Income (loss) from continuing operations (in dollars per share) | $ 4.68 | $ 6.01 | $ 4.67 |
Diluted weighted average common shares outstanding (in shares) | 15,653 | 16,805 | 18,151 |
Cost of Sales [Member] | |||
Cost of sales (exclusive of depreciation and amortization) | $ 1,215,362 | $ 1,254,488 | $ 1,158,920 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 73,300 | $ 100,960 | $ 84,698 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 1,388 | (2,178) | 7,350 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 1 | 75 | 160 |
Comprehensive income | $ 74,689 | $ 98,857 | $ 92,208 |
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] | capitalizedstock-basedcompensation [Member]Additional Paid-in Capital [Member] | capitalizedstock-basedcompensation [Member]Stockholders' Equity, Total [Member] |
Total stockholders' equity at Jan. 28, 2017 | $ 1,776 | $ 239,940 | $ 2,188 | $ 274,912 | $ (20,341) | $ (2,188) | $ 496,287 | |||
Common Stock, Shares Issued Balance at Jan. 28, 2017 | 17,764,000 | |||||||||
Treasury Stock, Shares at Jan. 28, 2017 | (42,000) | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 504,000 | |||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 51 | (51) | 0 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 30,797 | 30,797 | $ 1,087 | $ 1,087 | ||||||
Stock Repurchased and Retired During Period, Shares | (1,011,000) | |||||||||
Stock Repurchased and Retired During Period, Value | (101) | (14,822) | (103,656) | (118,579) | ||||||
Payments of Ordinary Dividends, Common Stock | $ (28,101) | (28,101) | (28,101) | |||||||
Dividendsunvestedshares | 1,550 | (1,550) | 0 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 7,350 | 7,350 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 84,698 | 84,698 | 84,698 | |||||||
Stock Issued During Period, Value, Employee Benefit Plan | 248 | |||||||||
Total stockholders' equity at Feb. 03, 2018 | 1,726 | 258,501 | 2,436 | 226,303 | (12,831) | $ (2,436) | 473,699 | |||
Common Stock, Shares Issued Balance at Feb. 03, 2018 | 17,257,000 | (4,000) | ||||||||
Treasury Stock, Shares at Feb. 03, 2018 | (46,000) | |||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 160 | |||||||||
Common Stock Issued, Employee Trust, Deferred | $ (248) | 0 | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 711,000 | |||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 71 | (71) | 0 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 27,415 | 27,415 | $ 176 | $ 176 | ||||||
Stock Repurchased and Retired During Period, Shares | (2,095,000) | |||||||||
Stock Repurchased and Retired During Period, Value | (209) | (140,343) | (112,991) | (253,543) | ||||||
Payments of Ordinary Dividends, Common Stock | $ (33,042) | (33,042) | (33,042) | |||||||
Dividendsunvestedshares | (1,400) | 1,313 | (1,313) | 0 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,178) | (2,178) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 100,960 | 100,960 | 100,960 | |||||||
Stock Issued During Period, Value, Employee Benefit Plan | 249 | |||||||||
Total stockholders' equity at Feb. 02, 2019 | $ 314,437 | 1,588 | 146,991 | 2,685 | 180,792 | (14,934) | $ (2,685) | 314,437 | ||
Common Stock, Shares Issued Balance at Feb. 02, 2019 | 15,873,000 | (1,000) | ||||||||
Treasury Stock, Shares at Feb. 02, 2019 | 47,000 | (47,000) | ||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 75 | |||||||||
Common Stock Issued, Employee Trust, Deferred | $ (2,685) | $ (249) | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 480,000 | |||||||||
Stock Issued During Period, Value, Stock Options Exercised | 47 | (5) | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 42 | |||||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | (25,439) | 16,219 | ||||||||
Stock Repurchased and Retired During Period, Shares | (1,591,000) | |||||||||
Stock Repurchased and Retired During Period, Value | (159) | 1,275 | (108,007) | 133,605 | ||||||
Payments of Ordinary Dividends, Common Stock | $ (34,928) | (34,928) | 34,928 | |||||||
Dividendsunvestedshares | (1,300) | (1,275) | 0 | |||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,388 | 1,388 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 73,300 | 73,300 | 73,300 | |||||||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 16,219 | |||||||||
Stock Issued During Period, Value, Employee Benefit Plan | 271 | |||||||||
Total stockholders' equity at Feb. 01, 2020 | $ 235,187 | $ 1,476 | $ 139,041 | $ 2,956 | $ 108,215 | $ (13,545) | $ (2,956) | 235,187 | ||
Common Stock, Shares Issued Balance at Feb. 01, 2020 | 14,762,000 | (4,000) | ||||||||
Treasury Stock, Shares at Feb. 01, 2020 | 51,000 | (51,000) | ||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 1 | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1,667) | |||||||||
Common Stock Issued, Employee Trust, Deferred | $ (2,956) | $ (271) | $ 0 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 73,300 | $ 100,960 | $ 84,698 |
Reconciliation of income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 74,788 | 68,884 | 68,159 |
Stock-based compensation | 16,219 | 27,415 | 30,797 |
Asset impairment charges | 6,039 | 6,096 | 5,190 |
Deferred taxes | 5,364 | (5,568) | 34,894 |
Other | 229 | 699 | 169 |
Changes in operating assets and liabilities: | |||
Inventories | (23,537) | 19,380 | (36,434) |
Prepaid expenses and other assets | 2,734 | 3,568 | (318) |
Increase (Decrease) in Accounts Receivable | 3,148 | (9,127) | 5,386 |
Income taxes payable, net of prepayments | 8,574 | (7,689) | 6,865 |
Accounts payable and other current liabilities | 17,502 | (56,893) | 28,930 |
Deferred rent and other liabilities | (155,464) | (7,811) | (13,953) |
Net cash provided by operating activities | 177,902 | 139,914 | 214,383 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Property and equipment purchases, lease acquisition and software costs | (57,502) | (71,114) | (58,657) |
Payments to Acquire Short-term Investments | 0 | 0 | (15,000) |
Proceeds from Sale of Short-term Investments | 0 | 15,000 | 49,300 |
Purchase of company-owned life insurance policies | 103 | (749) | (788) |
Net cash used in investing activities | (134,350) | (56,863) | (25,145) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 1,001,039 | 861,806 | 578,186 |
Repayments under revolving credit facilities | (879,092) | (834,404) | (572,106) |
Purchase and retirement of common stock, including transaction costs | (131,393) | (253,543) | (118,579) |
Payments of Ordinary Dividends, Common Stock | (34,928) | (33,042) | (28,101) |
Net cash provided by (used in) financing activities | (44,374) | (259,183) | (140,600) |
Effect of exchange rate changes on cash | 173 | 749 | 2,172 |
Net increase (decrease) in cash and cash equivalents | (649) | (175,383) | 50,810 |
Cash and cash equivalents, beginning of period | 69,136 | 244,519 | 193,709 |
Cash and cash equivalents, end of period | 68,487 | 69,136 | 244,519 |
OTHER CASH FLOW INFORMATION: | |||
Net cash paid during the year for income taxes | 1,310 | 19,529 | 37,767 |
Cash paid during the year for interest | 7,553 | 3,224 | 1,949 |
Payments for (Proceeds from) Productive Assets | $ (1,853) | $ 3,398 | $ 457 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Feb. 01, 2020 | |
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 (collectively, the “Company”) is the largest pure-play children’s specialty apparel retailer in North America. The Company provides apparel, footwear, accessories, 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 predominately at value prices, under our proprietary “The Children’s Place”, “Place”, “Baby Place”, and “Gymboree” brand names. 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 business. Included in The Children’s Place International segment are its Canadian-based stores, revenue from the Company’s Canada wholesale business, as well as revenue from international franchisees. Each segment includes e-commerce businesses located at www.childrensplace.com. 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 2019 - The fifty-two weeks ended February 1, 2020 • Fiscal 2018 - The fifty-two weeks ended February 2, 2019 • Fiscal 2017 - The fifty-three weeks ended February 3, 2018 • Fiscal 2020 - The Company’s next fiscal year representing the fifty-two weeks ending January 30, 2021 • SEC- The U.S. Securities and Exchange Commission • GAAP - U.S. 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. Fiscal 2019 and 2018 were 52-week years and Fiscal 2017 was a 53-week year. 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. Significant estimates inherent in the preparation of the consolidated financial statements include reserves for the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived assets; fair value measurements; accounting for income taxes and related uncertain tax positions; insurance reserves; intangible assets; valuation of stock-based compensation awards and related estimated forfeiture rates, among others. 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 February 1, 2020 and February 2, 2019 , the Company did not have any investments in unconsolidated affiliates. FASB ASC 810-- Consolidation 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. Leases The Company adopted Accounting Standards Update No. 2016-02 “Leases” (“Topic 842”) as of the beginning of Fiscal 2019 using the modified retrospective transition method. Topic 842 requires that all leases greater than 12 months be recorded on the balance sheet as a right-of-use asset with a corresponding liability. See Note 3 “Leases” for further details on the Company’s adoption of Topic 842. Inventories Inventories, which consist primarily of finished goods, are stated at the lower of cost or net realizable value, with cost determined on an average cost basis. The Company capitalizes certain buying, design, and supply chain costs in inventory, and these costs are reflected within cost of sales as the inventories are sold. Inventory shrinkage is estimated in interim periods based upon the historical results of physical inventory counts 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 certain 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 in 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”). 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 FASB ASC 718-- Compensation—Stock Compensation . These provisions require, among other things: (a) the fair value at grant date 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. The cumulative expense for performance-based awards reflects changes in estimated adjusted earnings per share, adjusted operating margin expansion, and adjusted return on invested capital and, as applicable, ranking of our adjusted return on invested capital relative to that of companies in our peer group as they occur. Earnings per Common Share The Company reports its earnings per share in accordance with FASB ASC 260-- Earnings Per Share , which requires the presentation of both basic and diluted earnings per share on the consolidated statements of operations. The diluted weighted average common shares include adjustments for the potential effects of outstanding stock options, Deferred Awards, and Performance Awards (as both terms are used in Note 6 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. Anti-dilutive stock awards are comprised of stock options and unvested deferred, restricted, and performance shares which would have been anti-dilutive in the application of the treasury stock method in accordance with FASB ASC 260-- Earnings Per Share . In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Basic weighted average common shares 15,547 16,542 17,569 Dilutive effect of stock awards 106 263 582 Diluted weighted average common shares 15,653 16,805 18,151 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, inclusive of private label credit 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 credit and debit card sales for each reporting period. Bad debt associated with these sales is not material. Franchisee and wholesale receivables represent product sales and sales royalties in which cash has not yet been remitted by our partners. Bad debt associated with these sales is not material. 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, which reduces the initial ROU asset and 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 officers’ 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 within accrued expenses and other current liabilities. Property and Equipment, Net 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 estimated useful lives, with furniture and fixtures and equipment generally ranging from 3 to 10 years and buildings and improvements generally ranging from 20 to 25 years. Repairs and maintenance are expensed as incurred. The Company accounts for internally developed software intended for internal use in accordance with provisions of FASB ASC 350-- Intangibles-Goodwill and Other . The Company capitalizes development-stage costs such as direct external costs and direct payroll related costs. When development is substantially complete and the software is ready for its intended use, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software, which is generally 3 to 10 years. Preliminary project costs and post-implementation costs such as training, maintenance, and support are expensed as incurred. 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 historical 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. The Company reviews all stores that have reached comparable sales status, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting this period of time 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 impairment, the Company projects future cash flows over the remaining life of the lease, adjusted for lease payments, and compares the total undiscounted cash flows to the net book value of the related long-lived assets, including ROU 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 uses discounted future cash flows directly associated with those assets to determine fair market value of long-lived assets and ROU assets. In evaluating future 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. Intangible Assets The Company’s intangible assets includes both indefinite and finite assets. Intangible assets with indefinite lives consist primarily of trademarks and acquired trade names, which are tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. The Company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method. The Company’s finite-lived intangible assets consist primarily of customer lists and other acquisition-related assets. Finite-lived intangible assets are amortized over their estimated useful economic lives and are reviewed for impairment when factors indicate that an impairment may have occurred. The Company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value. 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 February 1, 2020 , deferred financing costs, net of accumulated amortization of $4.1 million , were approximately $0.9 million . At February 2, 2019 , deferred financing costs, net of accumulated amortization of $3.9 million , were approximately $0.4 million . 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. 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 2019 , Fiscal 2018 , and Fiscal 2017 are advertising and other marketing costs of approximately $35.0 million , $34.1 million , and $29.9 million , respectively. Deferred advertising, marketing, and promotional costs, which principally relate to advertisements that have not yet been exhibited or services that have not yet been received, were approximately $1.7 million and $1.4 million at February 1, 2020 and February 2, 2019 , respectively, and were recorded within prepaid expenses and other current assets in the Company’s consolidated balance sheets. Income Taxes We utilize the liability method of accounting for income taxes as set forth in FASB ASC 740-- Income Taxes . 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 as well as changes in the value of cash flow hedges, net of income taxes. Foreign Currency Translation and Transactions The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with FASB ASC 830-- Foreign Currency Matters , 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 inter-company charges between various subsidiaries. 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 U.S. dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, the Company enters into foreign exchange forward contracts. 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, and 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 based on their position as of the balance sheet date. 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. Fair Value Measurement and Financial Instruments FASB ASC 820-- Fair Value Measurement 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 revolving loan 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. 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 fair value hierarchy. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets, such as intangible assets, fixed assets, and ROU 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 fall within Level 3 of the fair value hierarchy. Recently Issued Accounting Updates Adopted in Fiscal 2019 In August 2017, the FASB issued guidance relating to the accounting for hedging activities. This guidance aims to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in the guidance expand and refine hedge accounting for both non-financial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. We adopted this guidance in the first quarter of Fiscal 2019. This adoption did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance relating to the accounting for leases. This guidance applies a ROU 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. We adopted this guidance in the first quarter of Fiscal 2019 using the modified-retrospective method. Refer to Note 3, “Leases”, for additional information. To Be Adopted After Fiscal 2019 In August 2018, the FASB issued guidance related to the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The guidance aims to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The guidance is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. We do not expect the guidance to have a material impact on our consolidated financial statements. In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurement. The amendments modify current fair value measurement disclosure requirements by removing, adding, or modifying certain fair value measurement disclosures. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We plan to adopt the new disclosure requirements on a prospective basis beginning in the year of adoption. We do not expect the guidance to have a material impact on our consolidated financial statements. In June 2016, the FASB issued guidance related to the accounting for financial instrument credit losses. The guidance aims to provide more decision useful information about the expected credit losses on financial instruments by replacing the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for annual reporting periods, and interim reporting periods within those years, beginning after December 15, 2019. We do not expect the guidance to have a material impact on our consolidated financial statements. |
REVENUES (Notes)
REVENUES (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Revenues [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. REVENUES Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by geography: February 1, February 2, Net sales: (In thousands) South $ 659,519 $ 670,232 Northeast 429,857 460,682 West 290,290 300,225 Midwest 234,621 245,954 International and other 256,380 260,991 Total net sales $ 1,870,667 $ 1,938,084 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 e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $1.9 million and $1.2 million as of February 1, 2020 and February 2, 2019 , respectively, based upon estimated time of delivery, at which point control passes to the customer, and is recorded in accrued expenses and other current liabilities. Sales tax collected from customers is excluded from revenue. For the sale of goods with a right of return, the Company recognizes revenue for the consideration it expects to be entitled to and calculates an allowance for estimated sales returns based upon the Company’s sales return experience. Adjustments to the allowance for estimated sales returns in subsequent periods are generally not material based on historical data, thereby reducing the uncertainty inherent in such estimates. The allowance for estimated sales returns, which is recorded in accrued expenses and other current liabilities, was approximately $0.8 million and $0.9 million as of February 1, 2020 and February 2, 2019 , respectively. Our private label credit card is issued to our customers for use exclusively at The Children’s Place stores and online at www.childrensplace.com and www.gymboree.com , and credit is extended to such customers by a third-party financial institution on a non-recourse basis to us. The private label credit card includes multiple performance obligations, including marketing and promoting the program on behalf of the bank and the operation of the loyalty rewards program. Included in the agreement with the third-party financial institution was an upfront bonus paid to the Company. The upfront bonus is recognized as revenue and allocated between brand and reward obligations. As the license of the Company’s brand is the predominant item in the performance obligation, the amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In measuring revenue and determining the consideration the Company is entitled to as part of a contract with a customer, the Company takes into account the related elements of variable consideration, such as additional bonuses, including profit-sharing, over the life of the program. Similar to the upfront bonus, the usage-based royalties and bonuses are recognized as revenue and allocated between the brand and reward obligations. The amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In addition, the annual profit-sharing amount is estimated and recognized quarterly within an annual period when earned. The additional bonuses are amortized over the contract term based on anticipated progress against future targets and level of risk associated with achieving the targets. The Company has a points-based customer loyalty program in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within accrued expenses and other current liabilities. The total contract liability related to this program was $1.6 million and $2.2 million as of February 1, 2020 and February 2, 2019 , respectively. The Company’s policy with respect to gift cards is to record revenue as and when the gift cards are redeemed for merchandise. The Company recognizes gift card breakage income in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property and is recorded within net sales. Prior to their redemption, gift cards are recorded as a liability, included within accrued expenses and other current liabilities. The total contract liability related to gift cards issued was $16.1 million and $17.9 million as of February 1, 2020 and February 2, 2019 , respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: Contract Liability (In thousands) Balance at February 2, 2019 $ 17,867 Gift cards sold 33,373 Gift cards redeemed (30,005 ) Gift card breakage (5,135 ) Balance at February 1, 2020 $ 16,100 The Company has an international expansion program through territorial agreements with franchisees. The Company generates revenues from the franchisees from the sale of product and, in certain cases, sales royalties. The Company records net sales and cost of goods sold on the sale of product to franchisees when the franchisee takes ownership of the product. The Company records net sales for royalties when the applicable franchisee sells the product to their customers. Under certain agreements, the Company receives a fee from applicable franchisees for exclusive territorial rights and based on the opening of new stores in such franchisee’s licensed territory. The Company records these territorial fees as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Lessee, Operating Leases [Text Block] | LEASES Adoption of ASC Topic 842, “Leases” On February 3, 2019, the Company adopted ASC Topic 842 “Leases” (“Topic 842”) using the modified retrospective method. Results for reporting periods beginning in Fiscal 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with ASC Topic 840 “Leases” (“Topic 840”). On February 3, 2019, the Company recognized a cumulative-effect charge of $1.7 million, net of tax, to the opening balance of retained earnings, which represents the initial impairment of ROU assets related to retail stores. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. For operating leases, the ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less any accrued lease payments and unamortized lease incentives. For finance leases, the ROU asset is initially measured at cost and subsequently amortized using the straight-line method generally from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard. Accordingly, we have adopted these practical expedients and did not reassess: (1) whether an expired or existing contract is a lease or contains an embedded lease; (2) lease classification of an expired or existing lease; (3) capitalization of initial direct costs for an expired or existing lease. The Company has made an accounting policy election by class of underlying asset to not apply the recognition requirements of Topic 842 to leases with an initial term of 12 months or less. Leases with an initial lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. In certain leases, the Company has the right to exercise lease renewal options. Renewal option periods are included in the measurement of lease ROU assets and lease liabilities where the exercise is reasonably certain to occur. The Company has lease agreements with lease and non-lease components. The Company has elected a policy to account for lease and non-lease components as a single component for all asset classes. The discount rate is the rate implicit in the lease unless that rate cannot be readily determined. In that case, the Company is required to use its incremental borrowing rate. The discount rate for a lease is determined based on the information available at the later of adoption of Topic 842 or at lease commencement. In general, the Company accounts for the underlying leased asset and applies a discount rate at the lease level. However, there are certain non-real estate leases for which the Company utilizes the portfolio method by aggregating similar leased assets based on the underlying lease term. As of February 1, 2020, the Company’s finance leases were not material to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows. We have certain lease agreements structured with both a fixed base rent and a contingent rent based on a percentage of sales over contractual levels, others with only contingent rent based on a percentage of sales, and some with a fixed base rent adjusted periodically for inflation or changes in fair market value of the underlying real estate. Contingent rent is recognized as sales occur. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have operating leases for retail stores, corporate offices, distribution facilities, and certain equipment. Our leases have remaining lease terms of less than 1 year up to 10 years, some of which may include options to extend the lease for up to five years, and some of which may include options to early terminate the lease. We record all occupancy costs in cost of sales, except administrative office buildings, which are recorded in selling, general, and administrative expenses. The following components of lease expense are included in the Company’s consolidated statements of operations. February 1, 2020 (in thousands) Operating lease cost $ 149,006 Variable lease cost 1 $ 64,228 Total lease cost $ 213,234 1 Includes short term leases with lease periods of less than 12 months. As of February 1, 2020, the weighted-average remaining operating lease term was 4.9 years, and the weighted-average discount rate for operating leases was 5.0%. Cash paid for amounts included in the measurement of operating lease liabilities in Fiscal 2019 was approximately $154.6 million. Right-of-use assets obtained in exchange for new operating lease liabilities were approximately $89.5 million. As of February 1, 2020, the maturities of lease liabilities were as follows: February 1, 2020 Operating Leases (in thousands) 2020 $ 141,340 2021 109,042 2022 78,565 2023 52,454 2024 33,108 Thereafter 77,027 Total lease payments $ 491,536 Less: imputed interest $ (57,760 ) Present value of lease liabilities $ 433,776 |
INTANGIBLES (Notes)
INTANGIBLES (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS During the first quarter of Fiscal 2019, the Company acquired the Gymboree Assets, which included the worldwide rights to the names “Gymboree” and “Crazy 8” and other intellectual property, including trademarks, domain names, copyrights, and customer databases. These intangible assets, inclusive of acquisition costs, are recorded in the long-term assets section of the consolidated balance sheets. The Company’s intangible assets includes both indefinite and finite assets. Intangible assets with indefinite lives consist primarily of trademarks and acquired trade names, which are tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. The Company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method. The Company’s finite-lived intangible assets consist primarily of customer lists and other acquisition-related assets. Finite-lived intangible assets are amortized over their estimated useful economic lives and are reviewed for impairment when factors indicate that an impairment may have occurred. The Company recognizes an impairment charge when the estimated fair value of the intangible asset is less than the carrying value. The Company’s intangible assets were as follows as of February 1, 2020 : February 1, 2020 Useful life Gross amount Accumulated amortization Net amount (in thousands) Gymboree tradename (1) Indefinite $ 69,953 $ — $ 69,953 Crazy 8 tradename (1) 5 years 4,000 (662 ) 3,338 Customer databases (2) 3 years 3,000 (827 ) 2,173 Total intangibles, net $ 76,953 $ (1,489 ) $ 75,465 (1) Included within Tradenames, net in the consolidated balance sheets. (2) Included within Other assets in the consolidated balance sheets. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Share Repurchase Programs The Company’s Board of Directors has authorized the following share repurchase programs which were active during Fiscal 2019 and Fiscal 2018: (1) $250 million in March 2017 (the “2017 Share Repurchase Program”); and (2) $250 million in March 2018 (the “2018 Share Repurchase Program”). The 2017 Share Repurchase Program has been completed. At February 1, 2020 , there was approximately $108 million remaining on the 2018 Share Repurchase Program. Under these programs, 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 a program will depend on a variety of factors including price, corporate and regulatory requirements, and other market and business conditions. The Company may suspend or discontinue a program at any time, and may thereafter reinstitute purchases, all without prior announcement. Pursuant to the Company’s practice, including due to restrictions imposed by the Company’s insider trading policy during black-out periods, the Company withholds and surrenders shares of vesting stock awards and makes payments to taxing authorities as required by law to satisfy the withholding tax requirements of all recipients. The Company’s payment of the withholding taxes in exchange for the surrendered shares constitutes a purchase of its common stock. The Company also 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: Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Shares Value Shares Value Shares Value Share repurchases related to: (in thousands) 2015 $250 Million Share Repurchase Program program (1) — — — — 974 112,917 2017 Share Repurchase Programs (2) — — 1,995 244,338 37 5,662 2018 Share Repurchase Programs (3)(4) 1,585 131,393 101 9,205 — — Shares acquired and held in treasury 4.0 271 2.0 248 4.0 248 (1) Inclusive of 0.3 million shares for approximately $33.1 million withheld to cover taxes in conjunction with the vesting of stock awards during Fiscal 2017. (2) Inclusive of 0.3 million shares for approximately $43.3 million withheld to cover taxes in conjunction with the vesting of stock awards during Fiscal 2018. (3) Inclusive of 0.2 million shares for approximately $20.2 million withheld to cover taxes in conjunction with the vesting of stock awards during Fiscal 2019. (4) Subsequent to February 1, 2020 and through March 17, 2020, the Company repurchased approximately 0.2 million shares for approximately $13.8 million. In accordance with FASB ASC 505-- Equity , 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 2019 , Fiscal 2018 , and Fiscal 2017 , approximately $108.0 million , $113.0 million , and $103.7 million was charged to retained earnings, respectively. Dividends Related to Fiscal 2019 dividends, $36.2 million was charged to retained earnings, of which $34.9 million related to cash dividends paid and $1.3 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. Related to Fiscal 2018 dividends, $34.4 million was charged to retained earnings, of which $33.0 million related to cash dividends paid and $1.4 million related to dividend share equivalents on unvested Deferred Awards and Performance Awards. Future declarations of quarterly dividends, the establishment of future record dates, and the resulting 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 |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 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 2017, an employee may earn from 0% to 200% of their Target Shares based on the achievement of cumulative adjusted earnings per share achieved for the applicable performance period, which is generally three years, adjusted operating margin expansion achieved for the performance period, and adjusted return on invested capital (“ROIC”) achieved at the end of the performance period. For Performance Awards issued during Fiscal 2018 and 2019, an employee may earn from 0% to 250% of their Target Shares based on the cumulative adjusted earnings per share achieved for the performance period, which is generally three years, adjusted operating margin expansion achieved for the performance period, adjusted ROIC achieved as of the end of the performance period, and the ranking of our adjusted ROIC relative to that of companies in our peer group as of the end of the performance period. The Performance Awards cliff vest, if earned, after completion of the applicable performance period, which is generally three years. The fair value of the Performance Awards granted is based on the closing price of our common stock on the grant date. 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. The following table summarizes the Company’s stock-based compensation expense: Fiscal Year Ended February 1, 2020 February 2, February 3, (In thousands) Deferred Awards $ 18,910 $ 12,849 $ 11,891 Performance Awards (1) (2,691 ) 14,566 18,906 Total stock-based compensation expense (2) $ 16,219 $ 27,415 $ 30,797 ____________________________________________ (1) The cumulative expense recognized reflects changes in estimated adjusted earnings per share, adjusted operating margin expansion, adjusted return on invested capital, and, if applicable, ranking of our adjusted return on invested capital relative to that of companies in our peer group as they occur. (2) A portion of stock-based compensation is included in cost of sales. Approximately $3.6 million , $3.5 million , and $4.0 million in Fiscal 2019, Fiscal 2018, and Fiscal 2017, respectively, were included in cost of sales. All other stock-based compensation is included in selling, general, and administrative expenses. The Company recognized a tax benefit related to stock-based compensation expense of $4.3 million , $7.2 million , and $8.2 million for Fiscal 2019, Fiscal 2018, and Fiscal 2017, respectively. At February 1, 2020 , the Company had 415,308 shares available for grant under the Equity Plan. Changes in the Company’s Unvested Stock Awards during Fiscal 2019 , Fiscal 2018 , and Fiscal 2017 Deferred Awards Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 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 299 $ 99.98 420 $ 82.30 469 $ 61.19 Granted 264 102.21 135 124.21 212 110.17 Vested (126 ) 105.24 (197 ) 75.65 (202 ) 62.30 Forfeited (60 ) 112.09 (59 ) 110.63 (59 ) 83.25 Unvested Deferred Awards at end of year 377 $ 97.88 299 $ 99.98 420 $ 82.30 Total unrecognized stock-based compensation expense related to unvested Deferred Awards approximated $18.7 million as of February 1, 2020 , which will be recognized over a weighted average period of approximately 1.8 years. The fair value of Deferred Awards held by the Company’s employees that vested during Fiscal 2019 , Fiscal 2018 , and Fiscal 2017 was approximately $13.5 million , $25.3 million , and $23.6 million , respectively. Performance Awards Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 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 352 $ 90.66 544 $ 84.11 515 $ 68.11 Granted 201 98.49 87 123.02 172 113.76 Shares earned in excess of target 181 75.83 347 70.09 203 50.97 Vested shares, including shares earned in excess of target (354 ) 76.36 (513 ) 70.09 (301 ) 50.97 Forfeited (38 ) 110.77 (113 ) 114.06 (45 ) 86.80 Unvested Performance Awards at end of year 342 $ 99.97 352 $ 90.66 544 $ 84.11 ____________________________________________ (1) For those awards for 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 earnings per share, adjusted operating margin expansion, adjusted return on invested capital, and, if applicable, ranking of our adjusted return on invested capital relative to that of companies in our peer group 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 $8.0 million as of February 1, 2020 , which will be recognized over a weighted average period of approximately 1.9 years. The fair value of Performance Awards held by the Company’s employees that vested during Fiscal 2019 , Fiscal 2018 , and Fiscal 2017 was approximately $33.9 million , $69.2 million , and $49.1 million , respectively. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: February 1, 2020 February 2, 2019 (in thousands) Property and equipment: Land and land improvements $ 3,403 $ 3,403 Building and improvements 35,568 35,568 Material handling equipment 53,540 51,934 Leasehold improvements 285,955 301,233 Store fixtures and equipment 272,158 273,430 Capitalized software 265,610 254,064 Construction in progress 33,240 14,823 949,474 934,455 Less accumulated depreciation and amortization (712,576 ) (674,098 ) Property and equipment, net $ 236,898 $ 260,357 During Fiscal 2019 , the Company performed impairment testing on 924 stores with a total net book value of $65.0 million . During Fiscal 2019 , the Company recorded $6.0 million of impairment charges of which $3.2 million related primarily to the impairment of 29 stores, and $2.8 million related to the write-down of information technology systems. During Fiscal 2018 , the Company performed impairment testing on 972 stores with a total net book value of $81.4 million . During Fiscal 2018 , the Company recorded $6.1 million of impairment charges of which $1.7 million related to the full impairment of 11 stores, and $4.4 million related to the write-down of information technology systems. During Fiscal 2017 , the Company performed impairment testing on 1,014 stores with a total net book value of $79.4 million . During Fiscal 2017 , the Company recorded $2.8 million of impairment charges primarily related to 21 stores, all of which were fully impaired. Additionally, the Company recorded asset impairment charges of $2.4 million related to the write-down of information technology systems. |
CREDIT FACILITY
CREDIT FACILITY | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY | CREDIT FACILITY The Company and certain of its subsidiaries maintain a credit agreement (the “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 was amended and restated on May 9, 2019, and the provisions below reflect the terms of the amended Credit Agreement. The Credit Agreement, which expires in May 2024, consists of a $325 million asset based revolving credit facility, including a $25 million Canadian sublimit, with a $50 million sub-limit 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 0.38% to 0.50% 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 1.13% to 1.38% based on the amount of the Company’s average excess availability under the facility. The Company is charged an unused line fee of 0.2% on the unused portion of the commitments. Letter of credit fees range from 0.56% to 0.69% for commercial letters of credit and range from 0.63% to 0.88% 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. and Canadian assets excluding intellectual property, software, equipment, and fixtures. As of February 1, 2020 , the Company has capitalized an aggregate of approximately $5.0 million in deferred financing costs related to the Credit Agreement. The unamortized balance of deferred financing costs at February 1, 2020 and February 2, 2019 was approximately $0.9 million and $0.4 million , respectively. Unamortized deferred financing costs are amortized over the remaining term of the Credit Agreement. The table below presents the components of the Company’s credit facility: February 1, February 2, (In millions) Credit facility maximum $ 325.0 $ 250.0 Borrowing base (1) 282.1 250.0 Outstanding borrowings 170.8 48.9 Letters of credit outstanding—standby 6.2 7.0 Utilization of credit facility at end of period 177.0 55.9 Availability (2) $ 105.1 $ 194.1 Interest rate at end of period 3.4 % 6.0 % Fiscal 2019 Fiscal 2018 Average end of day loan balance during the period $ 192.0 $ 64.4 Highest end of day loan balance during the period 262.5 156.4 Average interest rate 4.0 % 4.3 % ____________________________________________ (1) Lower of the credit facility maximum or the total borrowing base collateral. (2) The sub-limit availability for letters of credit was $43.8 million and $43.0 million at February 1, 2020 and February 2, 2019 , respectively. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Feb. 01, 2020 | |
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Prepaid Expenses And Other Current Assets [Text Block] | OTHER CURRENT AND NON-CURRENT ASSETS Prepaid expenses and other current assets are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Prepaid cloud computing $ 6,930 $ 3,925 Prepaid income taxes 3,698 7,223 Prepaid maintenance contracts 3,144 5,109 Prepaid marketing 1,671 1,421 Prepaid property expense 435 6,738 Other 5,538 3,254 Total prepaid expenses and other current assets $ 21,416 $ 27,670 Other non-current assets are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Prepaid cloud computing $ 4,476 $ 5,708 Prepaid maintenance contracts 2,374 2,793 Customer databases, net 2,173 — Security deposits 1,570 1,944 Other 3,974 3,099 Total other assets $ 14,567 $ 13,544 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES | 12 Months Ended |
Feb. 01, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | OTHER CURRENT AND LONG-TERM LIABILITIES Accrued expenses and other current liabilities are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Accrued salaries and benefits $ 17,731 $ 12,378 Customer liabilities 16,100 17,086 Accrued property expenses 5,450 6,265 Accrued capital expenditures 4,254 6,107 Accrued marketing 3,993 2,434 Accrued store expenses 3,993 7,090 Accrued freight 3,703 3,217 Sales taxes and other taxes payable 3,544 3,330 Insurance reserves 3,409 3,068 Deferred revenue 2,762 2,180 Deferred revenue for MyPlace Rewards loyalty program 1,559 2,220 Accrued professional fees 1,215 7,091 Other 15,896 14,289 Total accrued expenses and other current liabilities $ 83,609 $ 86,755 Other long-term liabilities are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Deferred revenue $ 6,026 $ 7,030 Insurance reserves 2,743 2,548 Other 6,155 3,284 Other long-term liabilities $ 14,924 $ 12,862 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES As of February 1, 2020 , the Company has entered into various purchase commitments for merchandise for re-sale of approximately $146.2 million and approximately $17.8 million for equipment, construction, and other non-merchandise commitments. The Company also has operating lease and standby letters of credit commitments of $491.5 million and $6.2 million, respectively. |
LEGAL AND REGULATORY MATTERS
LEGAL AND REGULATORY MATTERS | 12 Months Ended |
Feb. 01, 2020 | |
LEGAL AND REGULATORY MATTERS [Abstract] | |
Legal Matters and Contingencies [Text Block] | LEGAL MATTERS The Company is a defendant in Rael v. The Children’s Place, Inc. , a purported class action, pending in the U.S. District Court, Southern District of California. In the initial complaint filed in February 2016, the plaintiff alleged that the Company falsely advertised discount prices in violation of California’s Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act. The plaintiff filed an amended complaint in April 2016, adding allegations of violations of other state consumer protection laws. In August 2016, the plaintiff filed a second amended complaint, adding an additional plaintiff and removing the other state law claims. The plaintiffs’ second amended complaint seeks to represent a class of California purchasers and seeks, among other items, injunctive relief, damages, and attorneys’ fees and costs. The Company engaged in mediation proceedings with the plaintiffs in December 2016 and April 2017. The parties reached an agreement in principle in April 2017, and signed a definitive settlement agreement in November 2017, to settle the matter on a class basis with all individuals in the U.S. who made a qualifying purchase at The Children’s Place from February 11, 2012 through the date of preliminary approval by the court of the settlement. The settlement is subject to court approval and provides for merchandise vouchers for class members who submit valid claims, as well as payment of legal fees and expenses and claims administration expenses. The court stayed the matter, pending an appellate court ruling in another lawsuit to which the Company is not a party, from April 2, 2018 through June 17, 2019. On January 28, 2020, the court entered an order granting preliminary approval of the settlement. The settlement is also subject to the court’s final approval and the final fairness hearing is scheduled for July 31, 2020. The settlement, if finally approved by the court, will result in the dismissal of all claims through the date of the court’s preliminary approval of the settlement. However, if the settlement is ultimately rejected by the court, the parties will likely return to litigation, and in such event, no assurance can be given as to the ultimate outcome of this matter. In connection with the proposed settlement, the Company recorded a reserve for $5.0 million in its consolidated financial statements in the first quarter of Fiscal 2017. The Company is also 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 adverse effect on the Company’s financial position, results of operations, or cash flows. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before taxes are as follows: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Domestic $ 36,660 $ 49,820 $ 100,288 Foreign 51,757 58,704 60,915 Total income before provision for income taxes $ 88,417 $ 108,524 $ 161,203 The components of the Company’s provision for income taxes consisted of the following: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Current: Federal $ 1,810 $ 594 $ 31,334 State and local 1,186 2,519 (1,341 ) Foreign 6,757 10,019 11,618 9,753 13,132 41,611 Deferred: Federal 4,240 (3,418 ) 30,828 State and local 1,066 (2,324 ) 3,546 Foreign 58 174 520 5,364 (5,568 ) 34,894 Total provision for income taxes $ 15,117 $ 7,564 $ 76,505 Effective tax rate 17.1 % 7.0 % 47.5 % A reconciliation between the calculated tax provision on income based on a U.S. federal statutory rate of 21.0% for the years ended February 1, 2020 and February 2, 2019, and 34.3% for the year ended February 3, 2018, and the effective tax rate is as follows: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Calculated income tax provision at U.S. federal statutory rate $ 18,568 $ 22,790 $ 55,246 State and local income taxes, net of federal benefit (1) 1,779 154 1,449 Foreign tax rate differential (2) (5,019 ) (3,801 ) (10,794 ) Non-deductible expenses 1,491 861 514 Excess tax benefits related to stock compensation (1,914 ) (11,804 ) (14,665 ) U.S. transition taxes on deemed repatriation of foreign earnings — 338 37,607 Revaluation of deferred tax assets and liabilities — (295 ) 5,646 Foreign withholding and state tax on unremitted earnings — (244 ) 7,483 Unrecognized tax benefits 1,304 1,092 (3,199 ) Change in valuation allowance (21 ) (62 ) (28 ) Global intangible low-taxed income 836 1,033 — Federal tax credits (1,790 ) (2,188 ) (1,857 ) Other (117 ) (310 ) (897 ) Total provision for income taxes $ 15,117 $ 7,564 $ 76,505 (1) The total benefit from Excess tax benefit related to stock compensation includes state tax (net of federal benefit) of $0.5 million, $3.1 million, and $1.9 million for Fiscal 2019, Fiscal 2018, and Fiscal 2017, respectively. (2) 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 21% for Fiscal 2019, 21% for Fiscal 2018, and 34.3% for Fiscal 2017. The Company has substantial operations in Hong Kong, which has lower statutory income tax rates as compared to the U.S. The Company’s foreign effective tax rates for Fiscal 2019, Fiscal 2018, and Fiscal 2017 were 13.2%, 17.4%, and 19.9%, respectively. This rate will fluctuate from year to year in response to changes in the mix of income by country as well as changes in foreign jurisdiction tax laws. The assessment of the amount of value assigned to our deferred tax assets under the applicable accounting rules is judgmental. We are required to consider all available positive and negative evidence in evaluating the likelihood that we will be able to realize the benefit of our deferred tax assets in the future. Such evidence includes scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and the results of recent operations. Since this evaluation requires consideration of events that may occur some years into the future, there is an element of judgment involved. Realization of our deferred tax assets is dependent on generating sufficient taxable income in future periods. We believe that it is more likely than not that future taxable income will be sufficient to allow us to recover substantially all of the value assigned to our deferred tax assets. However, if future events cause us to conclude that it is not more likely than not that we will be able to recover all of the value assigned to our deferred tax assets, we will be required to adjust our valuation allowance accordingly. The tax effects of temporary differences which give rise to deferred tax assets and liabilities are as follows: February 1, February 2, (In thousands) Noncurrent Assets: Lease liabilities 115,409 11,702 ROU assets (104,392 ) — Stock-based compensation 2,288 9,321 Reserves 8,994 7,955 Inventory 1,620 3,401 Property and equipment, net (13,016 ) (13,499 ) Capitalized research and development, net 4,156 1,904 Tradenames and customer databases, net (737 ) — Prepaid expenses (735 ) (958 ) Foreign and state tax on unremitted earnings (1,561 ) (1,806 ) Hedging transactions (270 ) (270 ) Net operating loss carryforwards and other tax credits 2,101 721 Valuation allowance (916 ) (721 ) Total deferred tax asset, net $ 12,941 $ 17,750 The Company has foreign net operating loss carryforwards of approximately $0.4 million , which do not expire. The Company also has an Alternative Minimum Tax credit (“AMT”) in Puerto Rico of approximately $0.6 million and research and development tax credits of approximately $1.8 million. 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. On December 22, 2017, the U.S. government passed the Tax Act. The Tax Act is comprehensive tax legislation that implements complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21% and a move from a global tax regime to a modified territorial regime, which requires U.S. companies to pay a mandatory one-time transition tax on historical offshore earnings that have not been repatriated to the U.S. The transition tax is payable over eight years. Within our consolidated balance sheets, the remaining unpaid transition tax of $17.6 million is included in long-term liabilities. In Fiscal 2017, we recorded a provisional amount for the one-time transition tax of $37.6 million. In Fiscal 2018, we recorded an additional expense of $0.3 million as we finalized the one-time federal transition tax which was $37.9 million. The transition tax was based on our total accumulated post-1986 prescribed foreign earnings and profits (“E&P”) of $389 million, which was previously considered to be indefinitely reinvested prior to Fiscal 2017. In Fiscal 2017, we also recorded a provisional estimate of $5.7 million related to the revaluation of U.S. deferred tax assets and liabilities due to the lower enacted federal income tax rate, of 21%, that was effective January 1, 2018. A benefit of $0.3 million was recorded in Fiscal 2018, based on the finalization of the 2017 U.S. tax return which was filed in the fourth quarter of Fiscal 2018. While the Company is no longer permanently reinvested to the extent earnings were subject to the transition tax under the Tax Act, no additional income taxes have been provided on any earnings subsequent to the transition or for any additional outside basis differences inherent in these entities, as these amounts continue to be permanently reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any additional outside basis differences in these entities (i.e., basis differences in excess of that subject to the one-time transition tax) is not practicable. The unremitted foreign earnings earned subsequent to the transition tax which are permanently reinvested are approximately $93.5 million as of February 1, 2020. Uncertain Tax Benefits 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: February 1, February 2, (In thousands) Beginning Balance $ 5,002 $ 3,905 Additions for current year tax positions 1,399 1,209 Additions for prior year tax positions 270 101 Reductions for prior year tax positions — (118 ) Reductions related to settlements with taxing authorities (57 ) (48 ) Reductions due to a lapse of the applicable statute of limitations — (44 ) Impact of foreign currency translation 41 (3 ) Ending Balance $ 6,655 $ 5,002 Approximately $6.5 million of unrecognized tax benefits, excluding accrued interest and penalties, at February 1, 2020 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 $0.4 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 February 1, 2020 and February 2, 2019 , accrued interest and penalties included in unrecognized tax benefits were approximately $0.1 million and $0.1 million , respectively. Interest, penalties, and reversals, thereof, net of taxes, was an expense of $0.1 million in Fiscal 2019 and benefit of $0.1 million in Fiscal 2018. The Company is subject to tax in the U.S. 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 is no longer subject to income tax examinations by U.S. federal, state and local, or foreign tax authorities for fiscal tax years 2015 and prior, with the exception of Hong Kong, which is open through fiscal tax year 2013 due to ongoing tax examination. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION In accordance with FASB ASC 280---Segment Reporting, 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 revenue from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company’s Canadian-based stores, revenue from the Company’s Canadian wholesale business, 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 February 1, 2020 , The Children’s Place U.S. owned and operated 803 stores and The Children’s Place International owned and operated 121 stores. As of February 2, 2019 , The Children’s Place U.S. owned and operated 850 stores and The Children’s Place International owned and operated 122 stores. The following tables provide segment level financial information for Fiscal 2019 , Fiscal 2018 , and Fiscal 2017 : Fiscal Year Ended February 1, February 2, February 3, (In thousands) Net sales: The Children’s Place U.S. $ 1,671,165 $ 1,727,907 $ 1,650,620 The Children’s Place International (1) 199,502 210,177 219,655 Total net sales $ 1,870,667 $ 1,938,084 $ 1,870,275 Operating income: The Children’s Place U.S. $ 77,989 $ 86,983 $ 132,152 The Children’s Place International 18,369 24,345 29,358 Total operating income $ 96,358 $ 111,328 $ 161,510 Operating income as a percent of net sales: The Children’s Place U.S. 4.7 % 5.0 % 8.0 % The Children’s Place International 9.2 % 11.6 % 13.4 % Total operating income 5.2 % 5.7 % 8.6 % Depreciation and amortization: The Children’s Place U.S. $ 67,416 $ 61,487 $ 60,732 The Children’s Place International 7,372 7,397 7,427 Total depreciation and amortization $ 74,788 $ 68,884 $ 68,159 Capital expenditures: The Children’s Place U.S. $ 56,598 $ 67,476 $ 57,360 The Children’s Place International 904 3,638 1,297 Total capital expenditures $ 57,502 $ 71,114 $ 58,657 (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. February 1, February 2, (In thousands) Total assets: The Children’s Place U.S. $ 1,080,665 $ 651,728 The Children’s Place International 100,732 75,318 Total assets $ 1,181,397 $ 727,046 Geographic Information The Company’s long-lived assets are located in the following countries: February 1, February 2, (In thousands) Long-lived assets (1) : United States $ 673,432 $ 261,932 Canada 44,236 10,718 Asia 908 1,251 Total long-lived assets $ 718,576 $ 273,901 ____________________________________________ (1) The Company’s long-lived assets are comprised of net property and equipment, ROU assets, tradenames, and other assets. |
DERIVATIVE INSTRUMENTS (Notes)
DERIVATIVE INSTRUMENTS (Notes) | 12 Months Ended |
Feb. 01, 2020 | |
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 U.S. dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, we enter into foreign exchange forward contracts. 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 FASB ASC 815-- Derivatives and Hedging . 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 February 1, 2020 and February 2, 2019 , the Company had foreign exchange forward contracts with an aggregate notional amount of $9.6 million and $17.9 million , respectively, and the fair value of the derivative instruments was an asset of $1.6 million and $1.9 million , respectively. 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 fair value 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, and administrative expenses, consistent with where the Company records realized and unrealized foreign currency gains and losses on transactions in foreign denominated currencies. During Fiscal 2019, less than $0.1 million of the effective portion of the gain on the derivative was reclassified into earnings within cost of sales. As of February 1, 2020 , the gross value related to hedges of these transactions in OCI was approximately $1.0 million . Assuming February 1, 2020 exchange rates remain constant, $0.7 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, and 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 February 1, 2020 . |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Feb. 01, 2020 | |
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. The following tables reflect quarterly consolidated statements of income for the periods indicated (unaudited): Fiscal Year Ended February 1, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 412,382 $ 420,470 $ 524,796 $ 513,019 Gross profit 151,976 138,846 198,125 166,358 Selling, general, and administrative expenses 128,006 116,417 120,514 113,183 Asset impairment charges 348 121 839 4,731 Depreciation and amortization 18,584 18,472 18,821 18,911 Operating income 5,038 3,836 57,951 29,533 Income before provision for income taxes 3,327 1,558 55,796 27,736 Provision (benefit) for income taxes (1,163 ) 35 12,748 3,497 Net income $ 4,490 $ 1,523 $ 43,048 $ 24,239 Diluted earnings per share $ 0.28 $ 0.10 $ 2.77 $ 1.61 Diluted weighted average common shares outstanding 16,107 15,859 15,546 15,101 Cash dividends declared and paid per common share $ 0.56 $ 0.56 $ 0.56 $ 0.56 Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
SAVINGS AND INVESTMENT PLANS
SAVINGS AND INVESTMENT PLANS | 12 Months Ended |
Feb. 01, 2020 | |
Retirement Benefits [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 amount 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 $3.5 million in Fiscal 2019, $3.5 million in Fiscal 2018, and $3.2 million in Fiscal 2017. 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 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 years. During fiscal 2010, the Deferred Compensation Plan was amended to allow for cash deferrals made by members of the Board 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 $2.5 million and $1.9 million at February 1, 2020 and February 2, 2019 , respectively. The value of the Deferred Compensation Plan assets was approximately $2.5 million and $1.9 million at February 1, 2020 and February 2, 2019 , respectively. Company stock was $3.0 million and $2.7 million at February 1, 2020 and February 2, 2019 , 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 $0.7 million , $0.8 million , and $0.9 million in Fiscal 2019, Fiscal 2018, and Fiscal 2017, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 01, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Subsequent to February 1, 2020 and through March 17, 2020, the Company repurchased approximately 0.2 million shares for approximately $13.8 million. As a result of the impact of COVID-19 (novel coronavirus), on March 17, 2020, the Company announced the temporary closure of all of our stores across the U.S. and Canada as of the end of business on March 17, 2020, through March 31, 2020. During this temporary closure, the Company will continue to serve our customers through our e-commerce sites located at www.childrensplace.com and www.gymboree.com. The Company will work with government and health officials to assess when we will reopen our stores. Additionally, in response to the continuing uncertainty resulting from COVID-19 (novel coronavirus) and the temporary store closures, we have implemented strategic cost reduction strategies, including the reduction of capital expenditures, across all functional areas. Inventory management will continue to be a strategic focus for the Company. Further, our capital return program, inclusive of share repurchases and dividends, has been temporarily suspended. The Company maintains strong, long-term relationships with its vendors, landlords, and banking partners, which helps support our ability to navigate these challenging times. We cannot reasonably estimate the length or severity of this pandemic, but we currently anticipate a material adverse impact on our financial position, results of operations, and cash flows in Fiscal 2020. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
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 U.S. dollars. In order to mitigate the variability of cash flows associated with certain of these forecasted inventory purchases, the Company enters into foreign exchange forward contracts. 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. |
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. Fiscal 2019 and 2018 were 52-week years and Fiscal 2017 was a 53-week year. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
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 February 1, 2020 and February 2, 2019 , the Company did not have any investments in unconsolidated affiliates. FASB ASC 810-- Consolidation is considered when determining whether an entity is subject to consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and 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”). 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 FASB ASC 718-- Compensation—Stock Compensation |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share The Company reports its earnings per share in accordance with FASB ASC 260-- Earnings Per Share , which requires the presentation of both basic and diluted earnings per share on the consolidated statements of operations. The diluted weighted average common shares include adjustments for the potential effects of outstanding stock options, Deferred Awards, and Performance Awards (as both terms are used in Note 6 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. Anti-dilutive stock awards are comprised of stock options and unvested deferred, restricted, and performance shares which would have been anti-dilutive in the application of the treasury stock method in accordance with FASB ASC 260-- Earnings Per Share . In accordance with this topic, the following table reconciles income and share amounts utilized to calculate basic and diluted net income per common share: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Basic weighted average common shares 15,547 16,542 17,569 Dilutive effect of stock awards 106 263 582 Diluted weighted average common shares 15,653 16,805 18,151 |
Receivable [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, inclusive of private label credit 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 credit and debit card sales for each reporting period. Bad debt associated with these sales is not material. Franchisee and wholesale receivables represent product sales and sales royalties in which cash has not yet been remitted by our partners. Bad debt associated with these sales is not material. 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, which reduces the initial ROU asset and 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 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment, Net 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 estimated useful lives, with furniture and fixtures and equipment generally ranging from 3 to 10 years and buildings and improvements generally ranging from 20 to 25 years. Repairs and maintenance are expensed as incurred. The Company accounts for internally developed software intended for internal use in accordance with provisions of FASB ASC 350-- Intangibles-Goodwill and Other . The Company capitalizes development-stage costs such as direct external costs and direct payroll related costs. When development is substantially complete and the software is ready for its intended use, the Company amortizes the cost of the software on a straight-line basis over the expected life of the software, which is generally 3 to 10 years. 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] | 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 historical 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. The Company reviews all stores that have reached comparable sales status, or sooner if circumstances should dictate, on at least an annual basis. The Company believes waiting this period of time 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 impairment, the Company projects future cash flows over the remaining life of the lease, adjusted for lease payments, and compares the total undiscounted cash flows to the net book value of the related long-lived assets, including ROU 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 uses discounted future cash flows directly associated with those assets to determine fair market value of long-lived assets and ROU assets. In evaluating future 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. |
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 February 1, 2020 , deferred financing costs, net of accumulated amortization of $4.1 million , were approximately $0.9 million . At February 2, 2019 , deferred financing costs, net of accumulated amortization of $3.9 million , were approximately $0.4 million . |
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 2019 , Fiscal 2018 , and Fiscal 2017 are advertising and other marketing costs of approximately $35.0 million , $34.1 million , and $29.9 million |
Income Tax, Policy [Policy Text Block] | Income Taxes We utilize the liability method of accounting for income taxes as set forth in FASB ASC 740-- Income Taxes . 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 and Transactions The Company has determined that the local currencies of its Canadian and Asian subsidiaries are their functional currencies. In accordance with FASB ASC 830-- Foreign Currency Matters , 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 inter-company charges between various subsidiaries. |
Legal Costs, Policy [Policy Text Block] | Legal Contingencies |
Retained Earnings [Policy Text Block] | |
Fair Value Measurement and Financial Instruments | Fair Value Measurement and Financial Instruments FASB ASC 820-- Fair Value Measurement 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 revolving loan 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. 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 fair value hierarchy. The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets, such as intangible assets, fixed assets, and ROU 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 fall within Level 3 of the fair value hierarchy. |
Inventory, Policy [Policy Text Block] | Inventories |
Cost of Goods and Service [Policy Text Block] | Cost of Sales (exclusive of depreciation and amortization) In addition to the cost of inventory sold, the Company includes certain 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 in the Company’s consolidated statements of operations. |
BASIS OF PRESENTATION Earnings
BASIS OF PRESENTATION Earnings per Share (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
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: Fiscal Year Ended February 1, February 2, February 3, (In thousands) Basic weighted average common shares 15,547 16,542 17,569 Dilutive effect of stock awards 106 263 582 Diluted weighted average common shares 15,653 16,805 18,151 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Revenues [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table provides the reconciliation of the contract liability related to gift cards: Contract Liability (In thousands) Balance at February 2, 2019 $ 17,867 Gift cards sold 33,373 Gift cards redeemed (30,005 ) Gift card breakage (5,135 ) Balance at February 1, 2020 $ 16,100 |
Contract with Customer, Asset and Liability [Table Text Block] | The Company has a points-based customer loyalty program in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within accrued expenses and other current liabilities. The total contract liability related to this program was $1.6 million and $2.2 million as of February 1, 2020 and February 2, 2019 , respectively. |
Revenue from Contract with Customer [Text Block] | 2. REVENUES Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by geography: February 1, February 2, Net sales: (In thousands) South $ 659,519 $ 670,232 Northeast 429,857 460,682 West 290,290 300,225 Midwest 234,621 245,954 International and other 256,380 260,991 Total net sales $ 1,870,667 $ 1,938,084 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 e-commerce, net of coupon redemptions and anticipated sales returns. The Company deferred approximately $1.9 million and $1.2 million as of February 1, 2020 and February 2, 2019 , respectively, based upon estimated time of delivery, at which point control passes to the customer, and is recorded in accrued expenses and other current liabilities. Sales tax collected from customers is excluded from revenue. For the sale of goods with a right of return, the Company recognizes revenue for the consideration it expects to be entitled to and calculates an allowance for estimated sales returns based upon the Company’s sales return experience. Adjustments to the allowance for estimated sales returns in subsequent periods are generally not material based on historical data, thereby reducing the uncertainty inherent in such estimates. The allowance for estimated sales returns, which is recorded in accrued expenses and other current liabilities, was approximately $0.8 million and $0.9 million as of February 1, 2020 and February 2, 2019 , respectively. Our private label credit card is issued to our customers for use exclusively at The Children’s Place stores and online at www.childrensplace.com and www.gymboree.com , and credit is extended to such customers by a third-party financial institution on a non-recourse basis to us. The private label credit card includes multiple performance obligations, including marketing and promoting the program on behalf of the bank and the operation of the loyalty rewards program. Included in the agreement with the third-party financial institution was an upfront bonus paid to the Company. The upfront bonus is recognized as revenue and allocated between brand and reward obligations. As the license of the Company’s brand is the predominant item in the performance obligation, the amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In measuring revenue and determining the consideration the Company is entitled to as part of a contract with a customer, the Company takes into account the related elements of variable consideration, such as additional bonuses, including profit-sharing, over the life of the program. Similar to the upfront bonus, the usage-based royalties and bonuses are recognized as revenue and allocated between the brand and reward obligations. The amount allocated to the brand obligation is recognized on a straight-line basis over the initial term. The amount allocated to the reward obligation is recognized on a point-in-time basis as redemptions under the loyalty program occur. In addition, the annual profit-sharing amount is estimated and recognized quarterly within an annual period when earned. The additional bonuses are amortized over the contract term based on anticipated progress against future targets and level of risk associated with achieving the targets. The Company has a points-based customer loyalty program in which customers earn points based on purchases and other promotional activities. These points can be redeemed for coupons to discount future purchases. A contract liability is estimated based on the standalone selling price of benefits earned by customers through the program and the related redemption experience under the program. The value of each point earned is recorded as deferred revenue and is included within accrued expenses and other current liabilities. The total contract liability related to this program was $1.6 million and $2.2 million as of February 1, 2020 and February 2, 2019 , respectively. The Company’s policy with respect to gift cards is to record revenue as and when the gift cards are redeemed for merchandise. The Company recognizes gift card breakage income in proportion to the pattern of rights exercised by the customer when the Company expects to be entitled to breakage and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property and is recorded within net sales. Prior to their redemption, gift cards are recorded as a liability, included within accrued expenses and other current liabilities. The total contract liability related to gift cards issued was $16.1 million and $17.9 million as of February 1, 2020 and February 2, 2019 , respectively. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: Contract Liability (In thousands) Balance at February 2, 2019 $ 17,867 Gift cards sold 33,373 Gift cards redeemed (30,005 ) Gift card breakage (5,135 ) Balance at February 1, 2020 $ 16,100 The Company has an international expansion program through territorial agreements with franchisees. The Company generates revenues from the franchisees from the sale of product and, in certain cases, sales royalties. The Company records net sales and cost of goods sold on the sale of product to franchisees when the franchisee takes ownership of the product. The Company records net sales for royalties when the applicable franchisee sells the product to their customers. Under certain agreements, the Company receives a fee from applicable franchisees for exclusive territorial rights and based on the opening of new stores in such franchisee’s licensed territory. The Company records these territorial fees as deferred revenue and amortizes the fee into gross sales over the life of the territorial agreement. |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenues disaggregated by geography: February 1, February 2, Net sales: (In thousands) South $ 659,519 $ 670,232 Northeast 429,857 460,682 West 290,290 300,225 Midwest 234,621 245,954 International and other 256,380 260,991 Total net sales $ 1,870,667 $ 1,938,084 |
STOCKHOLDERS' EQUITY STOCKHOLDE
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Repurchase Agreements [Table Text Block] | Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 Shares Value Shares Value Shares Value Share repurchases related to: (in thousands) 2015 $250 Million Share Repurchase Program program (1) — — — — 974 112,917 2017 Share Repurchase Programs (2) — — 1,995 244,338 37 5,662 2018 Share Repurchase Programs (3)(4) 1,585 131,393 101 9,205 — — Shares acquired and held in treasury 4.0 271 2.0 248 4.0 248 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Fiscal Year Ended February 1, 2020 February 2, February 3, (In thousands) Deferred Awards $ 18,910 $ 12,849 $ 11,891 Performance Awards (1) (2,691 ) 14,566 18,906 Total stock-based compensation expense (2) $ 16,219 $ 27,415 $ 30,797 |
Schedule of changes in unvested deferred awards | Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 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 299 $ 99.98 420 $ 82.30 469 $ 61.19 Granted 264 102.21 135 124.21 212 110.17 Vested (126 ) 105.24 (197 ) 75.65 (202 ) 62.30 Forfeited (60 ) 112.09 (59 ) 110.63 (59 ) 83.25 Unvested Deferred Awards at end of year 377 $ 97.88 299 $ 99.98 420 $ 82.30 |
Schedule of unvested performance awards | Fiscal Year Ended February 1, 2020 February 2, 2019 February 3, 2018 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 352 $ 90.66 544 $ 84.11 515 $ 68.11 Granted 201 98.49 87 123.02 172 113.76 Shares earned in excess of target 181 75.83 347 70.09 203 50.97 Vested shares, including shares earned in excess of target (354 ) 76.36 (513 ) 70.09 (301 ) 50.97 Forfeited (38 ) 110.77 (113 ) 114.06 (45 ) 86.80 Unvested Performance Awards at end of year 342 $ 99.97 352 $ 90.66 544 $ 84.11 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | February 1, 2020 February 2, 2019 (in thousands) Property and equipment: Land and land improvements $ 3,403 $ 3,403 Building and improvements 35,568 35,568 Material handling equipment 53,540 51,934 Leasehold improvements 285,955 301,233 Store fixtures and equipment 272,158 273,430 Capitalized software 265,610 254,064 Construction in progress 33,240 14,823 949,474 934,455 Less accumulated depreciation and amortization (712,576 ) (674,098 ) Property and equipment, net $ 236,898 $ 260,357 |
CREDIT FACILITY (Tables)
CREDIT FACILITY (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Components of credit facility | February 1, February 2, (In millions) Credit facility maximum $ 325.0 $ 250.0 Borrowing base (1) 282.1 250.0 Outstanding borrowings 170.8 48.9 Letters of credit outstanding—standby 6.2 7.0 Utilization of credit facility at end of period 177.0 55.9 Availability (2) $ 105.1 $ 194.1 Interest rate at end of period 3.4 % 6.0 % Fiscal 2019 Fiscal 2018 Average end of day loan balance during the period $ 192.0 $ 64.4 Highest end of day loan balance during the period 262.5 156.4 Average interest rate 4.0 % 4.3 % ____________________________________________ (1) Lower of the credit facility maximum or the total borrowing base collateral. (2) The sub-limit availability for letters of credit was $43.8 million and $43.0 million at February 1, 2020 and February 2, 2019 , respectively. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Schedule of Other Assets [Table Text Block] | Other non-current assets are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Prepaid cloud computing $ 4,476 $ 5,708 Prepaid maintenance contracts 2,374 2,793 Customer databases, net 2,173 — Security deposits 1,570 1,944 Other 3,974 3,099 Total other assets $ 14,567 $ 13,544 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Prepaid cloud computing $ 6,930 $ 3,925 Prepaid income taxes 3,698 7,223 Prepaid maintenance contracts 3,144 5,109 Prepaid marketing 1,671 1,421 Prepaid property expense 435 6,738 Other 5,538 3,254 Total prepaid expenses and other current assets $ 21,416 $ 27,670 Other non-current assets are comprised of the following: February 1, 2020 February 2, 2019 (In thousands) Prepaid cloud computing $ 4,476 $ 5,708 Prepaid maintenance contracts 2,374 2,793 Customer databases, net 2,173 — Security deposits 1,570 1,944 Other 3,974 3,099 Total other assets $ 14,567 $ 13,544 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
ACCRUED [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | February 1, 2020 February 2, 2019 (In thousands) Accrued salaries and benefits $ 17,731 $ 12,378 Customer liabilities 16,100 17,086 Accrued property expenses 5,450 6,265 Accrued capital expenditures 4,254 6,107 Accrued marketing 3,993 2,434 Accrued store expenses 3,993 7,090 Accrued freight 3,703 3,217 Sales taxes and other taxes payable 3,544 3,330 Insurance reserves 3,409 3,068 Deferred revenue 2,762 2,180 Deferred revenue for MyPlace Rewards loyalty program 1,559 2,220 Accrued professional fees 1,215 7,091 Other 15,896 14,289 Total accrued expenses and other current liabilities $ 83,609 $ 86,755 |
INCOME TAXES Taxes by Country (
INCOME TAXES Taxes by Country (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
INCOME TAXES [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Fiscal Year Ended February 1, February 2, February 3, (In thousands) Domestic $ 36,660 $ 49,820 $ 100,288 Foreign 51,757 58,704 60,915 Total income before provision for income taxes $ 88,417 $ 108,524 $ 161,203 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Fiscal Year Ended February 1, February 2, February 3, (In thousands) Current: Federal $ 1,810 $ 594 $ 31,334 State and local 1,186 2,519 (1,341 ) Foreign 6,757 10,019 11,618 9,753 13,132 41,611 Deferred: Federal 4,240 (3,418 ) 30,828 State and local 1,066 (2,324 ) 3,546 Foreign 58 174 520 5,364 (5,568 ) 34,894 Total provision for income taxes $ 15,117 $ 7,564 $ 76,505 Effective tax rate 17.1 % 7.0 % 47.5 % |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Fiscal Year Ended February 1, February 2, February 3, (In thousands) Calculated income tax provision at U.S. federal statutory rate $ 18,568 $ 22,790 $ 55,246 State and local income taxes, net of federal benefit (1) 1,779 154 1,449 Foreign tax rate differential (2) (5,019 ) (3,801 ) (10,794 ) Non-deductible expenses 1,491 861 514 Excess tax benefits related to stock compensation (1,914 ) (11,804 ) (14,665 ) U.S. transition taxes on deemed repatriation of foreign earnings — 338 37,607 Revaluation of deferred tax assets and liabilities — (295 ) 5,646 Foreign withholding and state tax on unremitted earnings — (244 ) 7,483 Unrecognized tax benefits 1,304 1,092 (3,199 ) Change in valuation allowance (21 ) (62 ) (28 ) Global intangible low-taxed income 836 1,033 — Federal tax credits (1,790 ) (2,188 ) (1,857 ) Other (117 ) (310 ) (897 ) Total provision for income taxes $ 15,117 $ 7,564 $ 76,505 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | February 1, February 2, (In thousands) Noncurrent Assets: Lease liabilities 115,409 11,702 ROU assets (104,392 ) — Stock-based compensation 2,288 9,321 Reserves 8,994 7,955 Inventory 1,620 3,401 Property and equipment, net (13,016 ) (13,499 ) Capitalized research and development, net 4,156 1,904 Tradenames and customer databases, net (737 ) — Prepaid expenses (735 ) (958 ) Foreign and state tax on unremitted earnings (1,561 ) (1,806 ) Hedging transactions (270 ) (270 ) Net operating loss carryforwards and other tax credits 2,101 721 Valuation allowance (916 ) (721 ) Total deferred tax asset, net $ 12,941 $ 17,750 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | February 1, February 2, (In thousands) Beginning Balance $ 5,002 $ 3,905 Additions for current year tax positions 1,399 1,209 Additions for prior year tax positions 270 101 Reductions for prior year tax positions — (118 ) Reductions related to settlements with taxing authorities (57 ) (48 ) Reductions due to a lapse of the applicable statute of limitations — (44 ) Impact of foreign currency translation 41 (3 ) Ending Balance $ 6,655 $ 5,002 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment level financial information | Fiscal Year Ended February 1, February 2, February 3, (In thousands) Net sales: The Children’s Place U.S. $ 1,671,165 $ 1,727,907 $ 1,650,620 The Children’s Place International (1) 199,502 210,177 219,655 Total net sales $ 1,870,667 $ 1,938,084 $ 1,870,275 Operating income: The Children’s Place U.S. $ 77,989 $ 86,983 $ 132,152 The Children’s Place International 18,369 24,345 29,358 Total operating income $ 96,358 $ 111,328 $ 161,510 Operating income as a percent of net sales: The Children’s Place U.S. 4.7 % 5.0 % 8.0 % The Children’s Place International 9.2 % 11.6 % 13.4 % Total operating income 5.2 % 5.7 % 8.6 % Depreciation and amortization: The Children’s Place U.S. $ 67,416 $ 61,487 $ 60,732 The Children’s Place International 7,372 7,397 7,427 Total depreciation and amortization $ 74,788 $ 68,884 $ 68,159 Capital expenditures: The Children’s Place U.S. $ 56,598 $ 67,476 $ 57,360 The Children’s Place International 904 3,638 1,297 Total capital expenditures $ 57,502 $ 71,114 $ 58,657 (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. February 1, February 2, (In thousands) Total assets: The Children’s Place U.S. $ 1,080,665 $ 651,728 The Children’s Place International 100,732 75,318 Total assets $ 1,181,397 $ 727,046 |
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: February 1, February 2, (In thousands) Long-lived assets (1) : United States $ 673,432 $ 261,932 Canada 44,236 10,718 Asia 908 1,251 Total long-lived assets $ 718,576 $ 273,901 |
QUARTERLY FINANCIAL DATA Quarte
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Tables) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Schedule of Quarterly Financial Information [Table Text Block] | Fiscal Year Ended February 1, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 412,382 $ 420,470 $ 524,796 $ 513,019 Gross profit 151,976 138,846 198,125 166,358 Selling, general, and administrative expenses 128,006 116,417 120,514 113,183 Asset impairment charges 348 121 839 4,731 Depreciation and amortization 18,584 18,472 18,821 18,911 Operating income 5,038 3,836 57,951 29,533 Income before provision for income taxes 3,327 1,558 55,796 27,736 Provision (benefit) for income taxes (1,163 ) 35 12,748 3,497 Net income $ 4,490 $ 1,523 $ 43,048 $ 24,239 Diluted earnings per share $ 0.28 $ 0.10 $ 2.77 $ 1.61 Diluted weighted average common shares outstanding 16,107 15,859 15,546 15,101 Cash dividends declared and paid per common share $ 0.56 $ 0.56 $ 0.56 $ 0.56 Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Stock awards | |||||||||||||
Asset impairment charges | $ 4,731 | [1] | $ 839 | $ 121 | $ 348 | $ 464 | [2] | $ 396 | $ 3,979 | $ 1,257 | $ 6,039 | $ 6,096 | $ 5,190 |
Dilutive effect of stock awards | 106 | 263 | 582 | ||||||||||
Business Exit Costs | 191 | $ (1,246) | $ 0 | $ 0 | $ 0 | $ (1,055) | $ 10 | ||||||
Amortization of Financing Costs | (4,100) | (3,900) | (4,100) | (3,900) | |||||||||
Deferred Finance Costs, Net | 900 | 400 | 900 | 400 | |||||||||
Advertising Expense | $ 35,000 | 34,100 | $ 29,900 | ||||||||||
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% | ||||||||||||
Deferred compensation plan liability | 2,500 | 1,900 | $ 2,500 | 1,900 | |||||||||
Cash Surrender Value of Life Insurance | 2,500 | 1,900 | 2,500 | 1,900 | |||||||||
Deferred compensation - Company stock | (2,956) | (2,685) | (2,956) | (2,685) | |||||||||
Derivative Asset, Notional Amount | 9,600 | 9,600 | |||||||||||
Derivative Asset, Fair Value, Gross Asset | $ 1,600 | $ 1,900 | $ 1,600 | $ 1,900 | |||||||||
[1] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | ||||||||||||
[2] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Prepaid Advertising | $ 1,421 | $ 1,671 | $ 1,421 | ||||
Business Exit Costs | 191 | $ (1,246) | $ 0 | $ 0 | 0 | (1,055) | $ 10 |
Accumulated Amortization, Deferred Finance Costs | $ (3,900) | $ (4,100) | $ (3,900) | ||||
Document Period End Date | Feb. 1, 2020 |
REVENUES (Details)
REVENUES (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Revenues [Abstract] | ||
Deferred Revenue, Current | $ 2,762 | $ 2,180 |
Contract with Customer, Liability | 1,600 | 2,200 |
Gift Card Liability, Current | $ 16,100 | $ 17,900 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
STOCKHOLDERS' EQUITY | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000 | $ 250,000 | |
Shares repurchases related to: | |||
Shares repurchased (in shares) | (1,591,000) | (2,095,000) | (1,011,000) |
Treasury Stock, Shares, Acquired | 4,000 | 2,000 | 4,000 |
Treasury Stock, Value, Acquired, Cost Method | $ 271 | $ 248 | $ 248 |
Number of shares deferred into deferred compensation plan (in shares) | 4,000 | 2,000 | 4,000 |
Shares deferred into deferred compensation plan, aggregate cost | $ 271 | $ 248 | $ 248 |
Dividends | 36,200 | 34,400 | |
Dividends, Common Stock, Cash | 34,900 | 33,000 | |
Dividendsunvestedshares | 1,300 | 1,400 | |
2017 Share Repurchase Program [Member] [Member] [Member] [Member] [Member] | |||
STOCKHOLDERS' EQUITY | |||
Stock Repurchased and Retired During Period, Value | $ 0 | $ (244,338) | |
Shares repurchases related to: | |||
Shares repurchased (in shares) | 0 | 1,995,000 | |
2015 $ 250M Share Repurchase Program [Member] [Member] [Member] [Member] | |||
STOCKHOLDERS' EQUITY | |||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | |
Shares repurchases related to: | |||
Shares repurchased (in shares) | 0 | 0 | |
2018 Share Repurchase Program [Member] [Member] [Member] [Member] [Member] [Domain] | |||
STOCKHOLDERS' EQUITY | |||
Stock Repurchased and Retired During Period, Value | $ (131,393) | ||
Shares repurchases related to: | |||
Shares repurchased (in shares) | 1,585,000 | ||
Retained Earnings [Member] | |||
STOCKHOLDERS' EQUITY | |||
Stock Repurchased and Retired During Period, Value | $ (108,007) | $ (112,991) | (103,656) |
Shares repurchases related to: | |||
Dividendsunvestedshares | $ 1,275 | $ 1,313 | $ 1,550 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Stock-based compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 415,308 | |||
Total stock- based compensation expense | [1] | $ 16,219 | $ 27,415 | $ 30,797 |
Tax benefit related to stock-based compensation | $ 4,300 | 7,200 | 8,200 | |
Document Period End Date | Feb. 1, 2020 | |||
Restricted stock | ||||
Stock-based compensation expense | ||||
Total stock- based compensation expense | $ 18,910 | 12,849 | 11,891 | |
Performance awards | ||||
Stock-based compensation expense | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |||
Total stock- based compensation expense | $ (2,691) | 14,566 | 18,906 | |
Cost of Sales [Member] | ||||
Stock-based compensation expense | ||||
Total stock- based compensation expense | $ 3,600 | $ 3,500 | $ 4,000 | |
[1] |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Document Period End Date | Feb. 1, 2020 | |||
Share-based Payment Arrangement, Expense | [1] | $ 16,219 | $ 27,415 | $ 30,797 |
Deferred and Performance Awards | ||||
Forfeited (in shares) | 59 | |||
Weighted Average Grant Date Fair Value | ||||
Net shares in excess (less) than target | 181 | |||
Unrecognized costs and period of recognition | ||||
Exercised (in shares) | (480) | |||
Weighted Average Grant Date Fair Value, unvested stock options | ||||
Weighted avg fair value, shares in excess (less) than target | $ 75.83 | |||
Deferred and Restricted Stock (Deferred Awards) Member | ||||
Deferred and Performance Awards | ||||
Unvested awards at the beginning of the period (in shares) | 299 | 420 | 469 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 264 | 135 | 212 | |
Vested (in shares) | [2] | (126) | 197 | 202 |
Forfeited (in shares) | (60) | 59 | ||
Unvested awards at the end of the period (in shares) | 377 | 299 | 420 | |
Weighted Average Grant Date Fair Value | ||||
Unvested awards at the beginning of the period (in dollars per share) | $ 99.98 | $ 82.30 | $ 61.19 | |
Granted (in shares) | 102.21 | 124.21 | 110.17 | |
Vested (in dollars per share) | 105.24 | 75.65 | 62.30 | |
Forfeited (in dollars per share) | 112.09 | 110.63 | 83.25 | |
Unvested awards at the end of the period (in dollars per share) | $ 97.88 | $ 99.98 | $ 82.30 | |
Unrecognized costs and period of recognition | ||||
Unrecognized stock-based compensation expense (in dollars) | $ 18,700 | |||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 1 year 9 months 18 days | |||
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 18,910 | $ 12,849 | $ 11,891 | |
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 | 13,500 | 25,300 | 23,600 | |
Performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ (2,691) | $ 14,566 | $ 18,906 | |
Deferred and Performance Awards | ||||
Unvested awards at the beginning of the period (in shares) | 352 | 544 | 515 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 201 | 87 | 172 | |
Vested (in shares) | (354) | 513 | 301 | |
Forfeited (in shares) | (38) | 113 | 45 | |
Unvested awards at the end of the period (in shares) | 342 | 352 | 544 | |
Weighted Average Grant Date Fair Value | ||||
Unvested awards at the beginning of the period (in dollars per share) | $ 90.66 | $ 84.11 | $ 68.11 | |
Granted (in shares) | 98.49 | 123.02 | 113.76 | |
Vested (in dollars per share) | 76.36 | 70.09 | 50.97 | |
Forfeited (in dollars per share) | 110.77 | 114.06 | 86.80 | |
Unvested awards at the end of the period (in dollars per share) | $ 99.97 | $ 90.66 | $ 84.11 | |
Unrecognized costs and period of recognition | ||||
Unrecognized stock-based compensation expense (in dollars) | $ 8,000 | |||
Weighted average period for recognition of unrecognized stock-based compensation expense (in years) | 1 year 10 months 24 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 | $ 33,900 | $ 69,200 | $ 49,100 | |
Cost of Sales [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 3,600 | $ 3,500 | $ 4,000 | |
[1] | ||||
[2] |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |||
Property, Plant and Equipment [Line Items] | |||||||||||||
numberofstorestestedforimpairment | 924 | 972 | 924 | 972 | 1,014 | ||||||||
net book value | $ 65,000 | $ 81,400 | $ 65,000 | $ 81,400 | $ 79,400 | ||||||||
Less accumulated depreciation and amortization | (712,576) | (674,098) | (712,576) | (674,098) | |||||||||
Property and equipment, net | 236,898 | 260,357 | 236,898 | 260,357 | |||||||||
Asset impairment charges | 4,731 | [1] | $ 839 | $ 121 | $ 348 | 464 | [2] | $ 396 | $ 3,979 | $ 1,257 | 6,039 | $ 6,096 | $ 5,190 |
Number of underperforming stores | 11 | 21 | |||||||||||
partiallyimpairedstores | 29 | ||||||||||||
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, gross | 35,568 | 35,568 | 35,568 | 35,568 | |||||||||
Material handling equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 53,540 | 51,934 | 53,540 | 51,934 | |||||||||
Leasehold improvements | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 285,955 | 301,233 | 285,955 | 301,233 | |||||||||
Store fixtures and equipment | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 272,158 | 273,430 | 272,158 | 273,430 | |||||||||
Capitalized software | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | 265,610 | 254,064 | 265,610 | 254,064 | |||||||||
Construction in progress | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property and equipment, gross | $ 33,240 | $ 14,823 | $ 33,240 | $ 14,823 | |||||||||
[1] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | ||||||||||||
[2] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | ||
Credit facilities | |||
Sublimit availability | $ 43.8 | $ 43 | |
Borrowing capacity, accordion feature | 50 | ||
Deferred financing costs, remaining unamortized balance | 0.9 | 0.4 | |
Line of Credit Facility, Maximum Borrowing Capacity | 325 | 250 | |
Line of credit facility, current borrowing capacity | 282.1 | 250 | |
Outstanding borrowings | 170.8 | 48.9 | |
Utilization of credit facility at end of period | 177 | 55.9 | |
Availability | [1] | $ 105.1 | $ 194.1 |
Interest rate at end of period (as a percent) | 3.40% | 6.00% | |
Average loan balance during the period | $ 192 | $ 64.4 | |
Highest end of day loan balance during the period | $ 262.5 | $ 156.4 | |
Average interest rate (as a percent) | 4.00% | 4.30% | |
Standby Letters of Credit [Member] | |||
Credit facilities | |||
Letters of credit outstanding | $ 6.2 | $ 7 | |
Credit Agreement | |||
Credit facilities | |||
Letters of Credit sublimit | $ 50 | ||
Line of credit facility, unused line fee percentage (as a percent) | 0.20% | ||
Deferred financing costs gross | $ 5 | ||
Deferred financing costs, remaining unamortized balance | 0.9 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325 | ||
Credit Agreement | Prime rate | |||
Credit facilities | |||
Basis spread on variable rate, low end of range (as a percent) | 0.38% | ||
Basis spread on variable rate, high end of range (as a percent) | 0.50% | ||
Credit Agreement | LIBOR | |||
Credit facilities | |||
Basis spread on variable rate, low end of range (as a percent) | 1.13% | ||
Basis spread on variable rate, high end of range (as a percent) | 1.38% | ||
Credit Agreement | Letter of Credit [Member] | |||
Credit facilities | |||
Letters of credit facility fee, low end of range (as a percent) | 0.56% | ||
Letters of credit facility fee, high end of range (as a percent) | 0.69% | ||
Credit Agreement | Standby Letters of Credit [Member] | |||
Credit facilities | |||
Letters of credit facility fee, low end of range (as a percent) | 0.63% | ||
Letters of credit facility fee, high end of range (as a percent) | 0.88% | ||
[1] | The sub-limit availability for letters of credit was $43.8 million and $43.0 million at February 1, 2020 and February 2, 2019 , respectively. |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid Expenses (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
PREPAID EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Prepaid property expense | $ 435 | $ 6,738 |
Prepaid income taxes | 3,698 | 7,223 |
Prepaid marketing | 1,671 | 1,421 |
Prepaid maintenance contracts | 3,144 | 5,109 |
Other | 5,538 | 3,254 |
Prepaid expenses and other current assets | $ 21,416 | $ 27,670 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILTIES Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Accrued Expenses [Abstract] | ||
Customer liabilities | $ 16,100 | $ 17,086 |
Accrued salaries and benefits | 17,731 | 12,378 |
Sales taxes and other taxes payable | 3,544 | 3,330 |
Accrued store expenses | 3,993 | 7,090 |
Deferred revenue | 2,762 | 2,180 |
Accrued real estate expenses | 5,450 | 6,265 |
Accrued construction-in-progress | 4,254 | 6,107 |
Accrued insurance | 3,409 | 3,068 |
Accrued marketing | 3,993 | 2,434 |
Accrued freight | 3,703 | 3,217 |
Deferred revenue for MyPlace Rewards loyalty program | 1,559 | 2,220 |
Accrued professional fees | 1,215 | 7,091 |
Other | 15,896 | 14,289 |
Accrued expenses and other current liabilities | $ 83,609 | $ 86,755 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Feb. 01, 2020USD ($) |
Purchase Commitments Construction [Member] | |
Operating Leased Assets [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 17.8 |
Purchase Commitments Merchandise [Member] | |
Operating Leased Assets [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 146.2 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||
U.S. | $ 36,660 | $ 49,820 | $ 100,288 | ||||||||||
Foreign | 51,757 | 58,704 | 60,915 | ||||||||||
Income (loss) from continuing operations before income taxes | $ 27,736 | [1] | $ 55,796 | $ 1,558 | $ 3,327 | $ 12,913 | [2] | $ 63,774 | $ 9,076 | $ 22,761 | 88,417 | 108,524 | 161,203 |
Federal | 1,810 | 594 | 31,334 | ||||||||||
State | 1,186 | 2,519 | (1,341) | ||||||||||
Foreign | 6,757 | 10,019 | 11,618 | ||||||||||
Total current | 9,753 | 13,132 | 41,611 | ||||||||||
Federal | 4,240 | (3,418) | 30,828 | ||||||||||
State | 1,066 | (2,324) | 3,546 | ||||||||||
Foreign | 58 | 174 | 520 | ||||||||||
Total deferred | 5,364 | (5,568) | 34,894 | ||||||||||
Total tax provision | 3,497 | [1] | 12,748 | 35 | (1,163) | 889 | [2] | 13,861 | 1,590 | (8,776) | $ 15,117 | $ 7,564 | $ 76,505 |
Effective tax rate from continuing operations (as a percent) | 17.10% | 7.00% | 47.50% | ||||||||||
Deferred Income Taxes, Current – | |||||||||||||
Calculated income tax provision at federal statutory rate | $ 18,568 | $ 22,790 | $ 55,246 | ||||||||||
State income taxes, net of federal benefit | 1,779 | 154 | 1,449 | ||||||||||
Foreign tax rate differential | (5,019) | (3,801) | (10,794) | ||||||||||
Nondeductible expenses | 1,491 | 861 | 514 | ||||||||||
Excess tax benefits related to stock compensation | 4,300 | 7,200 | 8,200 | ||||||||||
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | (1,914) | (11,804) | |||||||||||
U.S. transition taxes on deemed repatriation of foreign earnings | 0 | 338 | |||||||||||
Revaluation of deferred tax assets and liabilities | 0 | (295) | |||||||||||
Unrecognized tax expense (benefit) | (1,304) | (1,092) | 3,199 | ||||||||||
Foreign tax credits | (21) | (62) | (28) | ||||||||||
Other | (117) | (310) | (897) | ||||||||||
Total tax provision | 3,497 | [1] | $ 12,748 | $ 35 | (1,163) | 889 | [2] | $ 13,861 | $ 1,590 | (8,776) | 15,117 | 7,564 | 76,505 |
Assets | |||||||||||||
Inventory | 1,620 | 3,401 | 1,620 | 3,401 | |||||||||
Noncurrent – | |||||||||||||
Property and equipment | (13,016) | (13,499) | (13,016) | (13,499) | |||||||||
Equity compensation | 2,288 | 9,321 | 2,288 | 9,321 | |||||||||
Reserves and other | 8,994 | 7,955 | 8,994 | 7,955 | |||||||||
Net Operating Loss Carryover | 2,101 | 721 | 2,101 | 721 | |||||||||
Valuation allowance | (916) | (721) | (916) | (721) | |||||||||
Net noncurrent | 12,941 | 17,750 | 12,941 | 17,750 | |||||||||
Total deferred tax asset, net | 12,941 | 17,750 | 12,941 | 17,750 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 400 | 400 | |||||||||||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 600 | 600 | |||||||||||
Beginning Balance | $ 5,002 | $ 3,905 | 5,002 | 3,905 | |||||||||
Additions for current year tax positions | 1,399 | 1,209 | |||||||||||
Additions for prior year tax positions | 270 | 101 | |||||||||||
Reductions for prior year tax positions | 0 | (118) | |||||||||||
Settlements | (57) | (48) | |||||||||||
Reductions due to a lapse of the applicable statute of limitations | 0 | (44) | |||||||||||
Unrecognized Tax Benefits, Ending Balance | 6,655 | 5,002 | 6,655 | 5,002 | $ 3,905 | ||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6,500 | 6,500 | |||||||||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 400 | 400 | |||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 100 | 100 | 100 | 100 | |||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 100 | 100 | |||||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||
Prepaid expenses | (735) | (958) | (735) | (958) | |||||||||
Foreign and state tax on unremitted earnings | (1,561) | (1,806) | (1,561) | (1,806) | |||||||||
Deferred Tax Assets, Capital Loss Carryforwards | $ (270) | $ (270) | $ (270) | $ (270) | |||||||||
[1] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | ||||||||||||
[2] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||||
Segment information | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 4,731 | [1] | $ 839 | $ 121 | $ 348 | $ 464 | [2] | $ 396 | $ 3,979 | $ 1,257 | $ 6,039 | $ 6,096 | $ 5,190 | |||
Percentage of entity-wide sales qualifying purchaser as major customer (as a percent) | 10.00% | |||||||||||||||
Net sales: | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 513,019 | [1] | 524,796 | 420,470 | 412,382 | 530,557 | [2] | 522,495 | 448,718 | 436,314 | $ 1,870,667 | 1,938,084 | 1,870,275 | |||
Gross Profit: | ||||||||||||||||
Gross Profit | 166,358 | [1] | 198,125 | 138,846 | 151,976 | 164,232 | [2] | 204,366 | 154,806 | 160,192 | 655,305 | 683,596 | 711,355 | |||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | 29,533 | [1] | 57,951 | 3,836 | 5,038 | 13,643 | [2] | 64,605 | 10,022 | 23,058 | $ 96,358 | $ 111,328 | $ 161,510 | |||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 5.20% | 5.70% | 8.60% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | 18,911 | [1] | $ 18,821 | $ 18,472 | $ 18,584 | 17,479 | [2] | 17,404 | 16,595 | 17,406 | $ 74,788 | $ 68,884 | $ 68,159 | |||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 57,502 | 71,114 | 58,657 | |||||||||||||
Business Exit Costs | 191 | $ (1,246) | $ 0 | $ 0 | 0 | (1,055) | 10 | |||||||||
Total assets: | ||||||||||||||||
Total assets | 1,181,397 | 727,046 | 1,181,397 | 727,046 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | 718,576 | 273,901 | 718,576 | 273,901 | |||||||||||
The Children's Place U.S. | ||||||||||||||||
Net sales: | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,671,165 | 1,727,907 | 1,650,620 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | $ 77,989 | $ 86,983 | $ 132,152 | [4] | ||||||||||||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 4.70% | 5.00% | 8.00% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | $ 67,416 | $ 61,487 | $ 60,732 | |||||||||||||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 56,598 | 67,476 | 57,360 | |||||||||||||
Total assets: | ||||||||||||||||
Total assets | 1,080,665 | 651,728 | 1,080,665 | 651,728 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | 673,432 | 261,932 | 673,432 | 261,932 | |||||||||||
The Children's Place Canada [Member] | ||||||||||||||||
Net sales: | ||||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | [5] | $ 219,655 | 199,502 | 210,177 | ||||||||||||
Operating income (loss): | ||||||||||||||||
Total operating income (loss) | $ 18,369 | $ 24,345 | $ 29,358 | |||||||||||||
Operating income (loss) as a percent of net sales: | ||||||||||||||||
Total operating income (loss) (as a percent) | 9.20% | 11.60% | 13.40% | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
Total depreciation and amortization | $ 7,372 | $ 7,397 | $ 7,427 | |||||||||||||
Capital expenditures: | ||||||||||||||||
Total capital expenditures | 904 | 3,638 | $ 1,297 | |||||||||||||
Total assets: | ||||||||||||||||
Total assets | 100,732 | 75,318 | 100,732 | 75,318 | ||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ||||||||||||||||
Disclosure on Geographic Areas, Long-Lived Assets in Entity's Country of Domicile | [3] | 44,236 | 10,718 | 44,236 | 10,718 | |||||||||||
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] | $ 908 | $ 1,251 | $ 908 | $ 1,251 | |||||||||||
[1] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | |||||||||||||||
[2] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | |||||||||||||||
[3] | raphic Information The Company’s long-lived assets are located in the following countries: February 1, February 2, (In thousands) Long-lived assets (1) : United States $ 673,432 $ 261,932 Canada 44,236 10,718 Asia 908 1,251 Total long-lived assets $ 718,576 $ 273,901 ____________________________________________ (1) The Company’s long-lived assets are comprised of net property and equipment, ROU assets, tradenames, and other assets. | |||||||||||||||
[4] | ||||||||||||||||
[5] | Net sales from The Children’s Place International are primarily derived from revenues from Canadian operations. |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Document Period End Date | Feb. 1, 2020 | ||
Derivative Asset, Notional Amount | $ 9,600 | ||
Derivative Asset, Fair Value, Gross Asset | 1,600 | $ 1,900 | |
Derivative, Gain (Loss) on Derivative, Net | 100 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 1 | $ 75 | $ 160 |
QUARTERLY FINANCIAL DATA Quar_2
QUARTERLY FINANCIAL DATA Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 513,019 | [1] | $ 524,796 | $ 420,470 | $ 412,382 | $ 530,557 | [2] | $ 522,495 | $ 448,718 | $ 436,314 | $ 1,870,667 | $ 1,938,084 | $ 1,870,275 |
Gross profit | 166,358 | [1] | 198,125 | 138,846 | 151,976 | 164,232 | [2] | 204,366 | 154,806 | 160,192 | 655,305 | 683,596 | 711,355 |
Selling, general and administrative expenses | 113,183 | [1] | 120,514 | 116,417 | 128,006 | 132,455 | [2] | 123,207 | 124,210 | 118,471 | 478,120 | 498,343 | 476,486 |
Asset impairment charges | 4,731 | [1] | 839 | 121 | 348 | 464 | [2] | 396 | 3,979 | 1,257 | 6,039 | 6,096 | 5,190 |
Other costs (income) | 191 | (1,246) | 0 | 0 | 0 | (1,055) | 10 | ||||||
Depreciation and amortization | 18,911 | [1] | 18,821 | 18,472 | 18,584 | 17,479 | [2] | 17,404 | 16,595 | 17,406 | 74,788 | 68,884 | 68,159 |
Operating income (loss) | 29,533 | [1] | 57,951 | 3,836 | 5,038 | 13,643 | [2] | 64,605 | 10,022 | 23,058 | 96,358 | 111,328 | 161,510 |
Income (loss) from continuing operations before income taxes | 27,736 | [1] | 55,796 | 1,558 | 3,327 | 12,913 | [2] | 63,774 | 9,076 | 22,761 | 88,417 | 108,524 | 161,203 |
Provision (benefit) for income taxes | 3,497 | [1] | 12,748 | 35 | (1,163) | 889 | [2] | 13,861 | 1,590 | (8,776) | $ 15,117 | $ 7,564 | $ 76,505 |
Income (loss) from continuing operations | $ 24,239 | [1] | $ 43,048 | $ 1,523 | $ 4,490 | $ 12,024 | [2] | $ 49,913 | $ 7,486 | $ 31,537 | |||
Diluted earnings (loss) per share from continuing operations | $ 1.61 | [1] | $ 2.77 | $ 0.10 | $ 0.28 | $ 0.74 | [2] | $ 3.03 | $ 0.45 | $ 1.78 | $ 4.68 | $ 6.01 | $ 4.67 |
Diluted weighted average common shares outstanding (in shares) | 15,101 | 15,546 | 15,859 | 16,107 | 16,277 | 16,496 | 16,715 | 17,734 | 15,653 | 16,805 | 18,151 | ||
State | $ 1,186 | $ 2,519 | $ (1,341) | ||||||||||
Share-based Payment Arrangement, Noncash Expense | $ 16,219 | $ 27,415 | $ 30,797 | ||||||||||
Cash dividends declared and paid per common share | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 | |||||||||
[1] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 | ||||||||||||
[2] | Fiscal Year Ended February 2, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (in thousands, except earnings per share) Net sales $ 436,314 $ 448,718 $ 522,495 $ 530,557 Gross profit 160,192 154,806 204,366 164,232 Selling, general, and administrative expenses 118,471 124,210 123,207 132,455 Asset impairment charges 1,257 3,979 396 464 Other (income) costs — — (1,246 ) 191 Depreciation and amortization 17,406 16,595 17,404 17,479 Operating income 23,058 10,022 64,605 13,643 Income before provision for income taxes 22,761 9,076 63,774 12,913 Provision (benefit) for income taxes (8,776 ) 1,590 13,861 889 Net income $ 31,537 $ 7,486 $ 49,913 $ 12,024 Diluted earnings per share $ 1.78 $ 0.45 $ 3.03 $ 0.74 Diluted weighted average common shares outstanding 17,734 16,715 16,496 16,277 Cash dividends declared and paid per common share $ 0.50 $ 0.50 $ 0.50 $ 0.50 |
SAVINGS AND INVESTMENT PLANS SA
SAVINGS AND INVESTMENT PLANS SAVINGS AND INVESTMENT PLANS (Details) | 12 Months Ended | ||
Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
RETIREMENT AND SAVINGS PLANS [Abstract] | |||
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, Plan Assets, Contributions by Employer | $ 3,500,000 | $ 3,500,000 | $ 3,200,000 |
Deferred Compensation Arrangements Maximum Percentage of Base Salary | 80.00% | ||
Deferred Compensation Arrangements Maximum Percentage of Bonus | 100.00% | ||
Deferred compensation plan liability | $ 2,500,000 | 1,900,000 | |
Cash Surrender Value of Life Insurance | 2,500,000 | 1,900,000 | |
Common Stock Issued, Employee Trust, Deferred | $ (2,956,000) | $ (2,685,000) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Subsequent Events | |||||||||||
Stock Repurchased and Retired During Period, Shares | (1,591) | (2,095) | (1,011) | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.56 | |||||||
Business Exit Costs | $ 191 | $ (1,246) | $ 0 | $ 0 | $ 0 | $ (1,055) | $ 10 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000 | $ 250,000 | 325,000 | $ 250,000 | |||||||
Line Of Credit Facility Accordion Borrowing Capacity | $ 50,000 | $ 50,000 |