Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 25, 2019 | Aug. 03, 2018 | |
Entity Registrant Name | DICKS SPORTING GOODS INC | ||
Entity Central Index Key | 0001089063 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,454,907,735 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Common Stock | |||
Entity Common Stock, Shares Outstanding | 71,762,009 | ||
Class B Common Stock | |||
Entity Common Stock, Shares Outstanding | 24,541,123 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 8,436,570 | $ 8,590,472 | $ 7,921,981 |
Cost of goods sold, including occupancy and distribution costs | 5,998,788 | 6,101,412 | 5,556,198 |
GROSS PROFIT | 2,437,782 | 2,489,060 | 2,365,783 |
Selling, general and administrative expenses | 1,986,576 | 1,982,363 | 1,875,643 |
Pre-opening expenses | 6,473 | 29,123 | 40,286 |
INCOME FROM OPERATIONS | 444,733 | 477,574 | 449,854 |
Interest expense | 10,248 | 8,047 | 5,856 |
Other expense (income) | 2,565 | (31,810) | (14,424) |
INCOME BEFORE INCOME TAXES | 431,920 | 501,337 | 458,422 |
Provision for income taxes | 112,056 | 177,892 | 171,026 |
NET INCOME | $ 319,864 | $ 323,445 | $ 287,396 |
EARNINGS PER COMMON SHARE: | |||
Basic (in dollars per share) | $ 3.27 | $ 3.02 | $ 2.59 |
Diluted (in dollars per share) | $ 3.24 | $ 3.01 | $ 2.56 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 97,743 | 106,977 | 111,095 |
Diluted (in shares) | 98,781 | 107,586 | 112,216 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 319,864 | $ 323,445 | $ 287,396 |
OTHER COMPREHENSIVE (LOSS) INCOME | |||
Foreign currency translation adjustment, net of tax | (42) | 54 | 47 |
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME | (42) | 54 | 47 |
COMPREHENSIVE INCOME | $ 319,822 | $ 323,499 | $ 287,443 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 113,653 | $ 101,253 |
Accounts receivable, net | 37,970 | 60,107 |
Income taxes receivable | 6,135 | 4,433 |
Inventories, net | 1,824,696 | 1,711,103 |
Prepaid expenses and other current assets | 139,944 | 129,189 |
Total current assets | 2,122,398 | 2,006,085 |
PROPERTY AND EQUIPMENT, NET | 1,565,271 | 1,677,340 |
INTANGIBLE ASSETS, NET | 130,166 | 136,587 |
GOODWILL | 250,476 | 250,476 |
OTHER ASSETS: | ||
Deferred income taxes | 13,243 | 13,639 |
Other | 105,595 | 119,812 |
Total other assets | 118,838 | 133,451 |
TOTAL ASSETS | 4,187,149 | 4,203,939 |
CURRENT LIABILITIES: | ||
Accounts payable | 889,908 | 843,075 |
Accrued expenses | 364,342 | 354,181 |
Deferred revenue and other liabilities | 224,984 | 212,080 |
Income taxes payable | 20,142 | 10,476 |
Current portion of other long-term debt and leasing obligations | 5,263 | 5,202 |
Total current liabilities | 1,504,639 | 1,425,014 |
LONG-TERM LIABILITIES: | ||
Other long-term debt and leasing obligations | 54,781 | 60,084 |
Deferred income taxes | 11,776 | 10,232 |
Deferred rent and other liabilities | 711,792 | 767,108 |
Total long-term liabilities | 778,349 | 837,424 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, par value $0.01 per share, authorized shares 5,000,000; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,214,287 | 1,177,778 |
Retained earnings | 2,455,192 | 2,205,651 |
Accumulated other comprehensive loss | (120) | (78) |
Treasury stock, at cost, 41,429,482 and 31,857,494 at February 2, 2019 and February 3, 2018, respectively | (1,766,136) | (1,442,880) |
Total stockholders' equity | 1,904,161 | 1,941,501 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,187,149 | 4,203,939 |
Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | 693 | 783 |
Class B Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | $ 245 | $ 247 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Treasury stock shares acquired | 41,429,482 | 31,857,494 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, issued shares | 110,734,156 | 110,175,392 |
Common stock, outstanding shares | 69,304,874 | 78,317,898 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 24,541,123 | 24,710,870 |
Common stock, outstanding shares | 24,541,123 | 24,710,870 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Common StockCommon Stock | Common StockClass B Common Stock |
BALANCE at Jan. 30, 2016 | $ 1,789,187 | $ 1,063,705 | $ 1,737,214 | $ (179) | $ (1,012,671) | $ 869 | $ 249 |
BALANCE (in shares) at Jan. 30, 2016 | 86,850,630 | 24,900,870 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exchange of Class B common stock for common stock | 0 | $ 2 | $ (2) | ||||
Exchange of Class B common stock for common stock (in shares) | 190,000 | (190,000) | |||||
Exercise of stock options | 31,089 | 31,076 | $ 13 | ||||
Exercise of stock options (in shares) | 1,421,389 | ||||||
Restricted stock vested | 0 | (4) | $ 4 | ||||
Restricted stock vested (in shares) | 438,160 | ||||||
Minimum tax withholding requirements | (7,060) | (7,059) | $ (1) | ||||
Minimum tax withholding requirements (in shares) | (149,347) | ||||||
Net income | 287,396 | 287,396 | |||||
Stock-based compensation | 33,602 | 33,602 | |||||
Total tax benefit from exercise of stock options | 9,510 | 9,510 | |||||
Foreign currency translation adjustment, net of taxes of $13, $30, and $28 for the year ended 2018, 2017 and 2016, respectively | 47 | 47 | |||||
Purchase of shares for treasury | (145,738) | (145,707) | $ (31) | ||||
Purchase of shares for treasury (in shares) | (3,130,954) | ||||||
Cash dividends declared per common share of $0.90, $0.68, and $0.605 for the year ended 2018, 2017 and 2016, respectively | (68,544) | (68,544) | |||||
BALANCE at Jan. 28, 2017 | 1,929,489 | 1,130,830 | 1,956,066 | (132) | (1,158,378) | $ 856 | $ 247 |
BALANCE (in shares) at Jan. 28, 2017 | 85,619,878 | 24,710,870 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Adjustment for cumulative effect from change in accounting principle | ASU 2016-16 | (1,744) | (1,744) | |||||
Exercise of stock options | 16,558 | 16,552 | $ 6 | ||||
Exercise of stock options (in shares) | 582,022 | ||||||
Restricted stock vested | 0 | (3) | $ 3 | ||||
Restricted stock vested (in shares) | 359,956 | ||||||
Minimum tax withholding requirements | (5,841) | (5,840) | $ (1) | ||||
Minimum tax withholding requirements (in shares) | (121,681) | ||||||
Net income | 323,445 | 323,445 | |||||
Stock-based compensation | 36,239 | 36,239 | |||||
Foreign currency translation adjustment, net of taxes of $13, $30, and $28 for the year ended 2018, 2017 and 2016, respectively | 54 | 54 | |||||
Purchase of shares for treasury | $ (284,583) | (284,502) | $ (81) | ||||
Purchase of shares for treasury (in shares) | (8,100,000) | (8,122,277) | |||||
Cash dividends declared per common share of $0.90, $0.68, and $0.605 for the year ended 2018, 2017 and 2016, respectively | $ (72,116) | (72,116) | |||||
BALANCE at Feb. 03, 2018 | 1,941,501 | 1,177,778 | 2,205,651 | (78) | (1,442,880) | $ 783 | $ 247 |
BALANCE (in shares) at Feb. 03, 2018 | 78,317,898 | 24,710,870 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Adjustment for cumulative effect from change in accounting principle | ASU 2014-09 | 20,488 | 20,488 | |||||
Exchange of Class B common stock for common stock | 0 | $ 2 | $ (2) | ||||
Exchange of Class B common stock for common stock (in shares) | 169,747 | (169,747) | |||||
Restricted stock vested | 0 | (5) | $ 5 | ||||
Restricted stock vested (in shares) | 549,293 | ||||||
Minimum tax withholding requirements | (5,428) | (5,427) | $ (1) | ||||
Minimum tax withholding requirements (in shares) | (160,276) | ||||||
Net income | 319,864 | 319,864 | |||||
Stock-based compensation | 41,941 | 41,941 | |||||
Foreign currency translation adjustment, net of taxes of $13, $30, and $28 for the year ended 2018, 2017 and 2016, respectively | (42) | (42) | |||||
Purchase of shares for treasury | $ (323,352) | (323,256) | $ (96) | ||||
Purchase of shares for treasury (in shares) | (9,600,000) | (9,571,788) | |||||
Cash dividends declared per common share of $0.90, $0.68, and $0.605 for the year ended 2018, 2017 and 2016, respectively | $ (90,811) | (90,811) | |||||
BALANCE at Feb. 02, 2019 | $ 1,904,161 | $ 1,214,287 | $ 2,455,192 | $ (120) | $ (1,766,136) | $ 693 | $ 245 |
BALANCE (in shares) at Feb. 02, 2019 | 69,304,874 | 24,541,123 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Foreign currency translation adjustment, taxes | $ 13 | $ (30) | $ (28) |
Cash dividends declared per share (in dollars per share) | $ 0.90 | $ 0.68 | $ 0.605 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 319,864 | $ 323,445 | $ 287,396 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 243,830 | 237,651 | 233,834 |
Deferred income taxes | (5,258) | 42,453 | (45,036) |
Stock-based compensation | 41,941 | 36,239 | 33,602 |
Other non-cash items | 934 | 5,327 | 721 |
Changes in assets and liabilities: | |||
Accounts receivable | 16,215 | (208) | (4,125) |
Inventories | (94,131) | (71,751) | (84,733) |
Prepaid expenses and other assets | 10,980 | (29,072) | (2,282) |
Accounts payable | 125,632 | 124,628 | 59,870 |
Accrued expenses | 21,372 | 13,597 | 64,469 |
Income taxes payable / receivable | 7,964 | (39,347) | 26,034 |
Deferred construction allowances | 27,730 | 101,712 | 179,864 |
Deferred revenue and other liabilities | (4,318) | 1,636 | 19,380 |
Net cash provided by operating activities | 712,755 | 746,310 | 768,994 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (198,219) | (474,347) | (421,920) |
Acquisitions, net of cash acquired | 0 | (8,957) | (118,769) |
Deposits and purchases of other assets | 0 | (2,344) | (9,635) |
Net cash used in investing activities | (198,219) | (485,648) | (550,324) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Revolving credit borrowings | 1,875,400 | 2,742,800 | 2,159,600 |
Revolving credit repayments | (1,875,400) | (2,742,800) | (2,159,600) |
Proceeds from term loan | 0 | 62,492 | 0 |
Payments on other long-term debt and leasing obligations | (5,242) | (2,531) | (588) |
Construction allowance receipts | 0 | 0 | 0 |
Proceeds from exercise of stock options | 0 | 16,558 | 31,089 |
Minimum tax withholding requirements | (5,428) | (5,841) | (7,060) |
Cash paid for treasury stock | (323,352) | (284,583) | (145,738) |
Cash dividends paid to stockholders | (89,273) | (73,099) | (67,972) |
(Decrease) increase in bank overdraft | (78,799) | (37,236) | 17,393 |
Net cash used in financing activities | (502,094) | (324,240) | (172,876) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (42) | 54 | 47 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,400 | (63,524) | 45,841 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 101,253 | 164,777 | 118,936 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 113,653 | 101,253 | 164,777 |
Supplemental disclosure of cash flow information: | |||
Accrued property and equipment | 18,937 | 29,834 | 70,129 |
Cash paid during the year for interest | 9,317 | 8,598 | 4,983 |
Cash paid during the year for income taxes | $ 114,018 | $ 185,798 | $ 196,712 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Operations – Dick's Sporting Goods, Inc. (together with its subsidiaries, referred to as "the Company", "we", "us" and "our" unless specified otherwise) is a leading omni-channel sporting goods retailer offering an extensive assortment of authentic, high-quality sports equipment, apparel, footwear and accessories through a blend of dedicated associates, in-store services and unique specialty shop-in-shops. The Company also owns and operates Golf Galaxy and Field & Stream stores, and Dick's Team Sports HQ, an all-in-one youth sports digital platform offering scheduling, communications and live scorekeeping through its GameChanger mobile apps, free league management services, custom uniforms and fan wear, and access to donations and sponsorships. The Company offers its products through a content-rich eCommerce platform that is integrated with its store network and provides customers with the convenience and expertise of a 24-hour storefront. Fiscal Year – The Company's fiscal year ends on the Saturday closest to the end of January. Fiscal years 2018 , 2017 and 2016 ended on February 2, 2019 , February 3, 2018 and January 28, 2017 , respectively. All fiscal years presented include 52 weeks of operations except fiscal 2017, which included 53 weeks. Principles of Consolidation – The Consolidated Financial Statements include Dick's Sporting Goods, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand and all highly liquid instruments purchased with a maturity of three months or less at the date of purchase. Cash equivalents are considered Level 1 investments and totaled $33.8 million and $21.0 million at February 2, 2019 and February 3, 2018 , respectively. Cash Management – The Company's cash management system provides for the reimbursement of all major bank disbursement accounts on a daily basis. Accounts payable at February 2, 2019 and February 3, 2018 include $36.4 million and $115.2 million , respectively, of checks drawn in excess of cash balances not yet presented for payment. Accounts Receivable – Accounts receivable consist principally of amounts receivable from vendors and landlords. The allowance for doubtful accounts totaled $3.0 million and $3.5 million at February 2, 2019 and February 3, 2018 , respectively. Inventories – Inventories are stated at the lower of weighted average cost and net realizable value. Inventory costs consist of the direct cost of merchandise including freight. Inventories are net of shrinkage, obsolescence, other valuation accounts and vendor allowances totaling $113.3 million and $154.5 million at February 2, 2019 and February 3, 2018 , respectively. Property and Equipment – Property and equipment are recorded at cost and include capitalized leases. For financial reporting purposes, depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 40 years Leasehold improvements 10-25 years Furniture, fixtures and equipment 3-7 years Computer software 3-10 years For leasehold improvements and property and equipment under capital lease agreements, depreciation and amortization are calculated using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. Leasehold improvements made significantly after the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Depreciation expense was $223.2 million , $214.9 million and $203.1 million for fiscal 2018 , 2017 and 2016 , respectively. Renewals and betterments are capitalized and repairs and maintenance are expensed as incurred. Impairment of Long-Lived Assets and Closed Store Reserves – The Company evaluates its long-lived assets to assess whether the carrying values have been impaired whenever events and circumstances indicate that the carrying value of these assets may not be recoverable based on estimated undiscounted future cash flows. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus eventual net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value as determined based on quoted market prices or through the use of other valuation techniques. The related expense is recorded within selling, general and administrative expenses on the Consolidated Statements of Income. The Company recognizes a liability for costs associated with closed or relocated premises when the Company ceases to use the location. The calculation of accrued lease termination and other costs primarily includes future minimum lease payments, maintenance costs and taxes from the date of closure or relocation to the end of the remaining lease term, net of contractual or estimated sublease income. The liability is discounted using a credit-adjusted risk-free rate of interest. The assumptions used in the calculation of the accrued lease termination and other costs are evaluated on a quarterly basis. The current portion of accrued store closing and relocation reserves is included within accrued expenses and the non-current portion is included within long-term deferred rent and other liabilities on the Consolidated Balance Sheets. The related expense is recorded within selling, general and administrative expenses on the Consolidated Statements of Income. Goodwill – Goodwill represents the excess of acquisition cost over the fair value of the net assets of acquired entities. The Company assesses the carrying value of goodwill annually or whenever circumstances indicate that a decline in value may have occurred. The Company's goodwill impairment test compares the fair value of each reporting unit to its carrying value. The Company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, an impairment charge to selling, general and administrative expenses is recorded to reduce the carrying value to the fair value. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by management. Intangible Assets – Intangible assets consist primarily of trademarks and acquired trade names with indefinite lives, 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, favorable lease assets 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. Self-Insurance – The Company is self-insured for certain losses related to health, workers' compensation and general liability insurance, although we maintain stop-loss coverage with third-party insurers to limit our liability exposure. Liabilities associated with these losses are estimated in part by considering historical claims experience, industry factors, severity factors and other actuarial assumptions. Pre-opening Expenses – Pre-opening expenses, which consist primarily of rent, marketing, payroll and recruiting costs, are expensed as incurred. Rent is recognized within pre-opening expense from the date the Company takes possession of a site through the date of store opening. Earnings Per Common Share – Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock, plus the effect of dilutive potential common shares outstanding during the period, using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock and warrants. Stock-Based Compensation – The Company has the ability to grant restricted shares of common stock, restricted stock units and stock options to purchase common stock under the Dick's Sporting Goods, Inc. 2012 Stock and Incentive Plan, as Amended and Restated (the "2012 Plan"). The Company records stock-based compensation expenses based on the fair value of stock awards at the grant date and recognizes the expense over the related service period. Income Taxes – The Company utilizes the asset and liability method of accounting for income taxes and provides deferred income taxes for temporary differences between the amounts reported for assets and liabilities for financial statement purposes and for income tax reporting purposes, using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured based on the largest benefit that will more likely than not be realized upon ultimate settlement. Interest and penalties from income tax matters are recognized in income tax expense. Revenue Recognition – Revenue is recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods or services. Substantially all of the Company's sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product or service, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product or service at the point of sale. Revenue from retail sales is recognized at the point of sale, net of sales tax. Revenue from eCommerce sales, including vendor-direct sales arrangements, is recognized upon shipment of merchandise. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Revenue from gift cards and returned merchandise credits (collectively the "cards") is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Consolidated Statements of Income within net sales in proportion to the pattern of rights exercised by the customer in future periods. The Company performs an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. Cost of Goods Sold – Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold. Store occupancy costs include rent, common area maintenance charges, real estate and other asset-based taxes, general maintenance, utilities, depreciation and certain insurance expenses. Selling, General and Administrative Expenses – Selling, general and administrative expenses include store and field support payroll and fringe benefits, advertising, bank card charges, operating costs associated with the Company's internal eCommerce platform, information systems, marketing, legal, accounting, other store expenses and all expenses associated with operating the Company's Customer Support Center ("CSC"). Advertising Costs – Production costs for all forms of advertising and the costs to run the advertisements are expensed the first time the advertisement takes place. Advertising expense, net of cooperative advertising, was $322.2 million , $330.1 million and $304.9 million for fiscal 2018 , 2017 and 2016 , respectively. Business Development Allowances – Business development allowances include allowances, rebates and cooperative advertising funds received from vendors. These funds are determined for each fiscal year and the majority are based on various quantitative contract terms. Amounts expected to be received from vendors for the purchase of merchandise inventories ("vendor allowances") are recognized as a reduction of cost of goods sold as the merchandise is sold. Amounts that represent a reimbursement of costs incurred, such as advertising ("cooperative advertising"), are recorded as a reduction to the related expense in the period that the related expense is incurred. The Company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts. Segment Information – The Company is a specialty omni-channel retailer that offers a broad range of products in its specialty retail stores primarily in the eastern United States. Given the economic characteristics of the store formats, the similar nature of the products sold, the type of customer and method of distribution, the Company's operating segments are aggregated within one reportable segment. Refer to Note 17 to the Consolidated Financial Statements herein for additional disclosure of net sales by merchandise category. Construction Allowances – All of the Company's store locations are leased. The Company may receive reimbursement from a landlord for some of the cost of the structure, subject to satisfactory fulfillment of applicable lease provisions. These reimbursements may be referred to as tenant allowances, construction allowances or landlord reimbursements ("construction allowances"). The Company's accounting for construction allowances differs if the Company is deemed to be the owner of the asset during the construction period. Some of the Company's leases have a cap on the construction allowance, which places the Company at risk for cost overruns and causes the Company to be deemed the owner during the construction period. In instances where the Company is not deemed to be the owner during the construction period, reimbursement from a landlord for tenant improvements is classified as an incentive and included within deferred revenue and other liabilities on the Consolidated Balance Sheets. The deferred rent credit is amortized as rent expense on a straight-line basis over the term of the lease. Landlord reimbursements from these transactions are included in cash flows from operating activities as a change in deferred construction allowances. In cases where the Company is deemed to be the owner during the construction period, a sale and leaseback of the asset occurs when construction of the asset is complete and the lease term begins, if relevant sale-leaseback accounting criteria are met. Any gain or loss from the transaction is included within deferred revenue and other liabilities on the Consolidated Balance Sheets and deferred and amortized as rent expense on a straight-line basis over the term of the lease. The Company reports the amount of cash received for the construction allowance as construction allowance receipts within the financing activities section of its Consolidated Statements of Cash Flows when such allowances are received prior to completion of the sale-leaseback transaction. The Company reports the amount of cash received from construction allowances as proceeds from sale leaseback transactions within the investing activities section of its Consolidated Statements of Cash Flows when such amounts are received after the sale-leaseback accounting criteria have been achieved. Leases – Escalating rent payments, rent abatements and rent holidays are considered in the calculation of minimum lease payments in the Company's capital lease tests and in determining straight-line rent expense for operating leases. The Company records any difference between the straight-line rent amount and amounts payable under the lease as part of deferred rent within long-term deferred rent and other liabilities on the Consolidated Balance Sheets. Contingent payments based upon sales and future increases determined by inflation-related indices cannot be estimated at the inception of the lease and accordingly, are charged to operations as incurred. The Company records contingent rent within accrued expenses on the Consolidated Balance Sheets. Recently Adopted Accounting Pronouncements Income Taxes In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." This update provides guidance on income tax accounting implications under the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted on December 22, 2017. Areas of clarification under the update are the measurement period time frame, changes in subsequent reporting periods, and reporting requirements as they relate to the Tax Act. The Company adopted ASU 2018-05 during the first quarter of fiscal 2018. The Company recorded provisional charges as a result of the Tax Act, as noted within Note 11 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for which the Company's reviews have been completed without any significant adjustments required during fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Refer to Note 11 to the Company's Consolidated Financial Statements herein for additional information. Stock Compensation In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." This update clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted ASU 2017-09 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment." This update modifies the concept of impairment and simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019. Early application is permitted and prospective application is required. The Company elected to early adopt ASU 2017-04 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the update (1) specifies the accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers - Deferral of the Effective Date" , which approved a one year deferral of ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Subsequent to the issuance of ASU 2014-09 and ASU 2015-14, the FASB has also issued additional ASUs to assist in clarifying guidance within ASU 2014-09. These updates permit the use of either the full retrospective or modified retrospective transition method. Early application is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted these ASUs during the first quarter of fiscal 2018. The adoption of these ASUs did not have a significant impact on our Consolidated Financial Statements. Refer to Note 17 to the Company's Consolidated Financial Statements herein for additional information. Recently Issued Accounting Pronouncement Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This update requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early application permitted. A modified retrospective approach is permitted. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842), Targeted Improvements," which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The effective date and transition requirements for ASU 2018-10 and ASU 2018-11 are the same as ASU 2016-02. Early adoption is permitted. The Company will adopt these ASUs during the first quarter of fiscal 2019 using the optional transition method, which allows for prospective application of the standard. We have completed the upgrade of our existing lease management technology solution to facilitate adoption of these ASUs in fiscal 2019. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward our historical lease classification, in addition to electing the practical expedient surrounding land easements. The Company has lease agreements with non-lease components that relate to the lease components. Non-lease components, and the lease components to which they relate, will be accounted for together as a single lease component for all classes of underlying assets. We will also elect to exclude leases with an initial term of twelve months or less from the Consolidated Balance Sheets. We estimate adoption of the standard will result in recognition of additional net lease assets and lease liabilities of approximately $2,300.0 million , respectively, as of February 3, 2019. The difference between these amounts will be recorded as an adjustment to fiscal 2019 beginning retained earnings. The adoption of these ASUs will not have a significant impact on the Company's Consolidated Statement of Income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table summarizes the carrying amount of goodwill and accumulated impairment charges as of the end of the fiscal periods (in thousands): 2018 2017 Carrying Value Accumulated Impairment Carrying Value Accumulated Impairment Goodwill $ 250,476 $ 111,312 $ 250,476 $ 111,312 No impairment charges were recorded against goodwill in fiscal 2018 , 2017 or 2016 . The Company had indefinite-lived and finite-lived intangible assets of $111.0 million and $19.1 million , respectively, as of February 2, 2019 and $111.0 million and $25.6 million , respectively, as of February 3, 2018 . The components of intangible assets were as follows as of the end of the fiscal years (in thousands): 2018 2017 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Trademarks (indefinite-lived) $ 89,206 $ — $ 89,206 $ — Trade names (indefinite-lived) 16,031 — 16,031 — Customer lists 21,166 (7,774 ) 21,166 (4,922 ) Acquired technology and other finite-lived intangible assets 26,901 (21,160 ) 26,901 (17,583 ) Other indefinite-lived intangible assets 5,796 — 5,788 — Total intangible assets $ 159,100 $ (28,934 ) $ 159,092 $ (22,505 ) Amortization expense for the Company's finite-lived intangible assets was $6.4 million , $6.4 million and $3.5 million for fiscal 2018 , 2017 and 2016 , respectively. The annual estimated amortization expense of the finite-lived intangible assets recorded as of February 2, 2019 is expected to be as follows (in thousands): Fiscal Year Estimated Amortization Expense 2019 $ 5,514 2020 4,636 2021 4,104 2022 2,898 2023 1,792 Thereafter 189 Total $ 19,133 |
Store Closings
Store Closings | 12 Months Ended |
Feb. 02, 2019 | |
Store Closings [Abstract] | |
Store Closings | Store Closings The following table summarizes the activity of the Company's store closing reserves (in thousands): 2018 2017 Accrued store closing and relocation reserves, beginning of period $ 10,536 $ 17,531 Expense charged to earnings 3,354 1,733 Cash payments (8,795 ) (9,522 ) Interest accretion and other changes in assumptions (540 ) 794 Accrued store closing and relocation reserves, end of period 4,555 10,536 Less: current portion of accrued store closing and relocation reserves (1,323 ) (4,440 ) Long-term portion of accrued store closing and relocation reserves $ 3,232 $ 6,096 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Buildings and land $ 320,243 $ 308,326 Leasehold improvements 1,613,663 1,587,235 Furniture, fixtures and equipment 1,172,380 1,123,216 Computer software 393,535 359,175 Total property and equipment 3,499,821 3,377,952 Less: accumulated depreciation and amortization (1,934,550 ) (1,700,612 ) Net property and equipment $ 1,565,271 $ 1,677,340 The amounts above include construction in progress of $74.3 million and $58.2 million for fiscal 2018 and 2017 , respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Feb. 02, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Accrued payroll, withholdings and benefits $ 166,039 $ 125,426 Accrued real estate taxes, utilities and other occupancy 72,727 73,200 Accrued property and equipment 19,094 30,303 Accrued sales tax 18,576 23,396 Other accrued expenses 87,906 101,856 Total accrued expenses $ 364,342 $ 354,181 |
Deferred Revenue and Other Liab
Deferred Revenue and Other Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Deferred Credits and Other Liabilities [Abstract] | |
Deferred Revenue and Other Liabilities | Deferred Revenue and Other Liabilities Deferred revenue and other liabilities consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Current: Deferred gift card revenue $ 156,457 $ 179,458 Other 68,527 32,622 Total current $ 224,984 $ 212,080 Long-term: Deferred rent, including pre-opening rent $ 98,808 $ 105,998 Deferred construction allowances 505,767 547,612 Other 107,217 113,498 Total long-term $ 711,792 $ 767,108 |
Debt
Debt | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's carrying value and fair value of outstanding debt consists of the following as of the end of the fiscal years (in thousands): 2018 2017 Revolving Credit Facility $ — $ — Term loan 56,085 60,608 Capital leases 3,941 4,570 Other debt 18 108 Total debt 60,044 65,286 Less: current portion (5,263 ) (5,202 ) Total long-term debt $ 54,781 $ 60,084 Revolving Credit Facility – On August 9, 2017, the Company entered into a five -year senior secured revolving credit facility (the "Credit Facility") that amended and restated the Company's then-existing credit facility. The Credit Facility provides for a $1.25 billion revolving credit facility, including up to $150 million in the form of letters of credit, and allows the Company, subject to the satisfaction of certain conditions, to request an increase of up to $350 million in borrowing availability subject to existing or new lenders agreeing to provide such additional revolving commitments. On August 3, 2018, the Company amended the Credit Facility to provide that all terms of an accounting or financial nature and all computations of financial amounts and ratios referenced in the Credit Facility will be made without giving effect to any lease obligation recorded pursuant to FASB ASU 2016-02, "Leases (Topic 842)" , to the extent such obligation would not have been recorded as a capital lease obligation prior to adoption of ASU 2016-02. Subject to specified conditions, the Credit Facility matures on August 9, 2022. It is secured by a first priority security interest in certain property and assets, including receivables, inventory, deposit accounts, securities accounts and other personal property of the Company and is guaranteed by the Company's domestic subsidiaries. The annual interest rates applicable to loans under the Credit Facility are, at the Company's option, equal to a base rate or an adjusted LIBOR rate plus, in each case, an applicable margin percentage. The applicable margin percentage for base rate loans is 0.125% to 0.375% and for adjusted LIBOR rate loans is 1.125% to 1.375% , depending on the borrowing availability of the Company. The Credit Facility contains a covenant that requires the Company to maintain a minimum adjusted availability of 7.5% of its borrowing base. The Credit Facility also contains certain covenants that could within specific predefined circumstances limit the Company's ability to, among other things: incur or guarantee additional indebtedness; pay distributions on, redeem or repurchase capital stock; redeem or repurchase subordinated debt; make certain investments; sell assets; or consolidate, merge or transfer all or substantially all of the Company's assets. Other than in certain limited conditions, the Company is permitted under the Credit Facility to continue to pay dividends and repurchase shares pursuant to its stock repurchase program. As of February 2, 2019, the Company was in compliance with the terms of the Credit Facility. Credit Facility information as of the fiscal years ended (in thousands): 2018 2017 Outstanding borrowings under Credit Facility $ — $ — Remaining borrowing capacity under Credit Facility $ 1,233,869 $ 1,233,869 Outstanding letters of credit under Credit Facility $ 16,131 $ 16,131 Term Loan – On August 18, 2017, the Company financed the purchase of a corporate aircraft through a loan with Bank of America Leasing & Capital, LLC ("BOA") with a fixed interest rate of 3.41% payable in increments of $4.5 million annually through December 2024 and a balloon payment of $29.3 million (the "BOA Loan"). The BOA Loan may be prepaid in full provided that the prepayment includes all accrued interest and a prepayment fee equal to 1% of the unpaid balance during the first year of the BOA Loan or a prepayment fee equal to 0.5% of the unpaid balance during the second year of the BOA Loan. No prepayment fee is required after the completion of the second year of the BOA Loan. Capital Lease Obligations – The gross and net carrying values of assets under capital leases were $6.9 million and $0.2 million , respectively, as of February 2, 2019 and $6.9 million and $0.3 million , respectively, as of February 3, 2018. Scheduled lease payments under capital lease obligations as of February 2, 2019 are as follows (in thousands): Fiscal Year 2019 $ 1,103 2020 1,103 2021 943 2022 863 2023 863 Thereafter 216 Subtotal 5,091 Less: amounts representing interest (1,150 ) Present value of net scheduled lease payments 3,941 Less: amounts due in one year (722 ) Total long-term capital leases $ 3,219 |
Operating Leases
Operating Leases | 12 Months Ended |
Feb. 02, 2019 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases The Company leases all of its stores, three of its distribution centers and certain equipment under non-cancellable operating leases that expire at various dates through 2033. Initial lease terms are generally for 10 to 15 years and most store leases contain multiple five -year renewal options and rent escalation provisions. The lease agreements provide primarily for the payment of minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance, and in some cases, contingent rent stated as a percentage of gross sales over certain base amounts. Rent expense under these operating leases totaled approximately $530.9 million , $532.7 million and $501.9 million for fiscal 2018 , 2017 and 2016 , respectively. Aggregate lease payments, including fixed executory costs, due under non-cancellable operating leases as of February 2, 2019 are as follows (in thousands): Fiscal Year 2019 $ 655,516 2020 619,189 2021 558,633 2022 475,830 2023 392,826 Thereafter 1,033,034 Total $ 3,735,028 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 02, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock, Class B Common Stock and Preferred Stock – The Company's Amended and Restated Certificate of Incorporation authorizes the issuance of 200,000,000 shares of common stock, par value $0.01 per share, and the issuance of 40,000,000 shares of Class B common stock, par value $0.01 per share. In addition, the Company's Amended and Restated Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. Holders of common stock generally have rights identical to holders of Class B common stock, except that holders of common stock are entitled to one vote per share and holders of Class B common stock are entitled to ten votes per share. A related party, relatives of the related party and trusts held by them hold all of the Class B common shares. These shares can only be held by members of this group and are not publicly tradable. Each share of Class B common stock can be converted at any time into one share of common stock at the holder's option. Dividends per Common Share – The Company declared and paid aggregate cash dividends of $0.90 , $0.68 and $0.605 per share of common stock and Class B common stock during fiscal 2018 , 2017 and 2016 , respectively. Treasury Stock – The Company’s five -year $1 billion share repurchase program in place as of February 2, 2019 was authorized by its Board of Directors on March 16, 2016. During fiscal 2018 and 2017, the Company repurchased 9.6 million shares for $323.4 million and 8.1 million shares for $284.6 million , respectively, of its common stock. The Company had $433.4 million remaining under the current share repurchase program as of February 2, 2019. |
Stock-Based Compensation and Em
Stock-Based Compensation and Employee Stock Plans | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Employee Stock Plans | Stock-Based Compensation and Employee Stock Plans The Company has the ability to grant restricted shares of common stock, restricted stock units and options to purchase common stock under the 2012 Plan. As of February 2, 2019 , shares of common stock available for future issuance pursuant to the 2012 Plan were 6,089,337 shares. The following represents total stock-based compensation recognized in the Consolidated Statements of Income for the fiscal years presented (in thousands): 2018 2017 2016 Stock option expense $ 7,147 $ 8,686 $ 9,506 Restricted stock expense 34,794 27,553 24,096 Total stock-based compensation expense $ 41,941 $ 36,239 $ 33,602 Total related tax benefit $ 9,104 $ 12,130 $ 11,718 Stock Options – Stock options are generally granted on an annual basis, vest 25% per year over four years and have a seven -year maximum term. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes ("Black-Scholes") option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and the Company's experience. These options are expensed on a straight-line basis over the vesting period, which is considered to be the requisite service period. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on the Company's historical experience and future expectations. The fair value of stock-based awards to employees is estimated on the date of grant using the Black-Scholes valuation with the following assumptions: Employee Stock Option Plans Black-Scholes Valuation Assumptions 2018 2017 2016 Expected life (years) (1) 5.20 5.47 5.40 Expected volatility (2) 33.15% - 37.41% 29.24% - 33.86% 29.20% - 31.93% Weighted average volatility 34.61 % 30.52 % 31.01 % Risk-free interest rate (3) 2.55% - 3.04% 1.70% - 2.25% 1.07% - 1.90% Expected dividend yield 2.40% - 2.82% 1.30% - 2.78% 1.03% - 1.59% Weighted average grant date fair value $ 9.02 $ 11.98 $ 12.56 (1) The expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. (2) Expected volatility is based on the historical volatility of the Company's common stock over a time frame consistent with the expected life of the stock options. (3) The risk-free interest rate is based on the implied yield available on U.S. Treasury constant maturity interest rates whose term is consistent with the expected life of the stock options. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and experience. The stock option activity from January 30, 2016 through February 2, 2019 is presented in the following table: Shares Subject to Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding, January 30, 2016 3,974,512 $ 38.29 2.94 $ 51,930 Granted 1,143,326 47.79 Exercised (1,348,241 ) 22.28 Forfeited / Expired (208,512 ) 50.01 Outstanding, January 28, 2017 3,561,085 $ 46.71 3.88 $ 22,638 Granted 786,246 45.28 Exercised (582,022 ) 28.43 Forfeited / Expired (635,360 ) 50.60 Outstanding, February 3, 2018 3,129,949 $ 48.97 4.08 $ 389 Granted 881,334 34.18 Forfeited / Expired (880,856 ) 45.96 Outstanding, February 2, 2019 3,130,427 $ 45.65 4.07 $ 1,783 Exercisable, February 2, 2019 1,511,580 $ 50.53 2.65 $ 184 Vested and expected to vest, February 2, 2019 2,917,529 $ 46.22 3.95 $ 1,486 The aggregate intrinsic value reported in the table above is based on the Company's closing stock prices for the last business day of the period indicated. The total intrinsic value for stock options exercised during 2017 and 2016 was $10.7 million and $36.4 million , respectively. The total fair value of options vested during 2018 , 2017 and 2016 was $8.1 million , $9.6 million and $8.4 million , respectively. The nonvested stock option activity for the year ended February 2, 2019 is presented in the following table: Shares Subject to Options Weighted Average Grant Date Fair Value Nonvested, February 3, 2018 1,650,991 $ 13.29 Granted 881,334 9.02 Vested (572,972 ) 14.13 Forfeited (340,506 ) 11.29 Nonvested, February 2, 2019 1,618,847 $ 11.09 As of February 2, 2019 , unrecognized stock-based compensation expense from nonvested stock options was approximately $10.4 million , net of estimated forfeitures, which is expected to be recognized over a weighted average period of approximately 2.42 years . The Company issues new shares of common stock upon exercise of stock options. Additional information regarding options outstanding as of February 2, 2019 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $24.48 - $34.05 830,465 6.18 $ 33.10 26,660 $ 28.35 $35.22 - $47.09 945,577 3.41 46.07 589,971 46.49 $47.73 - $55.29 932,936 3.26 50.62 583,454 51.41 $55.49 - $58.86 421,449 3.23 58.44 311,495 58.41 $24.48 - $58.86 3,130,427 4.07 $ 45.65 1,511,580 $ 50.53 Restricted Stock – The Company issues shares of restricted stock to eligible employees, which are subject to forfeiture until the end of an applicable vesting period. The awards generally vest on the third anniversary of the date of grant, subject to the employee's continuing employment as of that date. The restricted stock activity from January 30, 2016 through February 2, 2019 is presented in the following table: Shares Weighted Average Grant Date Fair Value Nonvested, January 30, 2016 2,204,980 $ 50.97 Granted 789,460 47.89 Vested (438,160 ) 47.05 Forfeited (196,240 ) 51.23 Nonvested, January 28, 2017 2,360,040 $ 50.64 Granted 2,228,573 41.47 Vested (359,956 ) 54.13 Forfeited (624,420 ) 49.38 Nonvested, February 3, 2018 3,604,237 $ 44.84 Granted 1,616,600 33.96 Vested (549,293 ) 49.88 Forfeited (1,213,927 ) 45.05 Nonvested, February 2, 2019 3,457,617 $ 38.88 As of February 2, 2019 , total unrecognized stock-based compensation expense from nonvested shares of restricted stock, net of estimated forfeitures, was approximately $47.6 million before income taxes, which is expected to be recognized over a weighted average period of approximately 1.47 years . During 2013, the Company issued a special grant of 1,185,793 shares of performance-based restricted stock in support of the Company's five-year strategic plan ("the 2013 Long-Term Incentive Plan"). These awards did not achieve the pre-established financial performance metrics by the end of the performance period, which ended on February 3, 2018. The remaining nonvested shares forfeited during fiscal 2018 and became available for issuance under the 2012 Plan. During 2017, the Company issued a special grant of 674,209 shares of performance-based restricted stock in support of the Company's strategic initiatives ("the 2017 Long-Term Incentive Plan"). As of February 2, 2019, nonvested restricted stock outstanding included 383,807 shares of these performance-based awards. The Company expects 63,712 shares to vest so long as the award recipient remains with the Company through April 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. government enacted comprehensive tax legislation under the Tax Act. As a result of the Tax Act in fiscal 2017, the Company recorded a provisional income tax charge of $6.0 million related to the deemed repatriation of accumulated but undistributed earnings of foreign operations. The re-measurement of the Company’s net deferred tax liability resulted in a provisional income tax benefit of $5.3 million . In response to the Tax Act, the Securities and Exchange Commission staff issued Staff Accounting Bulletin ("SAB") 118 during fiscal 2018, which provides guidance on the application of U.S. GAAP and the accounting for the income tax effects of the Tax Act. SAB 118 provides a measurement period time frame that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting requirements of ASC 740, "Income Taxes" . Upon completion of the Company's tax return filings during fiscal 2018, any changes in management's estimates related to the Tax Act did not have a significant impact on the Company's Consolidated Financial Statements. Additionally, the Tax Act includes a provision designed to tax Global Intangible Low Tax Income ("GILTI") earned by non-U.S. corporate subsidiaries of large U.S. shareholders starting in 2018. The Company has elected to account for any future GILTI tax liabilities as period costs and will expense those liabilities in the period incurred. The Company therefore will not record deferred taxes associated with the GILTI provision of the Tax Act. The tax owed on the Company’s estimated deemed repatriation resulting from the Tax Act is payable in uneven annual installments through 2025. As such, $5.2 million of the tax on undistributed foreign earnings not payable within the next 12 months is presented within long-term deferred rent and other liabilities on the Consolidated Balance Sheet. The components of the provision for income taxes are as follows for the fiscal years ended (in thousands): 2018 2017 2016 Current: Federal $ 94,729 $ 114,443 $ 184,636 State 22,585 20,996 31,426 117,314 135,439 216,062 Deferred: Federal (3,943 ) 38,805 (38,138 ) State (1,315 ) 3,648 (6,898 ) (5,258 ) 42,453 (45,036 ) Total provision $ 112,056 $ 177,892 $ 171,026 The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the following fiscal years: 2018 2017 2016 Federal statutory rate 21.0 % 33.7 % 35.0 % State tax, net of federal benefit 3.8 % 3.3 % 3.3 % Valuation allowance — % (0.8 )% (0.1 )% Other permanent items 1.1 % (0.7 )% (0.9 )% Effective income tax rate 25.9 % 35.5 % 37.3 % Components of deferred tax assets (liabilities) consist of the following as of the fiscal years ended (in thousands): 2018 2017 Inventory $ 35,487 $ 35,613 Employee benefits 33,591 32,909 Deferred rent 27,648 29,710 Stock-based compensation 19,005 18,315 Gift cards 14,458 13,006 Deferred revenue currently taxable 7,263 7,801 Store closing expense 1,178 2,739 Other accrued expenses not currently deductible for tax purposes 5,895 4,590 Net operating loss carryforward 2,056 3,031 Non income-based tax reserves 5,464 5,518 Capital loss carryforward 922 910 Uncertain income tax positions 1,218 2,152 Insurance 2,298 2,060 Other 120 78 Valuation allowance — — Total deferred tax assets 156,603 158,432 Property and equipment (115,726 ) (117,925 ) Inventory valuation (26,871 ) (28,430 ) Intangibles (5,068 ) (4,844 ) Prepaid expenses (3,723 ) (3,826 ) Other (3,748 ) — Total deferred tax liabilities (155,136 ) (155,025 ) Net deferred tax asset $ 1,467 $ 3,407 The deferred tax asset from net operating loss carryforwards of $2.1 million represents approximately $6.7 million of federal net operating losses, which expire in 2036, and $10.6 million of state net operating losses, which expire in 2034. In 2018 , of the $1.5 million net deferred tax asset, approximately $13.2 million is included within other long-term assets and approximately $11.8 million is included within other long-term liabilities on the Consolidated Balance Sheet. In 2017, of the $3.4 million net deferred tax asset, $13.6 million was included within other long-term assets and $10.2 million was included within other long-term liabilities. The Company does not provide for deferred taxes on the excess of the financial reporting basis over the tax basis related to our investments in foreign subsidiaries. It is the Company’s intention to permanently reinvest the earnings from foreign subsidiaries outside the United States. Under the Tax Act, the associated transition tax resulted in the elimination of the excess of the amount of financial reporting basis over the tax basis in the foreign subsidiaries and subjected $66.6 million of undistributed foreign earnings to tax. An actual repatriation from our international subsidiaries could still be subject to additional foreign withholding taxes and U.S. state taxes. We do not anticipate the need to repatriate funds to the United States to satisfy domestic liquidity needs and accordingly do not provide for foreign withholding taxes and U.S. state taxes. As of February 2, 2019, the total liability for uncertain tax positions, including related interest and penalties, was approximately $5.8 million . The following table represents a reconciliation of the Company's total balance of unrecognized tax benefits, excluding interest and penalties (in thousands): 2018 2017 2016 Beginning of fiscal year $ 8,047 $ 8,293 $ 9,784 Increases as a result of tax positions taken in a prior period 456 124 — Decreases as a result of tax positions taken in a prior period (411 ) (142 ) (831 ) Increases as a result of tax positions taken in the current period — — 2,067 Decreases as a result of settlements during the current period (2,977 ) (228 ) (2,534 ) Reductions as a result of a lapse of statute of limitations during the current period (797 ) — (193 ) End of fiscal year $ 4,318 $ 8,047 $ 8,293 The balance at February 2, 2019 includes $3.4 million of unrecognized tax benefits that would impact our effective tax rate if recognized. The Company recognizes accrued interest and penalties from unrecognized tax benefits in income tax expense. As of February 2, 2019 , the liability for uncertain tax positions includes $1.5 million for the accrual of interest. During fiscal 2018, 2017 and 2016, the Company recorded $0.3 million , $0.4 million and $0.3 million , respectively, for the accrual of interest and penalties in the Consolidated Statements of Income. The Company has ongoing federal, state and local examinations. It is possible that these examinations may be resolved within 12 months. Due to the potential for resolution of these examinations, and the expiration of various statutes of limitation, it is reasonably possible that $3.1 million of the Company's gross unrecognized tax benefits and interest at February 2, 2019 could be recognized within the next 12 months. The Company does not anticipate that changes in its unrecognized tax benefits will have a material impact on the Consolidated Statements of Income during fiscal 2019 . The Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Program ("CAP"). As part of CAP, tax years are audited on a contemporaneous basis so that all or most issues are resolved prior to the filing of the tax return. The IRS has completed examinations of 2017 and all prior tax years. The Company is no longer subject to examination in any of its major state jurisdictions for years prior to 2014 . |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data): Fiscal Year Ended 2018 2017 2016 Earnings per common share - Basic: Net income $ 319,864 $ 323,445 $ 287,396 Weighted average common shares outstanding - basic 97,743 106,977 111,095 Earnings per common share $ 3.27 $ 3.02 $ 2.59 Earnings per common share - Diluted: Net income $ 319,864 $ 323,445 $ 287,396 Weighted average common shares outstanding - basic 97,743 106,977 111,095 Dilutive effect of stock-based awards 1,038 609 1,121 Weighted average common shares outstanding - diluted 98,781 107,586 112,216 Earnings per common share $ 3.24 $ 3.01 $ 2.56 Anti-dilutive stock-based awards excluded from diluted calculation 3,519 3,693 1,822 |
Retirement Savings Plans
Retirement Savings Plans | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plans | Retirement Savings Plans The Company's retirement savings plan, established pursuant to Section 401(k) of the Internal Revenue Code, covers regular status full-time hourly and salaried employees and part-time employees after one month of employment with the Company. Employees must be 21 years of age to participate. Under the terms of the retirement savings plan, the Company may make a discretionary matching contribution equal to a percentage of each participant's contribution, up to 10% of the participant's compensation. The Company's discretionary matching contribution percentage is typically 50% . Total employer contributions recorded under the plan, net of forfeitures, was $9.8 million , $8.3 million and $8.7 million for fiscal 2018 , 2017 and 2016 , respectively. The Company also has non-qualified deferred compensation plans for highly compensated employees whose contributions are limited under qualified defined contribution plans. Amounts contributed and deferred under the deferred compensation plans are credited or charged with the performance of investment options offered under the plans and elected by the participants. In the event of bankruptcy, the assets of these plans are available to satisfy the claims of general creditors. The liability for compensation deferred under the Company's plans was $77.3 million and $78.9 million as of February 2, 2019 and February 3, 2018 , respectively, and is included within long-term liabilities on the Consolidated Balance Sheets. Total employer contributions recorded under these plans, net of forfeitures, was $2.1 million , $2.1 million and $2.2 million for fiscal 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Marketing and Naming Rights Commitments Within the ordinary course of business, the Company enters into contractual commitments in order to promote the Company's brand and products, including media and naming rights extending through 2026 . The aggregate payments under these commitments were $18.0 million , $33.3 million and $39.3 million during fiscal 2018 , 2017 and 2016 , respectively. The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 14,192 2020 12,250 2021 9,792 2022 4,054 2023 2,888 Thereafter 9,196 Total $ 52,372 Licenses for Trademarks Within the ordinary course of business, the Company enters into licensing agreements for the exclusive or preferential rights to use certain trademarks extending through 2022. Under specific agreements, the Company is obligated to pay annual guaranteed minimum royalties. Also, the Company is required to pay additional royalties when the royalties that are based on qualified purchases or retail sales (dependent upon the agreement) exceed the guaranteed minimum. The aggregate payments under these commitments were $12.1 million , $9.6 million and $8.8 million during fiscal 2018 , 2017 and 2016 , respectively. The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 10,033 2020 5,213 2021 2,208 2022 1,250 Total $ 18,704 Other The Company also has other non-cancellable contractual commitments, including minimum requirements with its third-party eCommerce fulfillment provider, and technology-related commitments extending through 2021. The aggregate payments under these commitments were $48.5 million , $37.7 million and $17.9 million during fiscal 2018 , 2017 and 2016 , respectively. The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 38,637 2020 4,895 2021 3,750 Total $ 47,282 The Company is involved in legal proceedings incidental to the normal conduct of its business. Although the outcome of any pending legal proceedings cannot be predicted with certainty, management believes that adequate insurance coverage is maintained and that the ultimate resolution of these matters will not have a material adverse effect on the Company's liquidity, financial position or results of operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, " Fair Value Measurement and Disclosures ", outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Assets measured at fair value on a recurring basis as of February 2, 2019 and February 3, 2018 are set forth in the table below: Level 1 Description February 2, 2019 February 3, 2018 Assets: Deferred compensation plan assets held in trust (1) $ 77,324 $ 78,894 Total assets $ 77,324 $ 78,894 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans (See Note 13). The fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated book value due to the short-term nature of these instruments at both February 2, 2019 and February 3, 2018 . The Company uses quoted prices in active markets to determine the fair value of the aforementioned assets determined to be Level 1 instruments. The Company's policy for recognition of transfers between levels of the fair value hierarchy is to recognize any transfer at the end of the fiscal quarter in which the determination to transfer was made. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Feb. 02, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On August 18, 2017, the Company agreed to acquire from EWS II, LLC, an entity owned by the Company's Chairman & Chief Executive Officer ("EWS"), the rights and obligations relating to the purchase of an aircraft by EWS from Gulfstream Aerospace Corporation ("Gulfstream"). The Company and EWS entered into an arrangement, pursuant to which the Company agreed to reimburse $62.8 million to EWS for principal payments previously made to Gulfstream for the aircraft purchase and for interest incurred in connection with the financing of the aircraft purchase and agreed to fund the final aircraft purchase price payment of $4.0 million to Gulfstream. The transaction was approved pursuant to the Company's Related Party Transaction Policy. This aircraft replaced a Company aircraft that came off lease in fiscal 2017. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Feb. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition On February 4, 2018, the Company adopted ASU 2014-09 ("Topic 606") using the modified retrospective approach for all contracts not completed as of the adoption date. Financial results for reporting periods beginning after February 3, 2018 are presented in accordance with Topic 606, while prior periods will continue to be reported in accordance with our pre-adoption accounting policies and therefore have not been adjusted to conform to Topic 606. The primary impact to the Company's accounting policies of adopting Topic 606 relates to the timing of revenue recognition for gift card breakage. Gift card breakage prior to adoption was recognized at the point gift card redemption was deemed remote. As a result of the adoption of Topic 606, the Company now recognizes gift card breakage over time in proportion to the pattern of rights exercised by the customer. This change in accounting policy was accounted for through a cumulative effect adjustment to increase beginning retained earnings during the first quarter of fiscal 2018. The Company reclassified $27.7 million from deferred revenue and other liabilities resulting in a cumulative effect adjustment of $20.5 million , net of tax, to retained earnings on the Company's Consolidated Balance Sheets and Consolidated Statement of Changes in Stockholders' Equity. Additionally, the adoption of Topic 606 resulted in insignificant financial statement presentation reclassifications related to our customer loyalty program and our sales return reserve. The Company does not expect the adoption of Topic 606 to have a significant impact on the Consolidated Financial Statements on a prospective basis. In accordance with Topic 606, revenue shall be recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. The Company elected the practical expedient within Topic 606 related to sales taxes that are assessed by a governmental authority, which allows for the exclusion of sales tax from transaction price. The Company also elected the practical expedient within Topic 606 related to shipping and handling costs, which allows for shipping and handling activities occurring subsequent to the transfer of control to the customer to be accounted for as fulfillment costs rather than a promised service. Deferred gift card revenue - Our gift card liability was $156.5 million and $179.5 million as of February 2, 2019 and February 3, 2018, respectively. During the fiscal year ended February 2, 2019, we recognized $13.6 million of gift card breakage revenue and experienced approximately $81.9 million of gift card redemptions that were included in our gift card liability as of February 3, 2018. Based on the Company's historical experience, the vast majority of gift card revenue is recognized within twelve months of deferral. Customer loyalty program - Loyalty program points are accrued at the estimated retail value per point, net of estimated breakage. We estimate the breakage of loyalty points based on historical redemption rates experienced within the loyalty program. Our customer loyalty program liability was $32.4 million and $29.9 million as of February 2, 2019 and February 3, 2018, respectively. During the fiscal year ended February 2, 2019, we recognized approximately $27.5 million of revenue that was included in our customer loyalty program liability as of February 3, 2018. Based on the Company's customer loyalty program policies, the vast majority of program points earned are redeemed or expire within twelve months. Net sales by category - The following table disaggregates the amount of net sales attributable to hardlines, apparel and footwear for the periods presented (in thousands): Fiscal Year 2018 2017 2016 Hardlines (1) $ 3,632,147 $ 3,886,993 $ 3,573,562 Apparel 2,962,347 2,920,345 2,756,099 Footwear 1,719,456 1,694,590 1,529,381 Other (2) 122,620 88,544 62,939 Total net sales $ 8,436,570 $ 8,590,472 $ 7,921,981 (1) Includes items such as sporting goods equipment, fitness equipment, golf equipment and hunting and fishing gear. (2) Includes the Company's non-merchandise sales categories, including in-store services, shipping revenues and credit card processing revenues. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Summarized quarterly financial information for fiscal 2018 and 2017 is as follows (in thousands, except earnings per share data): Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,909,719 $ 2,177,488 $ 1,857,273 $ 2,492,090 Gross profit (1) 560,369 659,281 523,554 694,579 Income from operations (1) 87,332 162,527 52,866 142,009 Net income 60,085 119,397 37,827 102,555 Earnings per common share: Basic (1) $ 0.59 $ 1.21 $ 0.39 $ 1.09 Diluted (1) $ 0.59 $ 1.20 $ 0.39 $ 1.07 Weighted average common shares outstanding: Basic 101,384 98,716 96,677 94,193 Diluted 102,153 99,591 97,890 95,490 Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,825,252 $ 2,156,911 $ 1,944,187 $ 2,664,122 Gross profit 541,865 637,222 534,120 775,853 Income from operations 90,068 159,190 50,001 178,315 Net income (1) 58,195 (2) 112,385 (3) 36,913 (4) 115,951 (5) Earnings per common share: Basic (1) $ 0.53 $ 1.04 $ 0.35 $ 1.11 Diluted $ 0.52 $ 1.03 $ 0.35 $ 1.11 Weighted average common shares outstanding: Basic 110,441 108,175 105,466 104,052 Diluted 111,406 108,679 105,814 104,669 (1) Quarterly results for fiscal year do not add to full year results due to rounding. (2) Included TSA conversion costs of $2.2 million . (3) Included receipt of a contract termination payment totaling $12.0 million and charges attributable to a corporate restructuring of $4.4 million . (4) Included receipt of a multi-year sales tax refund totaling $5.0 million . (5) Included transition costs to enhance the Company's Scorecard loyalty program of $7.2 million and costs for a litigation contingency of $4.2 million . The fourth quarter of fiscal 2017 represents a 14 week period, as fiscal 2017 included 53 weeks . |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 22, 2019 , the Company's Board of Directors declared a quarterly cash dividend in the amount of $0.275 per share on the Company's common stock and Class B common stock payable on March 29, 2019 to stockholders of record as of the close of business on March 15, 2019 . |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Feb. 02, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Dollars in thousands) Balance at Beginning of Period Charged to Costs and Expenses Deductions Balance at End of Period Fiscal 2016 Inventory reserve $ 36,622 $ 57,692 $ (6,512 ) $ 87,802 Allowance for doubtful accounts 2,727 4,834 (4,409 ) 3,152 Reserve for sales returns 7,754 449,666 (449,220 ) 8,200 Allowance for deferred tax assets 5,304 — (587 ) 4,717 Fiscal 2017 Inventory reserve $ 87,802 $ 20,722 $ (58,723 ) $ 49,801 Allowance for doubtful accounts 3,152 5,092 (4,756 ) 3,488 Reserve for sales returns 8,200 489,607 (487,396 ) 10,411 Allowance for deferred tax assets 4,717 — (4,717 ) — Fiscal 2018 Inventory reserve $ 49,801 $ 8,281 $ (14,042 ) $ 44,040 Allowance for doubtful accounts 3,488 4,721 (5,246 ) 2,963 Reserve for sales returns 10,411 476,692 (476,528 ) 10,575 Allowance for deferred tax assets — — — — |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal Year | Fiscal Year – The Company's fiscal year ends on the Saturday closest to the end of January. Fiscal years 2018 , 2017 and 2016 ended on February 2, 2019 , February 3, 2018 and January 28, 2017 , respectively. All fiscal years presented include 52 weeks of operations except fiscal 2017, which included 53 weeks. |
Principles of Consolidation | Principles of Consolidation – The Consolidated Financial Statements include Dick's Sporting Goods, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents / Cash Management | Cash and Cash Equivalents – Cash and cash equivalents consist of cash on hand and all highly liquid instruments purchased with a maturity of three months or less at the date of purchase. Cash equivalents are considered Level 1 investments and totaled $33.8 million and $21.0 million at February 2, 2019 and February 3, 2018 , respectively. Cash Management – The Company's cash management system provides for the reimbursement of all major bank disbursement accounts on a daily basis. Accounts payable at February 2, 2019 and February 3, 2018 include $36.4 million and $115.2 million , respectively, of checks drawn in excess of cash balances not yet presented for payment. |
Accounts Receivable | Accounts Receivable – Accounts receivable consist principally of amounts receivable from vendors and landlords. The allowance for doubtful accounts totaled $3.0 million and $3.5 million at February 2, 2019 and February 3, 2018 , respectively. |
Inventories | Inventories – Inventories are stated at the lower of weighted average cost and net realizable value. Inventory costs consist of the direct cost of merchandise including freight. Inventories are net of shrinkage, obsolescence, other valuation accounts and vendor allowances totaling $113.3 million and $154.5 million at February 2, 2019 and February 3, 2018 , respectively. |
Property and Equipment | Property and Equipment – Property and equipment are recorded at cost and include capitalized leases. For financial reporting purposes, depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 40 years Leasehold improvements 10-25 years Furniture, fixtures and equipment 3-7 years Computer software 3-10 years For leasehold improvements and property and equipment under capital lease agreements, depreciation and amortization are calculated using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term. Leasehold improvements made significantly after the initial lease term are depreciated over the shorter of their estimated useful lives or the remaining lease term, including renewal periods, if reasonably assured. Depreciation expense was $223.2 million , $214.9 million and $203.1 million for fiscal 2018 , 2017 and 2016 , respectively. Renewals and betterments are capitalized and repairs and maintenance are expensed as incurred. |
Impairment of Long-Lived Assets and Closed Store Reserves | Impairment of Long-Lived Assets and Closed Store Reserves – The Company evaluates its long-lived assets to assess whether the carrying values have been impaired whenever events and circumstances indicate that the carrying value of these assets may not be recoverable based on estimated undiscounted future cash flows. An impairment loss is recognized when the estimated undiscounted cash flows expected to result from the use of the asset plus eventual net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value as determined based on quoted market prices or through the use of other valuation techniques. The related expense is recorded within selling, general and administrative expenses on the Consolidated Statements of Income. The Company recognizes a liability for costs associated with closed or relocated premises when the Company ceases to use the location. The calculation of accrued lease termination and other costs primarily includes future minimum lease payments, maintenance costs and taxes from the date of closure or relocation to the end of the remaining lease term, net of contractual or estimated sublease income. The liability is discounted using a credit-adjusted risk-free rate of interest. The assumptions used in the calculation of the accrued lease termination and other costs are evaluated on a quarterly basis. The current portion of accrued store closing and relocation reserves is included within accrued expenses and the non-current portion is included within long-term deferred rent and other liabilities on the Consolidated Balance Sheets. The related expense is recorded within selling, general and administrative expenses on the Consolidated Statements of Income. |
Goodwill | Goodwill – Goodwill represents the excess of acquisition cost over the fair value of the net assets of acquired entities. The Company assesses the carrying value of goodwill annually or whenever circumstances indicate that a decline in value may have occurred. The Company's goodwill impairment test compares the fair value of each reporting unit to its carrying value. The Company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, an impairment charge to selling, general and administrative expenses is recorded to reduce the carrying value to the fair value. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by management. |
Intangible Assets | Intangible Assets – Intangible assets consist primarily of trademarks and acquired trade names with indefinite lives, 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, favorable lease assets 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. |
Self-Insurance | Self-Insurance – The Company is self-insured for certain losses related to health, workers' compensation and general liability insurance, although we maintain stop-loss coverage with third-party insurers to limit our liability exposure. Liabilities associated with these losses are estimated in part by considering historical claims experience, industry factors, severity factors and other actuarial assumptions. |
Pre-opening Expenses | Pre-opening Expenses – Pre-opening expenses, which consist primarily of rent, marketing, payroll and recruiting costs, are expensed as incurred. Rent is recognized within pre-opening expense from the date the Company takes possession of a site through the date of store opening. |
Earnings Per Common Share | Earnings Per Common Share – Basic earnings per common share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed based on the weighted average number of shares of common stock, plus the effect of dilutive potential common shares outstanding during the period, using the treasury stock method. Dilutive potential common shares include outstanding stock options, restricted stock and warrants. |
Stock-Based Compensation | Stock-Based Compensation – The Company has the ability to grant restricted shares of common stock, restricted stock units and stock options to purchase common stock under the Dick's Sporting Goods, Inc. 2012 Stock and Incentive Plan, as Amended and Restated (the "2012 Plan"). The Company records stock-based compensation expenses based on the fair value of stock awards at the grant date and recognizes the expense over the related service period. |
Income Taxes | Income Taxes – The Company utilizes the asset and liability method of accounting for income taxes and provides deferred income taxes for temporary differences between the amounts reported for assets and liabilities for financial statement purposes and for income tax reporting purposes, using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the relevant taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured based on the largest benefit that will more likely than not be realized upon ultimate settlement. Interest and penalties from income tax matters are recognized in income tax expense. |
Revenue Recognition | Revenue Recognition – Revenue is recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods or services. Substantially all of the Company's sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product or service, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product or service at the point of sale. Revenue from retail sales is recognized at the point of sale, net of sales tax. Revenue from eCommerce sales, including vendor-direct sales arrangements, is recognized upon shipment of merchandise. A provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Revenue from gift cards and returned merchandise credits (collectively the "cards") is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Consolidated Statements of Income within net sales in proportion to the pattern of rights exercised by the customer in future periods. The Company performs an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. |
Cost of Goods Sold | Cost of Goods Sold – Cost of goods sold includes: the cost of merchandise (inclusive of vendor allowances, inventory shrinkage and inventory write-downs for the lower of cost and net realizable value); freight; distribution; shipping; and store occupancy costs. The Company defines merchandise margin as net sales less the cost of merchandise sold. Store occupancy costs include rent, common area maintenance charges, real estate and other asset-based taxes, general maintenance, utilities, depreciation and certain insurance expenses. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses – Selling, general and administrative expenses include store and field support payroll and fringe benefits, advertising, bank card charges, operating costs associated with the Company's internal eCommerce platform, information systems, marketing, legal, accounting, other store expenses and all expenses associated with operating the Company's Customer Support Center ("CSC"). |
Advertising Costs | Advertising Costs – Production costs for all forms of advertising and the costs to run the advertisements are expensed the first time the advertisement takes place. Advertising expense, net of cooperative advertising, was $322.2 million , $330.1 million and $304.9 million for fiscal 2018 , 2017 and 2016 , respectively. |
Business Development Allowances | Business Development Allowances – Business development allowances include allowances, rebates and cooperative advertising funds received from vendors. These funds are determined for each fiscal year and the majority are based on various quantitative contract terms. Amounts expected to be received from vendors for the purchase of merchandise inventories ("vendor allowances") are recognized as a reduction of cost of goods sold as the merchandise is sold. Amounts that represent a reimbursement of costs incurred, such as advertising ("cooperative advertising"), are recorded as a reduction to the related expense in the period that the related expense is incurred. The Company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts. |
Segment Information | Segment Information – The Company is a specialty omni-channel retailer that offers a broad range of products in its specialty retail stores primarily in the eastern United States. Given the economic characteristics of the store formats, the similar nature of the products sold, the type of customer and method of distribution, the Company's operating segments are aggregated within one reportable segment. Refer to Note 17 to the Consolidated Financial Statements herein for additional disclosure of net sales by merchandise category. |
Construction Allowances | Construction Allowances – All of the Company's store locations are leased. The Company may receive reimbursement from a landlord for some of the cost of the structure, subject to satisfactory fulfillment of applicable lease provisions. These reimbursements may be referred to as tenant allowances, construction allowances or landlord reimbursements ("construction allowances"). The Company's accounting for construction allowances differs if the Company is deemed to be the owner of the asset during the construction period. Some of the Company's leases have a cap on the construction allowance, which places the Company at risk for cost overruns and causes the Company to be deemed the owner during the construction period. In instances where the Company is not deemed to be the owner during the construction period, reimbursement from a landlord for tenant improvements is classified as an incentive and included within deferred revenue and other liabilities on the Consolidated Balance Sheets. The deferred rent credit is amortized as rent expense on a straight-line basis over the term of the lease. Landlord reimbursements from these transactions are included in cash flows from operating activities as a change in deferred construction allowances. In cases where the Company is deemed to be the owner during the construction period, a sale and leaseback of the asset occurs when construction of the asset is complete and the lease term begins, if relevant sale-leaseback accounting criteria are met. Any gain or loss from the transaction is included within deferred revenue and other liabilities on the Consolidated Balance Sheets and deferred and amortized as rent expense on a straight-line basis over the term of the lease. The Company reports the amount of cash received for the construction allowance as construction allowance receipts within the financing activities section of its Consolidated Statements of Cash Flows when such allowances are received prior to completion of the sale-leaseback transaction. The Company reports the amount of cash received from construction allowances as proceeds from sale leaseback transactions within the investing activities section of its Consolidated Statements of Cash Flows when such amounts are received after the sale-leaseback accounting criteria have been achieved. |
Leases | Leases – Escalating rent payments, rent abatements and rent holidays are considered in the calculation of minimum lease payments in the Company's capital lease tests and in determining straight-line rent expense for operating leases. The Company records any difference between the straight-line rent amount and amounts payable under the lease as part of deferred rent within long-term deferred rent and other liabilities on the Consolidated Balance Sheets. Contingent payments based upon sales and future increases determined by inflation-related indices cannot be estimated at the inception of the lease and accordingly, are charged to operations as incurred. The Company records contingent rent within accrued expenses on the Consolidated Balance Sheets. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Income Taxes In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." This update provides guidance on income tax accounting implications under the Tax Cuts and Jobs Act (the "Tax Act"), which was enacted on December 22, 2017. Areas of clarification under the update are the measurement period time frame, changes in subsequent reporting periods, and reporting requirements as they relate to the Tax Act. The Company adopted ASU 2018-05 during the first quarter of fiscal 2018. The Company recorded provisional charges as a result of the Tax Act, as noted within Note 11 to the Consolidated Financial Statements of the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2018, for which the Company's reviews have been completed without any significant adjustments required during fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Refer to Note 11 to the Company's Consolidated Financial Statements herein for additional information. Stock Compensation In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." This update clarifies the changes to terms or conditions of a share-based payment award that require an entity to apply modification accounting. ASU 2017-09 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted and prospective application is required. The Company adopted ASU 2017-09 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Intangibles - Goodwill and Other In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment." This update modifies the concept of impairment and simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for interim or annual goodwill impairment tests during fiscal years beginning after December 15, 2019. Early application is permitted and prospective application is required. The Company elected to early adopt ASU 2017-04 during the first quarter of fiscal 2018. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements. Contracts with Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This update requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the update (1) specifies the accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers - Deferral of the Effective Date" , which approved a one year deferral of ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Subsequent to the issuance of ASU 2014-09 and ASU 2015-14, the FASB has also issued additional ASUs to assist in clarifying guidance within ASU 2014-09. These updates permit the use of either the full retrospective or modified retrospective transition method. Early application is permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company adopted these ASUs during the first quarter of fiscal 2018. The adoption of these ASUs did not have a significant impact on our Consolidated Financial Statements. Refer to Note 17 to the Company's Consolidated Financial Statements herein for additional information. Recently Issued Accounting Pronouncement Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This update requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early application permitted. A modified retrospective approach is permitted. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases," and ASU 2018-11, "Leases (Topic 842), Targeted Improvements," which affect certain aspects of the previously issued guidance. Amendments include an additional transition method that allows entities to apply the new standard on the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings, as well as a new practical expedient for lessors. The effective date and transition requirements for ASU 2018-10 and ASU 2018-11 are the same as ASU 2016-02. Early adoption is permitted. The Company will adopt these ASUs during the first quarter of fiscal 2019 using the optional transition method, which allows for prospective application of the standard. We have completed the upgrade of our existing lease management technology solution to facilitate adoption of these ASUs in fiscal 2019. The Company will elect the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward our historical lease classification, in addition to electing the practical expedient surrounding land easements. The Company has lease agreements with non-lease components that relate to the lease components. Non-lease components, and the lease components to which they relate, will be accounted for together as a single lease component for all classes of underlying assets. We will also elect to exclude leases with an initial term of twelve months or less from the Consolidated Balance Sheets. We estimate adoption of the standard will result in recognition of additional net lease assets and lease liabilities of approximately $2,300.0 million , respectively, as of February 3, 2019. The difference between these amounts will be recorded as an adjustment to fiscal 2019 beginning retained earnings. The adoption of these ASUs will not have a significant impact on the Company's Consolidated Statement of Income. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of estimated useful lives | For financial reporting purposes, depreciation and amortization are computed using the straight-line method over the following estimated useful lives: Buildings 40 years Leasehold improvements 10-25 years Furniture, fixtures and equipment 3-7 years Computer software 3-10 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill and accumulated impairment charges | The following table summarizes the carrying amount of goodwill and accumulated impairment charges as of the end of the fiscal periods (in thousands): 2018 2017 Carrying Value Accumulated Impairment Carrying Value Accumulated Impairment Goodwill $ 250,476 $ 111,312 $ 250,476 $ 111,312 |
Schedule of components of intangible assets | The components of intangible assets were as follows as of the end of the fiscal years (in thousands): 2018 2017 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Trademarks (indefinite-lived) $ 89,206 $ — $ 89,206 $ — Trade names (indefinite-lived) 16,031 — 16,031 — Customer lists 21,166 (7,774 ) 21,166 (4,922 ) Acquired technology and other finite-lived intangible assets 26,901 (21,160 ) 26,901 (17,583 ) Other indefinite-lived intangible assets 5,796 — 5,788 — Total intangible assets $ 159,100 $ (28,934 ) $ 159,092 $ (22,505 ) |
Schedule of annual estimated amortization expense of finite-lived intangible assets | The annual estimated amortization expense of the finite-lived intangible assets recorded as of February 2, 2019 is expected to be as follows (in thousands): Fiscal Year Estimated Amortization Expense 2019 $ 5,514 2020 4,636 2021 4,104 2022 2,898 2023 1,792 Thereafter 189 Total $ 19,133 |
Store Closings (Tables)
Store Closings (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Store Closings [Abstract] | |
Schedule of the entity's accrued store closing and relocation reserves | The following table summarizes the activity of the Company's store closing reserves (in thousands): 2018 2017 Accrued store closing and relocation reserves, beginning of period $ 10,536 $ 17,531 Expense charged to earnings 3,354 1,733 Cash payments (8,795 ) (9,522 ) Interest accretion and other changes in assumptions (540 ) 794 Accrued store closing and relocation reserves, end of period 4,555 10,536 Less: current portion of accrued store closing and relocation reserves (1,323 ) (4,440 ) Long-term portion of accrued store closing and relocation reserves $ 3,232 $ 6,096 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of the components of property and equipment | Property and equipment are recorded at cost and consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Buildings and land $ 320,243 $ 308,326 Leasehold improvements 1,613,663 1,587,235 Furniture, fixtures and equipment 1,172,380 1,123,216 Computer software 393,535 359,175 Total property and equipment 3,499,821 3,377,952 Less: accumulated depreciation and amortization (1,934,550 ) (1,700,612 ) Net property and equipment $ 1,565,271 $ 1,677,340 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses | Accrued expenses consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Accrued payroll, withholdings and benefits $ 166,039 $ 125,426 Accrued real estate taxes, utilities and other occupancy 72,727 73,200 Accrued property and equipment 19,094 30,303 Accrued sales tax 18,576 23,396 Other accrued expenses 87,906 101,856 Total accrued expenses $ 364,342 $ 354,181 |
Deferred Revenue and Other Li_2
Deferred Revenue and Other Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Deferred Credits and Other Liabilities [Abstract] | |
Schedule of deferred revenue and other liabilities | Deferred revenue and other liabilities consist of the following as of the end of the fiscal periods (in thousands): 2018 2017 Current: Deferred gift card revenue $ 156,457 $ 179,458 Other 68,527 32,622 Total current $ 224,984 $ 212,080 Long-term: Deferred rent, including pre-opening rent $ 98,808 $ 105,998 Deferred construction allowances 505,767 547,612 Other 107,217 113,498 Total long-term $ 711,792 $ 767,108 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | The Company's carrying value and fair value of outstanding debt consists of the following as of the end of the fiscal years (in thousands): 2018 2017 Revolving Credit Facility $ — $ — Term loan 56,085 60,608 Capital leases 3,941 4,570 Other debt 18 108 Total debt 60,044 65,286 Less: current portion (5,263 ) (5,202 ) Total long-term debt $ 54,781 $ 60,084 |
Schedule of revolving credit facility information | Credit Facility information as of the fiscal years ended (in thousands): 2018 2017 Outstanding borrowings under Credit Facility $ — $ — Remaining borrowing capacity under Credit Facility $ 1,233,869 $ 1,233,869 Outstanding letters of credit under Credit Facility $ 16,131 $ 16,131 |
Schedule of lease payments under capital lease obligations | Scheduled lease payments under capital lease obligations as of February 2, 2019 are as follows (in thousands): Fiscal Year 2019 $ 1,103 2020 1,103 2021 943 2022 863 2023 863 Thereafter 216 Subtotal 5,091 Less: amounts representing interest (1,150 ) Present value of net scheduled lease payments 3,941 Less: amounts due in one year (722 ) Total long-term capital leases $ 3,219 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases, Operating [Abstract] | |
Schedule of lease payments, including fixed executory costs, due under non-cancellable operating leases | February 2, 2019 are as follows (in thousands): Fiscal Year 2019 $ 655,516 2020 619,189 2021 558,633 2022 475,830 2023 392,826 Thereafter 1,033,034 Total $ 3,735,028 |
Stock-Based Compensation and _2
Stock-Based Compensation and Employee Stock Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation | The following represents total stock-based compensation recognized in the Consolidated Statements of Income for the fiscal years presented (in thousands): 2018 2017 2016 Stock option expense $ 7,147 $ 8,686 $ 9,506 Restricted stock expense 34,794 27,553 24,096 Total stock-based compensation expense $ 41,941 $ 36,239 $ 33,602 Total related tax benefit $ 9,104 $ 12,130 $ 11,718 |
Schedule of assumptions used to estimate the fair value of stock-based awards to employees | The fair value of stock-based awards to employees is estimated on the date of grant using the Black-Scholes valuation with the following assumptions: Employee Stock Option Plans Black-Scholes Valuation Assumptions 2018 2017 2016 Expected life (years) (1) 5.20 5.47 5.40 Expected volatility (2) 33.15% - 37.41% 29.24% - 33.86% 29.20% - 31.93% Weighted average volatility 34.61 % 30.52 % 31.01 % Risk-free interest rate (3) 2.55% - 3.04% 1.70% - 2.25% 1.07% - 1.90% Expected dividend yield 2.40% - 2.82% 1.30% - 2.78% 1.03% - 1.59% Weighted average grant date fair value $ 9.02 $ 11.98 $ 12.56 (1) The expected term of the options represents the estimated period of time until exercise and is based on historical experience of similar awards giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. (2) Expected volatility is based on the historical volatility of the Company's common stock over a time frame consistent with the expected life of the stock options. (3) The risk-free interest rate is based on the implied yield available on U.S. Treasury constant maturity interest rates whose term is consistent with the expected life of the stock options. |
Schedule of stock option activity | The stock option activity from January 30, 2016 through February 2, 2019 is presented in the following table: Shares Subject to Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding, January 30, 2016 3,974,512 $ 38.29 2.94 $ 51,930 Granted 1,143,326 47.79 Exercised (1,348,241 ) 22.28 Forfeited / Expired (208,512 ) 50.01 Outstanding, January 28, 2017 3,561,085 $ 46.71 3.88 $ 22,638 Granted 786,246 45.28 Exercised (582,022 ) 28.43 Forfeited / Expired (635,360 ) 50.60 Outstanding, February 3, 2018 3,129,949 $ 48.97 4.08 $ 389 Granted 881,334 34.18 Forfeited / Expired (880,856 ) 45.96 Outstanding, February 2, 2019 3,130,427 $ 45.65 4.07 $ 1,783 Exercisable, February 2, 2019 1,511,580 $ 50.53 2.65 $ 184 Vested and expected to vest, February 2, 2019 2,917,529 $ 46.22 3.95 $ 1,486 |
Schedule of nonvested stock option activity | The nonvested stock option activity for the year ended February 2, 2019 is presented in the following table: Shares Subject to Options Weighted Average Grant Date Fair Value Nonvested, February 3, 2018 1,650,991 $ 13.29 Granted 881,334 9.02 Vested (572,972 ) 14.13 Forfeited (340,506 ) 11.29 Nonvested, February 2, 2019 1,618,847 $ 11.09 |
Schedule of stock options outstanding and exercisable by range of exercise prices | Additional information regarding options outstanding as of February 2, 2019 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $24.48 - $34.05 830,465 6.18 $ 33.10 26,660 $ 28.35 $35.22 - $47.09 945,577 3.41 46.07 589,971 46.49 $47.73 - $55.29 932,936 3.26 50.62 583,454 51.41 $55.49 - $58.86 421,449 3.23 58.44 311,495 58.41 $24.48 - $58.86 3,130,427 4.07 $ 45.65 1,511,580 $ 50.53 |
Schedule of nonvested restricted stock activity | The restricted stock activity from January 30, 2016 through February 2, 2019 is presented in the following table: Shares Weighted Average Grant Date Fair Value Nonvested, January 30, 2016 2,204,980 $ 50.97 Granted 789,460 47.89 Vested (438,160 ) 47.05 Forfeited (196,240 ) 51.23 Nonvested, January 28, 2017 2,360,040 $ 50.64 Granted 2,228,573 41.47 Vested (359,956 ) 54.13 Forfeited (624,420 ) 49.38 Nonvested, February 3, 2018 3,604,237 $ 44.84 Granted 1,616,600 33.96 Vested (549,293 ) 49.88 Forfeited (1,213,927 ) 45.05 Nonvested, February 2, 2019 3,457,617 $ 38.88 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows for the fiscal years ended (in thousands): 2018 2017 2016 Current: Federal $ 94,729 $ 114,443 $ 184,636 State 22,585 20,996 31,426 117,314 135,439 216,062 Deferred: Federal (3,943 ) 38,805 (38,138 ) State (1,315 ) 3,648 (6,898 ) (5,258 ) 42,453 (45,036 ) Total provision $ 112,056 $ 177,892 $ 171,026 |
Reconciliation of the federal statutory income tax rate to the effective income tax rate | The provision for income taxes differs from the amounts computed by applying the federal statutory rate as follows for the following fiscal years: 2018 2017 2016 Federal statutory rate 21.0 % 33.7 % 35.0 % State tax, net of federal benefit 3.8 % 3.3 % 3.3 % Valuation allowance — % (0.8 )% (0.1 )% Other permanent items 1.1 % (0.7 )% (0.9 )% Effective income tax rate 25.9 % 35.5 % 37.3 % |
Schedule of the components of deferred tax assets (liabilities) | Components of deferred tax assets (liabilities) consist of the following as of the fiscal years ended (in thousands): 2018 2017 Inventory $ 35,487 $ 35,613 Employee benefits 33,591 32,909 Deferred rent 27,648 29,710 Stock-based compensation 19,005 18,315 Gift cards 14,458 13,006 Deferred revenue currently taxable 7,263 7,801 Store closing expense 1,178 2,739 Other accrued expenses not currently deductible for tax purposes 5,895 4,590 Net operating loss carryforward 2,056 3,031 Non income-based tax reserves 5,464 5,518 Capital loss carryforward 922 910 Uncertain income tax positions 1,218 2,152 Insurance 2,298 2,060 Other 120 78 Valuation allowance — — Total deferred tax assets 156,603 158,432 Property and equipment (115,726 ) (117,925 ) Inventory valuation (26,871 ) (28,430 ) Intangibles (5,068 ) (4,844 ) Prepaid expenses (3,723 ) (3,826 ) Other (3,748 ) — Total deferred tax liabilities (155,136 ) (155,025 ) Net deferred tax asset $ 1,467 $ 3,407 |
Schedule of reconciliation of the Company's total unrecognized tax benefits balances, excluding interest and penalties | The following table represents a reconciliation of the Company's total balance of unrecognized tax benefits, excluding interest and penalties (in thousands): 2018 2017 2016 Beginning of fiscal year $ 8,047 $ 8,293 $ 9,784 Increases as a result of tax positions taken in a prior period 456 124 — Decreases as a result of tax positions taken in a prior period (411 ) (142 ) (831 ) Increases as a result of tax positions taken in the current period — — 2,067 Decreases as a result of settlements during the current period (2,977 ) (228 ) (2,534 ) Reductions as a result of a lapse of statute of limitations during the current period (797 ) — (193 ) End of fiscal year $ 4,318 $ 8,047 $ 8,293 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of the computations for basic and diluted earnings per common share | The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data): Fiscal Year Ended 2018 2017 2016 Earnings per common share - Basic: Net income $ 319,864 $ 323,445 $ 287,396 Weighted average common shares outstanding - basic 97,743 106,977 111,095 Earnings per common share $ 3.27 $ 3.02 $ 2.59 Earnings per common share - Diluted: Net income $ 319,864 $ 323,445 $ 287,396 Weighted average common shares outstanding - basic 97,743 106,977 111,095 Dilutive effect of stock-based awards 1,038 609 1,121 Weighted average common shares outstanding - diluted 98,781 107,586 112,216 Earnings per common share $ 3.24 $ 3.01 $ 2.56 Anti-dilutive stock-based awards excluded from diluted calculation 3,519 3,693 1,822 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum payments for marketing and naming rights commitments | The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 14,192 2020 12,250 2021 9,792 2022 4,054 2023 2,888 Thereafter 9,196 Total $ 52,372 |
Schedule of future minimum payments for trademark licensing commitments | The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 10,033 2020 5,213 2021 2,208 2022 1,250 Total $ 18,704 |
Schedule of future minimum payments for other contractual commitments | The aggregate amount of future minimum payments at February 2, 2019 is as follows (in thousands): Fiscal Year 2019 $ 38,637 2020 4,895 2021 3,750 Total $ 47,282 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis as of February 2, 2019 and February 3, 2018 are set forth in the table below: Level 1 Description February 2, 2019 February 3, 2018 Assets: Deferred compensation plan assets held in trust (1) $ 77,324 $ 78,894 Total assets $ 77,324 $ 78,894 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans (See Note 13). |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of net sales attributable to hardlines, apparel and footwear | The following table disaggregates the amount of net sales attributable to hardlines, apparel and footwear for the periods presented (in thousands): Fiscal Year 2018 2017 2016 Hardlines (1) $ 3,632,147 $ 3,886,993 $ 3,573,562 Apparel 2,962,347 2,920,345 2,756,099 Footwear 1,719,456 1,694,590 1,529,381 Other (2) 122,620 88,544 62,939 Total net sales $ 8,436,570 $ 8,590,472 $ 7,921,981 (1) Includes items such as sporting goods equipment, fitness equipment, golf equipment and hunting and fishing gear. (2) Includes the Company's non-merchandise sales categories, including in-store services, shipping revenues and credit card processing revenues. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial information | Summarized quarterly financial information for fiscal 2018 and 2017 is as follows (in thousands, except earnings per share data): Fiscal 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,909,719 $ 2,177,488 $ 1,857,273 $ 2,492,090 Gross profit (1) 560,369 659,281 523,554 694,579 Income from operations (1) 87,332 162,527 52,866 142,009 Net income 60,085 119,397 37,827 102,555 Earnings per common share: Basic (1) $ 0.59 $ 1.21 $ 0.39 $ 1.09 Diluted (1) $ 0.59 $ 1.20 $ 0.39 $ 1.07 Weighted average common shares outstanding: Basic 101,384 98,716 96,677 94,193 Diluted 102,153 99,591 97,890 95,490 Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 1,825,252 $ 2,156,911 $ 1,944,187 $ 2,664,122 Gross profit 541,865 637,222 534,120 775,853 Income from operations 90,068 159,190 50,001 178,315 Net income (1) 58,195 (2) 112,385 (3) 36,913 (4) 115,951 (5) Earnings per common share: Basic (1) $ 0.53 $ 1.04 $ 0.35 $ 1.11 Diluted $ 0.52 $ 1.03 $ 0.35 $ 1.11 Weighted average common shares outstanding: Basic 110,441 108,175 105,466 104,052 Diluted 111,406 108,679 105,814 104,669 (1) Quarterly results for fiscal year do not add to full year results due to rounding. (2) Included TSA conversion costs of $2.2 million . (3) Included receipt of a contract termination payment totaling $12.0 million and charges attributable to a corporate restructuring of $4.4 million . (4) Included receipt of a multi-year sales tax refund totaling $5.0 million . (5) Included transition costs to enhance the Company's Scorecard loyalty program of $7.2 million and costs for a litigation contingency of $4.2 million . The fourth quarter of fiscal 2017 represents a 14 week period, as fiscal 2017 included 53 weeks . |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 03, 2018USD ($) | Feb. 02, 2019USD ($)ReportableSegment | Feb. 03, 2018USD ($)ReportableSegment | Jan. 28, 2017USD ($)ReportableSegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of weeks in fiscal period | 14 weeks | 52 weeks | 53 weeks | 52 weeks |
Cash and Cash Equivalents / Cash Management | ||||
Cash equivalents | $ 21 | $ 33.8 | $ 21 | |
Checks drawn in excess of cash balances not yet presented for payment | 115.2 | 36.4 | 115.2 | |
Accounts Receivable | ||||
Allowance for doubtful acccounts | 3.5 | 3 | 3.5 | |
Inventories | ||||
Inventory valuation and vendor allowances | $ 154.5 | 113.3 | 154.5 | |
Advertising Costs | ||||
Advertising expense net of cooperative advertising | $ 322.2 | $ 330.1 | $ 304.9 | |
Operating Segment Information | ||||
Number of reportable segments | ReportableSegment | 1 | 1 | 1 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Property and Equipment | |||
Depreciation expense | $ 223.2 | $ 214.9 | $ 203.1 |
Buildings | |||
Property and Equipment | |||
Estimated useful life | 40 years | ||
Leasehold improvements | Maximum | |||
Property and Equipment | |||
Estimated useful life | 25 years | ||
Leasehold improvements | Minimum | |||
Property and Equipment | |||
Estimated useful life | 10 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and Equipment | |||
Estimated useful life | 7 years | ||
Furniture, fixtures and equipment | Minimum | |||
Property and Equipment | |||
Estimated useful life | 3 years | ||
Computer software | Maximum | |||
Property and Equipment | |||
Estimated useful life | 10 years | ||
Computer software | Minimum | |||
Property and Equipment | |||
Estimated useful life | 3 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Pronouncements or Change in Accounting Principle (Details) - Accounting Standards Update 2016-02 $ in Millions | Feb. 03, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle | |
Estimated additional lease assets | $ 2,300 |
Estimated additional lease liabilities | $ 2,300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 250,476,000 | $ 250,476,000 | |
Accumulated impairment | 111,312,000 | 111,312,000 | |
Goodwill impairment charges | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Components of intangible assets | ||
Indefinite-lived intangible assets | $ 111,000 | $ 111,000 |
Finite-lived intangible assets | 19,133 | 25,600 |
Total intangible assets | 159,100 | 159,092 |
Accumulated amortization | (28,934) | (22,505) |
Trademarks | ||
Components of intangible assets | ||
Indefinite-lived intangible assets | 89,206 | 89,206 |
Trade names | ||
Components of intangible assets | ||
Indefinite-lived intangible assets | 16,031 | 16,031 |
Customer lists | ||
Components of intangible assets | ||
Gross amount - Finite-lived intangible assets | 21,166 | 21,166 |
Accumulated amortization | (7,774) | (4,922) |
Acquired technology and other finite-lived intangible assets | ||
Components of intangible assets | ||
Gross amount - Finite-lived intangible assets | 26,901 | 26,901 |
Accumulated amortization | (21,160) | (17,583) |
Other indefinite-lived intangible assets | ||
Components of intangible assets | ||
Indefinite-lived intangible assets | $ 5,796 | $ 5,788 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of finite-lived intangible assets | $ 6,400 | $ 6,400 | $ 3,500 |
Estimated Amortization Expense | |||
2019 | 5,514 | ||
2020 | 4,636 | ||
2021 | 4,104 | ||
2022 | 2,898 | ||
2023 | 1,792 | ||
Thereafter | 189 | ||
Total | $ 19,133 | $ 25,600 |
Store Closings (Details)
Store Closings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Store Closings | ||
Accrued store closing and relocation reserves, beginning of period | $ 10,536 | $ 17,531 |
Expense charged to earnings | 3,354 | 1,733 |
Cash payments | (8,795) | (9,522) |
Interest accretion and other changes in assumptions | (540) | 794 |
Accrued store closing and relocation reserves, end of period | 4,555 | 10,536 |
Less: current portion of accrued store closing and relocation reserves | (1,323) | (4,440) |
Long-term portion of accrued store closing and relocation reserves | $ 3,232 | $ 6,096 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Property and Equipment | ||
Total property and equipment | $ 3,499,821 | $ 3,377,952 |
Less: accumulated depreciation and amortization | (1,934,550) | (1,700,612) |
Net property and equipment | 1,565,271 | 1,677,340 |
Buildings and land | ||
Property and Equipment | ||
Total property and equipment | 320,243 | 308,326 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 1,613,663 | 1,587,235 |
Furniture, fixtures and equipment | ||
Property and Equipment | ||
Total property and equipment | 1,172,380 | 1,123,216 |
Computer software | ||
Property and Equipment | ||
Total property and equipment | 393,535 | 359,175 |
Construction in progress | ||
Property and Equipment | ||
Total property and equipment | $ 74,300 | $ 58,200 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll, withholdings and benefits | $ 166,039 | $ 125,426 |
Accrued real estate taxes, utilities and other occupancy | 72,727 | 73,200 |
Accrued property and equipment | 19,094 | 30,303 |
Accrued sales tax | 18,576 | 23,396 |
Other accrued expenses | 87,906 | 101,856 |
Total accrued expenses | $ 364,342 | $ 354,181 |
Deferred Revenue and Other Li_3
Deferred Revenue and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current: | ||
Deferred gift card revenue | $ 156,457 | $ 179,458 |
Other | 68,527 | 32,622 |
Total current | 224,984 | 212,080 |
Long-term: | ||
Deferred rent, including pre-opening rent | 98,808 | 105,998 |
Deferred construction allowances | 505,767 | 547,612 |
Other | 107,217 | 113,498 |
Total long-term | $ 711,792 | $ 767,108 |
Debt (Details)
Debt (Details) - USD ($) | Aug. 09, 2017 | Feb. 02, 2019 | Feb. 03, 2018 |
Debt | |||
Total debt | $ 60,044,000 | $ 65,286,000 | |
Less: current portion | (5,263,000) | (5,202,000) | |
Total long-term debt | 54,781,000 | 60,084,000 | |
Base rate | |||
Debt | |||
Variable rate basis | Base rate | ||
Base rate | Minimum | |||
Debt | |||
Interest rate margin (as a percent) | 0.125% | ||
Base rate | Maximum | |||
Debt | |||
Interest rate margin (as a percent) | 0.375% | ||
Adjusted LIBOR rate | |||
Debt | |||
Variable rate basis | Adjusted LIBOR rate | ||
Adjusted LIBOR rate | Minimum | |||
Debt | |||
Interest rate margin (as a percent) | 1.125% | ||
Adjusted LIBOR rate | Maximum | |||
Debt | |||
Interest rate margin (as a percent) | 1.375% | ||
Revolving Credit Facility | |||
Debt | |||
Total debt | 0 | 0 | |
Term of Credit Facility | 5 years | ||
Credit Facility borrowing capacity | $ 1,250,000,000 | ||
Adjusted availability of borrowing base (as a percent) | 7.50% | ||
Borrowings under Credit Facility | 0 | 0 | |
Total borrowing capacity | 1,233,869,000 | 1,233,869,000 | |
Revolving Credit Facility | Maximum | |||
Debt | |||
Credit Facility borrowing capacity extension | $ 350,000,000 | ||
Term loan | |||
Debt | |||
Total debt | 56,085,000 | 60,608,000 | |
Letters of credit | |||
Debt | |||
Letters of credit maximum | $ 150,000,000 | ||
Letters of credit outstanding | 16,131,000 | 16,131,000 | |
Capital lease obligation | |||
Debt | |||
Total debt | 3,941,000 | 4,570,000 | |
Other debt | |||
Debt | |||
Total debt | $ 18,000 | $ 108,000 |
Debt - Capital Lease Obligation
Debt - Capital Lease Obligations (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Capital Lease Obligations | ||
Gross carrying value | $ 6,900 | $ 6,900 |
Net carrying value | $ 200 | 300 |
Scheduled lease payments under capital lease obligations | ||
2019 | 1,103 | |
2020 | 1,103 | |
2021 | 943 | |
2022 | 863 | |
2023 | 863 | |
Thereafter | 216 | |
Subtotal | 5,091 | |
Less: amounts representing interest | (1,150) | |
Present value of net scheduled lease payments | 3,941 | |
Less: amounts due in one year | (722) | |
Total long-term capital leases | $ 3,219 |
Debt - Term Loan (Details)
Debt - Term Loan (Details) - BOA Loan $ in Millions | Aug. 18, 2017USD ($) |
Debt | |
Fixed interest rate | 3.41% |
Balloon payment | $ 29.3 |
Prepayment fee first year | 1.00% |
Prepayment fee second year | 0.50% |
Prepayment fee after second year | 0.00% |
Annual maturities | $ 4.5 |
Operating Leases (Details)
Operating Leases (Details) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($)DistributionCenter | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Operating leases | |||
Number of distribution centers leased | DistributionCenter | 3 | ||
Additional renewal period | 5 years | ||
Rent expense under operating leases | $ 530,900 | $ 532,700 | $ 501,900 |
Scheduled lease payments due under non-cancelable operating leases | |||
2019 | 655,516 | ||
2020 | 619,189 | ||
2021 | 558,633 | ||
2022 | 475,830 | ||
2023 | 392,826 | ||
Thereafter | 1,033,034 | ||
Total | $ 3,735,028 | ||
Minimum | |||
Operating leases | |||
Initial tenure of operating leases | 10 years | ||
Maximum | |||
Operating leases | |||
Initial tenure of operating leases | 15 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Mar. 16, 2016USD ($) | Feb. 02, 2019USD ($)item$ / sharesshares | Feb. 03, 2018USD ($)item$ / sharesshares | Jan. 28, 2017USD ($)$ / shares |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 | ||
Treasury Stock | ||||
Period over which shares may be purchased under share repurchase program (in years) | 5 years | |||
Authorized aggregate repurchases of common stock | $ | $ 1,000,000 | |||
Repurchase of common stock (in shares) | 9,600,000 | 8,100,000 | ||
Repurchase of common stock | $ | $ 323,352 | $ 284,583 | $ 145,738 | |
Repurchase of common stock, remaining authorization | $ | $ 433,400 | |||
Common Stock | ||||
Common stock, authorized shares | 200,000,000 | 200,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Voting rights per common share | item | 1 | 1 | ||
Dividends per Common Share | ||||
Cash dividends paid (in dollars per share) | $ / shares | $ 0.900 | $ 0.680 | $ 0.605 | |
Class B Common Stock | ||||
Common stock, authorized shares | 40,000,000 | 40,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Voting rights per common share | item | 10 | 10 | ||
Number of shares of common stock to be received for each share of Class B common stock converted | 1 | 1 | ||
Dividends per Common Share | ||||
Cash dividends paid (in dollars per share) | $ / shares | $ 0.90 | $ 0.680 | $ 0.605 |
Stock-Based Compensation and _3
Stock-Based Compensation and Employee Stock Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Stock-based compensation expense | ||||
Number of shares available for future issuance under the plan | 6,089,337 | |||
Total stock-based compensation expense | $ 41,941 | $ 36,239 | $ 33,602 | |
Total related tax benefit | 9,104 | 12,130 | 11,718 | |
Stock options | ||||
Stock-based compensation expense | ||||
Stock-based compensation expense | $ 7,147 | $ 8,686 | $ 9,506 | |
Vesting rights (as a percent) | 25.00% | |||
Vesting period | 4 years | |||
Weighted average assumptions used to estimate the fair value of stock-based awards to employees | ||||
Expected life | 5 years 2 months 11 days | 5 years 5 months 20 days | 5 years 4 months 25 days | |
Expected volatility, minimum (as a percent) | 33.15% | 29.24% | 29.20% | |
Expected volatility, maximum (as a percent) | 37.41% | 33.86% | 31.93% | |
Weighted average volatility (as a percent) | 34.61% | 30.52% | 31.01% | |
Risk-free interest rate, minimum (as a percent) | 2.55% | 1.70% | 1.07% | |
Risk-free interest rate, maximum (as a percent) | 3.04% | 2.25% | 1.90% | |
Weighted average grant date fair value (in dollars per share) | $ 9.02 | $ 11.98 | $ 12.56 | |
Shares Subject to Options | ||||
Outstanding at the beginning of the period (in shares) | 3,129,949 | 3,561,085 | 3,974,512 | |
Granted (in shares) | 881,334 | 786,246 | 1,143,326 | |
Exercised (in shares) | (582,022) | (1,348,241) | ||
Forfeited / Expired (in shares) | (880,856) | (635,360) | (208,512) | |
Outstanding at the end of the period (in shares) | 3,130,427 | 3,129,949 | 3,561,085 | 3,974,512 |
Exercisable at the end of the period (in shares) | 1,511,580 | |||
Vested and expected to vest at the end of the period (in shares) | 2,917,529 | |||
Weighted Average Exercise Price per Share | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 48.97 | $ 46.71 | $ 38.29 | |
Granted (in dollars per share) | 34.18 | 45.28 | 47.79 | |
Exercised (in dollars per share) | 28.43 | 22.28 | ||
Forfeited / Expired (in dollars per share) | 45.96 | 50.60 | 50.01 | |
Outstanding at the end of the period (in dollars per share) | 45.65 | $ 48.97 | $ 46.71 | $ 38.29 |
Exercisable at the end of the period (in dollars per share) | 50.53 | |||
Vested and expected to vest at the end of the period (in dollars per share) | $ 46.22 | |||
Weighted Average Remaining Contractual Life (in years) | ||||
Weighted Average Remaining Contractual Life | 4 years 25 days | 4 years 28 days | 3 years 10 months 17 days | 2 years 11 months 9 days |
Exercisable at the end of the period | 2 years 7 months 25 days | |||
Vested and expected to vest at the end of the period | 3 years 11 months 11 days | |||
Aggregate Intrinsic Value | ||||
Outstanding at the beginning of the period (in dollars) | $ 389 | $ 22,638 | $ 51,930 | |
Outstanding at the end of the period (in dollars) | 1,783 | 389 | 22,638 | $ 51,930 |
Exercisable at the end of the period (in dollars) | 184 | |||
Vested and expected to vest at the end of the period (in dollars) | 1,486 | |||
Additional disclosures | ||||
Total intrinsic value of stock options exercised | 10,700 | 36,400 | ||
Total fair value of options vested | $ 8,100 | $ 9,600 | $ 8,400 | |
Nonvested stock option activity | ||||
Nonvested at the beginning of the period (in shares) | 1,650,991 | |||
Granted (in shares) | 881,334 | 786,246 | 1,143,326 | |
Vested (in shares) | (572,972) | |||
Forfeited (in shares) | (340,506) | |||
Nonvested at the end of the period (in shares) | 1,618,847 | 1,650,991 | ||
Weighted Average Grant Date Fair Value, Nonvested stock option activity | ||||
Nonvested at the beginning of the period (in dollars per share) | $ 13.29 | |||
Granted (in dollars per share) | 9.02 | $ 11.98 | $ 12.56 | |
Vested (in dollars per share) | 14.13 | |||
Forfeited (in dollars per share) | 11.29 | |||
Nonvested at the end of the period (in dollars per share) | $ 11.09 | $ 13.29 | ||
Unrecognized compensation expense | ||||
Unrecognized stock-based compensation expense related to nonvested awards, net of estimated forfeitures | $ 10,400 | |||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 2 years 4 months 30 days | |||
Stock options | Minimum | ||||
Weighted average assumptions used to estimate the fair value of stock-based awards to employees | ||||
Expected dividend yield (as a percent) | 2.40% | 1.30% | 1.03% | |
Stock options | Maximum | ||||
Stock-based compensation expense | ||||
Expiration terms of options | 7 years | |||
Weighted average assumptions used to estimate the fair value of stock-based awards to employees | ||||
Expected dividend yield (as a percent) | 2.82% | 2.78% | 1.59% | |
Restricted stock | ||||
Stock-based compensation expense | ||||
Stock-based compensation expense | $ 34,794 | $ 27,553 | $ 24,096 | |
Vesting period | 3 years | |||
Unrecognized compensation expense | ||||
Unrecognized stock-based compensation expense related to nonvested awards, net of estimated forfeitures | $ 47,600 | |||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 5 months 20 days |
Stock-Based Compensation and _4
Stock-Based Compensation and Employee Stock Plans - Stock Options Outstanding and Exercisable by Range of Exercise Prices (Details) | 12 Months Ended |
Feb. 02, 2019$ / sharesshares | |
$24.48 to $34.05 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of range (in dollars per share) | $ 24.48 |
Exercise price per share, high end of range (in dollars per share) | $ 34.05 |
Options Outstanding | |
Options Outstanding (in shares) | shares | 830,465 |
Weighted Average Remaining Contractual Life (in years) | 6 years 2 months 5 days |
Weighted Average Exercise Price (in dollars per share) | $ 33.10 |
Options Exercisable | |
Options Exercisable (in shares) | shares | 26,660 |
Weighted Average Exercise Price (in dollars per share) | $ 28.35 |
$35.22 to $47.09 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of range (in dollars per share) | 35.22 |
Exercise price per share, high end of range (in dollars per share) | $ 47.09 |
Options Outstanding | |
Options Outstanding (in shares) | shares | 945,577 |
Weighted Average Remaining Contractual Life (in years) | 3 years 4 months 29 days |
Weighted Average Exercise Price (in dollars per share) | $ 46.07 |
Options Exercisable | |
Options Exercisable (in shares) | shares | 589,971 |
Weighted Average Exercise Price (in dollars per share) | $ 46.49 |
$47.73 to $55.29 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of range (in dollars per share) | 47.73 |
Exercise price per share, high end of range (in dollars per share) | $ 55.29 |
Options Outstanding | |
Options Outstanding (in shares) | shares | 932,936 |
Weighted Average Remaining Contractual Life (in years) | 3 years 3 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $ 50.62 |
Options Exercisable | |
Options Exercisable (in shares) | shares | 583,454 |
Weighted Average Exercise Price (in dollars per share) | $ 51.41 |
$55.49 to $58.86 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of range (in dollars per share) | 55.49 |
Exercise price per share, high end of range (in dollars per share) | $ 58.86 |
Options Outstanding | |
Options Outstanding (in shares) | shares | 421,449 |
Weighted Average Remaining Contractual Life (in years) | 3 years 2 months 23 days |
Weighted Average Exercise Price (in dollars per share) | $ 58.44 |
Options Exercisable | |
Options Exercisable (in shares) | shares | 311,495 |
Weighted Average Exercise Price (in dollars per share) | $ 58.41 |
$24.48 to $58.86 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of range (in dollars per share) | 24.48 |
Exercise price per share, high end of range (in dollars per share) | $ 58.86 |
Options Outstanding | |
Options Outstanding (in shares) | shares | 3,130,427 |
Weighted Average Remaining Contractual Life (in years) | 4 years 25 days |
Weighted Average Exercise Price (in dollars per share) | $ 45.65 |
Options Exercisable | |
Options Exercisable (in shares) | shares | 1,511,580 |
Weighted Average Exercise Price (in dollars per share) | $ 50.53 |
Stock-Based Compensation and _5
Stock-Based Compensation and Employee Stock Plans - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 01, 2014 | |
Restricted Stock | ||||
Stock-Based Compensation and Employee Stock Plans | ||||
Vesting period | 3 years | |||
Restricted stock activity | ||||
Nonvested at the beginning of the period (in shares) | 3,604,237 | 2,360,040 | 2,204,980 | |
Granted (in shares) | 1,616,600 | 2,228,573 | 789,460 | |
Vested (in shares) | (549,293) | (359,956) | (438,160) | |
Forfeited (in shares) | (1,213,927) | (624,420) | (196,240) | |
Nonvested at the end of the period (in shares) | 3,457,617 | 3,604,237 | 2,360,040 | |
Weighted Average Grant Date Fair Value | ||||
Nonvested at beginning of the period (in dollars per share) | $ 44.84 | $ 50.64 | $ 50.97 | |
Granted (in dollars per share) | 33.96 | 41.47 | 47.89 | |
Vested (in dollars per share) | 49.88 | 54.13 | 47.05 | |
Forfeited (in dollars per share) | 45.05 | 49.38 | 51.23 | |
Nonvested at the end of the period (in dollars per share) | $ 38.88 | $ 44.84 | $ 50.64 | |
Unrecognized compensation expense | ||||
Unrecognized stock-based compensation expense related to nonvested awards, net of estimated forfeitures | $ 47.6 | |||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 5 months 20 days | |||
Performance Shares 2013 Plan | ||||
Restricted stock activity | ||||
Granted (in shares) | 1,185,793 | |||
Performance Shares 2017 Plan | ||||
Restricted stock activity | ||||
Granted (in shares) | 674,209 | |||
Nonvested at the end of the period (in shares) | 383,807 | |||
Expected number of outstanding nonvested restricted stock that will vest on specified date | 63,712 |
Income Taxes - Tax Cuts and Job
Income Taxes - Tax Cuts and Jobs Act (Details) $ in Millions | 12 Months Ended |
Feb. 03, 2018USD ($) | |
Income Taxes Tax Cuts and Jobs Act [Abstract] | |
Transition tax on accumulated undistributed foreign earnings | $ 6 |
Net deferred tax liability remeasurement | 5.3 |
Long-term portion of income taxes payable | $ 5.2 |
Income Taxes - Components of th
Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||
Federal | $ 94,729 | $ 114,443 | $ 184,636 |
State | 22,585 | 20,996 | 31,426 |
Total | 117,314 | 135,439 | 216,062 |
Deferred: | |||
Federal | (3,943) | 38,805 | (38,138) |
State | (1,315) | 3,648 | (6,898) |
Total | (5,258) | 42,453 | (45,036) |
Total provision | $ 112,056 | $ 177,892 | $ 171,026 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of the federal statutory income tax rate to the effective income tax rate | |||
Federal statutory rate (as a percent) | 21.00% | 33.70% | 35.00% |
State tax, net of federal benefit (as a percent) | 3.80% | 3.30% | 3.30% |
Valuation allowance (as a percent) | 0.00% | (0.80%) | (0.10%) |
Other permanent items (as a percent) | 1.10% | (0.70%) | (0.90%) |
Effective income tax rate (as a percent) | 25.90% | 35.50% | 37.30% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets / Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets | ||
Inventory | $ 35,487 | $ 35,613 |
Employee benefits | 33,591 | 32,909 |
Deferred rent | 27,648 | 29,710 |
Stock-based compensation | 19,005 | 18,315 |
Gift cards | 14,458 | 13,006 |
Deferred revenue currently taxable | 7,263 | 7,801 |
Store closing expense | 1,178 | 2,739 |
Other accrued expenses not currently deductible for tax purposes | 5,895 | 4,590 |
Net operating loss carryforward | 2,056 | 3,031 |
Non income-based tax reserves | 5,464 | 5,518 |
Capital loss carryforward | 922 | 910 |
Uncertain income tax positions | 1,218 | 2,152 |
Insurance | 2,298 | 2,060 |
Other | 120 | 78 |
Valuation allowance | 0 | 0 |
Total deferred tax assets | 156,603 | 158,432 |
Deferred tax liabilities | ||
Property and equipment | (115,726) | (117,925) |
Inventory valuation | (26,871) | (28,430) |
Intangibles | (5,068) | (4,844) |
Prepaid expenses | (3,723) | (3,826) |
Other | (3,748) | 0 |
Total deferred tax liabilities | (155,136) | (155,025) |
Net deferred tax asset | 1,467 | 3,407 |
Net deferred tax assets recorded within other long-term assets | 13,243 | 13,639 |
Net deferred tax liabilities recorded within other long-term liabilities | 11,776 | 10,232 |
Undistributed earnings of foreign subsidiaries | $ 66,600 | |
Federal | ||
Operating loss carryforwards | ||
Operating loss carryforwards | 6,700 | |
State | ||
Operating loss carryforwards | ||
Operating loss carryforwards | $ 10,600 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Total liability for uncertain tax positions, including related interest and penalties | $ 5,800 | ||
Reconciliation of the Company's total unrecognized tax benefits balances, excluding interest and penalties | |||
Beginning of fiscal year | 8,047 | $ 8,293 | $ 9,784 |
Increases as a result of tax positions taken in a prior period | 456 | 124 | 0 |
Decreases as a result of tax positions taken in a prior period | (411) | (142) | (831) |
Increases as a result of tax positions taken in the current period | 0 | 0 | 2,067 |
Decreases as a result of settlements during the current period | (2,977) | (228) | (2,534) |
Reductions as a result of a lapse of statute of limitations during the current period | (797) | 0 | (193) |
End of fiscal year | 4,318 | 8,047 | 8,293 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 3,400 | ||
Accrued interest and penalties associated with uncertain tax positions | 1,500 | ||
Accrual of interest and penalties related to uncertain tax positions | 300 | $ 400 | $ 300 |
Unrecognized tax benefits that could be recognized within the next 12 months | $ 3,100 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Earnings per common share - Basic: | |||||||||||
Net income | $ 102,555 | $ 37,827 | $ 119,397 | $ 60,085 | $ 115,951 | $ 36,913 | $ 112,385 | $ 58,195 | $ 319,864 | $ 323,445 | $ 287,396 |
Weighted average common shares outstanding - basic | 94,193 | 96,677 | 98,716 | 101,384 | 104,052 | 105,466 | 108,175 | 110,441 | 97,743 | 106,977 | 111,095 |
Earnings per common share (in dollars per share) - basic | $ 1.09 | $ 0.39 | $ 1.21 | $ 0.59 | $ 1.11 | $ 0.35 | $ 1.04 | $ 0.53 | $ 3.27 | $ 3.02 | $ 2.59 |
Earnings per common share - Diluted: | |||||||||||
Net income | $ 102,555 | $ 37,827 | $ 119,397 | $ 60,085 | $ 115,951 | $ 36,913 | $ 112,385 | $ 58,195 | $ 319,864 | $ 323,445 | $ 287,396 |
Weighted average common shares outstanding - basic | 94,193 | 96,677 | 98,716 | 101,384 | 104,052 | 105,466 | 108,175 | 110,441 | 97,743 | 106,977 | 111,095 |
Dilutive effect of stock-based awards (in shares) | 1,038 | 609 | 1,121 | ||||||||
Weighted average common shares outstanding - diluted | 95,490 | 97,890 | 99,591 | 102,153 | 104,669 | 105,814 | 108,679 | 111,406 | 98,781 | 107,586 | 112,216 |
Earnings per common share (in dollars per share) - diluted | $ 1.07 | $ 0.39 | $ 1.20 | $ 0.59 | $ 1.11 | $ 0.35 | $ 1.03 | $ 0.52 | $ 3.24 | $ 3.01 | $ 2.56 |
Anti-dilutive stock-based awards excluded from diluted calculation (in shares) | 3,519 | 3,693 | 1,822 |
Retirement Savings Plans (Detai
Retirement Savings Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Retirement savings plan | |||
Minimum employee age required to participate in the plan | 21 years | ||
Percentage of the participant's compensation for which a discretionary matching contribution may be made by the Company | 10.00% | ||
Company's discretionary matching contribution percentage | 50.00% | ||
Total expense recorded under the plan, net of forfeitures | $ 9.8 | $ 8.3 | $ 8.7 |
Deferred compensation plans | |||
Liability for compensation deferred under the Company's plans | 77.3 | 78.9 | |
Total employer contributions recorded under the plans, net of forfeitures | $ 2.1 | $ 2.1 | $ 2.2 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Trademark licensing royalties | |||
Aggregate payments for trademark licensing royalties | $ 12,100 | $ 9,600 | $ 8,800 |
2019 | 10,033 | ||
2020 | 5,213 | ||
2021 | 2,208 | ||
2022 | 1,250 | ||
Total | 18,704 | ||
Marketing and naming rights commitments | |||
Payments for marketing, naming rights and other commitments | |||
Aggregate payments for marketing, naming rights and other commitments | 18,000 | 33,300 | 39,300 |
2019 | 14,192 | ||
2020 | 12,250 | ||
2021 | 9,792 | ||
2022 | 4,054 | ||
2023 | 2,888 | ||
Thereafter | 9,196 | ||
Total | 52,372 | ||
Other commitments | |||
Payments for marketing, naming rights and other commitments | |||
Aggregate payments for marketing, naming rights and other commitments | 48,500 | $ 37,700 | $ 17,900 |
2019 | 38,637 | ||
2020 | 4,895 | ||
2021 | 3,750 | ||
Total | $ 47,282 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Level 1 - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Fair Value Measurements | ||
Deferred compensation plan assets held in trust | $ 77,324 | $ 78,894 |
Total assets | $ 77,324 | $ 78,894 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) $ in Thousands | Aug. 18, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Related Party Transaction | ||||
Capital expenditures | $ 198,219 | $ 474,347 | $ 421,920 | |
Asset Acquisition | ||||
Related Party Transaction | ||||
Principal payment reimbursement | $ 62,800 | |||
Asset Acquisition | ||||
Related Party Transaction | ||||
Capital expenditures | $ 4,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 04, 2018 | Feb. 03, 2018 | |
Revenue Recognition | |||
Deferred revenue and other liabilities | $ 224,984 | $ 212,080 | |
Deferred gift card revenue contract liability | 156,457 | 179,458 | |
Customer loyalty program contract liability | 32,400 | $ 29,900 | |
Customer loyalty redemption revenue | |||
Revenue Recognition | |||
Revenue recognized from contract liability at beginning of period | $ 27,500 | ||
Expected timing of performance obligation satisfaction | 1 year | ||
Gift card breakage revenue | |||
Revenue Recognition | |||
Revenue recognized from contract liability at beginning of period | $ 13,600 | ||
Gift card redemption revenue | |||
Revenue Recognition | |||
Revenue recognized from contract liability at beginning of period | $ 81,900 | ||
Expected timing of performance obligation satisfaction | 1 year | ||
Accounting standards update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue Recognition | |||
Deferred revenue and other liabilities | $ (27,700) | ||
Cumulative effect of new accounting principle in period of adoption | $ 20,500 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Nature of Revenue | |||||||||||
Total net sales | $ 2,492,090 | $ 1,857,273 | $ 2,177,488 | $ 1,909,719 | $ 2,664,122 | $ 1,944,187 | $ 2,156,911 | $ 1,825,252 | $ 8,436,570 | $ 8,590,472 | $ 7,921,981 |
Hardlines | |||||||||||
Nature of Revenue | |||||||||||
Total net sales | 3,632,147 | 3,886,993 | 3,573,562 | ||||||||
Apparel | |||||||||||
Nature of Revenue | |||||||||||
Total net sales | 2,962,347 | 2,920,345 | 2,756,099 | ||||||||
Footwear | |||||||||||
Nature of Revenue | |||||||||||
Total net sales | 1,719,456 | 1,694,590 | 1,529,381 | ||||||||
Other | |||||||||||
Nature of Revenue | |||||||||||
Total net sales | $ 122,620 | $ 88,544 | $ 62,939 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,492,090 | $ 1,857,273 | $ 2,177,488 | $ 1,909,719 | $ 2,664,122 | $ 1,944,187 | $ 2,156,911 | $ 1,825,252 | $ 8,436,570 | $ 8,590,472 | $ 7,921,981 |
Gross profit | 694,579 | 523,554 | 659,281 | 560,369 | 775,853 | 534,120 | 637,222 | 541,865 | 2,437,782 | 2,489,060 | 2,365,783 |
Income from operations | 142,009 | 52,866 | 162,527 | 87,332 | 178,315 | 50,001 | 159,190 | 90,068 | 444,733 | 477,574 | 449,854 |
Net income | $ 102,555 | $ 37,827 | $ 119,397 | $ 60,085 | $ 115,951 | $ 36,913 | $ 112,385 | $ 58,195 | $ 319,864 | $ 323,445 | $ 287,396 |
Earnings per common share: | |||||||||||
Basic (in dollars per share) | $ 1.09 | $ 0.39 | $ 1.21 | $ 0.59 | $ 1.11 | $ 0.35 | $ 1.04 | $ 0.53 | $ 3.27 | $ 3.02 | $ 2.59 |
Diluted (in dollars per share) | $ 1.07 | $ 0.39 | $ 1.20 | $ 0.59 | $ 1.11 | $ 0.35 | $ 1.03 | $ 0.52 | $ 3.24 | $ 3.01 | $ 2.56 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 94,193 | 96,677 | 98,716 | 101,384 | 104,052 | 105,466 | 108,175 | 110,441 | 97,743 | 106,977 | 111,095 |
Diluted (in shares) | 95,490 | 97,890 | 99,591 | 102,153 | 104,669 | 105,814 | 108,679 | 111,406 | 98,781 | 107,586 | 112,216 |
Conversion costs, net of tax | $ 2,200 | ||||||||||
Contract termination payment, net of tax | $ 12,000 | ||||||||||
Corporate restructuring charges, net of tax | $ 4,400 | ||||||||||
Multi-year sales tax refund, net of tax | $ 5,000 | ||||||||||
Customer loyalty program enhancement costs, net of tax | $ 7,200 | ||||||||||
Number of weeks in fiscal period | 14 weeks | 52 weeks | 53 weeks | 52 weeks | |||||||
Litigation contingency, net of tax | $ 4,200 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Feb. 22, 2019$ / shares |
Common Stock | |
Subsequent Event | |
Dividend amount (in dollars per share) | $ 0.275 |
Class B Common Stock | |
Subsequent Event | |
Dividend amount (in dollars per share) | $ 0.275 |
SCHEDULE II VALUATION AND QUA_2
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Inventory reserve | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | $ 49,801 | $ 87,802 | $ 36,622 |
Charged to costs and expenses | 8,281 | 20,722 | 57,692 |
Deductions | (14,042) | (58,723) | (6,512) |
Balance at end of period | 44,040 | 49,801 | 87,802 |
Allowance for doubtful accounts | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 3,488 | 3,152 | 2,727 |
Charged to costs and expenses | 4,721 | 5,092 | 4,834 |
Deductions | (5,246) | (4,756) | (4,409) |
Balance at end of period | 2,963 | 3,488 | 3,152 |
Reserve for sales returns | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 10,411 | 8,200 | 7,754 |
Charged to costs and expenses | 476,692 | 489,607 | 449,666 |
Deductions | (476,528) | (487,396) | (449,220) |
Balance at end of period | 10,575 | 10,411 | 8,200 |
Allowance for deferred tax assets | |||
Valuation and qualifying accounts | |||
Balance at beginning of period | 0 | 4,717 | 5,304 |
Charged to costs and expenses | 0 | 0 | 0 |
Deductions | 0 | (4,717) | (587) |
Balance at end of period | $ 0 | $ 0 | $ 4,717 |