DICK'S Sporting Goods (DKS) 10-Q 30 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 04, 2019	May 24, 2019
Entity Registrant Name	DICKS SPORTING GOODS INC
Entity Central Index Key	0001089063
Current Fiscal Year End Date	--02-01
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	May 4, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Current Reporting Status	Yes
Common Stock
Entity Common Stock, Shares Outstanding		67,534,311
Class B Common Stock
Entity Common Stock, Shares Outstanding		24,491,123

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
Income Statement [Abstract]
Net sales	$ 1,920,677	$ 1,909,719
Cost of goods sold, including occupancy and distribution costs	1,356,868	1,349,350
GROSS PROFIT	563,809	560,369
Selling, general and administrative expenses	487,158	470,328
Pre-opening expenses	578	2,709
INCOME FROM OPERATIONS	76,073	87,332
Interest expense	3,081	2,656
Other (income) expense	(6,738)	886
INCOME BEFORE INCOME TAXES	79,730	83,790
Provision for income taxes	22,205	23,705
NET INCOME	$ 57,525	$ 60,085
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.62	$ 0.59
Diluted (in dollars per share)	$ 0.61	$ 0.59
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	92,887	101,384
Diluted (in shares)	94,388	102,153

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 57,525	$ 60,085
OTHER COMPREHENSIVE LOSS:
Foreign currency translation adjustment, net of tax	(19)	(22)
TOTAL OTHER COMPREHENSIVE LOSS	(19)	(22)
COMPREHENSIVE INCOME	$ 57,506	$ 60,063

CONSOLIDATED BALANCE SHEETS - U

CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	May 04, 2019	Feb. 02, 2019	May 05, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 92,423	$ 113,653	$ 104,599
Accounts receivable, net	52,382	37,970	67,225
Income taxes receivable	4,435	6,135	4,018
Inventories, net	2,142,022	1,824,696	1,842,897
Prepaid expenses and other current assets	148,442	139,944	144,827
Total current assets	2,439,704	2,122,398	2,163,566
Property and equipment, net	1,478,910	1,565,271	1,644,388
Operating lease assets	2,484,660	0	0
Intangible assets, net	128,563	130,166	134,979
Goodwill	250,476	250,476	250,476
Other assets:
Deferred income taxes	12,858	13,243	11,842
Other	116,823	105,595	114,163
Total other assets	129,681	118,838	126,005
TOTAL ASSETS	6,911,994	4,187,149	4,319,414
CURRENT LIABILITIES:
Accounts payable	932,055	889,908	791,646
Accrued expenses	320,603	364,342	302,985
Operating lease liabilities	367,768	0	0
Income taxes payable	38,772	20,142	29,698
Deferred revenue and other liabilities	196,190	230,247	188,226
Total current liabilities	1,855,388	1,504,639	1,312,555
LONG-TERM LIABILITIES:
Revolving credit borrowings	369,500	0	280,100
Long-term operating lease liabilities	2,683,561	0	0
Deferred income taxes	8,073	11,776	17,190
Other long-term liabilities	169,437	766,573	811,359
Total long-term liabilities	3,230,571	778,349	1,108,649
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,220,543	1,214,287	1,185,522
Retained earnings	2,478,129	2,455,192	2,262,552
Accumulated other comprehensive loss	(139)	(120)	(100)
Treasury stock, at cost	(1,873,411)	(1,766,136)	(1,550,764)
Total stockholders' equity	1,826,035	1,904,161	1,898,210
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	6,911,994	4,187,149	4,319,414
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	668	693	754
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock	$ 245	$ 245	$ 246

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - 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 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					$ 1	$ (1)
Exchange of Class B common stock for common stock (in shares)						119,912	(119,912)
Restricted stock vested	0	(4)				$ 4
Restricted stock vested (in shares)						399,604
Minimum tax withholding requirements	(3,919)	(3,918)				$ (1)
Minimum tax withholding requirements (in shares)						(118,707)
Net income	60,085		60,085
Stock-based compensation	11,666	11,666
Foreign currency translation adjustment, net of taxes of $6 and $7 for the quarters ended May 4, 2019 and May 5, 2018, respectively	(22)			(22)
Purchase of shares for treasury	(107,917)				(107,884)	$ (33)
Purchase of shares for treasury (in shares)						(3,338,000)
Cash dividends declared per common share of $0.275 and $0.225 for the quarters ended May 4, 2019 and May 5, 2018, respectively	(23,672)		(23,672)
BALANCE at May. 05, 2018	1,898,210	1,185,522	2,262,552	(100)	(1,550,764)	$ 754	$ 246
BALANCE (in shares) at May. 05, 2018						75,380,707	24,590,958
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
Increase (Decrease) in Stockholders' Equity
Adjustment for cumulative effect from change in accounting principle | ASU 2016-02	(7,953)		(7,953)
Exchange of Class B common stock for common stock	0					$ 0	$ 0
Exchange of Class B common stock for common stock (in shares)						50,000	(50,000)
Exercise of stock options	213	213				$ 0
Exercise of stock options (in shares)						6,388
Restricted stock vested	0	(6)				$ 6
Restricted stock vested (in shares)						520,095
Minimum tax withholding requirements	(5,859)	(5,858)				$ (1)
Minimum tax withholding requirements (in shares)						(158,021)
Net income	57,525		57,525
Stock-based compensation	11,907	11,907
Foreign currency translation adjustment, net of taxes of $6 and $7 for the quarters ended May 4, 2019 and May 5, 2018, respectively	(19)			(19)
Purchase of shares for treasury	(107,305)				(107,275)	$ (30)
Purchase of shares for treasury (in shares)						(2,968,198)
Cash dividends declared per common share of $0.275 and $0.225 for the quarters ended May 4, 2019 and May 5, 2018, respectively	(26,635)		(26,635)
BALANCE at May. 04, 2019	$ 1,826,035	$ 1,220,543	$ 2,478,129	$ (139)	$ (1,873,411)	$ 668	$ 245
BALANCE (in shares) at May. 04, 2019						66,755,138	24,491,123

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustment, taxes	$ 6	$ 7
Cash dividends declared per share (in dollars per share)	$ 0.275	$ 0.225

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 57,525	$ 60,085
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, amortization, and other	66,024	56,666
Deferred income taxes	(720)	1,557
Stock-based compensation	11,907	11,666
Changes in assets and liabilities:
Accounts receivable	(15,433)	(2,463)
Inventories	(317,326)	(112,332)
Prepaid expenses and other assets	(7,983)	(4,815)
Accounts payable	22,531	19,958
Accrued expenses	(43,100)	(39,322)
Income taxes payable / receivable	20,330	19,637
Deferred construction allowances	16,387	5,734
Deferred revenue and other liabilities	(32,294)	(35,470)
Net cash used in operating activities	(222,152)	(19,099)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(46,882)	(49,349)
Net cash used in investing activities	(46,882)	(49,349)
CASH FLOWS FROM FINANCING ACTIVITIES:
Revolving credit borrowings	635,300	692,800
Revolving credit repayments	(265,800)	(412,700)
Payments on other long-term debt and finance lease obligations	(1,330)	(1,333)
Construction allowance receipts	0	0
Proceeds from exercise of stock options	213	0
Minimum tax withholding requirements	(5,859)	(3,919)
Cash paid for treasury stock	(107,305)	(107,917)
Cash dividend paid to stockholders	(27,012)	(23,728)
Increase (decrease) in bank overdraft	19,616	(71,387)
Net cash provided by financing activities	247,823	71,816
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(19)	(22)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(21,230)	3,346
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	113,653	101,253
CASH AND CASH EQUIVALENTS, END OF PERIOD	92,423	104,599
Supplemental disclosure of cash flow information:
Accrued property and equipment	17,520	14,240
Cash paid for interest	2,456	2,045
Cash paid for income taxes	$ 3,219	$ 4,670

Basis of Presentation

Basis of Presentation	3 Months Ended
	May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation 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 our 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. When used in this Quarterly Report on Form 10-Q, unless the context otherwise requires or otherwise specifies, any reference to "year" is to the Company's fiscal year. The accompanying unaudited consolidated financial statements have been prepared in accordance with the requirements for Quarterly Reports on Form 10-Q and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The interim consolidated financial statements are unaudited and have been prepared on the same basis as the annual audited consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the interim financial information. This unaudited interim financial information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended February 2, 2019 as filed with the Securities and Exchange Commission on March 29, 2019 . Operating results for the 13 weeks ended May 4, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending February 1, 2020 or any other period. Reclassifications – Certain reclassifications have been made to prior year amounts within the unaudited Consolidated Balance Sheets and Statements of Cash Flows to conform to current year presentation. Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 required. 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 included an additional transition option 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. The Company adopted these ASU’s during the first quarter of fiscal 2019 using the optional transition method. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allows us to not reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, and not to reassess initial direct costs for any existing leases. We also elected the practical expedient related to land easements. We did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. We have lease agreements with non-lease components that relate to the lease components. We elected the practical expedient to account for non-lease components and the lease components to which they relate, as a single lease component for all classes of underlying assets. We also elected to keep short-term leases with an initial term of twelve months or less off the Balance Sheet. Adoption of these standards resulted in recognition of lease assets and lease liabilities of $2.5 billion and $3.1 billion , respectively, as of February 3, 2019. As part of adopting the standard, pre-existing liabilities for deferred rent and various lease incentives were reclassified as a component of the lease assets. Additionally, the Company recorded an $8.0 million adjustment to opening retained earnings, primarily resulting from the impairment of lease assets recognized at adoption. The adoption of these standards did not materially affect our consolidated net income or cash flows. Refer to Note 5 to the unaudited Consolidated Financial Statements for additional information.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	May 04, 2019
Earnings Per Share [Abstract]
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 outstanding, plus the effect of dilutive potential common shares outstanding during the period, using the treasury stock method. Dilutive potential common shares are stock-based awards, which include outstanding stock options, restricted stock and warrants. The computations for basic and diluted earnings per common share are as follows (in thousands, except per share data): 13 Weeks Ended May 4, May 5, Net income $ 57,525 $ 60,085 Weighted average common shares outstanding - basic 92,887 101,384 Dilutive effect of stock-based awards 1,501 769 Weighted average common shares outstanding - diluted 94,388 102,153 Earnings per common share - basic $ 0.62 $ 0.59 Earnings per common share - diluted $ 0.61 $ 0.59 Anti-dilutive stock-based awards excluded from diluted calculation 3,190 4,572

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	May 04, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Accounting Standard Codification ("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 May 4, 2019 and February 2, 2019 are set forth in the table below (in thousands): Level 1 Description May 4, February 2, Assets: Deferred compensation plan assets held in trust (1) $ 90,041 $ 77,324 Total assets $ 90,041 $ 77,324 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans. The fair value of cash and cash equivalents, accounts receivable, accounts payable, revolving credit borrowings and certain other liabilities approximated book value due to the short-term nature of these instruments at both May 4, 2019 and February 2, 2019 . 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	May 04, 2019
Revenue from Contract with Customer [Abstract]
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 to which the Company expects to be entitled 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. Sales tax amounts collected from customers that are assessed by a governmental authority are excluded from revenue. The Company has elected to treat shipping and handling activities occurring subsequent to the transfer of control to the customer to be accounted for as fulfillment costs. 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. Deferred gift card revenue - Revenue from gift cards and returned merchandise credits (collectively the "cards") is deferred and recognized upon the redemption of the cards. Our gift card liability was $134.2 million and $156.5 million as of May 4, 2019 and February 2, 2019, respectively. During the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized $1.9 million and $1.4 million of gift card breakage revenue, respectively, and experienced approximately $40.5 million and $41.4 million of gift card redemptions that were included in our gift card liability as of February 2, 2019 and February 3, 2018, respectively. 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 $29.4 million and $32.4 million , as of May 4, 2019 and February 2, 2019, respectively. During the 13 weeks ended May 4, 2019 and May 5, 2018, we recognized approximately $15.1 million and $17.9 million , respectively, of revenue that was included in our customer loyalty program liability as of February 2, 2019 and February 3, 2018, respectively. 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): 13 Weeks Ended May 4, May 5, Hardlines (1) $ 874,659 $ 897,475 Apparel 573,069 551,169 Footwear 429,457 420,835 Other (2) 43,492 40,240 Total net sales $ 1,920,677 $ 1,909,719 (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.

Leases

Leases	3 Months Ended
	May 04, 2019
Leases, Operating [Abstract]
Leases	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. We determine whether a contract is or contains a lease at contract inception. Beginning in fiscal 2019, operating lease assets and operating lease liabilities are recognized at commencement date based on the present value of remaining fixed lease payments over the lease term. As the rate implicit in the lease is not readily determinable in most of our leases, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The operating lease asset also includes any fixed lease payments made and includes lease incentives and incurred initial direct costs. Operating lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are generally expensed as incurred and may include certain index-based changes in rent and other non-fixed payments for services provided by the lessor. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Additionally, our leases do not contain any material residual guarantees or material restrictive covenants. The components of lease cost for the quarter ended May 4, 2019 were as follows (in thousands): Operating lease cost $ 148,039 Short-term lease cost 1,193 Variable lease cost 29,826 Sublease income (817 ) Total lease cost $ 178,241 Other information related to operating leases for the quarter ended May 4, 2019 was as follows (dollars in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 163,872 Non-cash right-of-use assets obtained in exchange for operating lease obligations $ 49,428 Weighted average remaining lease term for operating leases 7.03 years Weighted average discount rate for operating leases 6.75 % Future maturities of operating lease liabilities as of May 4, 2019 are as follows (in thousands): Fiscal Year 2019 (excluding the three-month period ended May 4, 2019) $ 493,333 2020 634,230 2021 599,555 2022 541,888 2023 462,758 2024 365,741 Thereafter 751,392 Total future undiscounted lease payments 3,848,897 Less imputed interest (797,568 ) Total reported lease liability $ 3,051,329 As of May 4, 2019, we have entered into operating leases of approximately $142 million that have not yet commenced, primarily related to future store locations. Disclosures related to periods prior to adoption of Leases (Topic 842) Future minimum payments determined under the previous accounting standards for operating lease obligations, including committed leases that had not yet commenced, as of February 2, 2019, were 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 Rent expense under these operating leases totaled $132.2 million for the 13 weeks ended, May 5, 2018.

Subsequent Event

Subsequent Event	3 Months Ended
	May 04, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On May 24, 2019 , the Company's Board of Directors authorized and 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 June 28, 2019 to stockholders of record as of the close of business on June 14, 2019 .

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	May 04, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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 required. 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 included an additional transition option 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. The Company adopted these ASU’s during the first quarter of fiscal 2019 using the optional transition method. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allows us to not reassess whether any expired or existing contracts are or contain leases, not to reassess the lease classification for any expired or existing leases, and not to reassess initial direct costs for any existing leases. We also elected the practical expedient related to land easements. We did not elect the practical expedient of hindsight when determining the lease term of existing contracts at the effective date. We have lease agreements with non-lease components that relate to the lease components. We elected the practical expedient to account for non-lease components and the lease components to which they relate, as a single lease component for all classes of underlying assets. We also elected to keep short-term leases with an initial term of twelve months or less off the Balance Sheet. Adoption of these standards resulted in recognition of lease assets and lease liabilities of $2.5 billion and $3.1 billion , respectively, as of February 3, 2019. As part of adopting the standard, pre-existing liabilities for deferred rent and various lease incentives were reclassified as a component of the lease assets. Additionally, the Company recorded an $8.0 million adjustment to opening retained earnings, primarily resulting from the impairment of lease assets recognized at adoption. The adoption of these standards did not materially affect our consolidated net income or cash flows. Refer to Note 5 to the unaudited Consolidated Financial Statements for additional information.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	May 04, 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): 13 Weeks Ended May 4, May 5, Net income $ 57,525 $ 60,085 Weighted average common shares outstanding - basic 92,887 101,384 Dilutive effect of stock-based awards 1,501 769 Weighted average common shares outstanding - diluted 94,388 102,153 Earnings per common share - basic $ 0.62 $ 0.59 Earnings per common share - diluted $ 0.61 $ 0.59 Anti-dilutive stock-based awards excluded from diluted calculation 3,190 4,572

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	May 04, 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 May 4, 2019 and February 2, 2019 are set forth in the table below (in thousands): Level 1 Description May 4, February 2, Assets: Deferred compensation plan assets held in trust (1) $ 90,041 $ 77,324 Total assets $ 90,041 $ 77,324 (1) Consists of investments in various mutual funds made by eligible individuals as part of the Company's deferred compensation plans.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	May 04, 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): 13 Weeks Ended May 4, May 5, Hardlines (1) $ 874,659 $ 897,475 Apparel 573,069 551,169 Footwear 429,457 420,835 Other (2) 43,492 40,240 Total net sales $ 1,920,677 $ 1,909,719 (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.

Leases (Tables)

Leases (Tables)	3 Months Ended
	May 04, 2019
Leases, Operating [Abstract]
Components of lease cost	The components of lease cost for the quarter ended May 4, 2019 were as follows (in thousands): Operating lease cost $ 148,039 Short-term lease cost 1,193 Variable lease cost 29,826 Sublease income (817 ) Total lease cost $ 178,241
Other information related to operating leases	Other information related to operating leases for the quarter ended May 4, 2019 was as follows (dollars in thousands): Cash paid for amounts included in the measurement of operating lease liabilities $ 163,872 Non-cash right-of-use assets obtained in exchange for operating lease obligations $ 49,428 Weighted average remaining lease term for operating leases 7.03 years Weighted average discount rate for operating leases 6.75 %
Schedule of future maturities of operating lease liabilities determined under Topic 842	Future maturities of operating lease liabilities as of May 4, 2019 are as follows (in thousands): Fiscal Year 2019 (excluding the three-month period ended May 4, 2019) $ 493,333 2020 634,230 2021 599,555 2022 541,888 2023 462,758 2024 365,741 Thereafter 751,392 Total future undiscounted lease payments 3,848,897 Less imputed interest (797,568 ) Total reported lease liability $ 3,051,329
Schedule of future minimum payments determined under Topic 840 for operating lease obligations, including committed leases that had not yet commenced	Future minimum payments determined under the previous accounting standards for operating lease obligations, including committed leases that had not yet commenced, as of February 2, 2019, were 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

Basis of Presentation - New Acc

Basis of Presentation - New Accounting Pronouncements or Change in Accounting Principle (Details) - USD ($) $ in Thousands	May 04, 2019	Feb. 03, 2019	Feb. 02, 2019	May 05, 2018
New Accounting Pronouncements or Change in Accounting Principle
Operating lease assets	$ 2,484,660		$ 0	$ 0
Operating lease liabilities	$ 3,051,329
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle
Operating lease assets		$ 2,500,000
Operating lease liabilities		3,100,000
Cumulative effect of new accounting principle in period of adoption		$ (8,000)

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
Earnings Per Share [Abstract]
Net income	$ 57,525	$ 60,085
Weighted average common shares outstanding - basic	92,887	101,384
Dilutive effect of stock-based awards (in shares)	1,501	769
Weighted average common shares outstanding - diluted	94,388	102,153
Earnings per common share - basic (in dollars per share)	$ 0.62	$ 0.59
Earnings per common share - diluted (in dollars per share)	$ 0.61	$ 0.59
Anti-dilutive stock-based awards excluded from diluted calculation (in shares)	3,190	4,572

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Level 1 - USD ($) $ in Thousands	May 04, 2019	Feb. 02, 2019
Fair Value Measurements
Deferred compensation plan assets held in trust	$ 90,041	$ 77,324
Total assets	$ 90,041	$ 77,324

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018	Feb. 02, 2019
Revenue Recognition
Deferred gift card revenue contract liability	$ 134.2		$ 156.5
Customer loyalty program contract liability	29.4		$ 32.4
Customer loyalty redemption revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 15.1	$ 17.9
Expected timing of performance obligation satisfaction	1 year
Gift card breakage revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 1.9	1.4
Gift card redemption revenue
Revenue Recognition
Revenue recognized from contract liability at beginning of period	$ 40.5	$ 41.4
Expected timing of performance obligation satisfaction	1 year

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2019	May 05, 2018
Nature of Revenue
Total net sales	$ 1,920,677	$ 1,909,719
Hardlines
Nature of Revenue
Total net sales	874,659	897,475
Apparel
Nature of Revenue
Total net sales	573,069	551,169
Footwear
Nature of Revenue
Total net sales	429,457	420,835
Other
Nature of Revenue
Total net sales	$ 43,492	$ 40,240

Leases (Details)

Leases (Details)	May 04, 2019DistributionCenter
Leases
Number of distribution centers leased	3
Additional renewal period	5 years
Minimum
Leases
Initial tenure of operating leases	10 years
Maximum
Leases
Initial tenure of operating leases	15 years

Leases - Components of lease co

Leases - Components of lease cost (Details) $ in Thousands	3 Months Ended
	May 04, 2019USD ($)
Lease, Cost [Abstract]
Operating lease cost	$ 148,039
Short-term lease cost	1,193
Variable lease cost	29,826
Sublease income	(817)
Total lease cost	$ 178,241

Leases - Other information rela

Leases - Other information related to operating leases (Details) $ in Thousands	3 Months Ended
	May 04, 2019USD ($)
Leases, Operating [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 163,872
Non-cash right-of-use assets obtained in exchange for operating lease liabilities	$ 49,428
Weighted average remaining lease term for operating leases	7 years 10 days
Weighted average discount rate for operating leases	6.75%

Leases - Future maturities of o

Leases - Future maturities of operating lease liabilities (Details) $ in Thousands	May 04, 2019USD ($)
Future maturities of operating lease liabilities
2019 (excluding the three-month period ended May 4, 2019)	$ 493,333
2020	634,230
2021	599,555
2022	541,888
2023	462,758
2024	365,741
Thereafter	751,392
Total future undiscounted lease payments	3,848,897
Less imputed interest	(797,568)
Total reported lease liability	3,051,329
Future lease payments for operating leases that have not yet commenced	$ 142,000

Leases - Disclosures related to

Leases - Disclosures related to periods prior to adoption of Leases (Topic 842) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 05, 2018	Feb. 02, 2019
Future minimum payments determined under previous accounting standards for operating lease obligations, including committed leases that had not yet commenced
2019		$ 655,516
2020		619,189
2021		558,633
2022		475,830
2023		392,826
Thereafter		1,033,034
Total		$ 3,735,028
Rent expense under operating leases	$ 132,200

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event	May 24, 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