DICK'S Sporting Goods (DKS) 10-Q 25 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Apr. 30, 2022	May 20, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 30, 2022
Document Transition Report	false
Entity File Number	001-31463
Entity Registrant Name	DICK’S SPORTING GOODS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1241537
Entity Address, Address Line One	345 Court Street
Entity Address, City or Town	Coraopolis
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15108
City Area Code	724
Local Phone Number	273-3400
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	DKS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001089063
Current Fiscal Year End Date	--01-28
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		56,906,652
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,620,633

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Income Statement [Abstract]
Net sales	$ 2,700,205	$ 2,918,719
Cost of goods sold, including occupancy and distribution costs	1,715,491	1,830,092
GROSS PROFIT	984,714	1,088,627
Selling, general and administrative expenses	615,293	608,294
Pre-opening expenses	2,900	4,524
INCOME FROM OPERATIONS	366,521	475,809
Interest expense	25,642	13,381
Other expense (income)	9,022	(7,350)
INCOME BEFORE INCOME TAXES	331,857	469,778
Provision for income taxes	71,298	108,022
NET INCOME	$ 260,559	$ 361,756
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 3.42	$ 4.27
Diluted (in dollars per share)	$ 2.47	$ 3.41
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	76,181	84,750
Diluted (in shares)	108,629	106,010

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 260,559	$ 361,756
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of tax	(7)	64
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME	(7)	64
COMPREHENSIVE INCOME	$ 260,552	$ 361,820

CONSOLIDATED BALANCE SHEETS - U

CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
CURRENT ASSETS:
Cash and cash equivalents	$ 2,251,338	$ 2,643,205	$ 1,858,737
Accounts receivable, net	76,253	68,263	67,145
Income taxes receivable	1,639	1,978	2,803
Inventories, net	2,824,832	2,297,609	2,012,054
Prepaid expenses and other current assets	102,603	95,601	100,586
Total current assets	5,256,665	5,106,656	4,041,325
Property and equipment, net	1,305,137	1,319,681	1,319,774
Operating lease assets	2,048,151	2,044,819	2,150,664
Intangible assets, net	86,160	86,767	89,119
Goodwill	245,857	245,857	245,857
Deferred income taxes	66,080	35,024	47,491
Other assets	211,750	202,872	172,350
TOTAL ASSETS	9,219,800	9,041,676	8,066,580
CURRENT LIABILITIES:
Accounts payable	1,491,931	1,281,322	1,239,503
Accrued expenses	462,085	620,143	499,071
Operating lease liabilities	476,343	480,318	468,318
Income taxes payable	80,023	13,464	141,868
Deferred revenue and other liabilities	292,457	317,433	238,751
Total current liabilities	2,802,839	2,712,680	2,587,511
LONG-TERM LIABILITIES:
Revolving credit borrowings	0	0	0
Senior notes due 2032 and 2052	1,481,664	1,481,443	0
Convertible senior notes due 2025	466,026	449,287	425,799
Long-term operating lease liabilities	2,095,314	2,099,146	2,253,883
Other long-term liabilities	179,351	197,534	200,663
Total long-term liabilities	4,222,355	4,227,410	2,880,345
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,368,211	1,488,834	1,448,892
Retained earnings	4,212,451	3,956,602	3,394,067
Accumulated other comprehensive (loss) income	(89)	(82)	15
Treasury stock, at cost	(3,386,747)	(3,344,524)	(2,245,097)
Total stockholders' equity	2,194,606	2,101,586	2,598,724
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	9,219,800	9,041,676	8,066,580
Common Stock
STOCKHOLDERS' EQUITY:
Common stock	544	520	610
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock	$ 236	$ 236	$ 237

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common StockCommon Stock	Common StockClass B Common Stock	Additional Paid-In Capital	Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive (Loss) Income	Treasury Stock
BALANCE (in shares) at Jan. 30, 2021			61,195,000	23,736,000
BALANCE at Jan. 30, 2021	$ 2,339,534		$ 612	$ 237	$ 1,442,298		$ 3,064,702		$ (49)	$ (2,168,266)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)			297,000
Exercise of stock options	12,333		$ 3		12,330
Restricted stock vested (in shares)			791,000
Restricted stock vested	0		$ 8		(8)
Minimum tax withholding requirements (in shares)			(237,000)
Minimum tax withholding requirements	(18,601)		$ (3)		(18,598)
Net income	361,756						361,756
Stock-based compensation	12,870				12,870
Foreign currency translation adjustment, net of taxes	64								64
Purchase of shares for treasury (in shares)			(1,030,000)
Purchase of shares for treasury	(76,841)		$ (10)							(76,831)
Cash dividend declared	(32,391)						(32,391)
BALANCE at May. 01, 2021	2,598,724		$ 610	$ 237	1,448,892		3,394,067		15	(2,245,097)
BALANCE (in shares) at May. 01, 2021			61,016,000	23,736,000
BALANCE (in shares) at Jan. 29, 2022			51,989,000	23,621,000
BALANCE at Jan. 29, 2022	2,101,586	$ (84,729)	$ 520	$ 236	1,488,834	$ (118,961)	3,956,602	$ 34,232	(82)	(3,344,524)
Increase (Decrease) in Stockholders' Equity
Net Shares Issued for April 2022 Exchange			1,833,000
Exchange of convertible senior notes due 2025 and partial unwind of convertible bond hedge and warrants	3,811		$ 18		3,793
Exercise of stock options (in shares)			389,000
Exercise of stock options	12,665		$ 4		12,661
Restricted stock vested (in shares)			933,000
Restricted stock vested	0		$ 9		(9)
Minimum tax withholding requirements (in shares)			(332,000)
Minimum tax withholding requirements	(33,287)		$ (3)		(33,284)
Net income	260,559						260,559
Stock-based compensation	15,177				15,177
Foreign currency translation adjustment, net of taxes	(7)								(7)
Purchase of shares for treasury (in shares)			(417,000)
Purchase of shares for treasury	(42,227)		$ (4)							(42,223)
Cash dividend declared	(38,942)						(38,942)
BALANCE at Apr. 30, 2022	$ 2,194,606		$ 544	$ 236	$ 1,368,211		$ 4,212,451		$ (89)	$ (3,386,747)
BALANCE (in shares) at Apr. 30, 2022			54,395,000	23,621,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 260,559	$ 361,756
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	79,673	78,366
Amortization of deferred financing fees and debt discount	1,371	7,306
Deferred income taxes	(1,791)	3,984
Stock-based compensation	15,177	12,870
Other, net	264	0
Changes in assets and liabilities:
Accounts receivable	(17,435)	(12,439)
Inventories	(527,223)	(58,486)
Prepaid expenses and other assets	(6,138)	(9,603)
Accounts payable	237,076	38,057
Accrued expenses	(132,185)	(44,310)
Income taxes payable / receivable	66,898	104,464
Construction allowances provided by landlords	19,891	13,902
Deferred revenue and other liabilities	(35,047)	(21,240)
Operating lease assets and liabilities	(21,391)	(27,276)
Net cash (used in) provided by operating activities	(60,301)	447,351
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(73,783)	(71,097)
Proceeds from sale of other assets	14,261	0
Deposits and other investing activities	(10,780)	(2,338)
Net cash used in investing activities	(70,302)	(73,435)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal paid in connection with exchange of convertible senior notes due 2025	(100,000)	0
Payments on other long-term debt and finance lease obligations	(178)	(220)
Proceeds from exercise of stock options	12,665	12,333
Minimum tax withholding requirements	(33,287)	(18,601)
Cash paid for treasury stock	(67,909)	(76,841)
Cash dividends paid to stockholders	(46,081)	(33,334)
Decrease in bank overdraft	(26,467)	(56,647)
Net cash used in financing activities	(261,257)	(173,310)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(7)	64
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(391,867)	200,670
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,643,205	1,658,067
CASH AND CASH EQUIVALENTS, END OF PERIOD	2,251,338	1,858,737
Supplemental disclosure of cash flow information:
Accrued property and equipment	33,959	52,228
Cash paid for interest	9,792	10,375
Cash paid for income taxes	6,236	3,249
Accrued treasury stock	$ 6,051	$ 0

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - Parentheticals - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Statement of Stockholders' Equity [Abstract]
Foreign currency translation adjustment, taxes	$ 2	$ (20)
Cash dividend declared per share (in dollars per share)	$ 0.4875	$ 0.3625

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and 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 a blend of dedicated teammates, in-store services and unique specialty shop-in-shops. In addition to DICK’S Sporting Goods stores, the Company also owns and operates Golf Galaxy, Field & Stream, Public Lands and Going Going Gone! stores, and offers its products both online and through mobile apps. The Company also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for video streaming, scorekeeping, scheduling and communications. When used in this Quarterly Report on Form 10-Q, unless the context otherwise requires or otherwise specifies, any reference to a “year” is to the Company’s fiscal year. Basis of Presentation and Use of Estimates The accompanying unaudited condensed 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. The 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 January 29, 2022 as filed with the Securities and Exchange Commission on March 23, 2022. Operating results for the 13 weeks ended April 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending January 28, 2023 or any other period. Recently Adopted Accounting Pronouncements Convertible Instruments In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “ Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) ,” which removes the separation models for convertible debt with cash conversion or beneficial conversion features. ASU 2020-06 also requires the application of the if-converted method for calculating earnings per diluted share, under which the Company must assume that any conversion of the Convertible Senior Notes will be satisfied entirely in common stock . The Company adopted ASU 2020-06 on the first day of fiscal 2022 using the modified retrospective approach, which resulted in the following adjustments to the Consolidated Balance Sheet (in millions) : Last Day of Fiscal 2021 Adoption of ASU 2020-06 First Day of Fiscal 2022 Balance sheet line item Convertible senior notes due 2025 $ 449.3 $ 114.0 $ 563.3 Net deferred tax assets $ 35.0 $ 29.3 $ 64.3 Additional paid-in capital $ 1,488.8 $ (119.0) $ 1,369.8 Retained earnings $ 3,956.6 $ 34.2 $ 3,990.8 Following the adoption of ASU 2020-06, the embedded conversion feature of the Convertible Senior Notes is no longer separately presented within stockholders’ equity, eliminating the non-cash debt discount. Accordingly, the Company’s effective interest rate on the Convertible Senior Notes decreased from 11.6% to 3.9% upon adoption, resulting in a $6.5 million reduction in non-cash interest expense for the 13 weeks ended April 30, 2022 as compared to the prior year quarter. The Company anticipates that fiscal 2022 earnings will not include $27.4 million of pre-tax non-cash interest expense that was incurred in fiscal 2021. Despite the Company’s intention to settle the principal amount of the Convertible Senior Notes in cash, the application of the if-converted method requires earnings per diluted share to reflect the assumed share conversion of the Convertible Senior Notes, which was 14.6 million dilutive shares as of April 30, 2022. The Company used the treasury stock method prior to adoption of ASU 2020-06. The impact of adoption was not material to earnings per diluted share. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Apr. 30, 2022
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, which include shares the Company could be obligated to issue from its Convertible Senior Notes and warrants, and stock-based awards, such as stock options and restricted stock. Dilutive potential common shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For both periods presented, dilutive potential common shares for the Company’s stock-based awards and warrants were determined using the treasury stock method. For the period ended May 1, 2021, the dilutive effect of the Convertible Senior Notes was calculated using the treasury stock method; however, upon the adoption of ASU 2020-06, the Company was required to calculate diluted earnings per diluted share using the if-converted method, which was applied to the period ended April 30, 2022. See Note 1–Description of Business and Basis of Presentation for further discussion. The computations for basic and diluted earnings per common share were as follows for the periods presented ( in thousands, except per share data): 13 Weeks Ended April 30, May 1, Numerator: Numerator for basic earnings per common share - Net income $ 260,559 $ 361,756 Effect of dilutive securities Interest expense associated with Convertible Senior Notes, net of tax 8,209 — Numerator for diluted earnings per common share - Net income after the effect of dilutive securities $ 268,768 $ 361,756 Denominator: Weighted average common shares outstanding - basic 76,181 84,750 Dilutive effect of stock-based awards 6,030 6,407 Dilutive effect of Convertible Senior Notes 17,080 9,214 Dilutive effect of warrants 9,338 5,639 Weighted average common shares outstanding - diluted 108,629 106,010 Earnings per common share: Basic $ 3.42 $ 4.27 Diluted $ 2.47 $ 3.41 Stock-based awards excluded from diluted shares 13 162 For the 13 weeks ended April 30, 2022 and May 1, 2021, the dilutive effect of the Convertible Senior Notes included approximately 11.9 million and 9.2 million shares, respectively, that are designed to be offset at settlement by shares delivered from the bond hedge purchased by the Company. The shares provided by the bond hedge are anti-dilutive; accordingly, they are not treated as a reduction to diluted weighted average shares outstanding for any periods presented. In addition, the dilutive effect of the Convertible Senior Notes for the 13 weeks ended April 30, 2022 included approximately 5.2 million shares related to the principal amount of the Convertible Senior Notes, which the Company intends to settle in cash.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 30, 2022
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. Recurring The Company measures its deferred compensation plan assets held in trust at fair value on a recurring basis using Level 1 inputs. Such assets consist of investments in various mutual funds made by eligible individuals as part of the Company’s deferred compensation plans. As of April 30, 2022, January 29, 2022 and May 1, 2021 the fair value of the Company’s deferred compensation plans was $150.2 million, $150.8 million, and $142.1 million, respectively, as determined by quoted prices in active markets. The Company discloses the fair value of its senior notes due 2032 and 2052 and Convertible Senior Notes using Level 2 inputs, which are based on quoted prices for similar or identical instruments in inactive markets, as follows (in millions) : April 30, 2022 January 29, 2022 May 1, 2021 Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Convertible Senior Notes $ 466.0 $ 1,425.5 $ 449.3 $ 2,016.3 $ 425.8 $ 1,411.2 Senior notes due 2032 $ 741.9 $ 630.1 $ 741.7 $ 733.1 $ — $ — Senior notes due 2052 $ 739.8 $ 545.6 $ 739.7 $ 711.3 $ — $ — Prior to the adoption of ASU 2020-06, the carrying value of the Convertible Senior Notes excluded amounts classified within additional paid-in capital and any unamortized discounts as of January 29, 2022 and May 1, 2021. See Note 1–Description of Business and Basis of Presentation for further information. Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at April 30, 2022, January 29, 2022, and May 1, 2021. Nonrecurring Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis may include property and equipment, goodwill and other intangible assets, equity and other assets. These assets are required to be assessed for impairment when events or circumstances indicate that the carrying value may not be recoverable, and at least annually, for goodwill and indefinite-lived intangible assets. In the event that an impairment is required, the asset is adjusted to fair value, using Level 3 inputs.

Leases

Leases	3 Months Ended
	Apr. 30, 2022
Leases [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. The Company’s stores generally have initial lease terms of 10 to 15 years and contain multiple five-year renewal options and rent escalation provisions. The lease agreements are primarily for the payment of minimum annual rentals, costs of utilities, property taxes, maintenance, common areas and insurance. Supplemental cash flow information related to operating leases for the 13 weeks ended April 30, 2022 and May 1, 2021 were as follows ( in millions ): 13 Weeks Ended April 30, May 1, Cash paid for amounts included in the measurement of operating lease liabilities $ 165.8 $ 171.6 Non-cash operating lease assets and liabilities obtained in exchange for new or modified leases $ 121.6 $ 118.1

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Apr. 30, 2022
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes Overview In April 2020, the Company issued an aggregate $575.0 million of 3.25% convertible senior notes due 2025, which included the exercise of the full $75.0 million over-allotment option, receiving proceeds of $557.6 million, net of $17.4 million of transaction fees and other third-party offering expenses. The Convertible Senior Notes are scheduled to mature on April 15, 2025 and accrue interest at a rate of 3.25% per annum, payable semi-annually in arrears on April 15 and October 15. As of April 30, 2022, the conversion rate for the Convertible Senior Notes was 30.6413, which represents a conversion price of $32.64 per share. The difference between the initial conversion rate and the conversion rate as of April 30, 2022 is due to dividends that have been declared and paid on shares of the Company’s common stock following the issuance of the Convertible Senior Notes. Upon conversion, the Company may settle the Convertible Senior Notes for cash, shares of the Company’s stock, or a combination thereof, at the Company’s option. The Company also has the ability to irrevocably elect to settle the Convertible Senior Notes in cash without amending the indentures or the Convertible Senior Notes themselves. The Company currently intends to settle the principal amount of the Convertible Senior Notes in cash and any conversion premium in shares of its common stock. April 2022 Exchange In April 2022, the Company entered into agreements (the “Exchange Agreements”) with certain holders of the Convertible Senior Notes (the “Noteholders”), to exchange $100.0 million in aggregate principal amount of the Convertible Senior Notes for a combination of cash and shares of the Company’s common stock, plus payment for accrued and unpaid interest (the “Note Exchange”). Concurrently with the Exchange Agreements, the Company entered into agreements with certain counterparties (“the counterparties”) to terminate a proportionate amount of the convertible bond hedge and warrant agreements that were entered into by the Company in April 2020 in connection with the issuance of the Convertible Senior Notes. In connection with these transactions (collectively, the “April 2022 Exchange”), the Company recognized a pre-tax inducement charge of approximately $5.8 million in the first quarter of 2022, which was recorded within interest expense on the consolidated statement of income, paid cash to Noteholders of $100.0 million to redeem the principal amount of the Convertible Senior Notes with a carrying value of $98.1 million, and issued approximately 1.8 million shares of the Company's common stock. Following the April 2022 Exchange, approximately $475.0 million aggregate principal amount of the Convertible Senior Notes remain outstanding at April 30, 2022. In addition, approximately 14.6 million shares underlie the Convertible Senior Notes, the convertible bond hedge and the warrants at April 30, 2022. Financial Statement Impacts As discussed in Note 1, following the adoption of ASU 2020-06, the Convertible Senior Notes are recorded entirely as a liability. A summary of the composition of the net carrying value of the Convertible Senior Notes is as follows: (in millions) April 30, 2022 January 29, 2022 May 1, 2021 Principal $ 475.0 $ 575.0 $ 575.0 Debt discount $ (9.0) $ (125.7) $ (149.2) Carrying amount $ 466.0 $ 449.3 $ 425.8 Equity component (*) N/A $ 160.7 $ 160.7 (*) Included in additional paid-in capital on the Consolidated Balance Sheets as of January 29, 2022 and May 1, 2021. During the 13 weeks ended April 30, 2022, the Company recognized $11.1 million of interest expense related to the Convertible Senior Notes, or $8.2 million, net of tax, which included the aforementioned inducement charge and $0.8 million of non-cash amortization of the debt discount. During the 13 weeks ended May 1, 2021, the Company recognized $12.0 million of interest expense related to the Convertible Senior Notes, of which $7.3 million was attributed to non-cash amortization of the debt discount. At April 30, 2022, the stock price conditions under which the Convertible Senior Notes could be convertible at the holders’ option were met. The Company has not received any material conversion requests through the filing date of this Form 10-Q. Because the closing price of the Company’s common stock of $96.42 at the end of the current quarter exceeded the conversion price of $32.64, the if-converted value exceeded the principal amount outstanding of the Convertible Senior Notes by approximately $928.4 million at April 30, 2022.

Subsequent Event

Subsequent Event	3 Months Ended
	Apr. 30, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn May 24, 2022, the Company's Board of Directors authorized and declared a quarterly cash dividend in the amount of $0.4875 per share on the Company's common stock and Class B common stock. The dividend is payable on June 24, 2022 to stockholders of record as of the close of business on June 10, 2022.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Adopted Accounting Pronouncements / Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements Convertible Instruments In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, “ Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) ,” which removes the separation models for convertible debt with cash conversion or beneficial conversion features. ASU 2020-06 also requires the application of the if-converted method for calculating earnings per diluted share, under which the Company must assume that any conversion of the Convertible Senior Notes will be satisfied entirely in common stock . The Company adopted ASU 2020-06 on the first day of fiscal 2022 using the modified retrospective approach, which resulted in the following adjustments to the Consolidated Balance Sheet (in millions) : Last Day of Fiscal 2021 Adoption of ASU 2020-06 First Day of Fiscal 2022 Balance sheet line item Convertible senior notes due 2025 $ 449.3 $ 114.0 $ 563.3 Net deferred tax assets $ 35.0 $ 29.3 $ 64.3 Additional paid-in capital $ 1,488.8 $ (119.0) $ 1,369.8 Retained earnings $ 3,956.6 $ 34.2 $ 3,990.8 Following the adoption of ASU 2020-06, the embedded conversion feature of the Convertible Senior Notes is no longer separately presented within stockholders’ equity, eliminating the non-cash debt discount. Accordingly, the Company’s effective interest rate on the Convertible Senior Notes decreased from 11.6% to 3.9% upon adoption, resulting in a $6.5 million reduction in non-cash interest expense for the 13 weeks ended April 30, 2022 as compared to the prior year quarter. The Company anticipates that fiscal 2022 earnings will not include $27.4 million of pre-tax non-cash interest expense that was incurred in fiscal 2021. Despite the Company’s intention to settle the principal amount of the Convertible Senior Notes in cash, the application of the if-converted method requires earnings per diluted share to reflect the assumed share conversion of the Convertible Senior Notes, which was 14.6 million dilutive shares as of April 30, 2022. The Company used the treasury stock method prior to adoption of ASU 2020-06. The impact of adoption was not material to earnings per diluted share. Recently Issued Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.

Description of Business and B_3

Description of Business and Basis of Presentation (Tables)	3 Months Ended
	Apr. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounting Standards Update and Change in Accounting Principle	The Company adopted ASU 2020-06 on the first day of fiscal 2022 using the modified retrospective approach, which resulted in the following adjustments to the Consolidated Balance Sheet (in millions) : Last Day of Fiscal 2021 Adoption of ASU 2020-06 First Day of Fiscal 2022 Balance sheet line item Convertible senior notes due 2025 $ 449.3 $ 114.0 $ 563.3 Net deferred tax assets $ 35.0 $ 29.3 $ 64.3 Additional paid-in capital $ 1,488.8 $ (119.0) $ 1,369.8 Retained earnings $ 3,956.6 $ 34.2 $ 3,990.8

Earnings Per Common Share (Tabl

Earnings Per Common Share (Table)	3 Months Ended
	Apr. 30, 2022
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 were as follows for the periods presented ( in thousands, except per share data): 13 Weeks Ended April 30, May 1, Numerator: Numerator for basic earnings per common share - Net income $ 260,559 $ 361,756 Effect of dilutive securities Interest expense associated with Convertible Senior Notes, net of tax 8,209 — Numerator for diluted earnings per common share - Net income after the effect of dilutive securities $ 268,768 $ 361,756 Denominator: Weighted average common shares outstanding - basic 76,181 84,750 Dilutive effect of stock-based awards 6,030 6,407 Dilutive effect of Convertible Senior Notes 17,080 9,214 Dilutive effect of warrants 9,338 5,639 Weighted average common shares outstanding - diluted 108,629 106,010 Earnings per common share: Basic $ 3.42 $ 4.27 Diluted $ 2.47 $ 3.41 Stock-based awards excluded from diluted shares 13 162

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of carrying values and estimated fair values of debt instruments	The Company discloses the fair value of its senior notes due 2032 and 2052 and Convertible Senior Notes using Level 2 inputs, which are based on quoted prices for similar or identical instruments in inactive markets, as follows (in millions) : April 30, 2022 January 29, 2022 May 1, 2021 Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Convertible Senior Notes $ 466.0 $ 1,425.5 $ 449.3 $ 2,016.3 $ 425.8 $ 1,411.2 Senior notes due 2032 $ 741.9 $ 630.1 $ 741.7 $ 733.1 $ — $ — Senior notes due 2052 $ 739.8 $ 545.6 $ 739.7 $ 711.3 $ — $ —

Leases (Table)

Leases (Table)	3 Months Ended
	Apr. 30, 2022
Leases [Abstract]
Other information related to operating leases	Supplemental cash flow information related to operating leases for the 13 weeks ended April 30, 2022 and May 1, 2021 were as follows ( in millions ): 13 Weeks Ended April 30, May 1, Cash paid for amounts included in the measurement of operating lease liabilities $ 165.8 $ 171.6 Non-cash operating lease assets and liabilities obtained in exchange for new or modified leases $ 121.6 $ 118.1

Convertible Senior Notes (Table

Convertible Senior Notes (Table)	3 Months Ended
	Apr. 30, 2022
Debt Disclosure [Abstract]
Summary of the principal, unamortized debt discount including debt issuance costs, and net carrying value of the liability component of the Convertible Senior Notes	As discussed in Note 1, following the adoption of ASU 2020-06, the Convertible Senior Notes are recorded entirely as a liability. A summary of the composition of the net carrying value of the Convertible Senior Notes is as follows: (in millions) April 30, 2022 January 29, 2022 May 1, 2021 Principal $ 475.0 $ 575.0 $ 575.0 Debt discount $ (9.0) $ (125.7) $ (149.2) Carrying amount $ 466.0 $ 449.3 $ 425.8 Equity component (*) N/A $ 160.7 $ 160.7 (*) Included in additional paid-in capital on the Consolidated Balance Sheets as of January 29, 2022 and May 1, 2021.

Description of Business and B_4

Description of Business and Basis of Presentation (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Apr. 30, 2022	Jan. 30, 2022	Jan. 29, 2022	May 01, 2021
New Accounting Pronouncements or Change in Accounting Principle
Convertible senior notes due 2025	$ 466,026		$ 449,287	$ 425,799
Net deferred tax assets	66,080		35,024	47,491
Additional paid-in capital	1,368,211		1,488,834	1,448,892
Retained earnings	$ 4,212,451		$ 3,956,602	$ 3,394,067
Convertible Senior Notes
New Accounting Pronouncements or Change in Accounting Principle
Interest rate, effective percentage			11.60%
Convertible Bond Hedge and Warrant Transactions
New Accounting Pronouncements or Change in Accounting Principle
Number of securities called by warrants or rights (in shares)	14.6
Accounting Standards Update 2020-06
New Accounting Pronouncements or Change in Accounting Principle
Pre-Tax non-cash interest expense excluded from earnings	$ 27,400
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06
New Accounting Pronouncements or Change in Accounting Principle
Convertible senior notes due 2025		$ 114,000
Net deferred tax assets		29,300
Additional paid-in capital		(119,000)
Retained earnings		34,200
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Convertible Senior Notes
New Accounting Pronouncements or Change in Accounting Principle
Reduction in non-cash interest expense for period presented	$ 6,500
Cumulative Effect, Period of Adoption, Adjusted Balance
New Accounting Pronouncements or Change in Accounting Principle
Convertible senior notes due 2025		563,300
Net deferred tax assets		64,300
Additional paid-in capital		1,369,800
Retained earnings		$ 3,990,800
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2020-06 | Convertible Senior Notes
New Accounting Pronouncements or Change in Accounting Principle
Interest rate, effective percentage		3.90%

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2022	May 01, 2021
Earnings Per Share [Abstract]
Net income	$ 260,559	$ 361,756
Interest expense associated with Convertible Senior Notes, net of tax	8,209	0
Numerator for diluted earnings per common share - Net income after the effect of dilutive securities	$ 268,768	$ 361,756
Weighted average common shares outstanding - basic (in shares)	76,181	84,750
Dilutive effect of stock-based awards (in shares)	6,030	6,407
Dilutive effect of Convertible Senior Notes (in shares)	17,080	9,214
Dilutive effect of warrants (in shares)	9,338	5,639
Weighted average common shares outstanding - diluted (in shares)	108,629	106,010
Earnings per common share (in dollars per share) - basic	$ 3.42	$ 4.27
Earnings per common share (in dollars per share) - diluted	$ 2.47	$ 3.41
Stock-based awards excluded from diluted shares
Dilutive effect of Convertible Senior Notes (in shares)	17,080	9,214
Number of shares necessary to settle the principle amount of the Company’s Convertible Senior Notes	5,200
Incremental common shares attributable to convertible debt, excluding principal	11,900
Share-based Payment Arrangement
Stock-based awards excluded from diluted shares
Stock-based awards excluded from diluted shares (in shares)	13	162

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Level 1
Fair Value Measurements
Deferred compensation plan assets held in trust	$ 150.2	$ 150.8	$ 142.1

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Carrying and Estimated Fair Value (Details) - USD ($) $ in Thousands	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Carrying Value
Convertible Senior Notes	$ 466,026	$ 449,287	$ 425,799
Senior notes	1,481,664	1,481,443	0
Fair Value, Recurring | Convertible Senior Notes
Carrying Value
Convertible Senior Notes	466,000	449,300	425,800
Fair Value, Recurring | Convertible Senior Notes | Level 2
Fair Value
Convertible Senior Notes	1,425,500	2,016,300	1,411,200
Fair Value, Recurring | Senior notes due 2032
Carrying Value
Senior notes	741,900	741,700	0
Fair Value, Recurring | Senior notes due 2032 | Level 2
Fair Value
Senior notes	630,100	733,100	0
Fair Value, Recurring | Senior notes due 2052
Carrying Value
Senior notes	739,800	739,700	0
Fair Value, Recurring | Senior notes due 2052 | Level 2
Fair Value
Senior notes	$ 545,600	$ 711,300	$ 0

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended
	Apr. 30, 2022USD ($)DistributionCenter	May 01, 2021USD ($)
Leases
Number of distribution centers leased | DistributionCenter	3
Additional renewal period	5 years
Cash paid for amounts included in the measurement of operating lease liabilities	$ 165,800	$ 171,600
Non-cash operating lease assets and liabilities obtained in exchange for new or modified leases	$ 121,600	$ 118,100
Minimum
Leases
Initial tenure of operating leases	10 years
Maximum
Leases
Initial tenure of operating leases	15 years

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions	Apr. 17, 2020	Apr. 30, 2022	May 01, 2021	Jan. 29, 2022
Convertible Senior Notes
Amortization of deferred financing fees and debt discount		$ 1,371,000	$ 7,306,000
Closing price of the Company's common stock at the end of the first fiscal quarter in 2022 (in dollars per share)		$ 96.42
Interest expense associated with Convertible Senior Notes, net of tax		$ 8,209,000	0
Convertible Senior Notes
Convertible Senior Notes
Principal	$ 575,000,000
Interest rate, stated percentage	3.25%
Over allotment option	$ 75,000,000
Proceeds from debt, net of issuance costs	557,600,000
Debt issuance costs	$ 17,400,000
Conversion ratio		3064.13%
Conversion price (in dollars per share)		$ 32.64
April 2022, Exchanges Agreement
Convertible Senior Notes
Principal		$ 100,000,000
Inducement charge		5,800,000
Carrying value of Convertible Senior Notes exchanged		$ 98,100,000
Net Shares Issued for April 2022 Exchange		1.8
Conversion options for Convertible Senior Notes
Convertible Senior Notes
Principal		$ 475,000,000	575,000,000	$ 575,000,000
Conversion price (in dollars per share)		$ 32.64
Interest expenses related to Convertible Senior Notes		$ 11,100,000	12,000,000
Amortization of deferred financing fees and debt discount		800,000	$ 7,300,000
Amount in which the if-converted value exceeds the principal amount		$ 928,400,000
Convertible Bond Hedge and Warrant Transactions
Convertible Senior Notes
Number of securities called by warrants or rights (in shares)		14.6

Convertible Senior Notes - Summ

Convertible Senior Notes - Summary of the Composition of net carrying values of the liability and equity components of the Convertible Senior Notes (Details) - USD ($)	Apr. 30, 2022	Jan. 29, 2022	May 01, 2021
Convertible Senior Notes
Carrying amount	$ 466,026,000	$ 449,287,000	$ 425,799,000
Convertible Senior Notes Due 2025
Convertible Senior Notes
Principal	475,000,000	575,000,000	575,000,000
Debt discount	(9,000,000)	(125,700,000)	(149,200,000)
Carrying amount	$ 466,000,000	449,300,000	425,800,000
Convertible Senior Notes Due 2025 | Additional Paid-In Capital
Convertible Senior Notes
Equity component		$ 160,700,000	$ 160,700,000

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event	May 24, 2022$ / shares
Common Stock
Subsequent Event
Dividend amount (in dollars per share)	$ 0.4875
Class B Common Stock
Subsequent Event
Dividend amount (in dollars per share)	$ 0.4875