Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2016 | Mar. 23, 2016 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CONNS INC | ||
Entity Central Index Key | 1,223,389 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 989.7 | ||
Entity Common Stock, Shares Outstanding | 30,657,872 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 12,254 | $ 12,223 |
Restricted cash (all held by the VIE) | 78,576 | 0 |
Customer accounts receivable, VIE Balance | 743,931 | 643,094 |
Other accounts receivable | 95,404 | 67,703 |
Inventories | 201,969 | 159,068 |
Income taxes recoverable | 10,774 | 11,058 |
Prepaid expenses and other current assets | 20,092 | 12,529 |
Total current assets | 1,163,000 | 905,675 |
Long-term portion of customer accounts receivable, net of allowance (includes VIE balance of $331,254 as of January 31, 2016) | 631,645 | 558,257 |
Property and equipment, net | 151,483 | 120,218 |
Deferred income taxes | 70,219 | 53,545 |
Other assets | 8,953 | 8,109 |
Total assets | 2,025,300 | 1,645,804 |
Current liabilities: | ||
Current maturities of capital lease obligations | 799 | 395 |
Accounts payable | 86,797 | 85,355 |
Accrued compensation and related expenses | 9,337 | 12,151 |
Accrued expenses | 30,037 | 27,479 |
Income taxes payable | 2,823 | 3,450 |
Deferred revenues and other credits | 16,332 | 16,179 |
Total current liabilities | 146,125 | 145,009 |
Deferred rent | 74,559 | 52,792 |
Long-term debt and capital lease obligations (includes VIE balance of $699,515 as of January 31, 2016) | 1,248,879 | 772,497 |
Other long-term liabilities | 17,456 | 21,836 |
Total liabilities | 1,487,019 | 992,134 |
Stockholders' equity: | ||
Preferred stock ($0.01 par value, 1,000 shares authorized; none issued or outstanding) | 0 | 0 |
Common stock ($0.01 par value, 100,000 shares authorized; 30,630 and 36,352 shares issued, respectively) | 306 | 364 |
Additional paid-in capital | 85,209 | 231,395 |
Retained earnings | 452,766 | 421,911 |
Total stockholders' equity | 538,281 | 653,670 |
Total liabilities and stockholders' equity | $ 2,025,300 | $ 1,645,804 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 |
Customer accounts receivable, VIE Balance | $ 743,931 | $ 643,094 |
Long-term portion of customer accounts receivable, net of allowance (includes VIE balance of $331,254 as of January 31, 2016) | 631,645 | 558,257 |
Long-term debt and capital lease obligations (includes VIE balance of $699,515 as of January 31, 2016) | $ 1,248,879 | $ 772,497 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 30,630,000 | 36,352,000 |
Non-Guarantor Subsidiaries [Member] | ||
Customer accounts receivable, VIE Balance | $ 390,150 | |
Long-term portion of customer accounts receivable, net of allowance (includes VIE balance of $331,254 as of January 31, 2016) | 331,254 | |
Long-term debt and capital lease obligations (includes VIE balance of $699,515 as of January 31, 2016) | $ 699,515 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenues: | |||||
Product sales | $ 1,199,134 | $ 1,117,909 | $ 903,917 | ||
Repair service agreement commissions | 109,730 | 90,009 | 75,671 | ||
Service revenues | 13,725 | 13,058 | 12,252 | ||
Total net sales | 1,322,589 | 1,220,976 | 991,840 | ||
Finance charges and other revenues | 290,589 | 264,242 | 201,929 | ||
Total revenues | $ 456,819 | $ 426,748 | 1,613,178 | 1,485,218 | 1,193,769 |
Total net sales | 1,322,589 | 1,220,976 | 991,840 | ||
Total revenues | 456,819 | 426,748 | 1,613,178 | 1,485,218 | 1,193,769 |
Costs and expenses: | |||||
Cost of goods sold | 240,631 | 210,147 | 833,126 | 777,046 | 630,225 |
Selling, general and administrative expenses | 436,115 | 390,176 | 303,351 | ||
Provision for bad debts | 222,177 | 192,439 | 96,224 | ||
Charges and credits | 8,044 | 5,690 | 2,117 | ||
Total costs and expenses | 1,499,462 | 1,365,351 | 1,031,917 | ||
Operating income | 25,596 | 32,219 | 113,716 | 119,867 | 161,852 |
Interest expense | 63,106 | 29,365 | 15,323 | ||
Loss on extinguishment of debt | 1,367 | 0 | 0 | ||
Other expense, net | 0 | 0 | 10 | ||
Income before income taxes | 49,243 | 90,502 | 146,519 | ||
Provision for income taxes | 18,388 | 31,989 | 53,070 | ||
Net income | $ 1,061 | $ 15,458 | $ 30,855 | $ 58,513 | $ 93,449 |
Earnings per share: | |||||
Basic (in dollars per share) | $ 0.03 | $ 0.43 | $ 0.88 | $ 1.61 | $ 2.61 |
Diluted (in dollars per share) | $ 0.03 | $ 0.42 | $ 0.87 | $ 1.59 | $ 2.54 |
Weighted average common shares outstanding: | |||||
Basic (in shares) | 35,084 | 36,232 | 35,779 | ||
Diluted (in shares) | 35,557 | 36,900 | 36,861 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 30,855 | $ 58,513 | $ 93,449 |
Change in fair value of hedges | 0 | 155 | 190 |
Impact of provision for income taxes on comprehensive income | 0 | (55) | (67) |
Comprehensive income | $ 30,855 | $ 58,613 | $ 93,572 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance (in shares) at Jan. 31, 2013 | 35,191,000 | ||||
Balance at Jan. 31, 2013 | $ 474,450 | $ 352 | $ 204,372 | $ (223) | $ 269,949 |
Issuance of common stock (in shares) | 0 | ||||
Issuance of common stock | 0 | $ 0 | 0 | ||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 908,000 | ||||
Exercise of options and vesting of restricted stock, net of tax | $ 16,332 | $ 9 | 16,323 | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 27,808 | 28,000 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 987 | 987 | |||
Stock-based compensation | 3,949 | 3,949 | |||
Net income | 93,449 | 93,449 | |||
Change in fair value of hedges, net of tax | 123 | 123 | |||
Balance (in shares) at Jan. 31, 2014 | 36,127,000 | ||||
Balance at Jan. 31, 2014 | 589,290 | $ 361 | 225,631 | (100) | 363,398 |
Exercise of options and vesting of restricted stock, net of tax (in shares) | 183,000 | ||||
Exercise of options and vesting of restricted stock, net of tax | $ 600 | $ 2 | 598 | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 40,908 | 41,000 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,070 | $ 1 | 1,069 | ||
Stock-based compensation | 4,097 | 4,097 | |||
Net income | 58,513 | 58,513 | |||
Change in fair value of hedges, net of tax | 100 | 100 | |||
Balance (in shares) at Jan. 31, 2015 | 36,351,000 | ||||
Balance at Jan. 31, 2015 | 653,670 | $ 364 | 231,395 | 0 | 421,911 |
Exercise of options and vesting of restricted stock, net of tax (in shares) | 195,000 | ||||
Exercise of options and vesting of restricted stock, net of tax | $ (43) | $ 2 | (45) | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 48,585 | 49,000 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 969 | 969 | |||
Repurchase of common stock (in shares) | (5,965,000) | ||||
Repurchase of common stock | (151,781) | $ (60) | (151,721) | ||
Stock-based compensation | 4,611 | 4,611 | |||
Net income | 30,855 | 30,855 | |||
Balance (in shares) at Jan. 31, 2016 | 30,630,000 | ||||
Balance at Jan. 31, 2016 | $ 538,281 | $ 306 | $ 85,209 | $ 0 | $ 452,766 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Other comprehensive income (loss): | ||
Tax benefit on the adjustment of fair value to interest rate swaps | $ 55 | $ 67 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 30,855 | $ 58,513 | $ 93,449 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation | 22,706 | 18,485 | 13,477 |
Amortization of Financing Costs | 13,437 | 3,119 | 3,340 |
Provision for bad debts and uncollectible interest | 258,157 | 219,347 | 110,302 |
Loss on extinguishment of debt | 1,367 | 0 | 0 |
Stock-based compensation expense | 4,611 | 4,097 | 3,949 |
Excess tax benefits from stock-based compensation | (611) | (1,293) | (5,706) |
Charges, net of credits, for store and facility closures | 637 | 3,646 | 2,117 |
Deferred income taxes | (16,674) | (25,540) | (1,187) |
Loss (gain) from sale of property and equipment | (1,338) | (211) | 10 |
Tenant improvement allowances received from landlords | 21,822 | 23,781 | 10,047 |
Other | 0 | 47 | 0 |
Change in operating assets and liabilities: | |||
Customer accounts receivable | (432,382) | (436,018) | (403,921) |
Other accounts receivables | (24,421) | (8,087) | (5,730) |
Inventories | (42,901) | (38,537) | (46,846) |
Other assets | (2,759) | (4,480) | (1,403) |
Accounts payable | 4,074 | (3,374) | 13,252 |
Accrued expenses | (2,095) | 6,548 | 4,120 |
Income taxes | (344) | (8,345) | (3,761) |
Deferred rent, revenues and other credits | (8,263) | (1,599) | 4,229 |
Net cash used in operating activities | (174,122) | (189,901) | (210,262) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (63,405) | (61,696) | (52,127) |
Proceeds from sales of property | 5,647 | 19,283 | 44 |
Net cash used in investing activities | (57,758) | (42,413) | (52,083) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 1,118,000 | 0 | 0 |
Repayments of Secured Debt | 400,717 | 0 | 32,513 |
Changes in restricted cash balances | (78,576) | 0 | 4,717 |
Borrowings from revolving credit facility | 606,288 | 487,305 | 451,593 |
Payments on revolving credit facility | (805,193) | (494,150) | (179,038) |
Proceeds from issuance of senior notes, net of issuance costs | 0 | 243,400 | 0 |
Repurchase of senior notes | 22,965 | 0 | 0 |
Payment of debt issuance costs and amendment fees | 35,776 | 0 | 0 |
Repurchase of common stock | (151,781) | 0 | 0 |
Proceeds from stock issued under employee benefit plans | 2,653 | 1,669 | 17,318 |
Excess tax benefits from stock-based compensation | 611 | 1,293 | 5,706 |
Other | (633) | (707) | (3,560) |
Net cash provided by financing activities | 231,911 | 238,810 | 264,223 |
Net change in cash and cash equivalents | 31 | 6,496 | 1,878 |
Cash and cash equivalents, beginning of period | 12,223 | 5,727 | 3,849 |
Cash and cash equivalents, end of period | 12,254 | 12,223 | 5,727 |
Non-cash investing and financing activities: | |||
Capital lease asset additions and related obligations | 2,187 | 304 | 797 |
Property and equipment purchases not yet paid | 4,475 | 5,867 | 0 |
Supplemental cash flow data: | |||
Cash interest paid | 49,192 | 26,056 | 11,689 |
Cash income taxes paid, net | $ 36,894 | $ 64,738 | $ 52,405 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business . Conn's is a leading specialty retailer that offers a broad selection of quality, branded durable consumer goods and related services in addition to a proprietary credit solution for its core credit constrained consumers. We operate an integrated and scalable business through our retail stores and website. Our complementary product offerings include furniture and mattresses, home appliances, consumer electronics and home office products from leading global brands across a wide range of price points. Our credit offering provides financing solutions to a large, under-served population of credit constrained consumers who typically have limited banking options. We operate two reportable segments: retail and credit. Our retail stores bear the "Conn's" or "Conn's HomePlus" name with all of our stores providing the same products and services to a common customer group. Our stores follow the same procedures and methods in managing their operations. Our retail business and credit business are operated independently from each other. The credit segment is dedicated to providing short- and medium-term financing for our retail customers. The retail segment is not involved in credit approval decisions. Our management evaluates performance and allocates resources based on the operating results of the retail and credit segments. Variable Interest Entity. In September 2015, we securitized $1.4 billion of customer accounts receivables by transferring the receivables to a bankruptcy-remote variable-interest entity (the "VIE"). The VIE issued asset-backed notes at a face amount of $1.12 billion secured by the transferred portfolio balance, which resulted in net proceeds to us of approximately $1.08 billion , net of transaction costs and restricted cash held by the VIE. The net proceeds were used to pay down the entire balance on our revolving credit facility, to repurchase shares of the Company's common stock and Senior Notes, and for other general corporate purposes. We currently hold the residual equity of the VIE, which we may elect to retain all or a portion of the residual equity of the VIE if that is determined to be in our best economic interest. We retain the servicing of the securitized portfolio and have a variable interest in the VIE by holding the residual equity. We determined that we are the primary beneficiary of the VIE because (i) our servicing responsibilities for the securitized portfolio give us the power to direct the activities that most significantly impact the performance of the VIE and (ii) our variable interest in the VIE gives us the obligation to absorb losses and the right to receive residual returns that could potentially be significant. As a result, while holding all or a significant portion of the residual equity of the VIE, we will consolidate the VIE within our financial statements. If we sell all or a significant portion of the residual equity, we will assess if the transaction achieves sale treatment for accounting purposes, which may result in deconsolidation of the VIE. There is no assurance that we will complete a sale of all or a portion of the residual equity of the VIE, and there is no assurance we will achieve sale treatment. As a result, we have determined that the securitized portfolio does not meet the criteria for treatment as an asset held for sale, which would require recording at the lower of cost, net of allowances, or fair value. We have not made an adjustment to the customer accounts receivable balance as a result of the transaction or in anticipation of any gain or loss that may occur should a sale of the residual portion of the VIE be completed. Refer to Note 7, Debt and Capital Lease Obligations , and Note 15, Variable Interest Entity , for additional information. Subsequent Event. In March 2016, we securitized $705.1 million of customer accounts receivables by transferring the receivables to a new bankruptcy-remote variable-interest entity (the "2016 VIE" or together with the VIE, the "VIEs"). The 2016 VIE issued two classes of asset-backed notes at a total face amount of $493.5 million secured by the transferred customer accounts receivables, which resulted in net proceeds to us of approximately $478 million , net of transaction costs and reserves. The net proceeds were used to pay down the entire balance on our revolving credit facility and for other general corporate purposes. Similar to the VIE, we retain the servicing of the securitized portfolio and have a variable interest in the 2016 VIE by holding the residual equity as well as a third class of asset-backed notes. As a result, while holding all or a significant portion of the residual equity or the third class of asset-backed notes of the 2016 VIE, we will consolidate the 2016 VIE within our financial statements. Principles of Consolidation . The consolidated financial statements include the accounts of Conn's, Inc. and its wholly-owned subsidiaries, including the VIE. Conn's, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends. Use of Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The allowance for doubtful accounts, allowances for no-interest option credit programs, and deferred interest are particularly sensitive given the size of our customer portfolio balance. Earnings per Share . Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the dilutive effects of any stock options and restricted stock units granted, which is calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: Year Ended January 31, (in thousands) 2016 2015 2014 Weighted average common shares outstanding - Basic 35,084 36,232 35,779 Dilutive effect of stock options and restricted stock units 473 668 1,082 Weighted average common shares outstanding - Diluted 35,557 36,900 36,861 For the years ended January 31, 2016 , 2015 and 2014 , the weighted average number of stock options and restricted stock units not included in the calculation due to their anti-dilutive effect was 388,000 , 116,000 and 35,000 , respectively. Repurchase Program. During fiscal 2016, we announced that the Board of Directors of the Company ("Board of Directors") authorized a repurchase program of up to an aggregate of $175.0 million of (i) shares of the Company's outstanding common stock; (ii) 7.250% Senior Notes Due 2022 (the "Senior Notes"); or (iii) a combination thereof. During fiscal 2016, we purchased 5.9 million shares of common stock, using $151.6 million of the $175.0 million repurchase authorization. Additionally, we utilized $22.9 million of the repurchase authorization to acquire $23.0 million of face value of our senior notes. Stockholders' Rights Plan. On October 6, 2014, we adopted a stockholders' rights plan whereby the Board of Directors declared a dividend of one right for each outstanding share of the Company's common stock to stockholders of record on October 16, 2014. On September 2, 2015, the Board of Directors approved the termination of the Company's stockholder rights plan, and the rights plan was terminated, effective September 10, 2015. Cash and Cash Equivalents . We consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Credit card deposits in-transit of $6.5 million and $6.5 million , as of January 31, 2016 and 2015 , respectively, are included in cash and cash equivalents. Restricted Cash. The restricted cash balance as of January 31, 2016 includes $64.2 million of cash we collected as servicer on the securitized receivables that was remitted to the VIE and $14.4 million of cash held by the VIE as additional collateral for the asset-backed notes. Inventories. Inventories consist of finished goods or parts and are valued at the lower of weighted average cost or market. Vendor Allowances . We receive funds from vendors for price protection, product rebates (earned upon purchase or sale of product), marketing, and promotion programs, collectively referred to as vendor allowances, which are recorded on the accrual basis. We estimate the vendor allowances to accrue based on the progress of satisfying the terms of the programs based on actual and projected sales or purchase of qualifying products. If the programs are related to product purchases, the vendor allowances are recorded as a reduction of product cost in inventory still on hand with any remaining amounts recorded as a reduction of cost of goods sold. During the years ended January 31, 2016 , 2015 and 2014 , we recorded $145.4 million , $116.4 million and $89.3 million , respectively, as reductions in cost of goods sold from vendor allowances. Property and Equipment . Property and equipment, including any major additions and improvements to property and equipment, are recorded at cost. Normal repairs and maintenance that do not materially extend the life of property and equipment are charged to operating expenses as incurred. Depreciation, which includes amortization of capitalized leases, is computed on the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the shorter of the estimated useful lives or the remaining terms of the respective leases. Internal-Use Software Costs. Costs related to software developed or obtained for internal use are expensed as incurred until the application development stage has been reached. Once the application development stage has been reached, certain qualifying costs are capitalized until the software is ready for its intended use. Impairment of Long-Lived Assets. Long-lived assets are evaluated for impairment, primarily at the retail store level. We monitor store performance in order to assess if events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The most likely condition that would necessitate an assessment would be an adverse change in historical and estimated future results of a retail store's performance. For property and equipment held and used, we recognize an impairment loss if the carrying amount is not recoverable through its undiscounted cash flows and measure the impairment loss based on the difference between the carrying amount and estimated fair value. Fair value is determined by discounting the anticipated cash flows over the remaining term of the lease utilizing certain unobservable inputs (Level 3). For the years ended January 31, 2016 , 2015 , and 2014 , no impairment charges were recorded. Customer accounts receivable. Customer accounts receivable reported in the consolidated balance sheet includes total receivables managed, including those transferred to the VIE and those receivables not transferred to the VIE. Customer accounts receivable are originated at the time of sale and delivery of the various products and services. Based on contractual terms, we record the amount of principal and accrued interest on customer receivables that is expected to be collected within the next twelve months in current assets with the remaining balance in long-term assets on the consolidated balance sheet. Customer receivables are considered delinquent if a payment has not been received on the scheduled due date. Accounts that are delinquent more than 209 days as of the end of a month are charged-off against the allowance for doubtful accounts and interest accrued subsequent to the last payment is reversed and charged against the allowance for uncollectible interest. In an effort to mitigate losses on our accounts receivable, we may make loan modifications to a borrower experiencing financial difficulty. In our role as servicer, we may also make modifications to loans held by the VIE. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to repossess collateral or exercise legal remedies available to us. We may extend or "re-age" a portion of our customer accounts, which involve modifying the payment terms to defer a portion of the cash payments due. Our re-aging of customer accounts does not change the interest rate or the total amount due from the customer and typically does not reduce the monthly contractual payments. To a much lesser extent, we may provide the customer the ability to re-age their obligation by refinancing the account, which does not change the interest rate or the total amount due from the customer but does reduce the monthly contractual payments. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings ("TDR" or "Restructured Accounts"). Allowance for doubtful accounts. We establish an allowance for doubtful accounts, including estimated uncollectible interest, to cover probable and estimable losses on our customer accounts receivable resulting from the failure of customers to make contractual payments. Our customer portfolio balance consists of a large number of relatively small, homogeneous accounts. None of our accounts are large enough to warrant individual evaluation for impairment. We record an allowance for doubtful accounts for our non-TDR customer accounts receivable that we expect to charge-off over the next twelve months based on our historical cash collection and net loss experience using a projection of monthly delinquency performance, cash collections and losses. In addition to pre-charge-off cash collections and charge-off information, estimates of post-charge-off recoveries, including cash payments, amounts realized from the repossession of the products financed and payments received under credit insurance policies are also considered. We determine allowances for those accounts that are TDR based on the discounted present value of cash flows expected to be collected over the life of those accounts. The excess of the carrying amount over the discounted cash flow amount is recorded as an allowance for loss on those accounts. Interest income on customer accounts receivable . Interest income is accrued using the interest method for installment contracts and is reflected in finance charges and other revenues. Typically, interest income is accrued until the customer account is paid off or charged-off, and we provide an allowance for estimated uncollectible interest. Interest income on installment contracts with our customers is based on the rule of 78s. In order to convert the interest income recognized to the interest method, we have recorded the excess earnings of rule of 78s over the interest method as deferred revenue on our balance sheets. Our calculation of interest income also includes an estimate of the benefit from future prepayments based on our historical experience. The deferred interest will ultimately be brought into income as the accounts pay off or charge-off. At January 31, 2016 and 2015 , there was $5.2 million and $11.2 million , respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. We offer 12-month, no-interest finance programs. If the customer is delinquent in making a scheduled monthly payment or does not repay the principal in full by the end of the no-interest program period (grace periods are provided), the account does not qualify for the no-interest provision and none of the interest earned is waived. Interest income is recognized based on our historical experience related to customers that fail to satisfy the requirements of the programs. We also offer 18- and 24-month equal-payment, no-interest finance programs to certain higher credit quality borrowers, which are discounted to their present value at origination, resulting in a reduction in sales and customer receivables, and the discount amount is amortized into finance charges and other revenues over the term of the contract. If a customer is delinquent in making a scheduled monthly payment (grace periods are provided), the account begins accruing interest based on the contract rate from the date of the last payment made. We recognize interest income on TDR accounts using the interest income method, which requires reporting interest income equal to the increase in the net carrying amount of the loan attributable to the passage of time. Cash proceeds and other adjustments are applied to the net carrying amount such that it always equals the present value of expected future cash flows. We typically only place accounts in non-accrual status when legally required. Payments received on non-accrual loans will be applied to principal and reduce the amount of the loan. Interest accrual is resumed on those accounts once a legally-mandated settlement arrangement is reached or other payment arrangements are made with the customer. At January 31, 2016 and 2015 , customer receivables carried in non-accrual status were $20.6 million and $13.7 million , respectively. At January 31, 2016 and 2015 , customer receivables that were past due 90 days or more and still accruing interest totaled $115.1 million and $97.1 million , respectively. Revenue Recognition . Revenue from the sale of retail products are recognized at the time the customer takes possession of the product. Such revenue is recognized net of any adjustments for sales incentive offers such as discounts, coupons, rebates or other free products or services and discounts of sales on advertised credit that extend beyond one year. We sell repair service agreements and credit insurance contracts on behalf of unrelated third-parties. For contracts where third-parties are the obligor on the contract, commissions are recognized in revenue at the time of sale, and in the case of retrospective commissions, at the time that they are earned. Service revenues are recognized at the time service is provided to the customer. Sales financed by us under short-term, interest free credit programs are recognized at the time the customer takes possession of the product, consistent with the above stated policy. Considering the short-term nature of interest-free programs for terms less than one year, sales are recorded at full value and are not discounted. Sales financed by us under longer term, interest-free programs are recorded at their net present value. Sales on interest free programs under third-party programs typically require us to pay the third-party a fee on each completed sale, which is recorded as a reduction of net sales in the retail segment. We classify amounts billed to customers for delivery, transportation and handling as revenues, with the related costs included in cost of goods sold. Expense Classifications . We record as cost of goods sold, the direct cost of products and parts sold and related costs for delivery, transportation and handling, inbound freight, receiving, inspection, and other costs associated with the operations of our distribution system, including occupancy related to our warehousing operations. The costs associated with our merchandising, advertising, sales commissions, and all store occupancy costs, are included in selling, general and administrative expense. Advertising Costs. Advertising costs are expensed as incurred. For the years ended January 31, 2016 , 2015 and 2014 , advertising expense was $89.9 million , $81.8 million and $50.7 million , respectively. Stock-based Compensation . For stock option grants, we use the Black-Scholes model to determine fair value. For grants of restricted stock units, the fair value of the grant is the market value of our stock at the date of issuance. Stock-based compensation expense is recorded, net of estimated forfeitures, on a straight-line basis over the vesting period of the applicable grant. Self-insurance . We are self-insured for certain losses relating to group health, workers' compensation, automobile, general and product liability claims. We have stop-loss coverage to limit the exposure arising from these claims. Self-insurance losses for claims filed and claims incurred, but not reported, are accrued based upon our estimates of the aggregate liability for claims incurred using development factors based on historical experience. Income Taxes . We are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. We follow the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards, as measured using the enacted tax rates expected to be in effect when the temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. To the extent penalties and interest are incurred, we record these charges as a component of our provision for income taxes. We review and update our tax positions as necessary to add any new uncertain tax positions taken, or to remove previously identified uncertain positions that have been adequately resolved. Additionally, uncertain positions may be remeasured as warranted by changes in facts or law. Accounting for uncertain tax positions requires estimating the amount, timing and likelihood of ultimate settlement. Accounting for Leases. We lease the majority of our current store locations and certain of our facilities and operating equipment under operating leases. The fixed, non-cancelable terms of our real estate leases are generally five to 15 years and generally include renewal options that allow us to extend the term beyond the initial non-cancelable term. Most of the real estate leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. Equipment leases generally provide for initial lease terms of three to seven years and provide for a purchase right at the end of the lease term at the then fair market value of the equipment. Certain of our operating leases contain predetermined fixed escalations of the minimum rental payments over the lease. For these leases, we recognize the related rental expense on a straight-line basis over the term of the lease, which commences for accounting purposes on the date we have access and control over the leased store (possession). Possession generally occurs prior to the making of any lease payments and approximately 90 to 120 days prior to the opening of a store. In the early years of a lease with rent escalations, the recorded rent expense will exceed the actual cash payments. The amount of rent expense that exceeds the cash payments is recorded as deferred rent in the consolidated balance sheet. In the later years of a lease with rent escalations, the recorded rent expense will be less than the actual cash payments. The amount of cash payments that exceed the rent expense is then recorded as a reduction to deferred rent. As of January 31, 2016 and 2015 , deferred rent related to lease agreements with escalating rent payments was $20.9 million and $15.9 million , respectively. Additionally, certain operating leases contain terms which obligate the landlord to remit cash to us as an incentive to enter into the lease agreement (tenant allowances). We record the amount to be remitted by the landlord as a tenant allowance receivable as we earn it under the terms of the contract. At the same time, we record deferred rent in an equal amount in the consolidated balance sheet. The tenant allowance receivable is reduced as cash is received from the landlord, while the deferred rent is amortized as a reduction to rent expense over the lease term. As of January 31, 2016 and 2015 , deferred rent related to tenant allowances, including both current and long-term portions, was $60.9 million and $42.7 million , respectively. Contingencies. An estimated loss from a contingency is recorded if it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Gain contingencies are not recorded until realization is assured beyond a reasonable doubt. Legal costs related to loss contingencies are expensed as incurred. Fair Value of Financial Instruments . Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to subjectivity associated with the inputs to fair value measurements as follows: • Level 1 – Quoted prices available in active markets for identical assets or liabilities • Level 2 – Pricing inputs not quoted in active markets but either directly or indirectly observable • Level 3 – Significant inputs to pricing that have little or no transparency with inputs requiring significant management judgment or estimation. The fair value of cash and cash equivalents and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivables, determined using a Level 3 discounted cash flow analysis, approximates their carrying amount. The fair value of our revolving credit facility approximates carrying value based on the current borrowing rate for similar types of borrowing arrangements. At January 31, 2016 , the fair value of the Senior Notes, which was determined using Level 1 inputs, was $183.3 million as compared to the carrying value of $227.0 million , excluding the impact of the related discount. At January 31, 2016 , the fair value of the Class A Notes and Class B Notes, which were determined using Level 2 inputs based on inactive trading activity, approximates their carrying value. Change in Accounting Policy. During the fourth quarter of fiscal year 2016, we changed our accounting policy for the presentation of delivery, transportation and handling costs. Total delivery, transportation and handling costs exceed 4% of total retail sales, and have increased over 100 basis points since fiscal year 2013. This increase reflects changes in the business to a higher proportion of sales related to furniture, mattress, and appliances. Under the new accounting policy, delivery, transportation and handling costs are included in cost of goods sold, whereas previously they were presented separately as an operating expense. Delivery, transportation and handling costs do not include inbound freight, which were historically and continue to be presented in cost of goods sold. We made this voluntary change in accounting principle because we believe that including these expenses in cost of goods sold better reflects the costs of generating the related revenue and results in more meaningful presentation of retail gross margin. This change in accounting policy also enhances the comparability of our financial statements with many of our industry peers and has been applied retrospectively. The consolidated statements of operations for the years ended January 31, 2015 and 2014 have been adjusted to reflect this change in accounting policy. For the years ended January 31, 2015 and 2014 , the impact of the reclassification of delivery, transportation and handling costs was an increase of $52.2 million and $36.2 million , respectively, to cost of goods sold and the elimination of the separately presented delivery, transportation and handling costs. These reclassifications had no impact on total revenues, operating income, net income or earnings per share. Reclassifications. Certain reclassifications have been made to prior fiscal year amounts to conform to the presentation in the current fiscal year. On the consolidated statements of operations, for the years ended January 31, 2015 and 2014 , we reclassified $6.2 million and $5.3 million , respectively, of cost of service parts sold to cost of goods sold. These reclassifications did not impact consolidated operating income or net income. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify contracts with customers, (2) identify the performance obligations in contracts, (3) determine transaction price, (4) allocate the transaction price to the performance obligations, and (5) recognize revenue as each performance obligation is satisfied. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date , which defers the effective date of ASU 2015-14 by one year and allows early adoption on a limited basis. ASU 2014-09 is now effective for us beginning in the first quarter of fiscal year 2019 and will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. We are currently assessing the impact the new standard will have on our financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which focuses on a reporting company’s consolidation evaluation to determine whether they should consolidate certain legal entities. ASU 2015-02 is effective for us beginning in the first quarter of fiscal year 2017 and allows early adoption, including adoption in an interim period. We early adopted ASU 2015-02 beginning with the quarter ended July 31, 2015, which did not have an impact to our financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, and during August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We early adopted ASU 2015-03 effective January 31, 2016 retrospectively to all prior periods presented. As a result of the adoption of ASU 2015-03, we reclassified $1.5 million of deferred debt issuance costs as of January 31, 2015 out of other assets to long-term debt as a direct deduction of the carrying amount of debt. The additional guidance provided in ASU 2015-15 had no financial statement impact. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred income taxes. ASU 2015-17 provides presentation requirements to classify deferred tax assets and liabilities as non-current in a classified statement of financial position. We early adopted ASU 2015-17 effective January 31, 2016 retrospectively to all prior periods presented. As a result of the adoption of ASU 2015-17, we reclassified $20.0 million of deferred income taxes as of January 31, 2015 out of current ass |
Charges and Credits
Charges and Credits | 12 Months Ended |
Jan. 31, 2016 | |
Charges and Credits [Abstract] | |
Charges and Credits | Charges and Credits Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2016 2015 2014 Store and facility closure costs $ 637 $ 3,646 $ 2,117 Legal and professional fees related to the exploration of strategic alternative and securities-related litigation 3,153 1,135 — Sales tax audit reserve 2,748 — — Executive management transition costs 1,506 — — Employee severance — 909 — $ 8,044 $ 5,690 $ 2,117 During the years ended January 31, 2016 and 2015 , we had costs associated with legal and professional fees related to our exploration of strategic alternatives (including our securitization transaction) and our securities-related litigation. During the fourth quarter of fiscal year 2016, we recorded a sales tax audit reserve based on a recent assessment of prior year periods and our estimate related to post-audit periods. In addition, during the year ended January 31, 2016 , we had transition costs due to changes in the executive management team and, during the year ended January 31, 2015 , we had charges for severance. During the years ended January 31, 2016 , 2015 , and 2014 , we closed and relocated under-performing retail locations and recorded the related charges. In connection with prior closures, we adjust the related lease obligations as more information becomes available. |
Finance Charges and Other Reven
Finance Charges and Other Revenues | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | |
Finance Charges and Other Revenue | Finance Charges and Other Revenues Finance charges and other revenues consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Interest income and fees $ 238,161 $ 211,063 $ 155,703 Insurance commissions 50,789 50,613 44,704 Other revenues 1,639 2,566 1,522 $ 290,589 $ 264,242 $ 201,929 Interest income and fees and insurance commissions are derived from the credit segment operations, whereas other revenues is derived from the retail segment operations. For the years ended January 31, 2016 , 2015 and 2014 , interest income and fees on customer receivables is reduced by provisions for uncollectible interest of $36.7 million , $27.5 million and $14.9 million , respectively. The amount included in interest income and fees related to TDR accounts for the years ended January 31, 2016 , 2015 and 2014 is $14.0 million and $9.1 million and $4.4 million , respectively. |
Customer Accounts Receivable
Customer Accounts Receivable | 12 Months Ended |
Jan. 31, 2016 | |
Receivables [Abstract] | |
Supplemental Disclosure of Customer Receivables | Customer Accounts Receivable Total Outstanding Balance 60 Days Past Due (1) Re-aged (1) January 31, January 31, January 31, (in thousands) 2016 2015 2016 2015 2016 2015 Customer accounts receivable $ 1,470,205 $ 1,277,135 $ 127,400 $ 112,365 $ 112,221 $ 94,304 Restructured accounts 117,651 88,672 30,323 20,722 117,651 88,672 Total customer portfolio balance 1,587,856 1,365,807 $ 157,723 $ 133,087 $ 229,872 $ 182,976 Allowance for uncollectible accounts (190,990 ) (146,982 ) Allowances for no-interest option credit programs (21,290 ) (17,474 ) Total customer accounts receivables, net 1,375,576 1,201,351 Short-term portion of customer accounts receivable, net (743,931 ) (643,094 ) Long-term portion of customer accounts receivable, net $ 631,645 $ 558,257 Securitized receivables held by the VIE $ 870,684 $ — $ 135,800 $ — $ 204,594 $ — Receivables not held by the VIE 717,172 1,365,807 21,923 133,087 25,278 182,976 Total customer portfolio balance $ 1,587,856 $ 1,365,807 $ 157,723 $ 133,087 $ 229,872 $ 182,976 (1) Due to the fact that an account can become past due after having been re-aged, accounts could be represented as both past due and re-aged. As of January 31, 2016 and 2015 , the amounts included within both 60 days past due and re-aged was $55.2 million and $44.9 million , respectively. As of January 31, 2016 and 2015 , the total customer portfolio balance past due one day or greater was $387.3 million and $316.0 million , respectively. These amounts include the 60 days past due totals shown above. The following presents the activity in our balance in the allowance for doubtful accounts and uncollectible interest for customer receivables: January 31, 2016 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 118,786 $ 28,196 $ 146,982 Provision (1) 204,499 53,658 258,157 Principal charge-offs (2) (150,237 ) (34,604 ) (184,841 ) Interest charge-offs (27,414 ) (6,314 ) (33,728 ) Recoveries (2) 3,593 827 4,420 Allowance at end of period $ 149,227 $ 41,763 $ 190,990 Average total customer portfolio balance $ 1,355,804 $ 102,522 $ 1,458,326 January 31, 2015 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 54,448 $ 17,353 $ 71,801 Provision (1) 187,222 32,125 219,347 Principal charge-offs (2) (113,525 ) (19,661 ) (133,186 ) Interest charge-offs (20,503 ) (3,551 ) (24,054 ) Recoveries (2) 11,144 1,930 13,074 Allowance at end of period $ 118,786 $ 28,196 $ 146,982 Average total customer portfolio balance $ 1,129,513 $ 63,698 $ 1,193,211 January 31, 2014 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 27,702 $ 16,209 $ 43,911 Provision (1) 89,960 20,342 110,302 Principal charge-offs (2) (57,433 ) (17,443 ) (74,876 ) Interest charge-offs (9,958 ) (3,024 ) (12,982 ) Recoveries (2) 4,177 1,269 5,446 Allowance at end of period $ 54,448 $ 17,353 $ 71,801 Average total customer portfolio balance $ 828,172 $ 41,389 $ 869,561 (1) Includes provision for uncollectible interest, which is included in finance charges and other revenues. (2) Charge-offs include the principal amount of losses (excluding accrued and unpaid interest). Recoveries include the principal amount collected or sold to third-parties during the period for previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: Estimated January 31, (dollars in thousands) Useful Lives 2016 2015 Land — $ 395 $ 5,359 Buildings 30 years 1,222 1,233 Leasehold improvements 5 to 15 years 191,606 165,505 Equipment and fixtures 3 to 5 years 49,741 38,832 Capital leases 3 to 5 years 4,312 2,133 Construction in progress — 21,273 8,261 268,549 221,323 Less accumulated depreciation (117,066 ) (101,105 ) $ 151,483 $ 120,218 Construction in progress is comprised primarily of the construction of leasehold improvements related to unopened retail stores and internal-use software under development. Capital lease assets primarily include technology equipment. During the year ended January 31, 2015 , we received net proceeds of $19.3 million from the sale and long-term lease back of owned properties. The gains associated with these sales were deferred and are being amortized over the life of the leases associated with those properties. There were no sales and lease back transactions during the years ended January 31, 2016 and January 31, 2014 . |
Accrual for Store Closures
Accrual for Store Closures | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Accrual for Store Closures | Accrual for Store Closures We have closed or relocated retail locations that did not perform at a level we expect for mature store locations. Certain of the closed or relocated stores had noncancellable lease agreements, resulting in the accrual of the present value of the remaining lease payments and estimated related occupancy obligations, net of estimated sublease income. Adjustments to these projections for changes in estimated marketing times and sublease rates, as well as other revisions, are made to the obligation as further information related to the actual terms and costs become available. The following table presents detail of the activity in the accrual for store closures: January 31, (in thousands) 2016 2015 Balance at beginning of period $ 2,557 $ 4,316 Accrual for additional closures 318 2,946 Adjustments 32 (136 ) Cash payments, net of sublease income (1,041 ) (4,569 ) Balance at end of period 1,866 2,557 Current portion, included in accrued expenses (653 ) (819 ) Long-term portion, included in other long-term liabilities $ 1,213 $ 1,738 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations Debt and capital lease obligations consisted of the following: January 31, (in thousands) 2016 2015 Revolving credit facility $ 329,207 $ 528,112 Senior Notes 227,000 250,000 Class A Notes 551,383 — Class B Notes 165,900 — Capital lease obligations 2,488 933 Total debt and capital lease obligations 1,275,978 779,045 Less: Discount on debt (3,641 ) (4,635 ) Deferred debt issuance costs (22,659 ) (1,518 ) Current maturities of capital lease obligations (799 ) (395 ) Long-term debt and capital lease obligations $ 1,248,879 $ 772,497 Future maturities of debt, excluding capital lease obligations, as of January 31, 2016 are as follows: (in thousands) Year ended January 31, 2017 $ — 2018 — 2019 329,207 2020 — 2021 717,283 Thereafter 227,000 Total $ 1,273,490 Senior Notes. On July 1, 2014, we issued $250.0 million of unsecured Senior Notes due July 2022 bearing interest at 7.250% , pursuant to an indenture dated July 1, 2014 (the "Indenture"), among Conn's, Inc., its subsidiary guarantors (the "Guarantors") and U.S. Bank National Association, as trustee. The effective interest rate of the Senior Notes after giving effect to the discount and issuance costs is 7.8% . During the year ended January 31, 2016 , we repurchased $23.0 million of face value of the Senior Notes for $22.9 million . As a result of the bond repurchases, we had a loss on extinguishment of $0.5 million , primarily due to the write-off of related deferred costs. The Indenture restricts the Company's and certain of its subsidiaries' ability to: (i) incur indebtedness; (ii) pay dividends or make other distributions in respect of, or repurchase or redeem, our capital stock ("restricted payments"); (iii) prepay, redeem or repurchase debt that is junior in right of payment to the notes; (iv) make loans and certain investments; (v) sell assets; (vi) incur liens; (vii) enter into transactions with affiliates; and (viii) consolidate, merge or sell all or substantially all of our assets. These covenants are subject to a number of important exceptions and qualifications. Specifically, limitations for restricted payments are only if one or more of the following occurred: (1) a default were to exist under the indenture, (2) if we could not satisfy a debt incurrence test, and (3) if the aggregate amount restricted payments would exceed an amount tied to the consolidated net income. These limitations, however, are subject to two exceptions: (1) an exception that permits the payment of up to $375.0 million in restricted payments, and (2) an exception that permits restricted payments regardless of dollar amount so long as, after giving pro forma effect to the dividends and other restricted payments, we would have had a leverage ratio, as defined under the Indenture, less than or equal to 2.50 to 1.0 . Thus, as of January 31, 2016 , $201.0 million would have been free from the dividend restriction. However, as a result of the revolving credit facility dividend restrictions, which are further described below, only $6.2 million would be available for dividends. During any time when the Senior Notes are rated investment grade by either of Moody's Investors Service, Inc. or Standard & Poor's Ratings Services and no default (as defined in the Indenture) has occurred and is continuing, many of such covenants will be suspended and we will cease to be subject to such covenants during such period. Events of default under the Indenture include customary events, such as a cross-acceleration provision in the event that we default in the payment of other debt due at maturity or upon acceleration for default in an amount exceeding $25.0 million , as well as in the event a judgment is entered against us in excess of $25.0 million that is not discharged, bonded or insured. On April 24, 2015, the SEC declared effective the Company's registration statement on Form S-4 pursuant to which we exchanged the Senior Notes for an equivalent amount of 7.250% Senior Notes due July 2022 that are registered under the Securities Act of 1933, as amended (the "Exchange Notes"). The exchange offer was completed on June 1, 2015, and all of the outstanding Senior Notes were tendered in exchange for the Exchange Notes. The terms of the Exchange Notes are substantially identical to the Senior Notes. In October 2015, the Company, the Guarantors and U.S. Bank National Association, as trustee, adopted, with the consent of the holders of a majority in the outstanding principal amount of the Senior Notes, the Second Supplemental Indenture (the "Supplemental Indenture"). Pursuant to the Supplemental Indenture, the Indenture was amended to extend, from May 1, 2014 to November 1, 2015, the beginning of the accounting period from which consolidated net income is calculated for purposes of determining the size of the "restricted payment basket" exception to the restricted payments limitation and to increase, from $75.0 million to $375.0 million , the dollar threshold exception to the restricted payments limitation. In November 2015, we paid $3.8 million as an aggregate consent fee to the consenting holders of the Senior Notes, recorded as deferred debt issuance costs, which will be amortized over the remaining life of the Senior Notes. Asset-backed Notes. In September 2015, the VIE issued asset-backed notes at a face amount of $1.12 billion secured by the transferred customer accounts receivables and restricted cash held by the VIE, which resulted in net proceeds to us of approximately $1.08 billion , net of transaction costs and restricted cash held by the VIE. The net proceeds were used to pay down the entire balance on our previous revolving credit facility, to repurchase shares of the Company's common stock and Senior Notes, and for other general corporate purposes. The asset-backed notes consist of the following securities: • Asset-backed Fixed Rate Notes, Class A, Series 2015-A ("Class A Notes") in aggregate principal amount of $952.1 million that bear interest at a fixed annual rate of 4.565% and mature on September 15, 2020. The effective interest rate of the Class A Notes after giving effect to offering fees is 7.2% . • Asset-backed Fixed Rate Notes, Class B, Series 2015-A ("Class B Notes") in aggregate principal amount of $165.9 million that bear interest at a fixed annual rate of 8.500% and mature on September 15, 2020. The effective interest rate of the Class B Notes after giving effect to offering fees is 12.9% . The Class A Notes and Class B Notes were offered and sold to qualified institutional buyers pursuant to the exemptions from registration provided by Rule 144A under the Securities Act. If an event of default were to occur under the indenture that governs the Class A Notes and Class B Notes, the payment of the outstanding amounts may be accelerated, in which event the cash proceeds of the receivables that otherwise might be released to the residual equity holder would instead be directed entirely toward repayment of the Class A Notes and Class B Notes, or if the receivables are liquidated, all liquidation proceeds could be directed solely to repayment of the Class A and Class B Notes. The holders of the Class A Notes and Class B Notes have no recourse to assets outside of the VIE. Events of default include, but are not limited to, failure to make required payments on the notes or specified bankruptcy-related events. Revolving Credit Facility. On October 30, 2015, Conn's, Inc. and certain of its subsidiaries entered into the Third Amended and Restated Loan and Security Agreement with certain lenders, that provides for an $810.0 million asset-based revolving credit facility (the "revolving credit facility") under which availability is subject to a borrowing base. The revolving credit facility resulted in various changes to the previous credit facility, including: • Extended the maturity date from November 25, 2017 to October 30, 2018; • Increased the maximum total leverage ratio covenant (ratio of total liabilities less the sum of qualified cash and ABS qualified cash to tangible net worth) from 2.0 x to 4.0 x; • Added a new maximum "ABS excluded" leverage ratio covenant (ratio of total liabilities (excluding liabilities of the consolidated VIEs and other permitted securitization transactions) less qualified cash to tangible net worth) of 2.0 x; • Replaced the fixed charge coverage ratio covenant with a minimum interest coverage ratio covenant of 2.0 x; • Reduced the maximum accounts receivable advance rate from 80% to 75% ; • Included a fourth quarter seasonal step-down in the cash recovery covenant from 4.5% to 4.25% ; • Increased the maximum inventory component of the borrowing base from $100.0 million to $175.0 million ; • Modified the conditions for repurchases of the Company's common stock, including changes in the liquidity test and the elimination of the fixed charge coverage ratio test; • Included a new liquidity test for repurchases and redemptions of our debt; and • Modified our ability to effect future securitizations of our customer receivables portfolio, including removing the consent rights of the lenders and establishing set criteria for permitted securitizations. In connection with entering into the revolving credit facility, we wrote-off $0.9 million of debt issuance costs related to the previous revolving credit facility for lenders that did not continue to participate. Also, we paid $3.0 million of debt issuance costs, recorded as other assets, which will be amortized ratably over the remaining term of the revolving credit facility along with the debt issuance costs remaining from the previous revolving credit facility. Loans under the revolving credit facility bear interest, at our option, at a rate of LIBOR plus a margin ranging from 2.5% to 3.0% per annum (depending on quarterly average net availability under the borrowing base) or the alternate base rate plus a margin ranging from 1.5% to 2.0% per annum (depending on quarterly average net availability under the borrowing base). The alternate base rate is the greatest of the prime rate announced by Bank of America, N.A., the federal funds rate plus 0.5% , or LIBOR for a 30-day interest period plus 1.0% . The weighted average interest rate on borrowings outstanding under the revolving credit facility was 3.3% for the year ended January 31, 2016 . We also pay an unused fee on the portion of the commitments that are available for future borrowings or letters of credit at a rate ranging from 0.25% to 0.75% per annum, depending on the outstanding balance and letters of credit of the revolving credit facility. The revolving credit facility provides funding based on a borrowing base calculation that includes customer accounts receivable and inventory, and provides for a $40.0 million sub-facility for letters of credit to support obligations incurred in the ordinary course of business. The obligations under the revolving credit facility are secured by substantially all assets of the Company, excluding the assets of the VIEs. As of January 31, 2016 , we had immediately available borrowing capacity of $169.2 million under our revolving credit facility, net of standby letters of credit issued of $1.1 million . We also had $310.5 million that may become available under our revolving credit facility if we grow the balance of eligible customer receivables and our total eligible inventory balances. The revolving credit facility places restrictions on our ability to incur additional indebtedness, grant liens on assets, make distributions on equity interests, dispose of assets, make loans, pay other indebtedness, engage in mergers, and other matters. The revolving credit facility restricts our ability to make dividends and distributions unless no event of default exists and a liquidity test is satisfied. Subsidiaries of the Company may make dividends and distributions to the Company and other obligors under the revolving credit facility without restriction. As of January 31, 2016 , $6.2 million would have been free from the dividend restriction in the revolving credit facility. The revolving credit facility contains customary default provisions, which, if triggered, could result in acceleration of all amounts outstanding under the revolving credit facility. Debt Covenants. We were in compliance with our debt covenants at January 31, 2016 . A summary of the significant financial covenants that govern our revolving credit facility compared to our actual compliance status at January 31, 2016 is presented below: Actual Required Interest Coverage Ratio must equal or exceed minimum 2.23:1.00 2.00:1.00 Leverage Ratio must not exceed maximum 2.59:1.00 4.00:1.00 ABS Excluded Leverage Ratio must not exceed maximum 1.41:1.00 2.00:1.00 Cash Recovery Percent (fourth quarter) must exceed stated amount 4.54% 4.25% Capital Expenditures, net, must not exceed maximum $35.9 million $75.0 million All capitalized terms in the above table are defined by the revolving credit facility, as amended, and may or may not agree directly to the financial statement captions in this document. The covenants are calculated quarterly, except for the Cash Recovery Percent, which is calculated monthly on a trailing three -month basis, and Capital Expenditures, which is calculated for a period of four consecutive fiscal quarters, as of the end of each fiscal quarter. On February 16, 2016, we entered into an amendment to our revolving credit facility, effective as of January 31, 2016 , that excludes non-cash deferred amortization of debt related transaction costs from interest expense and provides for 18 months subsequent to the closing of a securitization transaction in which the Cash Recovery Percent will be determined based on the portfolio of contracts subject to the (i) securitization facilities; and (ii) a lien under the revolving credit facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 57,585 $ 43,258 Deferred rent 7,479 5,645 Deferred gains on sale-leaseback transactions 3,295 3,144 Deferred revenue 4,168 2,743 Inventories 3,494 2,604 Stock-based compensation 1,845 1,725 State net operating loss carryforwards 1,324 1,498 State margin tax 1,008 1,226 Other 3,422 2,403 Total deferred tax assets 83,620 64,246 Deferred tax liabilities: Sales tax receivable (9,316 ) (4,270 ) Property and equipment (1,717 ) (4,356 ) Other (2,368 ) (2,075 ) Total deferred tax liabilities (13,401 ) (10,701 ) Net deferred tax asset $ 70,219 $ 53,545 As of January 31, 2014 , we had a valuation allowance related to individual state net operating loss carryforwards due to the cumulative jurisdiction losses incurred over the three-year period then ended. For the three-year period ended January 31, 2015 , we no longer had cumulative jurisdiction losses. Based upon our review of all evidence in existence at January 31, 2015 , the valuation allowance was reversed as we believe it is more likely than not that all established deferred tax assets will be fully realized, based primarily on carrybacks, the reversal of existing taxable temporary differences, and projected future taxable income. We had no uncertain tax positions at either January 31, 2016 or 2015 . Provision for income taxes consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Current: Federal $ 32,820 $ 54,959 $ 52,208 State 2,242 2,570 2,049 Total current 35,062 57,529 54,257 Deferred: Federal (16,032 ) (23,712 ) (1,061 ) State (642 ) (1,828 ) (126 ) Total deferred (16,674 ) (25,540 ) (1,187 ) Provision for income taxes $ 18,388 $ 31,989 $ 53,070 A reconciliation of the provision for income taxes at the U.S. federal statutory tax rate and the total tax provision for each of the periods presented in the statements of operations follows: Year ended January 31, (in thousands) 2016 2015 2014 Income tax provision at U.S. federal statutory rate $ 17,235 $ 31,676 $ 51,275 State income taxes, net of federal benefit 1,180 1,893 1,489 Change in valuation allowance — (2,180 ) — Other (27 ) 600 306 $ 18,388 $ 31,989 $ 53,070 Tax returns for the fiscal years subsequent to January 31, 2009 remain open for examination by our major taxing jurisdictions. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2016 | |
Leases, Operating [Abstract] | |
Leases | Leases During the years ended January 31, 2016 , 2015 and 2014 , total rent expense was $44.7 million , $39.4 million and $31.2 million , respectively. As of January 31, 2016 , our future minimum lease payments that have initial non-cancelable lease terms in excess of one year are as follows: (in thousands) Operating Leases Capital Leases Year ending January 31, 2017 $ 52,317 $ 949 2018 51,665 927 2019 49,311 726 2020 47,743 215 2021 45,976 — Thereafter 183,440 — Total $ 430,452 2,817 Less - interest on capital lease obligations (329 ) Total principal payable on capital lease obligations 2,488 Less - current maturities (799 ) Long-term capital lease obligations $ 1,689 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have an Incentive Stock Option Plan, an Omnibus Incentive Plan, a Non-Employee Director Stock Option Plan and a Director Restricted Stock Plan, which provide for grants of stock options and restricted stock units ("RSUs") to directors, officers and key employees. As of January 31, 2016 , shares authorized for future issuance were: 546,147 under the Incentive Stock Option Plan; 120,231 under the Omnibus Incentive Plan; 50,000 under the Non-Employee Director Stock Option Plan; and 191,632 under the Director Restricted Stock Plan. Stock options and RSUs generally vest over periods of one to five years from the date of grant. Stock options under the various plans are issued at prices equal to the market value on the date of the grant and, typically, expire ten years after the date of grant. Total stock-based compensation expense, recognized primarily in selling, general and administrative expenses, from stock-based compensation consisted of the following: Year Ended January 31, (in thousands) 2016 2015 2014 Stock options $ 331 $ 825 $ 1,138 RSUs 3,926 2,772 2,509 Employee stock purchase plan 354 500 302 $ 4,611 $ 4,097 $ 3,949 During the years ended January 31, 2016 , 2015 , and 2014 , we recognized tax benefits related to stock-based compensation of $1.4 million , $1.2 million , and $1.1 million , respectively. As of January 31, 2016 , the total unrecognized compensation cost related to all non-vested stock-based compensation awards was $15.1 million and is expected to be recognized over a weighted average period of 3.7 years. Stock Options. For the years ended January 31, 2016 , 2015 , and 2014 , no stock options were awarded. The following table summarizes the activity for outstanding stock options: (shares in thousands) Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 31, 2015 945 $ 13.43 Exercised (97 ) $ 9.74 Forfeited and expired (2 ) $ 3.20 Outstanding, January 31, 2016 846 $ 13.87 2.7 years $ 2.4 million Vested and expected to vest, January 31, 2016 846 $ 13.87 2.7 years $ 2.4 million Exercisable, January 31, 2016 802 $ 13.43 2.4 years $ 2.4 million During the years ended January 31, 2016 , 2015 and 2014 , the total intrinsic value of stock options exercised was $2.2 million , $2.5 million and $23.9 million , respectively. Restricted Stock Units. The restricted stock program consists of a combination of performance-based RSUs and time-based RSUs. The number of performance-based RSUs issued under the program is dependent upon our achievement of a predefined return on invested capital ("ROIC") for the period identified in the grant, which is generally two years. In the event ROIC exceeds the predefined target, shares for up to a maximum of 150% of the target award may be granted. In the event the ROIC falls below the predefined target, a reduced number of shares may be granted. If the ROIC falls below the threshold performance level, no shares will be granted. The performance-based RSUs vest 50% on the grant date after the end of the second year and then 25% at the end of the third and fourth years. The time-based RSUs generally vest on a straight-line basis over their term, which is generally four to five years . The following table summarizes the activity for RSUs: Time-Based RSUs Performance-Based RSUs (shares in thousands) Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Total Number of Units Unvested, January 31, 2015 337 $ 30.04 61 $ 32.35 398 Restricted stock units granted 377 $ 29.04 12 $ 36.90 389 Performance adjustment — $ — — $ — — Restricted stock units vested and converted to common stock (124 ) $ 25.80 (14 ) $ 17.12 (138 ) Forfeited (50 ) $ 27.53 — $ — (50 ) Unvested, January 31, 2016 540 $ 30.55 59 $ 37.01 599 Employee Stock Purchase Plan. Our Employee Stock Purchase Plan is available to our employees, subject to minimum employment conditions and maximum compensation limitations. At the end of each calendar quarter, employee contributions are used to acquire shares of common stock at 85% of the lower of the fair market value of the common stock on the first or last day of the calendar quarter. During the years ended January 31, 2016 , 2015 and 2014 , we issued 48,585 , 40,908 and 27,808 shares of common stock, respectively, to employees participating in the plan, leaving 965,339 shares remaining reserved for future issuance under the plan as of January 31, 2016 . |
Significant Vendors
Significant Vendors | 12 Months Ended |
Jan. 31, 2016 | |
Significant Vendors [Abstract] | |
Significant Vendors | Significant Vendors As shown in the table below, a significant portion of our merchandise purchases were made from six vendors: Year ended January 31, 2016 2015 2014 Vendor A 29.1 % 25.7 % 23.9 % Vendor B 17.9 18.4 14.2 Vendor C 4.7 6.8 5.4 Vendor D 4.1 4.9 5.1 Vendor E 3.2 3.4 4.7 Vendor F 3.1 3.3 4.6 62.1 % 62.5 % 57.9 % The vendors shown above represent the top six vendors with the highest volume in each period shown. The same vendor may not necessarily be represented in all periods presented. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party From time to time, we have engaged Stephens Inc. to act as our financial advisor. Stephens Inc. and its affiliates beneficially own shares of our common stock and one member of our Board of Directors, Douglas H. Martin, is a Senior Managing Director of Stephens Inc. On March 31, 2015, we announced that we had engaged Stephens Inc., as a financial advisor to assist us with the process of pursuing a sale of all or a portion of the loan portfolio, or other refinancing of our loan portfolio. The disinterested members of our Board of Directors determined that it was in the Company's best interest to engage Stephens Inc. in such capacity to assist us in analyzing and advising us with respect to the opportunity. The engagement of Stephens Inc. as financial advisor was approved by the independent members of our Board of Directors after full disclosure of the conflicts of interests of the related parties in the transaction. Douglas H. Martin did not participate in the approval process. During the year ended January 31, 2016 , we paid Stephens Inc. a success fee of $1.1 million and ended the engagement as a result of the close of the securitization transaction in September 2015. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Defined Contribution Plan We have established a defined contribution 401(k) plan for eligible employees. Employees may contribute up to 20% of their eligible pretax compensation to the plan. We match 100% of the first 3% of the employees' contributions. At our option, we may make supplemental contributions to the plan, but have not made such contributions in the past three years. The matching contributions made by us totaled $1.0 million , $1.1 million and $1.0 million during the years ended January 31, 2016 , 2015 and 2014 , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Securities Class Action Litigation. We and two of our current and former executive officers are defendants in a consolidated securities class action lawsuit pending in the Southern District of Texas (the "Court"), In re Conn's Inc. Securities Litigation, Cause No. 14-CV-00548 (the "Consolidated Securities Action"). The Consolidated Securities Action started as three separate purported securities class action lawsuits filed between March 5, 2014 and May 5, 2014 in the United States District Court for the Southern District of Texas that were consolidated into the Consolidated Securities Action on June 3, 2014. The plaintiffs in the Consolidated Securities Action allege that the defendants made false and misleading statements and/or failed to disclose material adverse facts about our business, operations, and prospects. They allege violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and seek to certify a class of all persons and entities that purchased or otherwise acquired Conn's common stock and/or call options, or sold/wrote Conn's put options between April 3, 2013 and December 9, 2014. The complaint does not specify the amount of damages sought. On June 30, 2015, the Court held a hearing on the defendants' motion to dismiss plaintiffs' complaint. At the hearing, the Court dismissed Brian Taylor, a former executive officer, and certain other aspects of the complaint. The Court ordered the plaintiffs to further amend their complaint in accordance with its ruling, and the plaintiffs filed their Fourth Consolidated Amended Complaint on July 21, 2015. The remaining defendants filed a motion to dismiss on August 28, 2015. The briefing on the defendant's motion to dismiss was fully briefed and the Court held a hearing on defendants' motion on March 25, 2016. That hearing was not concluded and the completion of that hearing was postponed until a future date. The defendants intend to vigorously defend against all of these claims. It is not possible at this time to predict the timing or outcome of any of this litigation, and we cannot reasonably estimate the possible loss or range of possible loss from these claims. Derivative Litigation. On December 1, 2014, an alleged shareholder filed, purportedly on behalf of the Company, a derivative shareholder lawsuit against us and certain of our current and former directors and executive officers in the United States District Court for the Southern District of Texas captioned Robert Hack, derivatively on behalf of Conn's, Inc., v. Theodore M. Wright, Bob L. Martin, Jon E.M. Jacoby, Kelly M. Malson, Douglas H. Martin, David Schofman, Scott L. Thompson, Brian Taylor, a former executive officer, and Michael J. Poppe and Conn's, Inc., Case No. 4:14-cv-03442 (the "Original Derivative Action"). The complaint asserts claims for breach of fiduciary duty, unjust enrichment, gross mismanagement, and insider trading based on substantially similar factual allegations as those asserted in the Consolidated Securities Action. The plaintiff seeks unspecified damages against these persons and does not request any damages from us. The court approved a stipulation among the parties to stay the action pending resolution of the motion to dismiss in the Consolidated Securities Action, and the parties have requested that the Court extend the stay pending resolution of the anticipated motion to dismiss. Another derivative action was filed on January 27, 2015, captioned, Richard A. Dohn v. Wright, et al., Cause No. 2015-04405, filed in the 281st District Court, Harris County, Texas. This action makes substantially similar allegations to the Original Derivative Action against the same defendants. The parties have entered into an agreed stay pending resolution of the motion to dismiss in the Consolidated Securities Action. On February 25, 2015, a third derivative action was filed in the United States District Court for the Southern District of Texas, captioned 95250 Canada LTEE, derivatively on Behalf of Conn's, Inc. v. Wright et al., Cause No. 4:15-cv-00521. This action makes substantially similar allegations to the Original Derivative Action. On March 30, 2015, the plaintiffs in this action and the Original Derivative Action filed a joint motion to consolidate these two derivative actions. The joint motion is still pending with the court. None of the plaintiffs in any of the derivative actions made a demand on our Board of Directors prior to filing their respective lawsuits. The defendants in the derivative actions intend to vigorously defend against these claims, and we cannot reasonably estimate the possible loss or range of possible loss from these claims. Regulatory Matters. We are continuing to cooperate with the SEC's investigation, which began on or around November 2014, which generally relates to our underwriting policies and bad debt provisions. The investigation is a non-public, fact-finding inquiry, and the SEC has stated that the investigation does not mean that any violations of law have occurred. In addition, we are involved in other routine litigation and claims incidental to our business from time to time which, individually or in the aggregate are not expected to have a material adverse effect on our financial position, results of operations or cash flows. As required, we accrue estimates of the probable costs for the resolution of these matters. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. However, the results of these proceedings cannot be predicted with certainty, and changes in facts and circumstances could impact our estimate of reserves for litigation. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity | Variable Interest Entity In September 2015, we securitized $1.4 billion of customer accounts receivables by transferring the receivables to the VIE. The VIE issued asset-backed notes at a face amount of $1.12 billion secured by the transferred portfolio balance. Under the terms of the securitization transaction, the customer receivable principal and interest payment cash flows will go first to the servicer and the holders of the Class A Notes and Class B Notes, and then to the residual equity holder. We retain the servicing of the securitized portfolio and are receiving a monthly fee of 4.75% (annualized) based on the outstanding balance of the securitized receivables, and we currently hold all of the residual equity. In addition, we, rather than the VIE, will retain all credit insurance income together with certain recoveries related to credit insurance and repair service agreements on charge-offs of the securitized receivables, which will continue to be reflected as a reduction of net charge-offs on a consolidated basis for as long as we consolidate the VIE. The following presents the assets and liabilities held by the VIE (for legal purposes, the assets and liabilities of the VIE will remain distinct from Conn's, Inc.): (in thousands) January 31, January 31, Assets: Restricted cash $ 78,576 $ — Due from Conn's, Inc., net 3,405 — Customer accounts receivable: Customer accounts receivable 763,278 — Restructured accounts 107,406 — Allowance for uncollectible accounts (136,325 ) — Allowance for short-term, no-interest programs (12,955 ) — Total customer accounts receivable, net 721,404 — Total assets $ 803,385 $ — Liabilities: Accrued interest $ 1,636 $ — Deferred interest income 3,042 — Long-term debt: Class A Notes 551,383 — Class B Notes 165,900 — 717,283 — Less deferred debt issuance costs (17,768 ) — Total long-term debt 699,515 — Total liabilities $ 704,193 $ — The assets of the VIE serve as collateral for the obligations of the VIE. The holders of the Class A Notes and Class B Notes have no recourse to assets outside of the VIE. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate retail stores in 12 states with no operations outside of the United States. No single customer accounts for more than 10% of our total revenues. As a result of our relationship with AcceptanceNow, during the year ended January 31, 2016 , 2015 , and 2014 , we recognized sales of $58.9 million , $56.8 million , and $30.4 million , respectively, for customers that do not qualify for our in-house credit programs. Financial information by segment is presented in the following tables: Year ended January 31, 2016 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 409,788 $ — $ 409,788 Home appliance 356,634 — 356,634 Consumer electronic 312,009 — 312,009 Home office 101,365 — 101,365 Other 19,338 — 19,338 Product sales 1,199,134 — 1,199,134 Repair service agreement commissions 109,730 — 109,730 Service revenues 13,725 — 13,725 Total net sales 1,322,589 — 1,322,589 Finance charges and other revenues 1,639 288,950 290,589 Total revenues 1,324,228 288,950 1,613,178 Costs and expenses: Cost of goods sold 833,126 — 833,126 Selling, general and administrative expenses (1) 313,694 122,421 436,115 Provision for bad debts 791 221,386 222,177 Charges and credits 8,044 — 8,044 Total costs and expenses 1,155,655 343,807 1,499,462 Operating income 168,573 (54,857 ) 113,716 Interest expense — 63,106 63,106 Loss on early extinguishment of debt — 1,367 1,367 Income (loss) before income taxes $ 168,573 $ (119,330 ) $ 49,243 Additional Disclosures: Property and equipment additions $ 63,262 $ 143 $ 63,405 Depreciation expense $ 21,995 $ 711 $ 22,706 January 31, 2016 (in thousands) Retail Credit Total Total assets $ 314,857 $ 1,710,443 $ 2,025,300 Year ended January 31, 2015 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 339,414 $ — $ 339,414 Home appliance 328,742 — 328,742 Consumer electronic 317,482 — 317,482 Home office 108,700 — 108,700 Other 23,571 — 23,571 Product sales 1,117,909 — 1,117,909 Repair service agreement commissions 90,009 — 90,009 Service revenues 13,058 — 13,058 Total net sales 1,220,976 — 1,220,976 Finance charges and other revenues 2,566 261,676 264,242 Total revenues 1,223,542 261,676 1,485,218 Costs and expenses: Cost of goods sold 777,046 — 777,046 Selling, general and administrative expenses (1) 286,925 103,251 390,176 Provision for bad debts 551 191,888 192,439 Charges and credits 5,690 — 5,690 Total costs and expenses 1,070,212 295,139 1,365,351 Operating income 153,330 (33,463 ) 119,867 Interest expense — 29,365 29,365 Other expense, net — — — Income before income taxes $ 153,330 $ (62,828 ) $ 90,502 Additional Disclosures: Property and equipment additions $ 61,377 $ 319 $ 61,696 Depreciation expense $ 18,091 $ 654 $ 18,745 January 31, 2015 (in thousands) Retail Credit Total Total assets $ 342,320 $ 1,303,484 $ 1,645,804 Year ended January 31, 2014 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 235,257 $ — $ 235,257 Home appliance 258,713 — 258,713 Consumer electronic 269,889 — 269,889 Home office 102,103 — 102,103 Other 37,955 — 37,955 Product sales 903,917 — 903,917 Repair service agreement commissions 75,671 — 75,671 Service revenues 12,252 — 12,252 Total net sales 991,840 — 991,840 Finance charges and other revenues 1,522 200,407 201,929 Total revenues 993,362 200,407 1,193,769 Costs and expenses: Cost of goods sold 630,225 — 630,225 Selling, general and administrative expenses (1) 226,525 76,826 303,351 Provision for bad debts 468 95,756 96,224 Charges and credits 2,117 — 2,117 Total cost and expenses 859,335 172,582 1,031,917 Operating income 134,027 27,825 161,852 Interest expense — 15,323 15,323 Other expense, net 10 — 10 Income before income taxes $ 134,017 $ 12,502 $ 146,519 Additional Disclosures: Property and equipment additions $ 51,096 $ 1,031 $ 52,127 Depreciation expense $ 11,892 $ 706 $ 12,598 January 31, 2014 (in thousands) Retail Credit Total Total assets $ 229,093 $ 1,068,893 $ 1,297,986 (1) Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. For the years ended January 31, 2016 , 2015 and 2014 , the amount of overhead allocated to each segment was $16.7 million , $12.4 million and $11.4 million , respectively. For the years ended January 31, 2016 , 2015 and 2014 , the amount of reimbursement made to the retail segment by the credit segment was $36.4 million , $29.8 million and $21.7 million , respectively. |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Jan. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information Conn's, Inc. is a holding company with no independent assets or operations other than its investments in its subsidiaries. The Senior Notes, which were issued by Conn's, Inc., are fully and unconditionally guaranteed on a joint and several senior unsecured basis by the Guarantors. As of January 31, 2016 , the direct or indirect subsidiaries of Conn's, Inc. that were not Guarantors were the VIE and minor subsidiaries. Prior to the fiscal year ended January 31, 2016 , the only direct or indirect subsidiaries of Conn's, Inc. that were not Guarantors were minor subsidiaries.There are no restrictions under the Indenture on the ability of any of the Guarantors to transfer funds to Conn's, Inc. in the form of loans, advances or dividends, except as provided by applicable law. The following financial information presents the condensed consolidated balance sheet, statement of operations, and statement of cash flows for Conn's, Inc. (the issuer of the Senior Notes), the Guarantor Subsidiaries, and the Non-guarantor Subsidiaries, together with certain eliminations. Condensed Consolidated Balance Sheet as of January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 12,254 $ — $ — $ 12,254 Restricted cash — — 78,576 — 78,576 Customer accounts receivable, net of allowance — 353,781 390,150 — 743,931 Other accounts receivable — 95,404 — — 95,404 Inventories — 201,969 — — 201,969 Other current assets 10,774 20,092 3,405 (3,405 ) 30,866 Total current assets 10,774 683,500 472,131 (3,405 ) 1,163,000 Investment in and advances to subsidiaries 676,492 95,787 — (772,279 ) — Long-term portion of customer accounts receivable, net of allowance — 300,391 331,254 — 631,645 Property and equipment, net — 151,483 — — 151,483 Deferred income taxes 70,219 — — — 70,219 Other assets — 8,953 — — 8,953 Total assets $ 757,485 $ 1,240,114 $ 803,385 $ (775,684 ) $ 2,025,300 Liabilities and Stockholders' Equity Current liabilities: Current maturities of capital lease obligations $ — $ 799 $ — $ — $ 799 Accounts payable — 86,797 — — 86,797 Accrued expenses 736 37,002 1,636 — 39,374 Other current liabilities — 17,510 1,645 — 19,155 Total current liabilities 736 142,108 3,281 — 146,125 Deferred rent — 74,559 — — 74,559 Long-term debt and capital lease obligations 218,468 330,896 699,515 — 1,248,879 Other long-term liabilities — 16,059 1,397 — 17,456 Total liabilities 219,204 563,622 704,193 — 1,487,019 Stockholders' equity: Common stock 306 — — — 306 Additional paid-in capital 85,209 179,995 112,200 (292,195 ) 85,209 Retained earnings 452,766 496,497 (13,008 ) (483,489 ) 452,766 Total stockholders' equity 538,281 676,492 99,192 (775,684 ) 538,281 Total liabilities and stockholders' equity $ 757,485 $ 1,240,114 $ 803,385 $ (775,684 ) $ 2,025,300 Condensed Consolidated Statement of Operations for the year ended January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,322,589 $ — $ — $ 1,322,589 Finance charges and other revenues — 201,494 89,095 — 290,589 Servicing fee revenue — 28,395 — (28,395 ) — Total revenues — 1,552,478 89,095 (28,395 ) 1,613,178 Costs and expenses: Cost of goods sold — 833,126 — — 833,126 Selling, general and administrative expenses — 436,115 28,395 (28,395 ) 436,115 Provision for bad debts — 169,831 52,346 — 222,177 Charges and credits — 8,044 — — 8,044 Total costs and expenses — 1,447,116 80,741 (28,395 ) 1,499,462 Operating income — 105,362 8,354 — 113,716 Loss (income) from consolidated subsidiaries (43,642 ) 13,008 — 30,634 — Interest expense 19,189 15,551 28,366 — 63,106 Loss on extinguishment of debt 483 884 — — 1,367 Income before income taxes 23,970 75,919 (20,012 ) (30,634 ) 49,243 Provision (benefit) for income taxes (6,885 ) 32,277 (7,004 ) — 18,388 Net income $ 30,855 $ 43,642 $ (13,008 ) $ (30,634 ) $ 30,855 Condensed Consolidated Statement of Cash Flows for the year ended January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 14,590 $ (653,621 ) $ 464,909 $ — $ (174,122 ) Cash flows from investing activities: Purchase of customer accounts receivables — — (1,076,106 ) 1,076,106 — Sale of customer accounts receivables — 1,076,106 — (1,076,106 ) — Purchase of property and equipment — (63,405 ) — — (63,405 ) Proceeds from sales of property — 5,647 — — 5,647 Net change in intercompany 160,739 — — (160,739 ) — Net cash provided by (used in) investing activities 160,739 1,018,348 (1,076,106 ) (160,739 ) (57,758 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 1,118,000 — 1,118,000 Payments on asset-backed notes — — (400,717 ) — (400,717 ) Changes in restricted cash balances — — (78,576 ) — (78,576 ) Borrowings from revolving credit facility — 606,288 — — 606,288 Payments on revolving credit facility — (805,193 ) — — (805,193 ) Repurchase of senior notes (22,965 ) — — — (22,965 ) Payment of debt issuance costs and amendment fees (3,847 ) (4,419 ) (27,510 ) — (35,776 ) Repurchase of common stock (151,781 ) — — — (151,781 ) Proceeds from stock issued under employee benefit plans 2,653 — — — 2,653 Net change in intercompany — (160,739 ) — 160,739 — Other 611 (633 ) — — (22 ) Net cash provided by financing activities (175,329 ) (364,696 ) 611,197 160,739 231,911 Net change in cash and cash equivalents — 31 — — 31 Cash and cash equivalents, beginning of period — 12,223 — — 12,223 Cash and cash equivalents, end of period $ — $ 12,254 $ — $ — $ 12,254 |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Quarterly Information (Unaudited) The following tables set forth certain quarterly financial data for the years ended January 31, 2016 and 2015 that have been prepared on a consistent basis as the accompanying audited consolidated financial statements and include all adjustments necessary for a fair presentation, in all material respects, of the information shown: Fiscal Year 2016 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted January 31 Revenues: Retail Segment $ 298,628 $ 298,628 $ 325,605 $ 325,605 $ 323,050 $ 323,050 $ 376,945 Credit Segment 66,448 66,448 70,445 70,445 72,183 72,183 79,874 Total revenues $ 365,076 $ 365,076 $ 396,050 $ 396,050 $ 395,233 $ 395,233 $ 456,819 Percent of annual revenues 22.6 % 22.6 % 24.6 % 24.6 % 24.5 % 24.5 % 28.3 % Cost and expenses: Cost of goods sold (1)(2) $ 173,472 $ 187,133 $ 187,124 $ 202,461 $ 186,807 $ 202,901 $ 240,631 Cost of service parts sold (1) $ 1,312 $ — $ 1,550 $ — $ 1,463 $ — $ — Delivery, transportation and handling costs (2) $ 12,349 $ — $ 13,787 $ — $ 14,631 $ — $ — Operating income (loss): Retail Segment $ 42,580 $ 42,580 $ 45,124 $ 45,124 $ 36,005 $ 36,005 $ 44,864 Credit Segment (8,474 ) (8,474 ) (9,026 ) (9,026 ) (18,089 ) (18,089 ) (19,268 ) Total operating income $ 34,106 $ 34,106 $ 36,098 $ 36,098 $ 17,916 $ 17,916 $ 25,596 Net income (loss) $ 15,677 $ 15,677 $ 16,538 $ 16,538 $ (2,421 ) $ (2,421 ) $ 1,061 Earnings (loss) per share: (3) Basic $ 0.43 $ 0.43 $ 0.45 $ 0.45 $ (0.07 ) $ (0.07 ) $ 0.03 Diluted $ 0.43 $ 0.43 $ 0.45 $ 0.45 $ (0.07 ) $ (0.07 ) $ 0.03 Fiscal Year 2015 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 January 31 Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted Revenues: Retail Segment $ 278,095 $ 278,095 $ 288,624 $ 288,624 $ 305,140 $ 305,140 $ 351,683 $ 351,683 Credit Segment 57,353 57,353 64,340 64,340 64,918 64,918 75,065 75,065 Total revenues $ 335,448 $ 335,448 $ 352,964 $ 352,964 $ 370,058 $ 370,058 $ 426,748 $ 426,748 Percent of annual revenues 22.6 % 22.6 % 23.8 % 23.8 % 24.9 % 24.9 % 28.7 % 28.7 % Cost and expenses: Cost of goods sold (1)(2) $ 160,782 $ 174,364 $ 168,717 $ 183,752 $ 178,976 $ 193,717 $ 210,147 $ 225,213 Cost of service parts sold (1) $ 1,419 $ — $ 1,871 $ — $ 1,525 $ — $ 1,405 $ — Delivery, transportation and handling costs (2) $ 12,163 $ — $ 13,164 $ — $ 13,216 $ — $ 13,661 $ — Operating income (loss): Retail Segment $ 37,766 $ 37,766 $ 34,208 $ 34,208 $ 37,794 $ 37,794 $ 43,562 $ 43,562 Credit Segment 11,265 11,265 (212 ) (212 ) (33,173 ) (33,173 ) (11,343 ) (11,343 ) Total operating income $ 49,031 $ 49,031 $ 33,996 $ 33,996 $ 4,621 $ 4,621 $ 32,219 $ 32,219 Net income (loss) $ 28,469 $ 28,469 $ 17,650 $ 17,650 $ (3,064 ) $ (3,064 ) $ 15,458 $ 15,458 Earnings (loss) per share: Basic (3) $ 0.79 $ 0.79 $ 0.49 $ 0.49 $ (0.08 ) $ (0.08 ) $ 0.43 $ 0.43 Diluted (3) $ 0.77 $ 0.77 $ 0.48 $ 0.48 $ (0.08 ) $ (0.08 ) $ 0.42 $ 0.42 (1) During the fourth quarter of fiscal year 2016, certain reclassifications have been made to previously reported amounts to conform to the current presentation. On the consolidated statements of operations, we reclassified cost of service parts sold to cost of goods sold. As a result, the first three quarters of fiscal year 2016 and 2015, which had been previously reported, has been adjusted on a retrospective basis to reflect the reclassification. (2) During the fourth quarter of fiscal year 2016, we changed our accounting policy for delivery, transportation and handling costs. Under the new accounting policy, delivery, transportation and handling costs are included in cost of goods sold, whereas previously they were shown separately as an operating expense. Including these expenses in cost of goods sold better align these costs with the related revenue in the margin calculations. This change in accounting policy has been applied retrospectively. As a result, the first three quarters of fiscal year 2016 and 2015, which had been previously reported, has been adjusted on a retrospective basis to reflect the change in accounting policy. (3) The sum of the quarterly earnings per share amounts may not equal the fiscal year amount due to rounding and use of weighted average shares outstanding. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The consolidated financial statements include the accounts of Conn's, Inc. and its wholly-owned subsidiaries, including the VIE. Conn's, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year. Our fiscal year ends on January 31. References to a fiscal year refer to the calendar year in which the fiscal year ends. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The allowance for doubtful accounts, allowances for no-interest option credit programs, and deferred interest are particularly sensitive given the size of our customer portfolio balance. |
Earnings per Share | Earnings per Share . Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share include the dilutive effects of any stock options and restricted stock units granted, which is calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: Year Ended January 31, (in thousands) 2016 2015 2014 Weighted average common shares outstanding - Basic 35,084 36,232 35,779 Dilutive effect of stock options and restricted stock units 473 668 1,082 Weighted average common shares outstanding - Diluted 35,557 36,900 36,861 For the years ended January 31, 2016 , 2015 and 2014 , the weighted average number of stock options and restricted stock units not included in the calculation due to their anti-dilutive effect was 388,000 , 116,000 and 35,000 , respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents . We consider all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Credit card deposits in-transit of $6.5 million and $6.5 million , as of January 31, 2016 and 2015 , respectively, are included in cash and cash equivalents. |
Restricted cash | Restricted Cash. The restricted cash balance as of January 31, 2016 includes $64.2 million of cash we collected as servicer on the securitized receivables that was remitted to the VIE and $14.4 million of cash held by the VIE as additional collateral for the asset-backed notes. |
Inventories | Inventories. Inventories consist of finished goods or parts and are valued at the lower of weighted average cost or market. |
Vendor Allowances | Vendor Allowances . We receive funds from vendors for price protection, product rebates (earned upon purchase or sale of product), marketing, and promotion programs, collectively referred to as vendor allowances, which are recorded on the accrual basis. We estimate the vendor allowances to accrue based on the progress of satisfying the terms of the programs based on actual and projected sales or purchase of qualifying products. If the programs are related to product purchases, the vendor allowances are recorded as a reduction of product cost in inventory still on hand with any remaining amounts recorded as a reduction of cost of goods sold. During the years ended January 31, 2016 , 2015 and 2014 , we recorded $145.4 million , $116.4 million and $89.3 million , respectively, as reductions in cost of goods sold from vendor allowances. |
Property and Equipment | Property and Equipment . Property and equipment, including any major additions and improvements to property and equipment, are recorded at cost. Normal repairs and maintenance that do not materially extend the life of property and equipment are charged to operating expenses as incurred. Depreciation, which includes amortization of capitalized leases, is computed on the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements, over the shorter of the estimated useful lives or the remaining terms of the respective leases. |
Internal-Use Software Costs | Internal-Use Software Costs. Costs related to software developed or obtained for internal use are expensed as incurred until the application development stage has been reached. Once the application development stage has been reached, certain qualifying costs are capitalized until the software is ready for its intended use. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. Long-lived assets are evaluated for impairment, primarily at the retail store level. We monitor store performance in order to assess if events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The most likely condition that would necessitate an assessment would be an adverse change in historical and estimated future results of a retail store's performance. For property and equipment held and used, we recognize an impairment loss if the carrying amount is not recoverable through its undiscounted cash flows and measure the impairment loss based on the difference between the carrying amount and estimated fair value. Fair value is determined by discounting the anticipated cash flows over the remaining term of the lease utilizing certain unobservable inputs (Level 3). For the years ended January 31, 2016 , 2015 , and 2014 , no impairment charges were recorded. |
Customer accounts receivable | Customer accounts receivable. Customer accounts receivable reported in the consolidated balance sheet includes total receivables managed, including those transferred to the VIE and those receivables not transferred to the VIE. Customer accounts receivable are originated at the time of sale and delivery of the various products and services. Based on contractual terms, we record the amount of principal and accrued interest on customer receivables that is expected to be collected within the next twelve months in current assets with the remaining balance in long-term assets on the consolidated balance sheet. Customer receivables are considered delinquent if a payment has not been received on the scheduled due date. Accounts that are delinquent more than 209 days as of the end of a month are charged-off against the allowance for doubtful accounts and interest accrued subsequent to the last payment is reversed and charged against the allowance for uncollectible interest. |
Troubled Debt Restructuring | In an effort to mitigate losses on our accounts receivable, we may make loan modifications to a borrower experiencing financial difficulty. In our role as servicer, we may also make modifications to loans held by the VIE. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to repossess collateral or exercise legal remedies available to us. We may extend or "re-age" a portion of our customer accounts, which involve modifying the payment terms to defer a portion of the cash payments due. Our re-aging of customer accounts does not change the interest rate or the total amount due from the customer and typically does not reduce the monthly contractual payments. To a much lesser extent, we may provide the customer the ability to re-age their obligation by refinancing the account, which does not change the interest rate or the total amount due from the customer but does reduce the monthly contractual payments. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings ("TDR" or "Restructured Accounts"). |
Allowance for doubtful accounts | Allowance for doubtful accounts. We establish an allowance for doubtful accounts, including estimated uncollectible interest, to cover probable and estimable losses on our customer accounts receivable resulting from the failure of customers to make contractual payments. Our customer portfolio balance consists of a large number of relatively small, homogeneous accounts. None of our accounts are large enough to warrant individual evaluation for impairment. We record an allowance for doubtful accounts for our non-TDR customer accounts receivable that we expect to charge-off over the next twelve months based on our historical cash collection and net loss experience using a projection of monthly delinquency performance, cash collections and losses. In addition to pre-charge-off cash collections and charge-off information, estimates of post-charge-off recoveries, including cash payments, amounts realized from the repossession of the products financed and payments received under credit insurance policies are also considered. We determine allowances for those accounts that are TDR based on the discounted present value of cash flows expected to be collected over the life of those accounts. The excess of the carrying amount over the discounted cash flow amount is recorded as an allowance for loss on those accounts. |
Interest Income on Customer Accounts Receivable | Interest income on customer accounts receivable . Interest income is accrued using the interest method for installment contracts and is reflected in finance charges and other revenues. Typically, interest income is accrued until the customer account is paid off or charged-off, and we provide an allowance for estimated uncollectible interest. Interest income on installment contracts with our customers is based on the rule of 78s. In order to convert the interest income recognized to the interest method, we have recorded the excess earnings of rule of 78s over the interest method as deferred revenue on our balance sheets. Our calculation of interest income also includes an estimate of the benefit from future prepayments based on our historical experience. The deferred interest will ultimately be brought into income as the accounts pay off or charge-off. At January 31, 2016 and 2015 , there was $5.2 million and $11.2 million , respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. We offer 12-month, no-interest finance programs. If the customer is delinquent in making a scheduled monthly payment or does not repay the principal in full by the end of the no-interest program period (grace periods are provided), the account does not qualify for the no-interest provision and none of the interest earned is waived. Interest income is recognized based on our historical experience related to customers that fail to satisfy the requirements of the programs. We also offer 18- and 24-month equal-payment, no-interest finance programs to certain higher credit quality borrowers, which are discounted to their present value at origination, resulting in a reduction in sales and customer receivables, and the discount amount is amortized into finance charges and other revenues over the term of the contract. If a customer is delinquent in making a scheduled monthly payment (grace periods are provided), the account begins accruing interest based on the contract rate from the date of the last payment made. We recognize interest income on TDR accounts using the interest income method, which requires reporting interest income equal to the increase in the net carrying amount of the loan attributable to the passage of time. Cash proceeds and other adjustments are applied to the net carrying amount such that it always equals the present value of expected future cash flows. We typically only place accounts in non-accrual status when legally required. Payments received on non-accrual loans will be applied to principal and reduce the amount of the loan. Interest accrual is resumed on those accounts once a legally-mandated settlement arrangement is reached or other payment arrangements are made with the customer. At January 31, 2016 and 2015 , customer receivables carried in non-accrual status were $20.6 million and $13.7 million , respectively. At January 31, 2016 and 2015 , customer receivables that were past due 90 days or more and still accruing interest totaled $115.1 million and $97.1 million , respectively. |
Revenue Recognition | Revenue Recognition . Revenue from the sale of retail products are recognized at the time the customer takes possession of the product. Such revenue is recognized net of any adjustments for sales incentive offers such as discounts, coupons, rebates or other free products or services and discounts of sales on advertised credit that extend beyond one year. We sell repair service agreements and credit insurance contracts on behalf of unrelated third-parties. For contracts where third-parties are the obligor on the contract, commissions are recognized in revenue at the time of sale, and in the case of retrospective commissions, at the time that they are earned. Service revenues are recognized at the time service is provided to the customer. Sales financed by us under short-term, interest free credit programs are recognized at the time the customer takes possession of the product, consistent with the above stated policy. Considering the short-term nature of interest-free programs for terms less than one year, sales are recorded at full value and are not discounted. Sales financed by us under longer term, interest-free programs are recorded at their net present value. Sales on interest free programs under third-party programs typically require us to pay the third-party a fee on each completed sale, which is recorded as a reduction of net sales in the retail segment. We classify amounts billed to customers for delivery, transportation and handling as revenues, with the related costs included in cost of goods sold. |
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred. For the years ended January 31, 2016 , 2015 and 2014 , advertising expense was $89.9 million , $81.8 million and $50.7 million , respectively. |
Stock-Based Compensation | Stock-based Compensation . For stock option grants, we use the Black-Scholes model to determine fair value. For grants of restricted stock units, the fair value of the grant is the market value of our stock at the date of issuance. Stock-based compensation expense is recorded, net of estimated forfeitures, on a straight-line basis over the vesting period of the applicable grant. |
Self-insurance | Self-insurance . We are self-insured for certain losses relating to group health, workers' compensation, automobile, general and product liability claims. We have stop-loss coverage to limit the exposure arising from these claims. Self-insurance losses for claims filed and claims incurred, but not reported, are accrued based upon our estimates of the aggregate liability for claims incurred using development factors based on historical experience. |
Expense Classifications | Expense Classifications . We record as cost of goods sold, the direct cost of products and parts sold and related costs for delivery, transportation and handling, inbound freight, receiving, inspection, and other costs associated with the operations of our distribution system, including occupancy related to our warehousing operations. The costs associated with our merchandising, advertising, sales commissions, and all store occupancy costs, are included in selling, general and administrative expense. |
Income Taxes | Income Taxes . We are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. We follow the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards, as measured using the enacted tax rates expected to be in effect when the temporary differences are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion of all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. To the extent penalties and interest are incurred, we record these charges as a component of our provision for income taxes. We review and update our tax positions as necessary to add any new uncertain tax positions taken, or to remove previously identified uncertain positions that have been adequately resolved. Additionally, uncertain positions may be remeasured as warranted by changes in facts or law. Accounting for uncertain tax positions requires estimating the amount, timing and likelihood of ultimate settlement. |
Accounting for Leases | Accounting for Leases. We lease the majority of our current store locations and certain of our facilities and operating equipment under operating leases. The fixed, non-cancelable terms of our real estate leases are generally five to 15 years and generally include renewal options that allow us to extend the term beyond the initial non-cancelable term. Most of the real estate leases require payment of real estate taxes, insurance and certain common area maintenance costs in addition to future minimum lease payments. Equipment leases generally provide for initial lease terms of three to seven years and provide for a purchase right at the end of the lease term at the then fair market value of the equipment. Certain of our operating leases contain predetermined fixed escalations of the minimum rental payments over the lease. For these leases, we recognize the related rental expense on a straight-line basis over the term of the lease, which commences for accounting purposes on the date we have access and control over the leased store (possession). Possession generally occurs prior to the making of any lease payments and approximately 90 to 120 days prior to the opening of a store. In the early years of a lease with rent escalations, the recorded rent expense will exceed the actual cash payments. The amount of rent expense that exceeds the cash payments is recorded as deferred rent in the consolidated balance sheet. In the later years of a lease with rent escalations, the recorded rent expense will be less than the actual cash payments. The amount of cash payments that exceed the rent expense is then recorded as a reduction to deferred rent. As of January 31, 2016 and 2015 , deferred rent related to lease agreements with escalating rent payments was $20.9 million and $15.9 million , respectively. Additionally, certain operating leases contain terms which obligate the landlord to remit cash to us as an incentive to enter into the lease agreement (tenant allowances). We record the amount to be remitted by the landlord as a tenant allowance receivable as we earn it under the terms of the contract. At the same time, we record deferred rent in an equal amount in the consolidated balance sheet. The tenant allowance receivable is reduced as cash is received from the landlord, while the deferred rent is amortized as a reduction to rent expense over the lease term. As of January 31, 2016 and 2015 , deferred rent related to tenant allowances, including both current and long-term portions, was $60.9 million and $42.7 million , respectively. |
Contingencies | Contingencies. An estimated loss from a contingency is recorded if it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Gain contingencies are not recorded until realization is assured beyond a reasonable doubt. Legal costs related to loss contingencies are expensed as incurred. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments . Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels related to subjectivity associated with the inputs to fair value measurements as follows: • Level 1 – Quoted prices available in active markets for identical assets or liabilities • Level 2 – Pricing inputs not quoted in active markets but either directly or indirectly observable • Level 3 – Significant inputs to pricing that have little or no transparency with inputs requiring significant management judgment or estimation. The fair value of cash and cash equivalents and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivables, determined using a Level 3 discounted cash flow analysis, approximates their carrying amount. The fair value of our revolving credit facility approximates carrying value based on the current borrowing rate for similar types of borrowing arrangements. At January 31, 2016 , the fair value of the Senior Notes, which was determined using Level 1 inputs, was $183.3 million as compared to the carrying value of $227.0 million , excluding the impact of the related discount. At January 31, 2016 , the fair value of the Class A Notes and Class B Notes, which were determined using Level 2 inputs based on inactive trading activity, approximates their carrying value. |
Change in Accounting Policy | Change in Accounting Policy. During the fourth quarter of fiscal year 2016, we changed our accounting policy for the presentation of delivery, transportation and handling costs. Total delivery, transportation and handling costs exceed 4% of total retail sales, and have increased over 100 basis points since fiscal year 2013. This increase reflects changes in the business to a higher proportion of sales related to furniture, mattress, and appliances. Under the new accounting policy, delivery, transportation and handling costs are included in cost of goods sold, whereas previously they were presented separately as an operating expense. Delivery, transportation and handling costs do not include inbound freight, which were historically and continue to be presented in cost of goods sold. We made this voluntary change in accounting principle because we believe that including these expenses in cost of goods sold better reflects the costs of generating the related revenue and results in more meaningful presentation of retail gross margin. This change in accounting policy also enhances the comparability of our financial statements with many of our industry peers and has been applied retrospectively. The consolidated statements of operations for the years ended January 31, 2015 and 2014 have been adjusted to reflect this change in accounting policy. For the years ended January 31, 2015 and 2014 , the impact of the reclassification of delivery, transportation and handling costs was an increase of $52.2 million and $36.2 million , respectively, to cost of goods sold and the elimination of the separately presented delivery, transportation and handling costs. These reclassifications had no impact on total revenues, operating income, net income or earnings per share. |
Reclassifications | Reclassifications. Certain reclassifications have been made to prior fiscal year amounts to conform to the presentation in the current fiscal year. On the consolidated statements of operations, for the years ended January 31, 2015 and 2014 , we reclassified $6.2 million and $5.3 million , respectively, of cost of service parts sold to cost of goods sold. These reclassifications did not impact consolidated operating income or net income. |
Recent Accounting Pronouncements | ating income or net income. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive accounting standard for revenue recognition for contracts with customers and supersedes current guidance. Upon adoption of ASU 2014-09, entities are required to recognize revenue using the following comprehensive model: (1) identify contracts with customers, (2) identify the performance obligations in contracts, (3) determine transaction price, (4) allocate the transaction price to the performance obligations, and (5) recognize revenue as each performance obligation is satisfied. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date , which defers the effective date of ASU 2015-14 by one year and allows early adoption on a limited basis. ASU 2014-09 is now effective for us beginning in the first quarter of fiscal year 2019 and will result in retrospective application, either in the form of recasting all prior periods presented or a cumulative adjustment to equity in the period of adoption. We are currently assessing the impact the new standard will have on our financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis, which focuses on a reporting company’s consolidation evaluation to determine whether they should consolidate certain legal entities. ASU 2015-02 is effective for us beginning in the first quarter of fiscal year 2017 and allows early adoption, including adoption in an interim period. We early adopted ASU 2015-02 beginning with the quarter ended July 31, 2015, which did not have an impact to our financial statements. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, and during August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . ASU 2015-03 requires that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We early adopted ASU 2015-03 effective January 31, 2016 retrospectively to all prior periods presented. As a result of the adoption of ASU 2015-03, we reclassified $1.5 million of deferred debt issuance costs as of January 31, 2015 out of other assets to long-term debt as a direct deduction of the carrying amount of debt. The additional guidance provided in ASU 2015-15 had no financial statement impact. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred income taxes. ASU 2015-17 provides presentation requirements to classify deferred tax assets and liabilities as non-current in a classified statement of financial position. We early adopted ASU 2015-17 effective January 31, 2016 retrospectively to all prior periods presented. As a result of the adoption of ASU 2015-17, we reclassified $20.0 million of deferred income taxes as of January 31, 2015 out of current assets to non-current assets. In February 2016, the FASB issued ASU 2016-02, Leases, which will change how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. Primarily for those leases currently classified by us as operating leases, we will recognize a single lease cost on a straight line basis based on the combined amortization of the lease obligation and the right-of-use asset. Other leases will be required to be accounted for as financing arrangements similar to how we currently account for capital leases. On transition, we will recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The final standard is effective for us beginning in the first quarter of fiscal year 2020. We are currently assessing the impact the new standard will have on our financial statements. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Shares outstanding for the earnings (loss) per share calculations | The following table sets forth the shares outstanding for the earnings per share calculations: Year Ended January 31, (in thousands) 2016 2015 2014 Weighted average common shares outstanding - Basic 35,084 36,232 35,779 Dilutive effect of stock options and restricted stock units 473 668 1,082 Weighted average common shares outstanding - Diluted 35,557 36,900 36,861 |
Charges and Credits Charges and
Charges and Credits Charges and Credits (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Charges and Credits [Abstract] | |
Schedule of Charges and Credits | Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2016 2015 2014 Store and facility closure costs $ 637 $ 3,646 $ 2,117 Legal and professional fees related to the exploration of strategic alternative and securities-related litigation 3,153 1,135 — Sales tax audit reserve 2,748 — — Executive management transition costs 1,506 — — Employee severance — 909 — $ 8,044 $ 5,690 $ 2,117 The following table presents detail of the activity in the accrual for store closures: January 31, (in thousands) 2016 2015 Balance at beginning of period $ 2,557 $ 4,316 Accrual for additional closures 318 2,946 Adjustments 32 (136 ) Cash payments, net of sublease income (1,041 ) (4,569 ) Balance at end of period 1,866 2,557 Current portion, included in accrued expenses (653 ) (819 ) Long-term portion, included in other long-term liabilities $ 1,213 $ 1,738 |
Finance Charges and Other Rev30
Finance Charges and Other Revenues (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | |
Summary of the classification of the amounts as Finance charges and other | Finance charges and other revenues consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Interest income and fees $ 238,161 $ 211,063 $ 155,703 Insurance commissions 50,789 50,613 44,704 Other revenues 1,639 2,566 1,522 $ 290,589 $ 264,242 $ 201,929 |
Customer Accounts Receivable (T
Customer Accounts Receivable (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Receivables [Abstract] | |
Schedule of customer accounts receivable | Total Outstanding Balance 60 Days Past Due (1) Re-aged (1) January 31, January 31, January 31, (in thousands) 2016 2015 2016 2015 2016 2015 Customer accounts receivable $ 1,470,205 $ 1,277,135 $ 127,400 $ 112,365 $ 112,221 $ 94,304 Restructured accounts 117,651 88,672 30,323 20,722 117,651 88,672 Total customer portfolio balance 1,587,856 1,365,807 $ 157,723 $ 133,087 $ 229,872 $ 182,976 Allowance for uncollectible accounts (190,990 ) (146,982 ) Allowances for no-interest option credit programs (21,290 ) (17,474 ) Total customer accounts receivables, net 1,375,576 1,201,351 Short-term portion of customer accounts receivable, net (743,931 ) (643,094 ) Long-term portion of customer accounts receivable, net $ 631,645 $ 558,257 Securitized receivables held by the VIE $ 870,684 $ — $ 135,800 $ — $ 204,594 $ — Receivables not held by the VIE 717,172 1,365,807 21,923 133,087 25,278 182,976 Total customer portfolio balance $ 1,587,856 $ 1,365,807 $ 157,723 $ 133,087 $ 229,872 $ 182,976 (1) Due to the fact that an account can become past due after having been re-aged, accounts could be represented as both past due and re-aged. As of January 31, 2016 and 2015 , the amounts included within both 60 days past due and re-aged was $55.2 million and $44.9 million , respectively. As of January 31, 2016 and 2015 , the total customer portfolio balance past due one day or greater was $387.3 million and $316.0 million , respectively. These amounts include the 60 days past due totals shown above. |
Allowance for doubtful accounts and uncollectible interest for customer receivables | The following presents the activity in our balance in the allowance for doubtful accounts and uncollectible interest for customer receivables: January 31, 2016 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 118,786 $ 28,196 $ 146,982 Provision (1) 204,499 53,658 258,157 Principal charge-offs (2) (150,237 ) (34,604 ) (184,841 ) Interest charge-offs (27,414 ) (6,314 ) (33,728 ) Recoveries (2) 3,593 827 4,420 Allowance at end of period $ 149,227 $ 41,763 $ 190,990 Average total customer portfolio balance $ 1,355,804 $ 102,522 $ 1,458,326 January 31, 2015 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 54,448 $ 17,353 $ 71,801 Provision (1) 187,222 32,125 219,347 Principal charge-offs (2) (113,525 ) (19,661 ) (133,186 ) Interest charge-offs (20,503 ) (3,551 ) (24,054 ) Recoveries (2) 11,144 1,930 13,074 Allowance at end of period $ 118,786 $ 28,196 $ 146,982 Average total customer portfolio balance $ 1,129,513 $ 63,698 $ 1,193,211 January 31, 2014 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 27,702 $ 16,209 $ 43,911 Provision (1) 89,960 20,342 110,302 Principal charge-offs (2) (57,433 ) (17,443 ) (74,876 ) Interest charge-offs (9,958 ) (3,024 ) (12,982 ) Recoveries (2) 4,177 1,269 5,446 Allowance at end of period $ 54,448 $ 17,353 $ 71,801 Average total customer portfolio balance $ 828,172 $ 41,389 $ 869,561 (1) Includes provision for uncollectible interest, which is included in finance charges and other revenues. (2) Charge-offs include the principal amount of losses (excluding accrued and unpaid interest). Recoveries include the principal amount collected or sold to third-parties during the period for previously charged-off balances. Net charge-offs are calculated as the net of principal charge-offs and recoveries. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated January 31, (dollars in thousands) Useful Lives 2016 2015 Land — $ 395 $ 5,359 Buildings 30 years 1,222 1,233 Leasehold improvements 5 to 15 years 191,606 165,505 Equipment and fixtures 3 to 5 years 49,741 38,832 Capital leases 3 to 5 years 4,312 2,133 Construction in progress — 21,273 8,261 268,549 221,323 Less accumulated depreciation (117,066 ) (101,105 ) $ 151,483 $ 120,218 |
Accrual for Store Closures and
Accrual for Store Closures and Other expense (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Activity in accrual for store closures | Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2016 2015 2014 Store and facility closure costs $ 637 $ 3,646 $ 2,117 Legal and professional fees related to the exploration of strategic alternative and securities-related litigation 3,153 1,135 — Sales tax audit reserve 2,748 — — Executive management transition costs 1,506 — — Employee severance — 909 — $ 8,044 $ 5,690 $ 2,117 The following table presents detail of the activity in the accrual for store closures: January 31, (in thousands) 2016 2015 Balance at beginning of period $ 2,557 $ 4,316 Accrual for additional closures 318 2,946 Adjustments 32 (136 ) Cash payments, net of sublease income (1,041 ) (4,569 ) Balance at end of period 1,866 2,557 Current portion, included in accrued expenses (653 ) (819 ) Long-term portion, included in other long-term liabilities $ 1,213 $ 1,738 |
Debt and Capital Lease Obliga34
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long term debt | Debt and capital lease obligations consisted of the following: January 31, (in thousands) 2016 2015 Revolving credit facility $ 329,207 $ 528,112 Senior Notes 227,000 250,000 Class A Notes 551,383 — Class B Notes 165,900 — Capital lease obligations 2,488 933 Total debt and capital lease obligations 1,275,978 779,045 Less: Discount on debt (3,641 ) (4,635 ) Deferred debt issuance costs (22,659 ) (1,518 ) Current maturities of capital lease obligations (799 ) (395 ) Long-term debt and capital lease obligations $ 1,248,879 $ 772,497 |
Aggregate maturities of long-term debt | Future maturities of debt, excluding capital lease obligations, as of January 31, 2016 are as follows: (in thousands) Year ended January 31, 2017 $ — 2018 — 2019 329,207 2020 — 2021 717,283 Thereafter 227,000 Total $ 1,273,490 |
Schedule of debt covenants | A summary of the significant financial covenants that govern our revolving credit facility compared to our actual compliance status at January 31, 2016 is presented below: Actual Required Interest Coverage Ratio must equal or exceed minimum 2.23:1.00 2.00:1.00 Leverage Ratio must not exceed maximum 2.59:1.00 4.00:1.00 ABS Excluded Leverage Ratio must not exceed maximum 1.41:1.00 2.00:1.00 Cash Recovery Percent (fourth quarter) must exceed stated amount 4.54% 4.25% Capital Expenditures, net, must not exceed maximum $35.9 million $75.0 million |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets and liabilities | The deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2016 2015 Deferred tax assets: Allowance for doubtful accounts $ 57,585 $ 43,258 Deferred rent 7,479 5,645 Deferred gains on sale-leaseback transactions 3,295 3,144 Deferred revenue 4,168 2,743 Inventories 3,494 2,604 Stock-based compensation 1,845 1,725 State net operating loss carryforwards 1,324 1,498 State margin tax 1,008 1,226 Other 3,422 2,403 Total deferred tax assets 83,620 64,246 Deferred tax liabilities: Sales tax receivable (9,316 ) (4,270 ) Property and equipment (1,717 ) (4,356 ) Other (2,368 ) (2,075 ) Total deferred tax liabilities (13,401 ) (10,701 ) Net deferred tax asset $ 70,219 $ 53,545 |
Components of provision (benefit) for income taxes | rovision for income taxes consisted of the following: Year ended January 31, (in thousands) 2016 2015 2014 Current: Federal $ 32,820 $ 54,959 $ 52,208 State 2,242 2,570 2,049 Total current 35,062 57,529 54,257 Deferred: Federal (16,032 ) (23,712 ) (1,061 ) State (642 ) (1,828 ) (126 ) Total deferred (16,674 ) (25,540 ) (1,187 ) Provision for income taxes $ 18,388 $ 31,989 $ 53,070 |
Reconciliation of tax provision at statutory rate | A reconciliation of the provision for income taxes at the U.S. federal statutory tax rate and the total tax provision for each of the periods presented in the statements of operations follows: Year ended January 31, (in thousands) 2016 2015 2014 Income tax provision at U.S. federal statutory rate $ 17,235 $ 31,676 $ 51,275 State income taxes, net of federal benefit 1,180 1,893 1,489 Change in valuation allowance — (2,180 ) — Other (27 ) 600 306 $ 18,388 $ 31,989 $ 53,070 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Leases, Operating [Abstract] | |
Schedule of future minimum base rental payments [Table Text Block] | minimum lease payments that have initial non-cancelable lease terms in excess of one year are as follows: (in thousands) Operating Leases Capital Leases Year ending January 31, 2017 $ 52,317 $ 949 2018 51,665 927 2019 49,311 726 2020 47,743 215 2021 45,976 — Thereafter 183,440 — Total $ 430,452 2,817 Less - interest on capital lease obligations (329 ) Total principal payable on capital lease obligations 2,488 Less - current maturities (799 ) Long-term capital lease obligations $ 1,689 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Expense | Total stock-based compensation expense, recognized primarily in selling, general and administrative expenses, from stock-based compensation consisted of the following: Year Ended January 31, (in thousands) 2016 2015 2014 Stock options $ 331 $ 825 $ 1,138 RSUs 3,926 2,772 2,509 Employee stock purchase plan 354 500 302 $ 4,611 $ 4,097 $ 3,949 |
Summary of Incentive Stock Option Plan activity | The following table summarizes the activity for outstanding stock options: (shares in thousands) Shares Under Option Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, January 31, 2015 945 $ 13.43 Exercised (97 ) $ 9.74 Forfeited and expired (2 ) $ 3.20 Outstanding, January 31, 2016 846 $ 13.87 2.7 years $ 2.4 million Vested and expected to vest, January 31, 2016 846 $ 13.87 2.7 years $ 2.4 million Exercisable, January 31, 2016 802 $ 13.43 2.4 years $ 2.4 million |
Summary of the restricted stock units granted under the Omnibus Incentive Plan activity | he following table summarizes the activity for RSUs: Time-Based RSUs Performance-Based RSUs (shares in thousands) Number of Units Weighted Average Grant Date Fair Value Number of Units Weighted Average Grant Date Fair Value Total Number of Units Unvested, January 31, 2015 337 $ 30.04 61 $ 32.35 398 Restricted stock units granted 377 $ 29.04 12 $ 36.90 389 Performance adjustment — $ — — $ — — Restricted stock units vested and converted to common stock (124 ) $ 25.80 (14 ) $ 17.12 (138 ) Forfeited (50 ) $ 27.53 — $ — (50 ) Unvested, January 31, 2016 540 $ 30.55 59 $ 37.01 599 |
Assumptions used in stock pricing model and valuation information for stock options and restricted stock units granted | stock options were awarded. |
Significant Vendors (Tables)
Significant Vendors (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Significant Vendors [Abstract] | |
Vendor portion of the Company's merchandise purchases | As shown in the table below, a significant portion of our merchandise purchases were made from six vendors: Year ended January 31, 2016 2015 2014 Vendor A 29.1 % 25.7 % 23.9 % Vendor B 17.9 18.4 14.2 Vendor C 4.7 6.8 5.4 Vendor D 4.1 4.9 5.1 Vendor E 3.2 3.4 4.7 Vendor F 3.1 3.3 4.6 62.1 % 62.5 % 57.9 % |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following presents the assets and liabilities held by the VIE (for legal purposes, the assets and liabilities of the VIE will remain distinct from Conn's, Inc.): (in thousands) January 31, January 31, Assets: Restricted cash $ 78,576 $ — Due from Conn's, Inc., net 3,405 — Customer accounts receivable: Customer accounts receivable 763,278 — Restructured accounts 107,406 — Allowance for uncollectible accounts (136,325 ) — Allowance for short-term, no-interest programs (12,955 ) — Total customer accounts receivable, net 721,404 — Total assets $ 803,385 $ — Liabilities: Accrued interest $ 1,636 $ — Deferred interest income 3,042 — Long-term debt: Class A Notes 551,383 — Class B Notes 165,900 — 717,283 — Less deferred debt issuance costs (17,768 ) — Total long-term debt 699,515 — Total liabilities $ 704,193 $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial information by segment | Financial information by segment is presented in the following tables: Year ended January 31, 2016 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 409,788 $ — $ 409,788 Home appliance 356,634 — 356,634 Consumer electronic 312,009 — 312,009 Home office 101,365 — 101,365 Other 19,338 — 19,338 Product sales 1,199,134 — 1,199,134 Repair service agreement commissions 109,730 — 109,730 Service revenues 13,725 — 13,725 Total net sales 1,322,589 — 1,322,589 Finance charges and other revenues 1,639 288,950 290,589 Total revenues 1,324,228 288,950 1,613,178 Costs and expenses: Cost of goods sold 833,126 — 833,126 Selling, general and administrative expenses (1) 313,694 122,421 436,115 Provision for bad debts 791 221,386 222,177 Charges and credits 8,044 — 8,044 Total costs and expenses 1,155,655 343,807 1,499,462 Operating income 168,573 (54,857 ) 113,716 Interest expense — 63,106 63,106 Loss on early extinguishment of debt — 1,367 1,367 Income (loss) before income taxes $ 168,573 $ (119,330 ) $ 49,243 Additional Disclosures: Property and equipment additions $ 63,262 $ 143 $ 63,405 Depreciation expense $ 21,995 $ 711 $ 22,706 January 31, 2016 (in thousands) Retail Credit Total Total assets $ 314,857 $ 1,710,443 $ 2,025,300 Year ended January 31, 2015 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 339,414 $ — $ 339,414 Home appliance 328,742 — 328,742 Consumer electronic 317,482 — 317,482 Home office 108,700 — 108,700 Other 23,571 — 23,571 Product sales 1,117,909 — 1,117,909 Repair service agreement commissions 90,009 — 90,009 Service revenues 13,058 — 13,058 Total net sales 1,220,976 — 1,220,976 Finance charges and other revenues 2,566 261,676 264,242 Total revenues 1,223,542 261,676 1,485,218 Costs and expenses: Cost of goods sold 777,046 — 777,046 Selling, general and administrative expenses (1) 286,925 103,251 390,176 Provision for bad debts 551 191,888 192,439 Charges and credits 5,690 — 5,690 Total costs and expenses 1,070,212 295,139 1,365,351 Operating income 153,330 (33,463 ) 119,867 Interest expense — 29,365 29,365 Other expense, net — — — Income before income taxes $ 153,330 $ (62,828 ) $ 90,502 Additional Disclosures: Property and equipment additions $ 61,377 $ 319 $ 61,696 Depreciation expense $ 18,091 $ 654 $ 18,745 January 31, 2015 (in thousands) Retail Credit Total Total assets $ 342,320 $ 1,303,484 $ 1,645,804 Year ended January 31, 2014 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 235,257 $ — $ 235,257 Home appliance 258,713 — 258,713 Consumer electronic 269,889 — 269,889 Home office 102,103 — 102,103 Other 37,955 — 37,955 Product sales 903,917 — 903,917 Repair service agreement commissions 75,671 — 75,671 Service revenues 12,252 — 12,252 Total net sales 991,840 — 991,840 Finance charges and other revenues 1,522 200,407 201,929 Total revenues 993,362 200,407 1,193,769 Costs and expenses: Cost of goods sold 630,225 — 630,225 Selling, general and administrative expenses (1) 226,525 76,826 303,351 Provision for bad debts 468 95,756 96,224 Charges and credits 2,117 — 2,117 Total cost and expenses 859,335 172,582 1,031,917 Operating income 134,027 27,825 161,852 Interest expense — 15,323 15,323 Other expense, net 10 — 10 Income before income taxes $ 134,017 $ 12,502 $ 146,519 Additional Disclosures: Property and equipment additions $ 51,096 $ 1,031 $ 52,127 Depreciation expense $ 11,892 $ 706 $ 12,598 January 31, 2014 (in thousands) Retail Credit Total Total assets $ 229,093 $ 1,068,893 $ 1,297,986 (1) Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. For the years ended January 31, 2016 , 2015 and 2014 , the amount of overhead allocated to each segment was $16.7 million , $12.4 million and $11.4 million , respectively. For the years ended January 31, 2016 , 2015 and 2014 , the amount of reimbursement made to the retail segment by the credit segment was $36.4 million , $29.8 million and $21.7 million , respectively. |
Guarantor Financial Informati41
Guarantor Financial Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidated Balance Sheet | Condensed Consolidated Balance Sheet as of January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 12,254 $ — $ — $ 12,254 Restricted cash — — 78,576 — 78,576 Customer accounts receivable, net of allowance — 353,781 390,150 — 743,931 Other accounts receivable — 95,404 — — 95,404 Inventories — 201,969 — — 201,969 Other current assets 10,774 20,092 3,405 (3,405 ) 30,866 Total current assets 10,774 683,500 472,131 (3,405 ) 1,163,000 Investment in and advances to subsidiaries 676,492 95,787 — (772,279 ) — Long-term portion of customer accounts receivable, net of allowance — 300,391 331,254 — 631,645 Property and equipment, net — 151,483 — — 151,483 Deferred income taxes 70,219 — — — 70,219 Other assets — 8,953 — — 8,953 Total assets $ 757,485 $ 1,240,114 $ 803,385 $ (775,684 ) $ 2,025,300 Liabilities and Stockholders' Equity Current liabilities: Current maturities of capital lease obligations $ — $ 799 $ — $ — $ 799 Accounts payable — 86,797 — — 86,797 Accrued expenses 736 37,002 1,636 — 39,374 Other current liabilities — 17,510 1,645 — 19,155 Total current liabilities 736 142,108 3,281 — 146,125 Deferred rent — 74,559 — — 74,559 Long-term debt and capital lease obligations 218,468 330,896 699,515 — 1,248,879 Other long-term liabilities — 16,059 1,397 — 17,456 Total liabilities 219,204 563,622 704,193 — 1,487,019 Stockholders' equity: Common stock 306 — — — 306 Additional paid-in capital 85,209 179,995 112,200 (292,195 ) 85,209 Retained earnings 452,766 496,497 (13,008 ) (483,489 ) 452,766 Total stockholders' equity 538,281 676,492 99,192 (775,684 ) 538,281 Total liabilities and stockholders' equity $ 757,485 $ 1,240,114 $ 803,385 $ (775,684 ) $ 2,025,300 |
Condensed Consolidated Statement of Operations | Condensed Consolidated Statement of Operations for the year ended January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,322,589 $ — $ — $ 1,322,589 Finance charges and other revenues — 201,494 89,095 — 290,589 Servicing fee revenue — 28,395 — (28,395 ) — Total revenues — 1,552,478 89,095 (28,395 ) 1,613,178 Costs and expenses: Cost of goods sold — 833,126 — — 833,126 Selling, general and administrative expenses — 436,115 28,395 (28,395 ) 436,115 Provision for bad debts — 169,831 52,346 — 222,177 Charges and credits — 8,044 — — 8,044 Total costs and expenses — 1,447,116 80,741 (28,395 ) 1,499,462 Operating income — 105,362 8,354 — 113,716 Loss (income) from consolidated subsidiaries (43,642 ) 13,008 — 30,634 — Interest expense 19,189 15,551 28,366 — 63,106 Loss on extinguishment of debt 483 884 — — 1,367 Income before income taxes 23,970 75,919 (20,012 ) (30,634 ) 49,243 Provision (benefit) for income taxes (6,885 ) 32,277 (7,004 ) — 18,388 Net income $ 30,855 $ 43,642 $ (13,008 ) $ (30,634 ) $ 30,855 |
Condensed Consolidated Statement of Cash Flows | Condensed Consolidated Statement of Cash Flows for the year ended January 31, 2016 . (in thousands) Conn's, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ 14,590 $ (653,621 ) $ 464,909 $ — $ (174,122 ) Cash flows from investing activities: Purchase of customer accounts receivables — — (1,076,106 ) 1,076,106 — Sale of customer accounts receivables — 1,076,106 — (1,076,106 ) — Purchase of property and equipment — (63,405 ) — — (63,405 ) Proceeds from sales of property — 5,647 — — 5,647 Net change in intercompany 160,739 — — (160,739 ) — Net cash provided by (used in) investing activities 160,739 1,018,348 (1,076,106 ) (160,739 ) (57,758 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 1,118,000 — 1,118,000 Payments on asset-backed notes — — (400,717 ) — (400,717 ) Changes in restricted cash balances — — (78,576 ) — (78,576 ) Borrowings from revolving credit facility — 606,288 — — 606,288 Payments on revolving credit facility — (805,193 ) — — (805,193 ) Repurchase of senior notes (22,965 ) — — — (22,965 ) Payment of debt issuance costs and amendment fees (3,847 ) (4,419 ) (27,510 ) — (35,776 ) Repurchase of common stock (151,781 ) — — — (151,781 ) Proceeds from stock issued under employee benefit plans 2,653 — — — 2,653 Net change in intercompany — (160,739 ) — 160,739 — Other 611 (633 ) — — (22 ) Net cash provided by financing activities (175,329 ) (364,696 ) 611,197 160,739 231,911 Net change in cash and cash equivalents — 31 — — 31 Cash and cash equivalents, beginning of period — 12,223 — — 12,223 Cash and cash equivalents, end of period $ — $ 12,254 $ — $ — $ 12,254 |
Quarterly Information (Unaudi42
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following tables set forth certain quarterly financial data for the years ended January 31, 2016 and 2015 that have been prepared on a consistent basis as the accompanying audited consolidated financial statements and include all adjustments necessary for a fair presentation, in all material respects, of the information shown: Fiscal Year 2016 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted January 31 Revenues: Retail Segment $ 298,628 $ 298,628 $ 325,605 $ 325,605 $ 323,050 $ 323,050 $ 376,945 Credit Segment 66,448 66,448 70,445 70,445 72,183 72,183 79,874 Total revenues $ 365,076 $ 365,076 $ 396,050 $ 396,050 $ 395,233 $ 395,233 $ 456,819 Percent of annual revenues 22.6 % 22.6 % 24.6 % 24.6 % 24.5 % 24.5 % 28.3 % Cost and expenses: Cost of goods sold (1)(2) $ 173,472 $ 187,133 $ 187,124 $ 202,461 $ 186,807 $ 202,901 $ 240,631 Cost of service parts sold (1) $ 1,312 $ — $ 1,550 $ — $ 1,463 $ — $ — Delivery, transportation and handling costs (2) $ 12,349 $ — $ 13,787 $ — $ 14,631 $ — $ — Operating income (loss): Retail Segment $ 42,580 $ 42,580 $ 45,124 $ 45,124 $ 36,005 $ 36,005 $ 44,864 Credit Segment (8,474 ) (8,474 ) (9,026 ) (9,026 ) (18,089 ) (18,089 ) (19,268 ) Total operating income $ 34,106 $ 34,106 $ 36,098 $ 36,098 $ 17,916 $ 17,916 $ 25,596 Net income (loss) $ 15,677 $ 15,677 $ 16,538 $ 16,538 $ (2,421 ) $ (2,421 ) $ 1,061 Earnings (loss) per share: (3) Basic $ 0.43 $ 0.43 $ 0.45 $ 0.45 $ (0.07 ) $ (0.07 ) $ 0.03 Diluted $ 0.43 $ 0.43 $ 0.45 $ 0.45 $ (0.07 ) $ (0.07 ) $ 0.03 Fiscal Year 2015 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 January 31 Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted Previously Reported As Adjusted Revenues: Retail Segment $ 278,095 $ 278,095 $ 288,624 $ 288,624 $ 305,140 $ 305,140 $ 351,683 $ 351,683 Credit Segment 57,353 57,353 64,340 64,340 64,918 64,918 75,065 75,065 Total revenues $ 335,448 $ 335,448 $ 352,964 $ 352,964 $ 370,058 $ 370,058 $ 426,748 $ 426,748 Percent of annual revenues 22.6 % 22.6 % 23.8 % 23.8 % 24.9 % 24.9 % 28.7 % 28.7 % Cost and expenses: Cost of goods sold (1)(2) $ 160,782 $ 174,364 $ 168,717 $ 183,752 $ 178,976 $ 193,717 $ 210,147 $ 225,213 Cost of service parts sold (1) $ 1,419 $ — $ 1,871 $ — $ 1,525 $ — $ 1,405 $ — Delivery, transportation and handling costs (2) $ 12,163 $ — $ 13,164 $ — $ 13,216 $ — $ 13,661 $ — Operating income (loss): Retail Segment $ 37,766 $ 37,766 $ 34,208 $ 34,208 $ 37,794 $ 37,794 $ 43,562 $ 43,562 Credit Segment 11,265 11,265 (212 ) (212 ) (33,173 ) (33,173 ) (11,343 ) (11,343 ) Total operating income $ 49,031 $ 49,031 $ 33,996 $ 33,996 $ 4,621 $ 4,621 $ 32,219 $ 32,219 Net income (loss) $ 28,469 $ 28,469 $ 17,650 $ 17,650 $ (3,064 ) $ (3,064 ) $ 15,458 $ 15,458 Earnings (loss) per share: Basic (3) $ 0.79 $ 0.79 $ 0.49 $ 0.49 $ (0.08 ) $ (0.08 ) $ 0.43 $ 0.43 Diluted (3) $ 0.77 $ 0.77 $ 0.48 $ 0.48 $ (0.08 ) $ (0.08 ) $ 0.42 $ 0.42 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 29, 2016USD ($)class | Sep. 30, 2015USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($)segmentshares | Jan. 31, 2015USD ($)shares | Jan. 31, 2014USD ($)shares | Oct. 06, 2014right / shares | Jul. 01, 2014 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |||||||||
Customer accounts receivable securitized | $ 1,400,000,000 | ||||||||
Face value of asset-backed notes | 1,120,000,000 | ||||||||
Proceeds from Securitizations of Consumer Loans | $ 1,080,000,000 | ||||||||
Business Activities [Abstract] | |||||||||
Operating segments | segment | 2 | ||||||||
Shares outstanding for earnings (loss) per share calculations [Abstract] | |||||||||
Weighted average common shares outstanding - Basic (in shares) | shares | 35,084,000 | 36,232,000 | 35,779,000 | ||||||
Weighted average common shares outstanding - Diluted (in shares) | shares | 35,557,000 | 36,900,000 | 36,861,000 | ||||||
Weighted average number of options not included in the calculation of the dilutive effect of stock options and restricted stock units (in shares) | shares | 388,000 | 116,000 | 35,000 | ||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Repurchase of senior notes | $ 22,965,000 | $ 0 | $ 0 | ||||||
Stockholders' Rights Plan [Abstract] | |||||||||
Number of Rights Per Share | right / shares | 1 | ||||||||
Cash and cash equivalents | |||||||||
Credit card deposits in-transit | $ 6,500,000 | $ 6,500,000 | 6,500,000 | 6,500,000 | |||||
Vendor Programs [Abstract] | |||||||||
Vendor rebates | 145,400,000 | 116,400,000 | 89,300,000 | ||||||
Impairment of Long-Lived Assets [Abstract] | |||||||||
Impairment charges recorded | 0 | 0 | 0 | ||||||
Interest Income on Customer Accounts Receivable [Abstract] | |||||||||
Deferred interest income | 5,200,000 | 11,200,000 | 5,200,000 | 11,200,000 | |||||
Receivables in non-accrual status | 20,600,000 | 13,700,000 | 20,600,000 | 13,700,000 | |||||
Receivables past due | 115,100,000 | 97,100,000 | 115,100,000 | 97,100,000 | |||||
Expense Classifications [Abstract] | |||||||||
Advertising expense included in Selling, general and administrative expense | 89,900,000 | 81,800,000 | 50,700,000 | ||||||
Fair Value of Financial Instruments [Abstract] | |||||||||
Fair value of debt | 183,300,000 | 183,300,000 | |||||||
Carrying amount of debt | 1,273,490,000 | $ 1,273,490,000 | |||||||
Change in Accounting Policy | |||||||||
Percent of total retail sales | 4.00% | ||||||||
Percent increase (exceeds) | 1.00% | ||||||||
Delivery, transportation and handling costs | 0 | 13,661,000 | 52,204,000 | 36,177,000 | |||||
Cost of services | 0 | 1,405,000 | 6,220,000 | $ 5,327,000 | |||||
Deferred debt issuance costs | (22,659,000) | (1,518,000) | $ (22,659,000) | (1,518,000) | |||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||||
Change in Accounting Policy | |||||||||
Deferred tax assets, net, current | 20,000,000 | $ 20,000,000 | |||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Other assets [Member] | |||||||||
Change in Accounting Policy | |||||||||
Deferred debt issuance costs | 1,500,000 | 1,500,000 | |||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Long-term debt [Member] | |||||||||
Change in Accounting Policy | |||||||||
Deferred debt issuance costs | (1,500,000) | $ (1,500,000) | |||||||
Stock Options [Member] | |||||||||
Shares outstanding for earnings (loss) per share calculations [Abstract] | |||||||||
Common shares attributable to stock options and restricted stock units (in shares) | shares | 473,000 | 668,000 | 1,082,000 | ||||||
Minimum [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Term of Lease | 5 years | ||||||||
Number of days possession occurs prior to store opening | 90 days | ||||||||
Maximum [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Term of Lease | 15 years | ||||||||
Number of days possession occurs prior to store opening | 120 days | ||||||||
Equipment [Member] | Minimum [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Term of Lease | 3 years | ||||||||
Equipment [Member] | Maximum [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Term of Lease | 7 years | ||||||||
Lease Arrangement with Escalating Rent Payments [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Deferred rent credit | 20,900,000 | 15,900,000 | $ 20,900,000 | $ 15,900,000 | |||||
Tenant Allowances [Member] | |||||||||
Accounting for Leases [Abstract] | |||||||||
Deferred rent credit | 60,900,000 | 42,700,000 | 60,900,000 | 42,700,000 | |||||
Secured Debt [Member] | |||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||
Carrying amount of debt | 227,000,000 | $ 227,000,000 | |||||||
Common Stock [Member] | |||||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Repurchase of common stock (in shares) | shares | 5,965,000 | ||||||||
Senior Notes [Member] | |||||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Stated interest rate | 7.25% | ||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||
Carrying amount of debt | 227,000,000 | $ 250,000,000 | $ 227,000,000 | $ 250,000,000 | |||||
Repurchase Program [Member] | |||||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Authorized amount | $ 175,000,000 | 175,000,000 | |||||||
Payments for repurchase of common stock | 151,600,000 | ||||||||
Repurchase of senior notes | 22,900,000 | ||||||||
Face value of senior notes repurchased | $ 23,000,000 | ||||||||
Repurchase Program [Member] | Common Stock [Member] | |||||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Repurchase of common stock (in shares) | shares | 5,900,000 | ||||||||
Repurchase Program [Member] | Senior Notes [Member] | |||||||||
Payments for Repurchase of Equity [Abstract] | |||||||||
Stated interest rate | 7.25% | 7.25% | |||||||
Securitized Receivables Servicer [Member] | |||||||||
Cash and cash equivalents | |||||||||
Restricted cash and cash equivalents | $ 64,200,000 | $ 64,200,000 | |||||||
Collateral Held by VIE [Member] | |||||||||
Cash and cash equivalents | |||||||||
Restricted cash and cash equivalents | $ 14,400,000 | $ 14,400,000 | |||||||
Subsequent Event [Member] | |||||||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |||||||||
Customer accounts receivable securitized | $ 705,100,000 | ||||||||
Face value of asset-backed notes | 493,500,000 | ||||||||
Proceeds from asset-backed notes | $ 478,000,000 | ||||||||
Number of classes of notes | class | 2 |
Charges and Credits (Details)
Charges and Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Charges and Credits [Abstract] | |||
Charges, net of credits, for store and facility closures | $ 637 | $ 3,646 | $ 2,117 |
Legal and professional fees related to the exploration of strategic alternative and securities-related litigation | 3,153 | 1,135 | 0 |
Sales Tax Audit Reserve | 2,748 | 0 | 0 |
Executive management transition costs | 1,506 | 0 | 0 |
Employee severance | 0 | 909 | 0 |
Charges and credits | $ 8,044 | $ 5,690 | $ 2,117 |
Finance Charges and Other Rev45
Finance Charges and Other Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Summary of the classification of the amounts as Finance charges and other [Abstract] | |||
Interest income and fees on customer receivables | $ 238,161 | $ 211,063 | $ 155,703 |
Insurance commissions | 50,789 | 50,613 | 44,704 |
Other | 1,639 | 2,566 | 1,522 |
Finance charges and other | 290,589 | 264,242 | 201,929 |
Provisions for uncollectible interest | 36,700 | 27,500 | 14,900 |
Financing Receivable [Member] | |||
Summary of the classification of the amounts as Finance charges and other [Abstract] | |||
Interest income and fees on customer receivables | $ 14,000 | $ 9,100 | $ 4,400 |
Customer Accounts Receivable (D
Customer Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Total Outstanding Balance | ||||||
Customer Accounts Receivable | $ 1,587,856 | $ 1,365,807 | ||||
60 Days Past Due | 157,723 | 133,087 | ||||
Reaged | 229,872 | 182,976 | ||||
Allowance for uncollectible accounts related to the credit portfolio | $ (146,982) | $ (71,801) | $ (43,911) | (190,990) | (146,982) | $ (71,801) |
Allowances for promotional credit programs | (21,290) | (17,474) | ||||
Accounts Receivable, Net | 1,375,576 | 1,201,351 | ||||
Short-term portion of customer accounts receivable, net | (743,931) | (643,094) | ||||
Long-term customer accounts receivable, net | 631,645 | 558,257 | ||||
Amounts included within past due and reaged accounts | 55,200 | 44,900 | ||||
Total amount of customer receivables past due one day or greater | 387,300 | 316,000 | ||||
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | ||||||
Allowance at beginning of period | (146,982) | (71,801) | (43,911) | |||
Provision | 258,157 | 219,347 | 110,302 | |||
Principal charge-offs | 184,841 | 133,186 | 74,876 | |||
Interest charge-offs | 33,728 | 24,054 | 12,982 | |||
Recoveries | 4,420 | 13,074 | 5,446 | |||
Allowance at end of period | (190,990) | (146,982) | (71,801) | |||
Average total customer portfolio balance | 1,458,326 | 1,193,211 | 869,561 | |||
Customer Accounts Receivable [Member] | ||||||
Total Outstanding Balance | ||||||
Customer Accounts Receivable | 1,470,205 | 1,277,135 | ||||
60 Days Past Due | 127,400 | 112,365 | ||||
Reaged | 112,221 | 94,304 | ||||
Allowance for uncollectible accounts related to the credit portfolio | (118,786) | (54,448) | (27,702) | (149,227) | (118,786) | (54,448) |
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | ||||||
Allowance at beginning of period | (118,786) | (54,448) | (27,702) | |||
Provision | 204,499 | 187,222 | 89,960 | |||
Principal charge-offs | 150,237 | 113,525 | 57,433 | |||
Interest charge-offs | 27,414 | 20,503 | 9,958 | |||
Recoveries | 3,593 | 11,144 | 4,177 | |||
Allowance at end of period | (149,227) | (118,786) | (54,448) | |||
Average total customer portfolio balance | 1,355,804 | 1,129,513 | 828,172 | |||
Restructured Accounts [Member] | ||||||
Total Outstanding Balance | ||||||
Customer Accounts Receivable | 117,651 | 88,672 | ||||
60 Days Past Due | 30,323 | 20,722 | ||||
Reaged | 117,651 | 88,672 | ||||
Allowance for uncollectible accounts related to the credit portfolio | (28,196) | (17,353) | (16,209) | (41,763) | (28,196) | (17,353) |
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | ||||||
Allowance at beginning of period | (28,196) | (17,353) | (16,209) | |||
Provision | 53,658 | 32,125 | 20,342 | |||
Principal charge-offs | 34,604 | 19,661 | 17,443 | |||
Interest charge-offs | 6,314 | 3,551 | 3,024 | |||
Recoveries | 827 | 1,930 | 1,269 | |||
Allowance at end of period | (41,763) | (28,196) | $ (17,353) | |||
Average total customer portfolio balance | 102,522 | 63,698 | $ 41,389 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Total Outstanding Balance | ||||||
Allowance for uncollectible accounts related to the credit portfolio | 0 | 0 | (136,325) | 0 | ||
Short-term portion of customer accounts receivable, net | (721,404) | 0 | ||||
Allowance for doubtful accounts and uncollectible interest for customer receivables [Abstract] | ||||||
Allowance at beginning of period | 0 | |||||
Allowance at end of period | $ (136,325) | $ 0 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Total Outstanding Balance | ||||||
Customer Accounts Receivable | 870,684 | 0 | ||||
60 Days Past Due | 135,800 | 0 | ||||
Reaged | 204,594 | 0 | ||||
Short-term portion of customer accounts receivable, net | (390,150) | |||||
Long-term customer accounts receivable, net | 331,254 | |||||
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||||
Total Outstanding Balance | ||||||
Customer Accounts Receivable | 717,172 | 1,365,807 | ||||
60 Days Past Due | 21,923 | 133,087 | ||||
Reaged | $ 25,278 | $ 182,976 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 395 | $ 5,359 |
Buildings | 1,222 | 1,233 |
Leasehold improvements | 191,606 | 165,505 |
Equipment and fixtures | 49,741 | 38,832 |
Capital leases | 4,312 | 2,133 |
Construction in progress | 21,273 | 8,261 |
Subtotal | 268,549 | 221,323 |
Less accumulated depreciation | (117,066) | (101,105) |
Total property and equipment, net | $ 151,483 | $ 120,218 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 30 years | |
Equipment and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 3 years | |
Equipment and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 5 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 15 years | |
Capital leases [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 3 years | |
Capital leases [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 5 years |
Property and Equipment - Additi
Property and Equipment - Additional Disclosures (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2015USD ($) | |
Property, Plant and Equipment [Abstract] | |
proceeds from sale leaseback transaction | $ 19.3 |
Accrual for Store Closures an49
Accrual for Store Closures and Other expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Detail of activity in the accrual for store closures [Abstract] | ||||
Balance at beginning of period | $ 2,557 | $ 4,316 | ||
Accrual for closures | 318 | 2,946 | ||
Change in estimate | 32 | (136) | ||
Cash payments | (1,041) | (4,569) | ||
Balance at end of period | 1,866 | 2,557 | ||
Balance sheet presentation [Abstract] | ||||
Accrued expenses | $ (653) | $ (819) | ||
Other long-term liabilities | 1,213 | 1,738 | ||
Restructuring Reserve, Total | $ 2,557 | $ 4,316 | $ 1,866 | $ 2,557 |
Debt and Capital Lease Obliga50
Debt and Capital Lease Obligations - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 30, 2015 | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 1,273,490 | ||
Capital lease obligations | 2,488 | $ 933 | |
Total debt and capital lease obligations | 1,275,978 | 779,045 | |
Discount on debt | (3,641) | (4,635) | |
Deferred debt issuance costs | (22,659) | (1,518) | |
Current maturities of capital lease obligations | (799) | (395) | |
Long-term debt and capital lease obligations | 1,248,879 | 772,497 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | 329,207 | 528,112 | |
Deferred debt issuance costs | $ (3,000) | ||
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | 227,000 | 250,000 | |
Secured Debt [Member] | Class A Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | 551,383 | 0 | |
Secured Debt [Member] | Class B Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying amount of debt | $ 165,900 | $ 0 |
Debt and Capital Lease Obliga51
Debt and Capital Lease Obligations - Maturities of Long-term Debt (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 329,207 |
2,020 | 0 |
2,021 | 717,283 |
Thereafter | 227,000 |
Total long-term debt | $ 1,273,490 |
Debt and Capital Lease Obliga52
Debt and Capital Lease Obligations - Senior Notes (Details) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2015USD ($) | Jan. 31, 2016USD ($)exception | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Nov. 01, 2015USD ($) | Jul. 01, 2014USD ($) | May. 01, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 1,367,000 | $ 0 | $ 0 | ||||
Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 7.25% | ||||||
Payments for Fees | $ 3,800,000 | ||||||
Senior Notes [Member] | Senior Unsecured Notes Due July 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 250,000,000 | ||||||
Stated interest rate | 7.25% | ||||||
Effective interest rate percentage | 7.80% | ||||||
Face value of senior notes repurchased | 23,000,000 | ||||||
Repayments of debt | 22,900,000 | ||||||
Loss on extinguishment of debt | $ 500,000 | ||||||
Number of exceptions | exception | 2 | ||||||
Restricted payments (up to) | $ 375,000,000 | ||||||
Debt Instrument, Restrictions on Payment of Dividends, Amount Free from Restriction | 201,000,000 | ||||||
Debt default trigger amount | $ 25,000,000 | ||||||
Senior Notes [Member] | Previous Supplemental Indenture [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Restricted payments (up to) | $ 75,000,000 | ||||||
Senior Notes [Member] | Supplemental Indenture [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Restricted payments (up to) | $ 375,000,000 | ||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Restrictions on Payment of Dividends, Amount Free from Restriction | $ 6,200,000 | ||||||
Maximum [Member] | Senior Notes [Member] | Senior Unsecured Notes Due July 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio (less than or equal to) | 2.50 | ||||||
Minimum [Member] | Senior Notes [Member] | Senior Unsecured Notes Due July 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Leverage ratio (less than or equal to) | 1 |
Debt and Capital Lease Obliga53
Debt and Capital Lease Obligations - Asset-backed Notes (Details) - USD ($) $ in Millions | 1 Months Ended | |
Sep. 30, 2015 | Jan. 31, 2016 | |
Debt Instrument [Line Items] | ||
Proceeds from issuance of debt | $ 1,080 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 1,120 | |
Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Class A Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 952.1 | |
Stated interest rate | 4.565% | |
Effective interest rate percentage | 7.20% | |
Variable Interest Entity, Primary Beneficiary [Member] | Secured Debt [Member] | Class B Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt face amount | $ 165.9 | |
Stated interest rate | 8.50% | |
Effective interest rate percentage | 12.90% |
Debt and Capital Lease Obliga54
Debt and Capital Lease Obligations - Revolving Credit Facility (Details) | Oct. 30, 2015USD ($) | Jan. 31, 2016USD ($) | Oct. 29, 2015USD ($) | Jan. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Deferred Finance Costs, Net | $ 22,659,000 | $ 1,518,000 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | 169,200,000 | |||
Outstanding letters of credit | 1,100,000 | |||
Additional remaining borrowing capacity | $ 310,500,000 | |||
Previous Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio of Indebtedness to Net Capital | 2 | |||
Accounts Receivable Advance Rate | 80.00% | |||
Cash Recovery Covenant | 4.50% | |||
Line of Credit Facility, Inventory Component | $ 100,000,000 | |||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 810,000,000 | |||
Weighted average interest rate | 3.30% | |||
Ratio of Indebtedness to Net Capital, ABS Excluded | 2 | |||
Minimum Interest Coverage Ratio | 2 | |||
Accounts Receivable Advance Rate | 75.00% | |||
Cash Recovery Covenant | 4.25% | |||
Line of Credit Facility, Inventory Component | $ 175,000,000 | |||
Write off of Deferred Debt Issuance Cost | 900,000 | |||
Deferred Finance Costs, Net | $ 3,000,000 | |||
Letter of Credit [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt face amount | $ 40,000,000 | |||
LIBOR | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Minimum [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Ratio of Indebtedness to Net Capital | 4 | |||
Minimum [Member] | LIBOR | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Minimum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Maximum [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.75% | |||
Maximum [Member] | LIBOR | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | |||
Maximum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% |
Debt and Capital Lease Obliga55
Debt and Capital Lease Obligations - Debt Covenants (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2016USD ($) | |
Actual | |
Interest Coverage Ratio | 2.23 |
Leverage Ratio | 2.59 |
ABS Excluded Leverage Ratio | 1.41 |
Cash Recovery Percent (fourth quarter) | 5.00% |
Capital Expenditures, net | $ 35.9 |
Required Minimum/ Maximum | |
Interest Coverage Ratio must equal or exceed minimum | 2 |
Leverage Ratio must not exceed maximum | 4 |
ABS Excluded Leverage Ratio must not exceed maximum | 2 |
Cash Recovery Percent (fourth quarter) must exceed stated amount | 4.25% |
Capital Expenditures, net, must not exceed maximum | $ 75 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Deferred tax assets [Abstract] | |||
Allowance for doubtful accounts | $ 57,585 | $ 43,258 | |
Straight-line rent accrual | 7,479 | 5,645 | |
Deferred gains on sale-leaseback transactions | 3,295 | 3,144 | |
Deferred revenue | 4,168 | 2,743 | |
Inventories | 3,494 | 2,604 | |
Stock-based compensation | 1,845 | 1,725 | |
Margin tax | 1,008 | 1,226 | |
Accrued vacation and other | 3,422 | 2,403 | |
Total deferred tax assets | 83,620 | 64,246 | |
Deferred tax liabilities [Abstract] | |||
Sales tax receivable | (9,316) | (4,270) | |
Property and equipment | (1,717) | (4,356) | |
Other | (2,368) | (2,075) | |
Total deferred tax liabilities | (13,401) | (10,701) | |
Net deferred tax asset | 70,219 | 53,545 | |
Reconciliation of the tax provision at the statutory tax rate and the total tax provision [Abstract] | |||
Provision (benefit) at U.S. federal statutory rate | 17,235 | 31,676 | $ 51,275 |
State and local income taxes, net of federal benefit | 1,180 | 1,893 | 1,489 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 0 | (2,180) | 0 |
Non-deductible entertainment, stock-based compensation and other | (27) | 600 | 306 |
Provision (benefit) for income taxes | 18,388 | 31,989 | 53,070 |
Current [Abstract] | |||
Federal | 32,820 | 54,959 | 52,208 |
State | 2,242 | 2,570 | 2,049 |
Total current | 35,062 | 57,529 | 54,257 |
Deferred [Abstract] | |||
Federal | (16,032) | (23,712) | (1,061) |
State | (642) | (1,828) | (126) |
Total deferred | (16,674) | (25,540) | (1,187) |
Provision (benefit) for income taxes | 18,388 | 31,989 | $ 53,070 |
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 1,324 | $ 1,498 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Leases, Operating [Abstract] | |||
Total lease expense | $ 44,700 | $ 39,400 | $ 31,200 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 52,317 | ||
2,018 | 51,665 | ||
2,019 | 49,311 | ||
2,020 | 47,743 | ||
2,021 | 45,976 | ||
Thereafter | 183,440 | ||
Total | 430,452 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 949 | ||
2,018 | 927 | ||
2,019 | 726 | ||
2,020 | 215 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Total | 2,817 | ||
Less - interest on capital lease obligations | (329) | ||
Total principal payable on capital lease obligations | 2,488 | $ 933 | |
Less - current maturities | (799) | ||
Long-term capital lease obligations | $ 1,689 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost for share-based compensation | $ 4,611 | $ 4,097 | $ 3,949 | |
Recognized tax benefits related to compensation cost | $ 1,400 | $ 1,200 | 1,100 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 8 months 12 days | |||
Shares [Abstract] | ||||
Vested and expected to vest, end of period (in shares) | 846,000 | |||
Weighted Average Exercise Price [Abstract] | ||||
Vested and expected to vest, end of period (in dollar per shares) | $ 10 | |||
Weighted Average Remaining Contractual Life [Abstract] | ||||
Vested and expected to vest, end of period | 2 years 7 months 27 days | |||
Restricted Stock Units [Abstract] | ||||
Outstanding, beginning of period (in shares) | 398,000 | 398,000 | ||
Restricted stock units granted (in shares) | 389,000 | |||
Units granted based on achievement of performance metrics (in shares) | 0 | |||
Restricted stock units vested and converted to common stock (in shares) | (138,000) | |||
Restricted stock units forfeited (in shares) | (50,000) | |||
Outstanding, end of year (in shares) | 599,000 | 398,000 | ||
Assumptions used in stock pricing model and valuation information for stock options and restricted stock units granted [Abstract] | ||||
Intrinsic value of options exercised during the period | $ 2,200 | $ 2,500 | $ 23,900 | |
Return on invested capital period (generally) | 2 years | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Shares issued (in shares) | 48,585 | 40,908 | 27,808 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost for share-based compensation | $ 331 | $ 825 | $ 1,138 | |
Performance-Based Awards [Member] | Minimum [Member] | ||||
Assumptions used in stock pricing model and valuation information for stock options and restricted stock units granted [Abstract] | ||||
Performance-based award vesting percentage, year two | 50.00% | |||
Performance-based share vesting percentage, years three and four | 25.00% | |||
Performance-Based Awards [Member] | Maximum [Member] | ||||
Assumptions used in stock pricing model and valuation information for stock options and restricted stock units granted [Abstract] | ||||
Performance-based awards issued, percent of target grant | 150.00% | |||
Stock options and restricted stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of years until a grant expires | 10 years | |||
Stock options and restricted stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 1 year | |||
Stock options and restricted stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 5 years | |||
Nonvested [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost for share-based compensation | $ 15,100 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost for share-based compensation | 3,926 | 2,772 | 2,509 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation cost for share-based compensation | $ 354 | $ 500 | $ 302 | |
Incentive Stock Option Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for future issuance (in shares) | 546,147 | |||
Shares [Abstract] | ||||
Outstanding, beginning of period (in shares) | 945,000 | 945,000 | ||
Options exercised (in shares) | (97,000) | |||
Forfeited (in shares) | (2,000) | |||
Outstanding, end of period (in shares) | 846,000 | 945,000 | ||
Exercisable, end of period (in shares) | 802,000 | |||
Weighted Average Exercise Price [Abstract] | ||||
Outstanding, beginning of period (in dollars per share) | $ 10 | $ 10 | ||
Options exercised (in dollars per share) | 10 | |||
Forfeited (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 10 | $ 10 | ||
Vested and expected to vest, end of period (in dollar per shares) | 2,400,000 | |||
Exercisable, end of period (in dollars per share) | $ 10 | |||
Weighted Average Remaining Contractual Life [Abstract] | ||||
Outstanding, end of period | 2 years 7 months 27 days | |||
Exercisable, end of period | 2 years 4 months 24 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding, end of period | $ 2,400 | |||
Exercisable, end of period | $ 2,400 | |||
Non-Employee Director Stock Option Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for future issuance (in shares) | 50,000 | |||
Omnibus Incentive Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for future issuance (in shares) | 120,231 | |||
Omnibus Incentive Plan [Member] | Time-Based Awards [Member] | ||||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Nonvested, beginning of year (in dollars per share) | $ 30 | $ 30 | ||
Options granted (in dollars per share) | 30 | |||
Options vested (in dollars per share) | 30 | |||
Canceled (in dollars per share) | 30 | |||
Nonvested, end of year (in dollars per share) | $ 30 | $ 30 | ||
Restricted Stock Units [Abstract] | ||||
Outstanding, beginning of period (in shares) | 337,000 | 337,000 | ||
Restricted stock units granted (in shares) | 377,000 | |||
Restricted stock units vested and converted to common stock (in shares) | (124,000) | |||
Restricted stock units forfeited (in shares) | (50,000) | |||
Outstanding, end of year (in shares) | 540,000 | 337,000 | ||
Omnibus Incentive Plan [Member] | Time-Based Awards [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 4 years | |||
Omnibus Incentive Plan [Member] | Time-Based Awards [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 5 years | |||
Omnibus Incentive Plan [Member] | Performance-Based Awards [Member] | ||||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Nonvested, beginning of year (in dollars per share) | $ 30 | $ 30 | ||
Options granted (in dollars per share) | 40 | |||
Options vested (in dollars per share) | 20 | |||
Nonvested, end of year (in dollars per share) | $ 40 | $ 30 | ||
Restricted Stock Units [Abstract] | ||||
Outstanding, beginning of period (in shares) | 61,000 | 61,000 | ||
Restricted stock units granted (in shares) | 12,000 | |||
Units granted based on achievement of performance metrics (in shares) | 0 | |||
Weighted average grant date fair value of units granted based on achievement of performance metrics | $ 0 | |||
Restricted stock units vested and converted to common stock (in shares) | (14,000) | |||
Outstanding, end of year (in shares) | 59,000 | 61,000 | ||
Director Restricted Stock Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for future issuance (in shares) | 191,632 | |||
Employee Stock [Member] | ||||
Assumptions used in stock pricing model and valuation information for stock options and restricted stock units granted [Abstract] | ||||
Number of shares reserved for future issuance (in shares) | 965,339 | |||
Employee Stock Purchase Plan [Member] | ||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||
Percentage of fair market value that shares are acquired at (in hundredths) | 85.00% |
Significant Vendors (Details)
Significant Vendors (Details) - vendor | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 62.10% | 62.50% | 57.90% |
Number of vendors the company purchased merchandise from | 6 | ||
Supplier Concentration Risk [Member] | Concentration Risk, Vendor A [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 29.10% | 25.70% | 23.90% |
Supplier Concentration Risk [Member] | Concentration Risk, Vendor B [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 17.90% | 18.40% | 14.20% |
Supplier Concentration Risk [Member] | Concentration Risk, Vendor C [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 4.70% | 6.80% | 5.40% |
Supplier Concentration Risk [Member] | Concentration Risk, Vendor D [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 4.10% | 4.90% | 5.10% |
Supplier Concentration Risk [Member] | Concentration Risk, Vendor E [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 3.20% | 3.40% | 4.70% |
Supplier Concentration Risk [Member] | Concentration Risk, Vendor F [Member] | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 3.10% | 3.30% | 4.60% |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended |
Apr. 30, 2013USD ($) | |
Stephens Inc. [Member] | |
Related Party Transaction [Line Items] | |
Underwriting fees and commissions | $ 1.1 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum employee contribution percentage (in hundredths) | 20.00% | ||
Percentage contribution which company matches | 3.00% | ||
Total matching contribution made by company | $ 1 | $ 1.1 | $ 1 |
Contingencies (Details)
Contingencies (Details) | 2 Months Ended | |
May. 05, 2014claimdefendant | Mar. 30, 2015claim | |
False and Misleading Statements and Failure to Disclosure Adverse Information [Member] | ||
Loss Contingencies [Line Items] | ||
Number of pending actions | 3 | |
Derivative Action [Member] | ||
Loss Contingencies [Line Items] | ||
Number of pending actions | 2 | |
Executive Officer [Member] | False and Misleading Statements and Failure to Disclosure Adverse Information [Member] | ||
Loss Contingencies [Line Items] | ||
Number of defendants | defendant | 2 |
Variable Interest Entity - Narr
Variable Interest Entity - Narrative (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2015USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Customer accounts receivable securitized | $ 1,400 |
Face value of asset-backed notes | $ 1,120 |
Monthly fee received (annualized) | 4.75% |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Variable Interest Entity [Line Items] | ||||
Restricted cash (all held by the VIE) | $ 78,576 | $ 0 | ||
Allowance for uncollectible accounts | (190,990) | (146,982) | $ (71,801) | $ (43,911) |
Customer accounts receivable, net of allowance (includes VIE balance of $390,150 as of January 31, 2016) | 743,931 | 643,094 | ||
Total assets | 2,025,300 | 1,645,804 | $ 1,297,986 | |
Deferred interest income | 5,200 | 11,200 | ||
Long-term debt | 1,248,879 | 772,497 | ||
Less deferred debt issuance costs | (22,659) | (1,518) | ||
Total long-term debt | 1,273,490 | |||
Total liabilities | 1,487,019 | 992,134 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Restricted cash (all held by the VIE) | 78,576 | 0 | ||
Due from Conn's, Inc., net | 3,405 | 0 | ||
Customer accounts receivable | 763,278 | 0 | ||
Restructured accounts | 107,406 | 0 | ||
Allowance for uncollectible accounts | (136,325) | 0 | ||
Allowance for short-term, no-interest programs | (12,955) | 0 | ||
Customer accounts receivable, net of allowance (includes VIE balance of $390,150 as of January 31, 2016) | 721,404 | 0 | ||
Total assets | 803,385 | 0 | ||
Accrued interest | 1,636 | 0 | ||
Deferred interest income | 3,042 | 0 | ||
Long-term debt | 717,283 | 0 | ||
Less deferred debt issuance costs | (17,768) | 0 | ||
Total long-term debt | 699,515 | 0 | ||
Total liabilities | 704,193 | 0 | ||
Class A Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total long-term debt | 551,383 | 0 | ||
Class B Notes [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total long-term debt | $ 165,900 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($)state | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of states with no operations outside of the United States | state | 12 | ||||
Revenues: | |||||
Product sales | $ 1,199,134 | $ 1,117,909 | $ 903,917 | ||
Repair service agreement commissions | 109,730 | 90,009 | 75,671 | ||
Service revenues | 13,725 | 13,058 | 12,252 | ||
Total net sales | 1,322,589 | 1,220,976 | 991,840 | ||
Finance charges and other revenues | 290,589 | 264,242 | 201,929 | ||
Total revenues | $ 456,819 | $ 426,748 | 1,613,178 | 1,485,218 | 1,193,769 |
Costs and expenses: | |||||
Cost of goods sold | 240,631 | 210,147 | 833,126 | 777,046 | 630,225 |
Selling, general and administrative expenses | 436,115 | 390,176 | 303,351 | ||
Provision for bad debts | 222,177 | 192,439 | 96,224 | ||
Charges and credits | 8,044 | 5,690 | 2,117 | ||
Total costs and expenses | 1,499,462 | 1,365,351 | 1,031,917 | ||
Operating income | 25,596 | 32,219 | 113,716 | 119,867 | 161,852 |
Interest expense | 63,106 | 29,365 | 15,323 | ||
Loss on extinguishment of debt | 1,367 | 0 | 0 | ||
Other expense, net | 0 | 0 | 10 | ||
Income before income taxes | 49,243 | 90,502 | 146,519 | ||
Total assets | 2,025,300 | 1,645,804 | 2,025,300 | 1,645,804 | 1,297,986 |
Property and equipment additions | 63,405 | 61,696 | 52,127 | ||
Depreciation expense | $ 22,706 | 18,745 | 12,598 | ||
Estimated annual rate of reimbursement (in hundredths) | 2.50% | ||||
Allocation of overhead by operating segments | $ 16,700 | 12,400 | 11,400 | ||
Amount of reimbursement made by operating segments | 456,819 | 426,748 | 1,613,178 | 1,485,218 | 1,193,769 |
Retail [Member] | |||||
Revenues: | |||||
Product sales | 1,199,134 | 1,117,909 | 903,917 | ||
Repair service agreement commissions | 109,730 | 90,009 | 75,671 | ||
Service revenues | 13,725 | 13,058 | 12,252 | ||
Total net sales | 1,322,589 | 1,220,976 | 991,840 | ||
Finance charges and other revenues | 1,639 | 2,566 | 1,522 | ||
Total revenues | 376,945 | 351,683 | 1,324,228 | 1,223,542 | 993,362 |
Costs and expenses: | |||||
Cost of goods sold | 833,126 | 777,046 | 630,225 | ||
Selling, general and administrative expenses | 313,694 | 286,925 | 226,525 | ||
Provision for bad debts | 791 | 551 | 468 | ||
Charges and credits | 8,044 | 5,690 | 2,117 | ||
Total costs and expenses | 1,155,655 | 1,070,212 | 859,335 | ||
Operating income | 44,864 | 43,562 | 168,573 | 153,330 | 134,027 |
Interest expense | 0 | 0 | 0 | ||
Loss on extinguishment of debt | 0 | ||||
Other expense, net | 0 | 10 | |||
Income before income taxes | 168,573 | 153,330 | 134,017 | ||
Total assets | 314,857 | 342,320 | 314,857 | 342,320 | 229,093 |
Property and equipment additions | 63,262 | 61,377 | 51,096 | ||
Depreciation expense | 21,995 | 18,091 | 11,892 | ||
Amount of reimbursement made by operating segments | 376,945 | 351,683 | 1,324,228 | 1,223,542 | 993,362 |
Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
Repair service agreement commissions | 0 | 0 | 0 | ||
Service revenues | 0 | 0 | 0 | ||
Total net sales | 0 | 0 | 0 | ||
Finance charges and other revenues | 288,950 | 261,676 | 200,407 | ||
Total revenues | 79,874 | 75,065 | 288,950 | 261,676 | 200,407 |
Costs and expenses: | |||||
Cost of goods sold | 0 | 0 | 0 | ||
Selling, general and administrative expenses | 122,421 | 103,251 | 76,826 | ||
Provision for bad debts | 221,386 | 191,888 | 95,756 | ||
Charges and credits | 0 | 0 | 0 | ||
Total costs and expenses | 343,807 | 295,139 | 172,582 | ||
Operating income | (19,268) | (11,343) | (54,857) | (33,463) | 27,825 |
Interest expense | 63,106 | 29,365 | 15,323 | ||
Loss on extinguishment of debt | 1,367 | ||||
Other expense, net | 0 | 0 | |||
Income before income taxes | (119,330) | (62,828) | 12,502 | ||
Total assets | 1,710,443 | 1,303,484 | 1,710,443 | 1,303,484 | 1,068,893 |
Property and equipment additions | 143 | 319 | 1,031 | ||
Depreciation expense | 711 | 654 | 706 | ||
Amount of reimbursement made by operating segments | $ 79,874 | $ 75,065 | 288,950 | 261,676 | 200,407 |
Furniture and Mattress [Member] | |||||
Revenues: | |||||
Product sales | 409,788 | 339,414 | 235,257 | ||
Furniture and Mattress [Member] | Retail [Member] | |||||
Revenues: | |||||
Product sales | 409,788 | 339,414 | 235,257 | ||
Furniture and Mattress [Member] | Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
Home Appliance [Member] | |||||
Revenues: | |||||
Product sales | 356,634 | 328,742 | 258,713 | ||
Home Appliance [Member] | Retail [Member] | |||||
Revenues: | |||||
Product sales | 356,634 | 328,742 | 258,713 | ||
Home Appliance [Member] | Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
Consumer Electronics [Member] | |||||
Revenues: | |||||
Product sales | 312,009 | 317,482 | 269,889 | ||
Consumer Electronics [Member] | Retail [Member] | |||||
Revenues: | |||||
Product sales | 312,009 | 317,482 | 269,889 | ||
Consumer Electronics [Member] | Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
Home Office [Member] | |||||
Revenues: | |||||
Product sales | 101,365 | 108,700 | 102,103 | ||
Home Office [Member] | Retail [Member] | |||||
Revenues: | |||||
Product sales | 101,365 | 108,700 | 102,103 | ||
Home Office [Member] | Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
Other Products [Member] | |||||
Revenues: | |||||
Product sales | 19,338 | 23,571 | 37,955 | ||
Other Products [Member] | Retail [Member] | |||||
Revenues: | |||||
Product sales | 19,338 | 23,571 | 37,955 | ||
Other Products [Member] | Credit [Member] | |||||
Revenues: | |||||
Product sales | 0 | 0 | 0 | ||
AcceptNow [Member] | |||||
Revenues: | |||||
Total revenues | 58,900 | 56,800 | 30,400 | ||
Costs and expenses: | |||||
Amount of reimbursement made by operating segments | 58,900 | 56,800 | 30,400 | ||
Intersegment Eliminations [Member] | |||||
Revenues: | |||||
Total revenues | 36,400 | 29,800 | 21,700 | ||
Costs and expenses: | |||||
Amount of reimbursement made by operating segments | $ 36,400 | $ 29,800 | $ 21,700 |
Guarantor Financial Informati66
Guarantor Financial Information - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 12,254 | $ 12,223 | $ 5,727 | $ 3,849 |
Restricted cash | 78,576 | 0 | ||
Customer accounts receivable, net of allowance | 743,931 | 643,094 | ||
Other accounts receivable | 95,404 | 67,703 | ||
Inventories | 201,969 | 159,068 | ||
Other current assets | 30,866 | |||
Total current assets | 1,163,000 | 905,675 | ||
Investment in and advances to subsidiaries | 0 | |||
Long-term portion of customer accounts receivable, net of allowance | 631,645 | 558,257 | ||
Property and equipment, net | 151,483 | 120,218 | ||
Deferred income taxes | 70,219 | 53,545 | ||
Other assets | 8,953 | 8,109 | ||
Total assets | 2,025,300 | 1,645,804 | 1,297,986 | |
Current maturities of capital lease obligations | 799 | 395 | ||
Accounts payable | 86,797 | 85,355 | ||
Accrued expenses | 39,374 | |||
Other current liabilities | 19,155 | |||
Total current liabilities | 146,125 | 145,009 | ||
Deferred rent | 74,559 | 52,792 | ||
Long-term debt and capital lease obligations | 1,248,879 | 772,497 | ||
Other long-term liabilities | 17,456 | 21,836 | ||
Total liabilities | 1,487,019 | 992,134 | ||
Common stock | 306 | 364 | ||
Additional paid-in capital | 85,209 | 231,395 | ||
Retained earnings | 452,766 | 421,911 | ||
Total stockholders' equity | 538,281 | 653,670 | $ 589,290 | $ 474,450 |
Total liabilities and stockholders' equity | 2,025,300 | 1,645,804 | ||
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | |||
Customer accounts receivable, net of allowance | 0 | |||
Other accounts receivable | 0 | |||
Inventories | 0 | |||
Other current assets | (3,405) | |||
Total current assets | (3,405) | |||
Investment in and advances to subsidiaries | (772,279) | |||
Long-term portion of customer accounts receivable, net of allowance | 0 | |||
Property and equipment, net | 0 | |||
Deferred income taxes | 0 | |||
Other assets | 0 | |||
Total assets | (775,684) | |||
Current maturities of capital lease obligations | 0 | |||
Accounts payable | 0 | |||
Accrued expenses | 0 | |||
Other current liabilities | 0 | |||
Total current liabilities | 0 | |||
Deferred rent | 0 | |||
Long-term debt and capital lease obligations | 0 | |||
Other long-term liabilities | 0 | |||
Total liabilities | 0 | |||
Common stock | 0 | |||
Additional paid-in capital | (292,195) | |||
Retained earnings | (483,489) | |||
Total stockholders' equity | (775,684) | |||
Total liabilities and stockholders' equity | (775,684) | |||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | |||
Customer accounts receivable, net of allowance | 0 | |||
Other accounts receivable | 0 | |||
Inventories | 0 | |||
Other current assets | 10,774 | |||
Total current assets | 10,774 | |||
Investment in and advances to subsidiaries | 676,492 | |||
Long-term portion of customer accounts receivable, net of allowance | 0 | |||
Property and equipment, net | 0 | |||
Deferred income taxes | 70,219 | |||
Other assets | 0 | |||
Total assets | 757,485 | |||
Current maturities of capital lease obligations | 0 | |||
Accounts payable | 0 | |||
Accrued expenses | 736 | |||
Other current liabilities | 0 | |||
Total current liabilities | 736 | |||
Deferred rent | 0 | |||
Long-term debt and capital lease obligations | 218,468 | |||
Other long-term liabilities | 0 | |||
Total liabilities | 219,204 | |||
Common stock | 306 | |||
Additional paid-in capital | 85,209 | |||
Retained earnings | 452,766 | |||
Total stockholders' equity | 538,281 | |||
Total liabilities and stockholders' equity | 757,485 | |||
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 12,254 | 12,223 | ||
Restricted cash | 0 | |||
Customer accounts receivable, net of allowance | 353,781 | |||
Other accounts receivable | 95,404 | |||
Inventories | 201,969 | |||
Other current assets | 20,092 | |||
Total current assets | 683,500 | |||
Investment in and advances to subsidiaries | 95,787 | |||
Long-term portion of customer accounts receivable, net of allowance | 300,391 | |||
Property and equipment, net | 151,483 | |||
Deferred income taxes | 0 | |||
Other assets | 8,953 | |||
Total assets | 1,240,114 | |||
Current maturities of capital lease obligations | 799 | |||
Accounts payable | 86,797 | |||
Accrued expenses | 37,002 | |||
Other current liabilities | 17,510 | |||
Total current liabilities | 142,108 | |||
Deferred rent | 74,559 | |||
Long-term debt and capital lease obligations | 330,896 | |||
Other long-term liabilities | 16,059 | |||
Total liabilities | 563,622 | |||
Common stock | 0 | |||
Additional paid-in capital | 179,995 | |||
Retained earnings | 496,497 | |||
Total stockholders' equity | 676,492 | |||
Total liabilities and stockholders' equity | 1,240,114 | |||
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | $ 0 | ||
Restricted cash | 78,576 | |||
Customer accounts receivable, net of allowance | 390,150 | |||
Other accounts receivable | 0 | |||
Inventories | 0 | |||
Other current assets | 3,405 | |||
Total current assets | 472,131 | |||
Investment in and advances to subsidiaries | 0 | |||
Long-term portion of customer accounts receivable, net of allowance | 331,254 | |||
Property and equipment, net | 0 | |||
Deferred income taxes | 0 | |||
Other assets | 0 | |||
Total assets | 803,385 | |||
Current maturities of capital lease obligations | 0 | |||
Accounts payable | 0 | |||
Accrued expenses | 1,636 | |||
Other current liabilities | 1,645 | |||
Total current liabilities | 3,281 | |||
Deferred rent | 0 | |||
Long-term debt and capital lease obligations | 699,515 | |||
Other long-term liabilities | 1,397 | |||
Total liabilities | 704,193 | |||
Common stock | 0 | |||
Additional paid-in capital | 112,200 | |||
Retained earnings | (13,008) | |||
Total stockholders' equity | 99,192 | |||
Total liabilities and stockholders' equity | $ 803,385 |
Guarantor Financial Informati67
Guarantor Financial Information - Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Total net sales | $ 1,322,589 | $ 1,220,976 | $ 991,840 | ||
Finance charges and other revenues | 290,589 | 264,242 | 201,929 | ||
Servicing fee revenue | 0 | ||||
Total revenues | $ 456,819 | $ 426,748 | 1,613,178 | 1,485,218 | 1,193,769 |
Cost of goods sold | 240,631 | 210,147 | 833,126 | 777,046 | 630,225 |
Selling, general and administrative expenses | 436,115 | 390,176 | 303,351 | ||
Provision for bad debts | 222,177 | 192,439 | 96,224 | ||
Charges and credits | 8,044 | 5,690 | 2,117 | ||
Total costs and expenses | 1,499,462 | 1,365,351 | 1,031,917 | ||
Operating income | 25,596 | 32,219 | 113,716 | 119,867 | 161,852 |
Loss (income) from consolidated subsidiaries | 0 | ||||
Interest expense | 63,106 | 29,365 | 15,323 | ||
Loss on extinguishment of debt | 1,367 | 0 | 0 | ||
Income before income taxes | 49,243 | 90,502 | 146,519 | ||
Provision (benefit) for income taxes | 18,388 | 31,989 | 53,070 | ||
Net income | $ 1,061 | $ 15,458 | 30,855 | $ 58,513 | $ 93,449 |
Consolidation, Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total net sales | 0 | ||||
Finance charges and other revenues | 0 | ||||
Servicing fee revenue | (28,395) | ||||
Total revenues | (28,395) | ||||
Cost of goods sold | 0 | ||||
Selling, general and administrative expenses | (28,395) | ||||
Provision for bad debts | 0 | ||||
Charges and credits | 0 | ||||
Total costs and expenses | (28,395) | ||||
Operating income | 0 | ||||
Loss (income) from consolidated subsidiaries | 30,634 | ||||
Interest expense | 0 | ||||
Loss on extinguishment of debt | 0 | ||||
Income before income taxes | (30,634) | ||||
Provision (benefit) for income taxes | 0 | ||||
Net income | (30,634) | ||||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total net sales | 0 | ||||
Finance charges and other revenues | 0 | ||||
Servicing fee revenue | 0 | ||||
Total revenues | 0 | ||||
Cost of goods sold | 0 | ||||
Selling, general and administrative expenses | 0 | ||||
Provision for bad debts | 0 | ||||
Charges and credits | 0 | ||||
Total costs and expenses | 0 | ||||
Operating income | 0 | ||||
Loss (income) from consolidated subsidiaries | (43,642) | ||||
Interest expense | 19,189 | ||||
Loss on extinguishment of debt | 483 | ||||
Income before income taxes | 23,970 | ||||
Provision (benefit) for income taxes | (6,885) | ||||
Net income | 30,855 | ||||
Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total net sales | 1,322,589 | ||||
Finance charges and other revenues | 201,494 | ||||
Servicing fee revenue | 28,395 | ||||
Total revenues | 1,552,478 | ||||
Cost of goods sold | 833,126 | ||||
Selling, general and administrative expenses | 436,115 | ||||
Provision for bad debts | 169,831 | ||||
Charges and credits | 8,044 | ||||
Total costs and expenses | 1,447,116 | ||||
Operating income | 105,362 | ||||
Loss (income) from consolidated subsidiaries | 13,008 | ||||
Interest expense | 15,551 | ||||
Loss on extinguishment of debt | 884 | ||||
Income before income taxes | 75,919 | ||||
Provision (benefit) for income taxes | 32,277 | ||||
Net income | 43,642 | ||||
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total net sales | 0 | ||||
Finance charges and other revenues | 89,095 | ||||
Servicing fee revenue | 0 | ||||
Total revenues | 89,095 | ||||
Cost of goods sold | 0 | ||||
Selling, general and administrative expenses | 28,395 | ||||
Provision for bad debts | 52,346 | ||||
Charges and credits | 0 | ||||
Total costs and expenses | 80,741 | ||||
Operating income | 8,354 | ||||
Loss (income) from consolidated subsidiaries | 0 | ||||
Interest expense | 28,366 | ||||
Loss on extinguishment of debt | 0 | ||||
Income before income taxes | (20,012) | ||||
Provision (benefit) for income taxes | (7,004) | ||||
Net income | $ (13,008) |
Guarantor Financial Informati68
Guarantor Financial Information - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ (174,122) | $ (189,901) | $ (210,262) |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | ||
Sale of customer accounts receivables | 0 | ||
Purchase of property and equipment | (63,405) | (61,696) | (52,127) |
Proceeds from sales of property | 5,647 | 19,283 | 44 |
Net change in intercompany | 0 | ||
Net cash used in investing activities | (57,758) | (42,413) | (52,083) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 1,118,000 | ||
Payments on asset-backed notes | (400,717) | ||
Changes in restricted cash balances | (78,576) | 0 | 4,717 |
Borrowings from revolving credit facility | 606,288 | 487,305 | 451,593 |
Payments on revolving credit facility | (805,193) | (494,150) | (179,038) |
Repurchase of senior notes | (22,965) | ||
Payment of debt issuance costs and amendment fees | (35,776) | 0 | 0 |
Repurchase of common stock | (151,781) | 0 | 0 |
Proceeds from stock issued under employee benefit plans | 2,653 | 1,669 | 17,318 |
Net change in intercompany | 0 | ||
Other | (22) | ||
Net cash provided by financing activities | 231,911 | 238,810 | 264,223 |
Net change in cash and cash equivalents | 31 | 6,496 | 1,878 |
Cash and cash equivalents, beginning of period | 12,223 | 5,727 | 3,849 |
Cash and cash equivalents, end of period | 12,254 | 12,223 | $ 5,727 |
Consolidation, Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | ||
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 1,076,106 | ||
Sale of customer accounts receivables | (1,076,106) | ||
Purchase of property and equipment | 0 | ||
Proceeds from sales of property | 0 | ||
Net change in intercompany | (160,739) | ||
Net cash used in investing activities | (160,739) | ||
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | ||
Payments on asset-backed notes | 0 | ||
Changes in restricted cash balances | 0 | ||
Borrowings from revolving credit facility | 0 | ||
Payments on revolving credit facility | 0 | ||
Repurchase of senior notes | 0 | ||
Payment of debt issuance costs and amendment fees | 0 | ||
Repurchase of common stock | 0 | ||
Proceeds from stock issued under employee benefit plans | 0 | ||
Net change in intercompany | 160,739 | ||
Other | 0 | ||
Net cash provided by financing activities | 160,739 | ||
Net change in cash and cash equivalents | 0 | ||
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 14,590 | ||
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | ||
Sale of customer accounts receivables | 0 | ||
Purchase of property and equipment | 0 | ||
Proceeds from sales of property | 0 | ||
Net change in intercompany | 160,739 | ||
Net cash used in investing activities | 160,739 | ||
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | ||
Payments on asset-backed notes | 0 | ||
Changes in restricted cash balances | 0 | ||
Borrowings from revolving credit facility | 0 | ||
Payments on revolving credit facility | 0 | ||
Repurchase of senior notes | (22,965) | ||
Payment of debt issuance costs and amendment fees | (3,847) | ||
Repurchase of common stock | (151,781) | ||
Proceeds from stock issued under employee benefit plans | 2,653 | ||
Net change in intercompany | 0 | ||
Other | 611 | ||
Net cash provided by financing activities | (175,329) | ||
Net change in cash and cash equivalents | 0 | ||
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (653,621) | ||
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | ||
Sale of customer accounts receivables | 1,076,106 | ||
Purchase of property and equipment | (63,405) | ||
Proceeds from sales of property | 5,647 | ||
Net change in intercompany | 0 | ||
Net cash used in investing activities | 1,018,348 | ||
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | ||
Payments on asset-backed notes | 0 | ||
Changes in restricted cash balances | 0 | ||
Borrowings from revolving credit facility | 606,288 | ||
Payments on revolving credit facility | (805,193) | ||
Repurchase of senior notes | 0 | ||
Payment of debt issuance costs and amendment fees | (4,419) | ||
Repurchase of common stock | 0 | ||
Proceeds from stock issued under employee benefit plans | 0 | ||
Net change in intercompany | (160,739) | ||
Other | (633) | ||
Net cash provided by financing activities | (364,696) | ||
Net change in cash and cash equivalents | 31 | ||
Cash and cash equivalents, beginning of period | 12,223 | ||
Cash and cash equivalents, end of period | 12,254 | 12,223 | |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 464,909 | ||
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | (1,076,106) | ||
Sale of customer accounts receivables | 0 | ||
Purchase of property and equipment | 0 | ||
Proceeds from sales of property | 0 | ||
Net change in intercompany | 0 | ||
Net cash used in investing activities | (1,076,106) | ||
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 1,118,000 | ||
Payments on asset-backed notes | (400,717) | ||
Changes in restricted cash balances | (78,576) | ||
Borrowings from revolving credit facility | 0 | ||
Payments on revolving credit facility | 0 | ||
Repurchase of senior notes | 0 | ||
Payment of debt issuance costs and amendment fees | (27,510) | ||
Repurchase of common stock | 0 | ||
Proceeds from stock issued under employee benefit plans | 0 | ||
Net change in intercompany | 0 | ||
Other | 0 | ||
Net cash provided by financing activities | 611,197 | ||
Net change in cash and cash equivalents | 0 | ||
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | $ 0 | $ 0 |
Quarterly Information (Unaudi69
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Total revenues | $ 456,819 | $ 426,748 | $ 1,613,178 | $ 1,485,218 | $ 1,193,769 | ||||||
Percent of annual revenues | 28.30% | 28.70% | |||||||||
Cost of goods sold | $ 240,631 | $ 210,147 | 833,126 | 777,046 | 630,225 | ||||||
Cost of service parts sold | 0 | 1,405 | 6,220 | 5,327 | |||||||
Delivery, transportation and handling costs | 0 | 13,661 | 52,204 | 36,177 | |||||||
Operating income [Abstract] | |||||||||||
Total operating income | 25,596 | 32,219 | 113,716 | 119,867 | 161,852 | ||||||
Net income (loss) | $ 1,061 | $ 15,458 | $ 30,855 | $ 58,513 | $ 93,449 | ||||||
Earnings per Share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.03 | $ 0.43 | $ 0.88 | $ 1.61 | $ 2.61 | ||||||
Diluted (in dollars per share) | $ 0.03 | $ 0.42 | $ 0.87 | $ 1.59 | $ 2.54 | ||||||
Retail Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | $ 376,945 | $ 351,683 | $ 1,324,228 | $ 1,223,542 | $ 993,362 | ||||||
Cost of goods sold | 833,126 | 777,046 | 630,225 | ||||||||
Operating income [Abstract] | |||||||||||
Total operating income | 44,864 | 43,562 | 168,573 | 153,330 | 134,027 | ||||||
Credit Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | 79,874 | 75,065 | 288,950 | 261,676 | 200,407 | ||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Operating income [Abstract] | |||||||||||
Total operating income | $ (19,268) | (11,343) | $ (54,857) | $ (33,463) | $ 27,825 | ||||||
Scenario, Previously Reported [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | $ 395,233 | $ 396,050 | $ 365,076 | $ 370,058 | $ 352,964 | $ 335,448 | |||||
Percent of annual revenues | 24.50% | 24.60% | 22.60% | 24.90% | 23.80% | 22.60% | |||||
Cost of goods sold | $ 186,807 | $ 187,124 | $ 173,472 | $ 178,976 | $ 168,717 | $ 160,782 | |||||
Cost of service parts sold | 1,463 | 1,550 | 1,312 | 1,525 | 1,871 | 1,419 | |||||
Delivery, transportation and handling costs | 14,631 | 13,787 | 12,349 | 13,216 | 13,164 | 12,163 | |||||
Operating income [Abstract] | |||||||||||
Total operating income | 17,916 | 36,098 | 34,106 | 4,621 | 33,996 | 49,031 | |||||
Net income (loss) | $ (2,421) | $ 16,538 | $ 15,677 | $ (3,064) | $ 17,650 | $ 28,469 | |||||
Earnings per Share [Abstract] | |||||||||||
Basic (in dollars per share) | $ (0.07) | $ 0.45 | $ 0.43 | $ (0.08) | $ 0.49 | $ 0.79 | |||||
Diluted (in dollars per share) | $ (0.07) | $ 0.45 | $ 0.43 | $ (0.08) | $ 0.48 | $ 0.77 | |||||
Scenario, Previously Reported [Member] | Retail Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | $ 323,050 | $ 325,605 | $ 298,628 | $ 305,140 | $ 288,624 | $ 278,095 | |||||
Operating income [Abstract] | |||||||||||
Total operating income | 36,005 | 45,124 | 42,580 | 37,794 | 34,208 | 37,766 | |||||
Scenario, Previously Reported [Member] | Credit Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | 72,183 | 70,445 | 66,448 | 64,918 | 64,340 | 57,353 | |||||
Operating income [Abstract] | |||||||||||
Total operating income | (18,089) | (9,026) | (8,474) | (33,173) | (212) | 11,265 | |||||
Restatement Adjustment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | $ 395,233 | $ 396,050 | $ 365,076 | $ 426,748 | $ 370,058 | $ 352,964 | $ 335,448 | ||||
Percent of annual revenues | 24.50% | 24.60% | 22.60% | 28.70% | 24.90% | 23.80% | 22.60% | ||||
Cost of goods sold | $ 202,901 | $ 202,461 | $ 187,133 | $ 225,213 | $ 193,717 | $ 183,752 | $ 174,364 | ||||
Cost of service parts sold | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Delivery, transportation and handling costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Operating income [Abstract] | |||||||||||
Total operating income | 17,916 | 36,098 | 34,106 | 32,219 | 4,621 | 33,996 | 49,031 | ||||
Net income (loss) | $ (2,421) | $ 16,538 | $ 15,677 | $ 15,458 | $ (3,064) | $ 17,650 | $ 28,469 | ||||
Earnings per Share [Abstract] | |||||||||||
Basic (in dollars per share) | $ (0.07) | $ 0.45 | $ 0.43 | $ 0.43 | $ (0.08) | $ 0.49 | $ 0.79 | ||||
Diluted (in dollars per share) | $ (0.07) | $ 0.45 | $ 0.43 | $ 0.42 | $ (0.08) | $ 0.48 | $ 0.77 | ||||
Restatement Adjustment [Member] | Retail Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | $ 323,050 | $ 325,605 | $ 298,628 | $ 351,683 | $ 305,140 | $ 288,624 | $ 278,095 | ||||
Operating income [Abstract] | |||||||||||
Total operating income | 36,005 | 45,124 | 42,580 | 43,562 | 37,794 | 34,208 | 37,766 | ||||
Restatement Adjustment [Member] | Credit Segment [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Total revenues | 72,183 | 70,445 | 66,448 | 75,065 | 64,918 | 64,340 | 57,353 | ||||
Operating income [Abstract] | |||||||||||
Total operating income | $ (18,089) | $ (9,026) | $ (8,474) | $ (11,343) | $ (33,173) | $ (212) | $ 11,265 |