Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Apr. 01, 2020 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CONNS INC | ||
Entity Central Index Key | 0001223389 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 304.7 | ||
Entity Common Stock, Shares Outstanding | 29,007,164 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 5,485 | $ 5,912 |
Restricted cash (includes VIE balances of $73,214 and $57,475, respectively) | 75,370 | 59,025 |
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | 673,742 | 652,769 |
Other accounts receivable | 68,753 | 67,078 |
Inventories | 219,756 | 220,034 |
Income taxes receivable | 4,315 | 407 |
Prepaid expenses and other current assets | 11,445 | 9,169 |
Total current assets | 1,058,866 | 1,014,394 |
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $420,454 and $230,901, respectively) | 663,761 | 686,344 |
Property and equipment, net | 173,031 | 148,983 |
Operating Lease, Right-of-Use Asset | 242,457 | 0 |
Deferred Income Tax Assets, Net | 18,599 | 27,535 |
Other assets | 12,055 | 7,651 |
Total assets | 2,168,769 | 1,884,907 |
Current liabilities: | ||
Current maturities of debt and finance lease obligations (includes VIE balances of $0 and $53,635, respectively) | 605 | 54,109 |
Accounts payable | 48,554 | 71,118 |
Accrued compensation and related expenses | 10,795 | 27,052 |
Accrued expenses | 52,295 | 54,381 |
Operating Lease, Liability, Current | 35,390 | 0 |
Income taxes payable | 2,394 | 8,902 |
Deferred revenues and other credits | 12,237 | 22,006 |
Total current liabilities | 162,270 | 237,568 |
Deferred rent | 0 | 93,127 |
Operating Lease, Liability, Noncurrent | 329,081 | 0 |
Long-term debt and finance lease obligations (includes VIE balances of $768,121 and $407,993 respectively) | 1,025,535 | 901,222 |
Other long-term liabilities | 24,703 | 33,015 |
Total liabilities | 1,541,589 | 1,264,932 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock ($0.01 par value, 1,000,000 shares authorized; none issued or outstanding) | 0 | 0 |
Common stock ($0.01 par value, 100,000,000 shares authorized; 32,125,055 and 31,788,162 shares issued, respectively) | 321 | 318 |
Treasury Stock, Value | (66,290) | 0 |
Additional paid-in capital | 122,513 | 111,185 |
Retained earnings | 570,636 | 508,472 |
Total stockholders’ equity | 627,180 | 619,975 |
Total liabilities and stockholders’ equity | $ 2,168,769 | $ 1,884,907 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Restricted cash | $ 75,370 | $ 59,025 |
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | 673,742 | 652,769 |
Long-term customer accounts receivable, net | 663,761 | 686,344 |
Current maturities of debt and financing lease obligations | 605 | 54,109 |
Long-term debt and financing lease obligations | $ 1,025,535 | $ 901,222 |
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) | 32,125,055 | 31,788,162 |
Treasury Stock, Shares | 3,485,441 | 0 |
Non-Guarantor Subsidiaries | ||
Restricted cash | $ 57,475 | |
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | $ 393,764 | 324,064 |
Long-term customer accounts receivable, net | 420,454 | 230,901 |
Current maturities of debt and financing lease obligations | 0 | 53,635 |
Long-term debt and financing lease obligations | $ 768,121 | $ 407,993 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues: | ||||||||||||||||
Total revenues | $ 412,988,000 | $ 376,127,000 | $ 401,059,000 | $ 353,512,000 | $ 432,982,000 | $ 373,824,000 | $ 384,620,000 | $ 358,387,000 | $ 420,386,000 | $ 373,172,000 | $ 366,647,000 | $ 355,826,000 | $ 1,130,698,000 | $ 1,543,686,000 | $ 1,549,813,000 | $ 1,516,031,000 |
Other Income | 96,005,000 | 282,535,000 | 380,451,000 | 355,139,000 | 324,064,000 | |||||||||||
Total Net Sales | 1,163,235,000 | 1,194,674,000 | 1,191,967,000 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Selling, general and administrative expense | 503,024,000 | 480,561,000 | 450,413,000 | |||||||||||||
Provision for bad debts | 45,925,000 | 135,707,000 | 205,217,000 | 198,082,000 | 216,875,000 | |||||||||||
Charges and credits | 3,142,000 | 7,780,000 | 13,331,000 | |||||||||||||
Total costs and expenses | 1,409,167,000 | 1,388,558,000 | 1,400,963,000 | |||||||||||||
Operating income | 23,422,000 | 30,304,000 | 41,774,000 | 39,019,000 | 53,766,000 | 35,473,000 | 39,252,000 | 32,764,000 | 44,841,000 | 20,853,000 | 29,192,000 | 20,182,000 | 111,097,000 | 134,519,000 | 161,255,000 | 115,068,000 |
Cost of Goods and Services Sold | 188,038,000 | 170,453,000 | 182,065,000 | 157,228,000 | 195,033,000 | 166,886,000 | 173,627,000 | 166,589,000 | 200,497,000 | 175,591,000 | 172,306,000 | 171,950,000 | 697,784,000 | 702,135,000 | 720,344,000 | |
Interest expense | 59,107,000 | 62,704,000 | 80,160,000 | |||||||||||||
Loss on extinguishment of debt | 1,094,000 | 1,773,000 | 3,274,000 | |||||||||||||
Income before income taxes | 15,253,000 | 67,153,000 | 74,318,000 | 96,778,000 | 31,634,000 | |||||||||||
Provision for income taxes | 18,314,000 | 22,929,000 | 25,171,000 | |||||||||||||
Net income (loss) | $ 5,052,000 | $ 11,469,000 | $ 19,974,000 | $ 19,509,000 | $ 29,476,000 | $ 14,630,000 | $ 17,011,000 | $ 12,732,000 | $ 3,201,000 | $ 1,569,000 | $ 4,273,000 | $ (2,580,000) | $ 50,952,000 | $ 56,004,000 | $ 73,849,000 | $ 6,463,000 |
(Loss) earnings per share: | ||||||||||||||||
Basic (in dollars per share) | $ 0.18 | $ 0.39 | $ 0.64 | $ 0.61 | $ 0.93 | $ 0.46 | $ 0.54 | $ 0.40 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.65 | $ 1.85 | $ 2.33 | $ 0.21 |
Diluted (in dollars per share) | $ 0.17 | $ 0.39 | $ 0.62 | $ 0.60 | $ 0.91 | $ 0.45 | $ 0.53 | $ 0.39 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.62 | $ 1.82 | $ 2.28 | $ 0.20 |
Weighted average common shares outstanding: | ||||||||||||||||
Basic (in shares) | 30,275,662 | 31,668,370 | 31,192,439 | |||||||||||||
Diluted (in shares) | 30,814,775 | 32,374,375 | 31,777,823 | |||||||||||||
Product [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | $ 1,042,424,000 | $ 1,078,635,000 | $ 1,077,874,000 | |||||||||||||
RSA Commission [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 106,997,000 | 101,928,000 | 100,383,000 | |||||||||||||
Service [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | $ 13,814,000 | $ 14,111,000 | $ 13,710,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock [Member] | Retained Earnings |
Balance (in shares) at Jan. 31, 2017 | 30,961,898 | ||||
Balance at Jan. 31, 2017 | $ 517,790 | $ 310 | $ 90,276 | $ 427,204 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 415,940 | ||||
Exercise of options and vesting of restricted stock, net of withholding tax | $ 1,499 | $ 3 | 1,496 | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 57,937 | 57,937 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 636 | $ 1 | 635 | ||
Stock-based compensation | 8,680 | 8,680 | |||
Net income (loss) | 6,463 | 6,463 | |||
Balance (in shares) at Jan. 31, 2018 | 31,435,775 | ||||
Balance at Jan. 31, 2018 | 535,068 | $ 314 | 101,087 | 433,667 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 317,465 | ||||
Exercise of options and vesting of restricted stock, net of withholding tax | $ (2,954) | $ 3 | (2,957) | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 34,922 | 34,922 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 839 | $ 1 | 838 | ||
Stock-based compensation | 12,217 | 12,217 | |||
Net income (loss) | 73,849 | 73,849 | |||
Balance (in shares) at Jan. 31, 2019 | 31,788,162 | ||||
Balance at Jan. 31, 2019 | 619,975 | $ 318 | 111,185 | 508,472 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 50,952 | ||||
Balance at Oct. 31, 2019 | 626,703 | ||||
Balance (in shares) at Jan. 31, 2019 | 31,788,162 | ||||
Balance at Jan. 31, 2019 | 619,975 | $ 318 | 111,185 | 508,472 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 283,434 | ||||
Exercise of options and vesting of restricted stock, net of withholding tax | $ (1,985) | $ 2 | (1,987) | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 53,459 | 53,459 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 766 | $ 1 | 765 | ||
Stock-based compensation | 12,550 | 12,550 | |||
Stock Repurchased During Period, Shares | (3,485,441) | ||||
Stock Repurchased During Period, Value | (66,290) | $ (66,290) | |||
Net income (loss) | 56,004 | 56,004 | |||
Balance (in shares) at Jan. 31, 2020 | 32,125,055 | (3,485,441) | |||
Balance at Jan. 31, 2020 | 627,180 | $ 321 | 122,513 | $ (66,290) | 570,636 |
Balance at Oct. 31, 2019 | 626,703 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 5,052 | ||||
Balance (in shares) at Jan. 31, 2020 | 32,125,055 | (3,485,441) | |||
Balance at Jan. 31, 2020 | $ 627,180 | $ 321 | $ 122,513 | $ (66,290) | $ 570,636 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Cash Flows [Abstract] | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 75,296,000 | $ 0 | $ 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 1,110,000 | 0 | 0 |
Cash flows from operating activities: | |||
Net income (loss) | 56,004,000 | 73,849,000 | 6,463,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 36,841,000 | 31,584,000 | 30,806,000 |
Impairment from disposal | 27,577,000 | 0 | 0 |
Amortization of debt issuance costs | 9,828,000 | 10,640,000 | 16,712,000 |
Provision for bad debts and uncollectible interest | 269,295,000 | 250,076,000 | 261,662,000 |
Stock-based compensation expense | 12,550,000 | 12,217,000 | 8,680,000 |
Charges, net of credits | 3,142,000 | 0 | 1,479,000 |
Deferred income taxes | 7,488,000 | (6,224,000) | 49,878,000 |
Loss (gain) from current and deferred sale/disposal of property and equipment | 90,000 | (809,000) | 5,529,000 |
Tenant improvement allowances received from landlords | 25,914,000 | 16,821,000 | 7,082,000 |
Change in operating assets and liabilities: | |||
Customer accounts receivable | (266,997,000) | (300,745,000) | (230,201,000) |
Other accounts receivables | (5,346,000) | 5,582,000 | (2,917,000) |
Inventories | 278,000 | (8,140,000) | (47,038,000) |
Other assets | (6,983,000) | 20,950,000 | (15,474,000) |
Accounts payable | (23,041,000) | (499,000) | (31,220,000) |
Accrued expenses | (21,689,000) | 11,158,000 | 25,100,000 |
Increase (Decrease) in Operating Lease Liabilities | (35,816,000) | 0 | 0 |
Income taxes | (9,930,000) | 49,685,000 | (30,590,000) |
Deferred revenues and other credits | 861,000 | (14,344,000) | (5,429,000) |
Net cash provided by operating activities | 80,066,000 | 151,801,000 | 50,522,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (57,546,000) | (32,814,000) | (16,918,000) |
Proceeds from asset dispositions | 724,000 | 0 | 0 |
Net cash used in investing activities | (56,822,000) | (32,814,000) | (16,918,000) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 867,750,000 | 358,300,000 | 1,042,034,000 |
Payments on asset-backed notes | (505,442,000) | (739,875,000) | (1,000,027,000) |
Borrowings under revolving credit facility | 1,625,440,000 | 1,836,822,000 | 1,717,012,000 |
Payments on revolving credit facility | (1,865,069,000) | (1,647,322,000) | (1,817,512,000) |
Borrowings from warehouse facility | 0 | 173,286,000 | 79,940,000 |
Payments on warehouse facility | (53,635,000) | (119,650,000) | (79,940,000) |
Payments for Repurchase of Common Stock | (66,290,000) | 0 | 0 |
Payment of debt issuance costs and amendment fees | (7,876,000) | (7,418,000) | (13,874,000) |
Proceeds from stock issued under employee benefit plans | 988,000 | 1,237,000 | 3,318,000 |
Tax payments associated with equity-based compensation transactions | (2,216,000) | (3,342,000) | (1,182,000) |
Payment from extinguishment of debt | 0 | (1,178,000) | (836,000) |
Other | (976,000) | (1,068,000) | (643,000) |
Net cash used in financing activities | (7,326,000) | (150,208,000) | (71,710,000) |
Net change in cash, cash equivalents and restricted cash | 15,918,000 | (31,221,000) | (38,106,000) |
Cash, cash equivalents and restricted cash, beginning of period | 64,937,000 | 96,158,000 | 134,264,000 |
Cash, cash equivalents and restricted cash, end of period | 80,855,000 | 64,937,000 | 96,158,000 |
Non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for new financing lease liabilities | 0 | 1,193,000 | 3,196,000 |
Property and equipment purchases not yet paid | 9,717,000 | 5,557,000 | 2,070,000 |
Supplemental cash flow data: | |||
Cash interest paid | 50,491,000 | 50,568,000 | 63,713,000 |
Cash income taxes paid (refunded), net | $ 17,169,000 | $ (20,447,000) | $ 3,083,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business. Conn’s, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. References to “we,” “our,” “us,” “the Company,” “Conn’s” or “CONN” refer to Conn’s, Inc. and, as apparent from the context, its subsidiaries. Conn’s is a leading specialty retailer that offers a broad selection of quality, branded durable consumer goods and related services in addition to proprietary credit solutions 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 credit alternatives. We operate two reportable segments: retail and credit. Our retail stores bear the “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 to our retail customers. The retail segment is not involved in credit approval decisions or collection efforts. Our management evaluates performance and allocates resources based on the operating results of the retail and credit segments. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. 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. Principles of Consolidation. The consolidated financial statements include the accounts of Conn’s, Inc. and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Variable Interest Entities. Variable Interest Entities (“VIEs”) are consolidated if the Company is the primary beneficiary. The primary beneficiary of a VIE is the party that has (i) the power to direct the activities that most significantly impact the performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. We retain the servicing of the securitized portfolio and have a variable interest in each corresponding VIE by holding the residual equity. We have determined that we are the primary beneficiary of each respective 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 potentially could be significant. As a result, we consolidate the respective VIEs within our consolidated financial statements. Refer to Note 6, Debt and Financing Lease Obligations , and Note 13, Variable Interest Entities , for additional information. Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ, even significantly, from these estimates. Management evaluates its estimates and related assumptions regularly, including those related to the allowance for doubtful accounts and allowances for no-interest option credit programs, which are particularly sensitive given the size of our customer portfolio balance. Cash and Cash Equivalents. As of January 31, 2020 and 2019 , cash and cash equivalents included cash, credit card deposits in transit, and highly liquid debt instruments purchased with a maturity date of three months or less. Credit card deposits in transit included in cash and cash equivalents were $4.0 million and $2.5 million as of January 31, 2020 and 2019 , respectively. Restricted Cash. The restricted cash balance as of January 31, 2020 and 2019 includes $59.7 million and $45.3 million , respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $13.9 million and $12.2 million , respectively, of cash held by the VIEs as additional collateral for the asset-backed notes. Customer Accounts Receivable. Customer accounts receivable reported in the Consolidated Balance Sheet includes total receivables managed, including both those transferred to the VIEs and those not transferred to the VIEs. Customer accounts receivable are recognized at the time the customer takes possession of the product. 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 accounts receivable include the net of unamortized deferred fees charged to customers and origination costs. 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 along with interest accrued subsequent to the last payment. 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 VIEs. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to exercise legal remedies available to us. We may extend or “re-age” a portion of our customer accounts, which involves 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 principal 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 refinance their account, which typically does not change the interest rate or the total principal amount due from the customer but does reduce the monthly contractual payments and extend the term. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings (“TDR” or “Restructured Accounts”). Interest Income on Customer Accounts Receivable. Interest income, which includes interest income and amortization of deferred fees and origination costs, is recorded using the interest method and is reflected in finance charges and other revenues. Typically, interest income is recorded until the customer account is paid off or charged-off, and we provide an allowance for estimated uncollectible interest. Any contractual interest income received from customers in excess of the interest income calculated using the interest method is recorded as deferred revenue on our balance sheets. At January 31, 2020 and 2019 , there were $10.6 million and $11.2 million , respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. The deferred interest will ultimately be brought into income as the accounts pay off or charge-off. We offer a 12 -month no -interest option program. 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 option 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 estimated accrued interest earned to date on all no -interest option finance programs with an offsetting reserve for those customers expected to satisfy the requirements of the program based on our historical experience. 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 equals the present value of expected future cash flows. We place accounts in non-accrual status when legally required. Payments received on non-accrual loans will be applied to principal and reduce the balance of the loan. At January 31, 2020 and 2019 , the carrying value of customer accounts receivable in non-accrual status was $12.5 million and $13.9 million , respectively. At January 31, 2020 and 2019 , the carrying value of customer accounts receivable that were past due 90 days or more and still accruing interest totaled $132.7 million and $106.5 million , respectively. At January 31, 2020 and January 31, 2019 , the carrying value of customer accounts receivable in a bankruptcy status that were less than 60 days past due of $12.1 million and $12.0 million , respectively, were included within the customer receivables balance carried in non-accrual status. Allowance for Doubtful Accounts. The determination of the amount of the allowance for bad debts is, by nature, highly complex and subjective. Future events that are inherently uncertain could result in material changes to the level of the allowance for bad debts. General economic conditions, changes to state or federal regulations and a variety of other factors that affect the ability of borrowers to service their debts or our ability to collect will impact the future performance of the portfolio. 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 accounts receivable 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 on our non-TDR customer accounts receivable that we expect to charge-off over the next 12 months based on historical gross charge-off rates over the last 24 months. We incorporate an adjustment to historical gross charge-off rates for a scaled factor of the year-over-year change in six month average first payment default rates and the year-over-year change in the balance of customer accounts receivable that are 60 days or more past due. In addition to adjusted historical gross charge-off rates, estimates of post-charge-off recoveries, including cash payments from customers, amounts realized from the repossession of the products financed, sales tax recoveries from taxing jurisdictions, and payments received under credit insurance and repair service agreement (“RSA”) policies are also considered. During the year, we shortened the lookback period used to estimate post-charge-off recoveries for customer balances from a cumulative average collection rate to a 24 month average collection rate. The 24 month lookback period is consistent with the lookback period used elsewhere in the allowance for bad debt calculation and is more closely aligned with current collections practices. Qualitative adjustments are made to the allowance for bad debts when, based on management’s judgment, there are internal or external factors impacting probable incurred losses not taken into account by the quantitative calculations. These qualitative considerations are based on the following factors: changes in lending policies and procedures, changes in economic and business conditions, changes in the nature and volume of the portfolio, changes in lending management, changes in credit quality statistics, changes in concentrations of credit and other internal or external factor changes. We utilize an economic qualitative adjustment based on changes in unemployment rates if current unemployment rates in our markets are worse than they were on average over the last 24 months. We also qualitatively limit the impact of changes in first payment default rates and changes in delinquency when those changes result in a decrease to the allowance for bad debts based on a measure of the dispersion of historical charge-off rates. At January 31, 2020, we made a qualitative adjustment related to changes in the nature of the portfolio of $4.0 million. The qualitative adjustment primarily related to the impact of the performance of certain re-aged accounts. 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 based primarily on the performance of TDR loans over the last 24 months. The cash flows are discounted based on the weighted-average effective interest rate of the TDR accounts. The excess of the carrying amount over the discounted cash flow amount is recorded as an allowance for loss on those accounts . Inventories. Inventories consist of merchandise purchased for resale and service parts and are recorded at the lower of cost or net realizable value. The carrying value of the inventory is reduced to its net realizable value for any product lines with excess of carrying amount, typically weighted-average cost, over the amount we expect to realize from the ultimate sale or other disposition of the inventory, with a corresponding charge to cost of sales. The write-down of inventory to net realizable value is estimated based on assumptions regarding inventory aging and historical product sales. 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 an 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, 2020 , 2019 and 2018 , we recorded $156.6 million , $143.3 million and $153.0 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 expensed as incurred. Depreciation, which includes amortization of financed leases, is computed using 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 leases. Internal-Use Software Costs. Costs related to software developed or obtained for internal use and cloud-based computing arrangements 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. Costs incurred during the post implementation stage are expensed as incurred. Once placed into service, capitalized costs are amortized over periods of up to 10 years. For the year ended January 31, 2020, we incurred a $1.2 million loss on impairments of software costs for a loan management system that was abandoned during fiscal year 2020. No software costs were written-off in the year ended January 31, 2019. For the year ended January 31, 2018, we incurred a $5.9 million loss from the write-off of previously capitalized costs for a software project that was abandoned during fiscal year 2018. See Note 4, Charges and Credits, for further details regarding both the fiscal year 2020 and fiscal year 2018 write-offs. 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. During the year ended January 31, 2020 , we recognized $3.2 million in impairments from the exiting of certain leases. See Note 4, Charges and Credits, for details. For the years ended January 31, 2019 and 2018 , no impairment charges were recorded. Debt Issuance Costs. Costs that are direct and incremental to debt issuance are deferred and amortized to interest expense using the effective interest method over the expected life of the debt. All other costs related to debt issuance are expensed as incurred. We present debt issuance costs associated with long-term debt as a reduction of the carrying amount of the debt. Unamortized costs related to the Revolving Credit Facility, as defined in Note 6, Debt and Financing Lease Obligations , are included in other assets on our Consolidated Balance Sheet and were $3.5 million and $6.1 million as of January 31, 2020 and 2019 , respectively. Revenue Recognition. The adoption of ASC 606 resulted in a change to our accounting policy related to retrospective income on RSAs. We participate in profit sharing agreements with the underwriters of our RSA products, payment from which is contingent upon the actual performance of the portfolio of the RSAs sold. Prior to the adoption of ASC 606, we recognized this revenue and related receivable as the amount due to us at each reporting date based on the performance of the portfolio through such date. The Company concluded that this retrospective income represents variable consideration under ASC 606 for which the Company’s performance obligation is satisfied when the RSA is sold to the customer. Under ASC 606, an estimate of variable consideration, subject to constraints, is to be included in the transaction price and recognized when or as the performance obligation is satisfied. As a result of the adoption of ASC 606, the Company changed its accounting policy related to retrospective income on RSAs to record an estimate of retrospective income when the RSA is sold, subject to constraints in the estimate. The Company’s estimate of the amount of variable consideration is recorded as a contract asset, representing a conditional right to payment, and is included within other accounts receivable in the Consolidated Balance Sheet. The estimated contract asset will be reassessed at the end of each reporting period, with changes thereto recorded as adjustments to revenue. The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 606 were as follows (in thousands): Impact of Adoption of ASC 606 (in thousands) Balance at January 31, 2018 Adjustments due to ASC 606 Balance at February 1, 2018 Assets Other Accounts Receivable $ 71,186 $ 1,210 $ 72,396 Deferred Income Taxes 21,565 (254 ) 21,311 Stockholder’s Equity $ 535,068 $ 956 $ 536,024 The adoption of ASC 606 did not have a material impact on the consolidated financial statements for the year ended January 31, 2018. The Company has the following material revenue streams: the sale of products (e.g. appliances, electronics) including delivery; the sale of third party warranty and insurance programs, including retrospective income; service income; interest income generated from the financing of point of sale transactions; and volume rebate incentives received from a third party financier. Interest income related to our customer accounts receivable balance and loan origination costs (including sales commissions) meet the scope exception of ASC 606 and are therefore not impacted by the adoption of this standard. For our twelve month no-interest option program, as a practical expedient acceptable under ASC 606, we do not adjust for the time value of money. Sale of Products Including Delivery: The Company has a single performance obligation associated with these contracts: the delivery of the product to the customer, at which point control transfers. Revenue for the sale of products is recognized at the time of delivery, net of any adjustments for sales incentives such as discounts, coupons, rebates or other free products or services. Sales financed through third-party no-interest option programs typically require us to pay a fee to the third party on each completed sale, which is recorded as a reduction of net sales in the retail segment. Sale of Third Party Warranty and Insurance Programs, Including Retrospective Income: We sell RSA and credit insurance contracts on behalf of unrelated third-parties. The Company has a single performance obligation associated with these contracts: the delivery of the product to the customer, at which point control transfers. Commissions related to these contracts are recognized in revenue upon delivery of the product. We also may serve as the administrator of the RSAs sold and defer 5% of the revenue received from the sale of RSAs as compensation for this performance obligation as 5% represents the estimated stand-alone sales price to serve as the administrator. The deferred RSA administration fee is recorded in income ratably over the life of the RSA contract sold. Retrospective income on RSA contracts is recognized upon delivery of the product based on an estimate of claims and is adjusted throughout the life of the contracts as actual claims materialize. Retrospective income on insurance contracts is recognized when earned as that is the point at which we no longer believe a significant reversal of income is probable as the consideration is highly susceptible to factors outside of our influence. Service Income: The Company has a single performance obligation associated with these contracts: the servicing of the RSA claims. Service revenues are recognized at the time service is provided to the customer. Volume Rebate Incentive: As part of our agreement with our third-party provider of no-interest option programs, we may receive a volume rebate incentive based on the total dollar value of sales made under our third-party provider. The Company has a single performance obligation associated with this contract: the delivery of the product to the customer, at which point control transfers. Revenue for the volume rebate incentive is recognized upon delivery of the product to the customer based on the projected total annual dollar value of sales to be made under our third-party provider. ASC 606 requires disaggregation of revenue recognized from contracts with customers to depict how the nature, amount, timing and uncertainty of revenue is affected by economic factors. The Company concluded that the disaggregated discrete financial information presented in Note 5, Finance Charges and Other Revenues , and Note 14, Segment Information , reviewed by our chief operating decision maker in evaluating the financial performance of our operating segments adequately addresses the disaggregation of revenue requirements of ASC 606. Deferred Revenue. Deferred revenue related to contracts with customers consists of deferred customer deposits and deferred RSA administration fees. During the twelve months ended January 31, 2020, we recognized $1.0 million of revenue for customer deposits deferred as of the beginning of the period compared to $1.8 million recognized during the twelve months ended January 31, 2019. During the twelve months ended January 31, 2020, we recognized $5.1 million of revenue for RSA administrative fees deferred as of the beginning of the period compared to $5.4 million recognized during the twelve months ended January 31, 2019. 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 (“SG&A”). Advertising Costs. Advertising costs are expensed as incurred. For fiscal years 2020 , 2019 and 2018 , advertising expense was $84.8 million , $80.5 million and $86.8 million , respectively. Stock-based Compensation. Stock-based compensation expense is recorded, net of estimated forfeitures, for share-based compensation awards over the requisite service period using the straight-line method. An adjustment is made to compensation cost for any difference between the estimated forfeitures and the actual forfeitures related to the awards. For equity-classified share-based compensation awards, expense is recognized based on the grant-date fair value. 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. For grants of performance-based restricted stock units, the fair value of the grant is the market value of our stock at the date of issuance adjusted for a market condition, a performance condition and a service condition. 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 net 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 GAAP 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 in which the enactment occurs. A valuation allowance is provided when it is more-likely-than-not that some portion or 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. 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 includes the dilutive effects of any stock options, restricted stock unit awards (“RSUs”) and performance stock awards (“PSUs”), which are calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: Year Ended January 31, 2020 2019 2018 Weighted-average common shares outstanding - Basic 30,275,662 31,668,370 31,192,439 Dilutive effect of stock options, RSUs and PSUs 539,113 706,005 585,384 Weighted-average common shares outstanding - Diluted 30,814,775 32,374,375 31,777,823 For the years ended January 31, 2020 , 2019 and 2018 , the weighted-average number of stock options, RSUs, and PSUs not included in the calculation due to their anti-dilutive effect, was 898,449 , 578,951 and 278,740 , respectively. Contingencies. An estimated loss from a contingency is recorded if it is probable that an asset has been impaired or a liability has 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 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). • Level 3 – Inputs that are not observable from objective sources such as our internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in our internally developed present value of future cash flows model that underlies the fair-value measurement). In determining fair value, we use observable market data when available, or models that incorporate observable market data. When we are required to measure fair value and there is not a market-observable price for the asset or liability or for a similar asset or liability, we use the cost or income approach depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach is based on management’s best assumptions regarding expectations of future net cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment, and the results are based on expected future events or conditions such as sales prices, economic and regulatory climates, and other factors, most of which are often outside of management’s control. However, we believe assumptions used reflect a market participant’s view of long-term prices, costs, and other factors and are consistent with assumptions used in our business plans and investment decisions. In arriving at fair-value estimates, we use relevant observable inputs available for the valuation technique employed. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. The fair value of cash and cash equivalents, restricted cash and accounts payable approximate their carrying amounts because of the |
Customer Accounts Receivable
Customer Accounts Receivable | 12 Months Ended |
Jan. 31, 2020 | |
Receivables [Abstract] | |
Customer Account Receivable | Customer Accounts Receivable Customer accounts receivable consisted of the following: (in thousands) January 31, January 31, Customer accounts receivable portfolio balance $ 1,602,037 $ 1,589,828 Deferred fees and origination costs, net (15,746 ) (16,579 ) Allowance for no-interest option credit programs (14,984 ) (19,257 ) Allowance for uncollectible interest (23,662 ) (15,555 ) Carrying value of customer accounts receivable 1,547,645 1,538,437 Allowance for bad debts (210,142 ) (199,324 ) Carrying value of customer accounts receivable, net of allowance for bad debts 1,337,503 1,339,113 Short-term portion of customer accounts receivable, net $ (673,742 ) $ (652,769 ) Long-term customer accounts receivable, net $ 663,761 $ 686,344 Carrying Value (in thousands) January 31, January 31, Customer accounts receivable 60+ days past due (1) $ 193,797 $ 146,188 Re-aged customer accounts receivable (2)(3)(4) 455,704 395,576 Restructured customer accounts receivable (5) 211,857 183,641 (1) As of January 31, 2020 and 2019 , the carrying value of customer accounts receivable past due one day or greater was $527.0 million and $420.9 million , respectively. These amounts include the 60+ days past due balances shown above. (2) The re-aged carrying value as of January 31, 2020 and 2019 includes $131.4 million and $92.4 million in carrying value that are both 60+ days past due and re-aged. (3) The re-aged carrying value as of January 31, 2020 and 2019 includes $9.2 million and $26.5 million in first time re-ages related to customers within FEMA-designated Hurricane Harvey disaster areas. (4) The re-aged carrying value as of January 31, 2020 includes $6.9 million in first time re-ages related to customers within FEMA-designated Tropical Storm Imelda disaster areas. (5) The restructured carrying value as of January 31, 2020 and 2019 includes $64.8 million and $43.9 million in carrying value that are both 60+ days past due and restructured. The following presents the activity in our allowance for doubtful accounts and uncollectible interest for customer accounts receivable: January 31, 2020 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 147,123 $ 67,756 $ 214,879 Provision (1) 177,250 91,356 268,606 Principal charge-offs (2) (158,773 ) (63,074 ) (221,847 ) Interest charge-offs (37,850 ) (15,037 ) (52,887 ) Recoveries (2) 17,930 7,123 25,053 Allowance at end of period $ 145,680 $ 88,124 $ 233,804 Average total customer portfolio balance $ 1,367,260 $ 200,618 $ 1,567,878 January 31, 2019 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 148,856 $ 54,716 $ 203,572 Provision (1) 174,552 74,514 249,066 Principal charge-offs (2) (157,789 ) (55,024 ) (212,813 ) Interest charge-offs (32,432 ) (11,310 ) (43,742 ) Recoveries (2) 13,936 4,860 18,796 Allowance at end of period $ 147,123 $ 67,756 $ 214,879 Average total customer portfolio balance $ 1,355,011 $ 171,717 $ 1,526,728 January 31, 2018 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 158,992 $ 51,183 $ 210,175 Provision (1) 189,786 71,047 260,833 Principal charge-offs (2) (177,682 ) (60,003 ) (237,685 ) Interest charge-offs (30,379 ) (10,259 ) (40,638 ) Recoveries (2) 8,139 2,748 10,887 Allowance at end of period $ 148,856 $ 54,716 $ 203,572 Average total customer portfolio balance $ 1,357,455 $ 143,245 $ 1,500,700 (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 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, 2020 | |
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 2020 2019 Land — $ 1,644 $ 4,130 Buildings 30 years 4,115 1,748 Leasehold improvements 5 to 15 years 285,524 246,404 Equipment and fixtures 3 to 5 years 92,634 78,562 Finance/Capital leases 3 to 20 years 8,032 9,646 Construction in progress — 8,846 9,696 400,795 350,186 Less accumulated depreciation (227,764 ) (201,203 ) $ 173,031 $ 148,983 Depreciation expense was approximately $36.8 million , $31.6 million and $30.8 million for the years ended January 31, 2020 , 2019 and 2018 , respectively. Construction in progress is comprised primarily of the construction of leasehold improvements related to unopened retail stores and internal-use software under development. Finance lease assets primarily include retail locations. |
Charges and Credits
Charges and Credits | 12 Months Ended |
Jan. 31, 2020 | |
Charges and Credits [Abstract] | |
Charges and Credits | Charges and Credits Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Store and facility closure and relocation costs $ 1,933 $ — $ 2,381 Legal and professional fees and related reserves associated with the exploration of strategic alternatives, securities-related litigation, a legal judgment and other legal matters — 5,100 1,177 Indirect tax audit reserve — 1,943 2,595 Employee severance and executive management transition costs — 737 1,317 Write-off of capitalized software costs 1,209 — 5,861 $ 3,142 $ 7,780 $ 13,331 During the year ended January 31, 2020 , we recognized $3.2 million in impairments from the exiting of certain leases upon the relocation of three distribution centers into one facility. These facility closure costs were offset by a $0.7 million gain from increased sublease income related to the consolidation of our corporate headquarters and a $0.6 million gain from the sale of a cross-dock. In addition, we recognized $1.2 million in impairments of software costs for a loan management system that was abandoned during the third quarter of fiscal year 2020 related to the implementation of a new loan management system. During the year ended January 31, 2019 , we recorded a contingency reserve related to a regulatory matter, a charge related to an increase in our indirect tax audit reserve, severance costs related to a change in the executive management team and costs related to a judgment in favor of TF LoanCo (“TFL”) requiring Conn’s to pay approximately $4.8 million to TFL related to a breach of contract lawsuit brought by the Company. During the year ended January 31, 2018 , we incurred exit costs associated with reducing the square footage of a distribution center and consolidating our corporate headquarters, severance costs related to a change in the executive management team, a charge related to an increase in our indirect tax audit reserve, a loss from the write-off of previously capitalized costs for a software project that was abandoned during fiscal year 2018 related to the implementation of a new point of sale system that began in fiscal year 2013, and contingency reserves related to legal matters. |
Finance Charges and Other Reven
Finance Charges and Other Revenues | 12 Months Ended |
Jan. 31, 2020 | |
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) 2020 2019 2018 Interest income and fees $ 341,224 $ 325,136 $ 289,005 Insurance income 38,417 29,556 34,718 Other revenues 810 447 341 Total finance charges and other revenues $ 380,451 $ 355,139 $ 324,064 Interest income and fees and insurance income are derived from the credit segment operations, whereas other revenues are derived from the retail segment operations. Insurance income is comprised of sales commissions from third-party insurance companies that are recognized when coverage is sold and retrospective income paid by the insurance carrier if insurance claims are less than earned premiums. For the years ended January 31, 2020 , 2019 and 2018 , interest income and fees reflected provisions for uncollectible interest of $64.1 million , $52.0 million and $44.8 million , respectively. The amount included in interest income and fees related to TDR accounts for the years ended January 31, 2020 , 2019 and 2018 is $35.3 million , $27.2 million and $19.3 million , respectively. |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | Debt and Financing Lease Obligations Debt and finance lease obligations consisted of the following: January 31, (in thousands) 2020 2019 Revolving Credit Facility $ 29,100 $ 266,500 Senior Notes 227,000 227,000 2017-B VIE Asset-backed Class B Notes — 98,297 2017-B VIE Asset-backed Class C Notes 59,655 78,640 2018-A VIE Asset-backed Class A Notes 34,112 105,971 2018-A VIE Asset-backed Class B Notes 20,572 63,908 2018-A VIE Asset-backed Class C Notes 20,572 63,908 2019-A VIE Asset-backed Class A Notes 76,241 — 2019-A VIE Asset-backed Class B Notes 64,750 — 2019-A VIE Asset-backed Class C Notes 62,510 — 2019-B VIE Asset-backed Class A Notes 265,810 — 2019-B VIE Asset-backed Class B Notes 85,540 — 2019-B VIE Asset-backed Class C Notes 83,270 — Warehouse Notes — 53,635 Financing lease obligations 5,209 5,075 Total debt and financing lease obligations 1,034,341 962,934 Less: Discount on debt (1,404 ) (1,966 ) Deferred debt issuance costs (6,797 ) (5,637 ) Current maturities of long-term debt and financing lease obligations (605 ) (54,109 ) Long-term debt and financing lease obligations $ 1,025,535 $ 901,222 Future maturities of debt, excluding financing lease obligations, as of January 31, 2020 are as follows: (in thousands) Year Ended January 31, 2021 $ — 2022 — 2023 391,011 2024 203,501 2025 434,620 Total $ 1,029,132 Senior Notes. On July 1, 2014, we issued $250.0 million of unsecured Senior Notes due July 2022 bearing interest at 7.25% , (the “Senior Notes”) pursuant to an indenture dated July 1, 2014 (as amended, 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% . 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. 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. As of January 31, 2020 , $190.1 million would have been free from the restricted payments covenant contained in the Indenture. Events of default under the Indenture include customary events, such as a cross-acceleration provision in the event that we fail to make payment of other indebtedness prior to the expiration of any applicable grace period or upon acceleration of indebtedness prior to its stated maturity date 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. Asset-backed Notes. From time to time, we securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. In turn, the VIEs issue asset-backed notes secured by the transferred customer accounts receivables and restricted cash held by the VIEs. Under the terms of the securitization transactions, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of issued notes, and then to us as the holder of non-issued notes, if any, and residual equity. We retain the servicing of the securitized portfolios and receive a monthly fee of 4.75% (annualized) based on the outstanding balance of the securitized receivables. In addition, we, rather than the VIEs, 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 are reflected as a reduction to net charge-offs on a consolidated basis. The asset-backed 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 respective asset-backed 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 asset-backed notes, or if the receivables are liquidated, all liquidation proceeds could be directed solely to repayment of the asset-backed notes as governed by the respective terms of the asset-backed notes. The holders of the asset-backed notes have no recourse to assets outside of the VIEs. Events of default include, but are not limited to, failure to make required payments on the asset-backed notes or specified bankruptcy-related events. The asset-backed notes outstanding as of January 31, 2020 consisted of the following: Asset-Backed Notes Original Principal Amount Original Net Proceeds (1) Current Principal Amount Issuance Date Maturity Date Contractual Interest Rate Effective Interest Rate (2) 2017-B Class C Notes $ 78,640 $ 77,843 $ 59,655 12/20/2017 11/15/2022 5.95% 6.40% 2018-A Class A Notes 219,200 217,832 34,112 8/15/2018 1/17/2023 3.25% 4.82% 2018-A Class B Notes 69,550 69,020 20,572 8/15/2018 1/17/2023 4.65% 5.61% 2018-A Class C Notes 69,550 68,850 20,572 8/15/2018 1/17/2023 6.02% 6.98% 2019-A Class A Notes 254,530 253,026 76,241 4/24/2019 10/16/2023 3.40% 4.85% 2019-A Class B Notes 64,750 64,276 64,750 4/24/2019 10/16/2023 4.36% 5.14% 2019-A Class C Notes 62,510 61,898 62,510 4/24/2019 10/16/2023 5.29% 6.10% 2019-B Class A Notes 317,150 315,417 265,810 11/26/2019 6/17/2024 2.66% 3.63% 2019-B Class B Notes 85,540 84,916 85,540 11/26/2019 6/17/2024 3.62% 4.19% 2019-B Class C Notes 83,270 82,456 83,270 11/26/2019 6/17/2024 4.60% 5.17% Total $ 1,304,690 $ 1,295,534 $ 773,032 (1) After giving effect to debt issuance costs. (2) For the year ended January 31, 2020 , and inclusive of the impact of changes in timing of actual and expected cash flows. On November 26, 2019, the Company completed the issuance and sale of asset-backed notes at a face amount of $486.0 million secured by the transferred customer accounts receivables and restricted cash held by a VIE, which resulted in net proceeds to us of $482.8 million, net of debt issuance costs. Net proceeds from the offering were used to repay indebtedness under the Company’s Revolving Credit Facility, as defined below, and for other general corporate purposes. The asset-backed notes mature on June 17, 2024 and consist of $317.2 million of 2.66% Asset Backed Fixed Rate Notes, Class A, Series 2019-B, $85.5 million of 3.62% Asset Backed Fixed Rate Notes, Class B, Series 2019-B and $83.3 million of 4.60% Asset Backed Fixed Rate Notes, Class C, Series 2019-B. On April 24, 2019, the Company completed the issuance and sale of asset-backed notes at a face amount of $381.8 million secured by the transferred customer accounts receivables and restricted cash held by a VIE, which resulted in net proceeds to us of $379.2 million, net of debt issuance costs. Net proceeds from the offering were used to repay indebtedness under the Company’s Revolving Credit Facility, as defined below, and for other general corporate purposes. The asset-backed notes mature on October 16, 2023 and consist of $254.5 million of 3.40% Asset Backed Fixed Rate Notes, Class A, Series 2019-A, $64.8 million of 4.36% Asset Backed Fixed Rate Notes, Class B, Series 2019-A and $62.5 million of 5.29% Asset Backed Fixed Rate Notes, Class C, Series 2019-A. Revolving Credit Facility. On May 23, 2018, Conn’s, Inc. and certain of its subsidiaries (the “Borrowers”) entered into the Fourth Amended and Restated Loan and Security Agreement (the “Fourth Amendment”), dated as of October 30, 2015, with certain lenders, which provides for a $650.0 million asset-based revolving credit facility (as amended, the “Revolving Credit Facility”) under which credit availability is subject to a borrowing base and a maturity date of May 23, 2022. Loans under the Revolving Credit Facility bear interest, at our option, at a rate equal to LIBOR plus the applicable margin ranging from 2.50% to 3.25% per annum (depending on a pricing grid determined by our total leverage ratio) or the alternate base rate plus a margin ranging from 1.50% to 2.25% per annum (depending on a pricing grid determined by our total leverage ratio). The alternate base rate is the greatest of the prime rate, the federal funds effective rate plus 0.5%, or LIBOR for a 30-day interest period plus 1.0%. We also pay an unused fee on the portion of the commitments that is available for future borrowings or letters of credit at a rate ranging from 0.25% to 0.50% per annum, depending on the average outstanding balance and letters of credit of the Revolving Credit Facility in the immediately preceding quarter. The weighted-average interest rate on borrowings outstanding and including unused line fees under the Revolving Credit Facility was 6.4% for the year ended January 31, 2020 . 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, 2020 , we had immediately available borrowing capacity of $416.8 million under our Revolving Credit Facility, net of standby letters of credit issued of $2.5 million . We also had $201.6 million that may become available under our Revolving Credit Facility if we grow the balance of eligible customer receivables and total eligible inventory balances. On March 18, 2020, the Company completed the borrowing of an additional $275.0 million under its $650.0 million Revolving Credit Facility, maturing in May 23, 2022. See Note 18, Subsequent Events , for additional details. 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 pay dividends and make distributions to the Company and other obligors under the Revolving Credit Facility without restriction. As of January 31, 2020 , we were restricted from making distributions, including repayments of the Senior Notes or other distributions, in excess of $308.6 million as a result of the Revolving Credit Facility distribution restrictions. 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, 2020 . A summary of the significant financial covenants that govern our Revolving Credit Facility compared to our actual compliance status at January 31, 2020 is presented below: Actual Required Interest Coverage Ratio for the quarter must equal or exceed minimum 3.29:1.00 1.00:1.00 Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum 3.34:1.00 1.50:1.00 Leverage Ratio must not exceed maximum 1.98:1.00 4.00:1.00 ABS Excluded Leverage Ratio must not exceed maximum 0.85:1.00 2.00:1.00 Capital Expenditures, net, must not exceed maximum $32.4 million $100.0 million All capitalized terms in the above table are defined by the Revolving Credit Facility and may or may not agree directly to the financial statement captions in this document. The covenants are calculated quarterly, except for capital expenditures, which is calculated for a period of four consecutive fiscal quarters, as of the end of each fiscal quarter. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 18,642 $ 22,637 Deferred rent — 6,200 Deferred gains on sale-leaseback transactions — 1,447 Deferred revenue 807 908 Indirect tax reserve 3,039 3,025 Inventories 1,796 1,711 Lease liability 81,241 — Stock-based compensation 1,982 1,825 State net operating loss carryforwards 904 1,127 Other 2,614 3,093 Total deferred tax assets 111,025 41,973 Deferred tax liabilities: Right-of-use asset (54,492 ) — Vendor prepayments (1,147 ) (1,066 ) Sales tax receivable (4,842 ) (4,155 ) Property and equipment (31,627 ) (8,694 ) Other (318 ) (523 ) Total deferred tax liabilities (92,426 ) (14,438 ) Net deferred tax asset $ 18,599 $ 27,535 Our state net operating loss carryforwards begin to expire starting with fiscal year 2028. Realization of our deferred tax asset ultimately depends on the existence of sufficient taxable income, which may include future taxable income and tax planning strategies. Based on the weight of available evidence at January 31, 2020 , we believe that it is more likely than not that we will generate sufficient taxable income to utilize our entire deferred tax asset prior to its expiration. Provision for income taxes consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Current: Federal $ 9,215 $ 29,919 $ (25,891 ) State 1,611 2,308 1,184 Total current 10,826 32,227 (24,707 ) Deferred: Federal 7,590 (9,419 ) 49,536 State (102 ) 121 342 Total deferred 7,488 (9,298 ) 49,878 Provision for income taxes $ 18,314 $ 22,929 $ 25,171 A reconciliation of the provision (benefit) 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) 2020 2019 2018 Income tax provision at U.S. federal statutory rate (1) $ 15,607 $ 20,323 $ 10,696 State income taxes, net of federal benefit 2,011 2,068 1,910 Tax Act and other deferred tax adjustments (910 ) — 13,387 Provision to return adjustments — — (1,142 ) Employee benefits 1,873 1,096 — Other (267 ) (558 ) 320 Provision for income taxes $ 18,314 $ 22,929 $ 25,171 (1) As a result of H.R. 1 originally known as the Tax Cuts and Jobs Act (the “Tax Act”), the Company recorded a $0.3 million current income tax benefit in the fourth quarter of fiscal year 2018 as a result of using a 33.81% blended statutory rate for fiscal year 2018 instead of the prior statutory rate of 35%. Federal tax returns for fiscal years subsequent to January 31, 2016, remain subject to examination. Generally, state tax returns for fiscal years subsequent to January 31, 2016 remain subject to examination. Changes in the balance of unrecognized tax benefits, including interest and penalties on uncertain tax positions, were as follows: Year Ended January 31, (in thousands) 2020 2019 2018 Balance at February 1 $ (11,625 ) $ — $ — Increases related to prior year tax positions — (12,084 ) — Decreases related to prior year tax positions 241 459 — Balance at January 31 $ (11,384 ) $ (11,625 ) $ — As of January 31, 2020 and 2019 , there are $3.5 million and $3.5 million , respectively of unrecognized tax benefits that if recognized would favorably affect the Company’s annual effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in its provision for income taxes. During the years ended January 31, 2020 and 2019 , the Company recognized interest and penalties of approximately $0.7 million and $0.1 million , respectively. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2020 | |
Leases, Operating [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases We lease most 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 fifteen years and generally include renewal options that allow us to extend the term beyond the initial non-cancelable term. However, prior to the expiration of the existing contract, the Company will typically renegotiate any lease contracts as opposed to continuing in the current lease under the renewal terms. As such, the lease renewal options are not recognized as part of the right-of-use assets and liabilities. 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 five years and provide for a purchase right at the end of the lease term at the then fair market value of the equipment. Certain operating leases contain tenant allowance provisions, which obligate the landlord to remit cash to us as an incentive to enter into the lease agreement. We record the full amount to be remitted by the landlord as a reduction to the operating lease right-of-use assets upon commencement of the lease and amortize the balance on a straight-line basis over the life of the lease. Supplemental lease information is summarized below: January 31, (in thousands) Balance sheet classification 2020 Assets Operating lease assets Operating lease right-of-use assets $ 242,457 Finance lease assets Property and equipment, net 5,028 Total leased assets $ 247,485 Liabilities Operating (1) Operating lease liability - current $ 47,118 Finance Current maturities of debt and finance lease obligations 605 Operating Operating lease liability - non current 329,081 Finance Long-term debt and finance lease obligations 4,604 Total lease liabilities $ 381,408 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2020 , we had $11.7 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2020 Operating lease costs (1) Selling, general and administrative expense $ 57,501 Impairment of ROU asset Charges and credits 1,933 Total operating lease cost $ 59,434 (1) Includes short-term and variable lease costs, which are not significant. Operating lease right-of-use assets (“ROU Assets”) and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU Assets are regularly reviewed for impairment under the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall . For the years ended January 31, 2020 , we recognized $1.9 million of impairments of ROU Assets on the consolidated statement of operations from the exiting of certain leases upon relocation of three of our distribution centers into one facility. See Note 4, Charges and Credits, for additional details. Additional details regarding the Company’s leasing activities as a lessee are presented below: Other Information Year Ended January 31, (dollars in thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 69,829 Weighted-average remaining lease term (in years) Finance leases 11.2 Operating leases 7.1 Weighted-average discount rate Finance leases 6.1 % Operating leases (1) 8.3 % (1) Upon adoption of ASC 842, discount rates for existing operating leases were established as of February 1, 2019. For the years ended January 31, 2020 , 2019 and 2018 , total rent expense was $58.1 million , $52.7 million and $51.4 million , respectively. The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2020 : (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2021 $ 75,906 $ 916 $ 76,822 2022 75,660 916 76,576 2023 73,880 661 74,541 2024 68,519 831 69,350 2025 58,024 551 58,575 Thereafter 147,181 3,448 150,629 Total undiscounted cash flows 499,170 7,323 506,493 Less: Interest 122,971 2,114 125,085 Total lease liabilities $ 376,199 $ 5,209 $ 381,408 |
Leases | Leases We lease most 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 fifteen years and generally include renewal options that allow us to extend the term beyond the initial non-cancelable term. However, prior to the expiration of the existing contract, the Company will typically renegotiate any lease contracts as opposed to continuing in the current lease under the renewal terms. As such, the lease renewal options are not recognized as part of the right-of-use assets and liabilities. 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 five years and provide for a purchase right at the end of the lease term at the then fair market value of the equipment. Certain operating leases contain tenant allowance provisions, which obligate the landlord to remit cash to us as an incentive to enter into the lease agreement. We record the full amount to be remitted by the landlord as a reduction to the operating lease right-of-use assets upon commencement of the lease and amortize the balance on a straight-line basis over the life of the lease. Supplemental lease information is summarized below: January 31, (in thousands) Balance sheet classification 2020 Assets Operating lease assets Operating lease right-of-use assets $ 242,457 Finance lease assets Property and equipment, net 5,028 Total leased assets $ 247,485 Liabilities Operating (1) Operating lease liability - current $ 47,118 Finance Current maturities of debt and finance lease obligations 605 Operating Operating lease liability - non current 329,081 Finance Long-term debt and finance lease obligations 4,604 Total lease liabilities $ 381,408 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2020 , we had $11.7 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2020 Operating lease costs (1) Selling, general and administrative expense $ 57,501 Impairment of ROU asset Charges and credits 1,933 Total operating lease cost $ 59,434 (1) Includes short-term and variable lease costs, which are not significant. Operating lease right-of-use assets (“ROU Assets”) and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU Assets are regularly reviewed for impairment under the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment - Overall . For the years ended January 31, 2020 , we recognized $1.9 million of impairments of ROU Assets on the consolidated statement of operations from the exiting of certain leases upon relocation of three of our distribution centers into one facility. See Note 4, Charges and Credits, for additional details. Additional details regarding the Company’s leasing activities as a lessee are presented below: Other Information Year Ended January 31, (dollars in thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 69,829 Weighted-average remaining lease term (in years) Finance leases 11.2 Operating leases 7.1 Weighted-average discount rate Finance leases 6.1 % Operating leases (1) 8.3 % (1) Upon adoption of ASC 842, discount rates for existing operating leases were established as of February 1, 2019. For the years ended January 31, 2020 , 2019 and 2018 , total rent expense was $58.1 million , $52.7 million and $51.4 million , respectively. The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2020 : (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2021 $ 75,906 $ 916 $ 76,822 2022 75,660 916 76,576 2023 73,880 661 74,541 2024 68,519 831 69,350 2025 58,024 551 58,575 Thereafter 147,181 3,448 150,629 Total undiscounted cash flows 499,170 7,323 506,493 Less: Interest 122,971 2,114 125,085 Total lease liabilities $ 376,199 $ 5,209 $ 381,408 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On May 25, 2016, our stockholders approved the Conn’s, Inc. 2016 Omnibus Incentive Plan (“2016 Plan”), which replaced our 2011 Omnibus Incentive Plan (“2011 Plan”) and our Amended and Restated 2003 Incentive Stock Option Plan (“2003 Plan”). The 2016 Plan, as originally adopted, provided for 1,200,000 shares of Company common stock available for issuance. Shares subject to an award under the 2016 Plan, the 2011 Plan or the 2003 Plan that lapse, expire, are forfeited or terminated, or are settled in cash will again become available for future grant under the 2016 Plan. Shares will not become available for future grant under the 2016 Plan if delivered or withheld to pay withholding taxes or the exercise price of an option or repurchased on the open market with the proceeds of an option exercise. On May 31, 2017, our shareholders approved an amendment to the 2016 Plan authorizing an additional 1,400,000 shares of Company common stock for awards. During fiscal year 2020, 795,998 shares forfeited under the 2003 Plan and 2011 Plan were determined to be available under the 2016 Plan for future issuance. This includes 790,161 shares forfeited in prior fiscal years but determined to be available under the 2016 Plan. Our 2016 Plan is an equity-based compensation plan that allows for the grant of a variety of awards, including stock options, restricted stock awards, RSUs, PSUs, stock appreciation rights and performance and cash awards. Awards are generally granted once per year, with the amount and type of awards determined by the Compensation Committee of our Board of Directors (the “Committee”). Stock options, RSUs and PSUs are subject to early termination provisions but generally vest over a period of four years from the date of grant. Stock options under the various plans are issued with exercise prices equal to the market value on the date of the grant and, typically, expire ten years after the date of grant. In the event of a change in control of the Company, as defined in the 2016 Plan, the Board of Directors of the Company (“Board of Directors”) may cause some or all outstanding awards to fully or partially vest, either upon the change in control or upon a subsequent termination of employment or service, and may provide that any applicable performance criteria be deemed satisfied at the target or any other level. The Board of Directors may also cause outstanding awards to terminate in exchange for a cash or stock payment or to be substituted or assumed by the surviving corporation. We also continue to maintain the 2003 Non-Employee Director Stock Option Plan and 2011 Non-Employee Director Restricted Stock Plan. As of January 31, 2020 , shares authorized for future issuance were: 1,396,632 under the 2016 Plan (which includes 795,998 shares from the 2003 Plan and 2011 Plan that were forfeited); 120,000 under the 2003 Non-Employee Director Stock Option Plan; and 48,991 under the 2011 Non-Employee Director Restricted Stock Plan. Stock-Based Compensation Expense. Total stock-based compensation expense, recognized primarily in SG&A, from stock-based compensation consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Stock options $ 3,978 $ 3,414 $ 236 RSUs and PSUs 8,316 8,540 7,622 Employee stock purchase plan 256 263 220 Accelerated RSU expense charged to severance — — 602 $ 12,550 $ 12,217 $ 8,680 During the years ended January 31, 2020 , 2019 , and 2018 , we recognized tax benefits related to stock-based compensation of $1.4 million , $1.7 million and $1.7 million , respectively. As of January 31, 2020 , the total unrecognized compensation cost related to all unvested stock-based compensation awards was $13.2 million and is expected to be recognized over a weighted-average period of 1.9 years. The total fair value of RSUs and stock options vested during fiscal years 2020 , 2019 and 2018 was $8.4 million , $12.6 million and $6.0 million , respectively, based on the market price at the vesting date. Stock Options. No stock options were awarded during fiscal year 2020 or 2018. During fiscal year 2019 , 620,166 stock options were awarded with an exercise price of $32.35 per share. The stock options awarded vest in equal installments three and four years from the date of grant and expire ten years from the date of grant. The fair values of the stock options at grant date ranged from $20.00 to $21.67 per share. The fair values of the stock option awards were determined using the Black-Scholes option pricing model. The weighted-average assumptions for the option awards granted in fiscal year 2019 included expected volatility of 68% , an expected term of six to seven years and risk-free interest rate of 2.69% . No dividend yield was included in the weighted-average assumptions for the options awards granted in fiscal year 2019. The following table summarizes the activity for outstanding stock options: Shares Under Option Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Outstanding, January 31, 2019 772,731 $ 28.49 Granted — $ — Exercised (24,340 ) $ 9.11 Forfeited and expired (4,200 ) $ 4.84 Outstanding, January 31, 2020 744,191 $ 29.73 7.7 Vested and expected to vest, January 31, 2020 744,191 $ 29.73 7.7 Exercisable, January 31, 2020 99,023 $ 16.03 5.3 During the years ended January 31, 2020 , 2019 and 2018 , the total intrinsic value of stock options exercised was $0.4 million , $0.4 million and $2.3 million , respectively. The aggregate intrinsic value of stock options outstanding, vested and expected to vest and exercisable at January 31, 2020 was approximately $0.1 million . The total fair value of common stock options vested during fiscal years 2020 , 2019 and 2018 was $0.3 million , $0.5 million and $0.9 million , respectively, based on the market price at the vesting date. Restricted Stock Units. The restricted stock program consists of a combination of PSUs and RSUs. The number of PSUs issued under the program is dependent upon a measurement of earnings before interest, taxes, depreciation and amortization (“EBITDA”) target for the period identified in the grant, which is three years. In the event EBITDA exceeds the respective predefined target, shares for up to a maximum of 150% of the target award may be granted. In the event the EBITDA falls below the respective predefined target, a reduced number of shares may be granted. If the EBITDA falls below the respective threshold performance level, no shares will be granted. PSUs vest on predetermined schedules, which occur over three years. RSUs vest on a straight-line basis over their term, which is generally three to five years . The following table summarizes the activity for RSUs and PSUs: Time-Based RSUs Performance-Based RSUs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Total Number of Units Balance, January 31, 2019 884,275 $ 18.73 467,000 $ 11.66 1,351,275 Granted 108,588 $ 19.68 33,894 $ 23.39 142,482 Vested and converted to common stock (369,839 ) $ 16.99 — $ — (369,839 ) Forfeited (34,201 ) $ 20.05 (7,000 ) $ 11.60 (41,201 ) Balance, January 31, 2020 588,823 $ 19.92 493,894 $ 12.47 1,082,717 The total fair value of restricted and performance shares vested during fiscal years 2020 , 2019 and 2018 was $8.1 million , $12.1 million , and $5.1 million , respectively, based on the market price at the vesting date. The total fair value of restricted and performance shares granted during fiscal years 2020 , 2019 and 2018 was $2.9 million , $7.6 million and $17.2 million , respectively. 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, 2020 , 2019 and 2018 , we issued 53,459 , 34,922 and 57,937 shares of common stock, respectively, to employees participating in the plan, leaving 718,263 shares remaining reserved for future issuance under the plan as of January 31, 2020 . |
Significant Vendors
Significant Vendors | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 2019 2018 Vendor A 33.6 % 25.3 % 27.6 % Vendor B 16.3 16.1 14.8 Vendor C 11.0 7.0 6.5 Vendor D 9.6 6.7 5.3 Vendor E 9.5 5.2 4.1 Vendor F 5.7 5.0 3.8 85.7 % 65.3 % 62.1 % 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. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jan. 31, 2020 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan We have established a defined contribution 401(k) plan for eligible employees. Employees may contribute up to 50% of their eligible pretax compensation to the plan and we match 100% of the first 3% of the employees’ contributions and an additional 50% of the next 2% of the employees’ contributions. At our option, we may make supplemental contributions to the plan, but have no t made such supplemental contributions in the past three years. The matching contributions made by us totaled $1.9 million , $1.4 million and $1.1 million during the years ended January 31, 2020 , 2019 and 2018 , respectively. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Securities Litigation. On April 2, 2018, MicroCapital Fund, LP, MicroCapital Fund, Ltd., and MicroCapital LLC (collectively, “MicroCapital”) filed a lawsuit against us and certain of our former executive officers in the U.S. District Court for the Southern District of Texas, Cause No. 4:18-CV-01020 (the “MicroCapital Action”). The plaintiffs in this action allege that the defendants made false and misleading statements or failed to disclose material facts about our credit and underwriting practices, accounting and internal controls. Plaintiffs allege violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, Texas and Connecticut common law fraud, and Texas common law negligent misrepresentation against all defendants; as well as violations of section 20A of the Securities Exchange Act of 1934; and Connecticut common law negligent misrepresentation against certain defendants arising from plaintiffs’ purchase of Conn’s, Inc. securities between April 3, 2013 and February 20, 2014. The complaint does not specify the amount of damages sought. The Court previously had stayed the MicroCapital Action pending resolution of other outstanding litigation (In re Conn’s Inc. Sec. Litig., Cause No. 14-CV-00548 (S.D. Tex.) (the “Consolidated Securities Action”)), which was settled in October 2018. After that settlement, the stay was lifted, and the defendants filed a motion to dismiss plaintiff’s complaint in the MicroCapital Action on November 6, 2018. Briefing on the motion to dismiss was completed on January 16, 2019. On July 26, 2019, the magistrate judge to which defendants’ motion to dismiss had been assigned issued a report and recommendation, recommending that defendants’ motion to dismiss the complaint be granted in part and denied in part. Both parties filed timely objections to that report and recommendation on August 9, 2019. On September 25, 2019, the district court adopted the magistrate judge’s report and recommendation, which permitted MicroCapital to file an amended complaint, which MicroCapital filed on October 30, 2019. On November 8, 2019, the parties filed a joint discovery and case management plan, proposing various deadlines. Defendants filed their answer to the amended complaint on November 27, 2019. The parties are currently engaging in discovery. We intend to vigorously defend our interests in the MicroCapital Action. It is not possible at this time to predict the timing or outcome 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, purportedly on behalf of the Company, filed a derivative shareholder lawsuit against us and certain of our current and former directors and former executive officers in the U.S. District Court for the Southern District of Texas, captioned as Robert Hack, derivatively on behalf of Conn’s, Inc., v. Theodore M. Wright (former executive officer and former director), Bob L. Martin, Jon E.M. Jacoby (former director), Kelly M. Malson, Douglas H. Martin, David Schofman, Scott L. Thompson (former director), Brian Taylor (former executive officer) and Michael J. Poppe (former executive officer) 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. Setting forth substantially similar claims against the same defendants, on February 25, 2015, an additional federal derivative action, captioned 95250 Canada LTEE, derivatively on Behalf of Conn’s, Inc. v. Wright et al., Cause No. 4:15-cv-00521, was filed in the U.S. District Court for the Southern District of Texas, which has been consolidated with the Original Derivative Action. The Court previously approved a stipulation among the parties to stay the Original Derivative Action pending resolution of the Consolidated Securities Action. The stay was lifted on November 1, 2018, and the defendants filed a motion to dismiss plaintiff’s complaint. Briefing on the motion to dismiss was completed December 3, 2018, and the parties began engaging in discovery. On May 29, 2019, the magistrate judge, to which defendants’ motion to dismiss had been assigned, issued a report and recommendation, recommending that defendants’ motion to dismiss the complaint be granted, but recommended that the plaintiff be permitted to replead his claims. The district court adopted the recommendation on July 5, 2019. On July 19, 2019, plaintiff filed an amended complaint. On August 13, 2019, the magistrate judge issued a new scheduling order, which permitted defendants to file a motion to dismiss the amended complaint on demand-futility grounds. That briefing was completed on October 15, 2019. On November 1, 2019, the magistrate judge heard argument on the motion to dismiss and postponed certain deadlines. On February 7, 2020, the judge issued a new scheduling order, again postponing deadlines and removing a trial date from the schedule. The motion to dismiss remains pending. As ordered by the court, the parties are engaging in discovery while the motion to dismiss is pending. Another derivative action was filed on January 27, 2015, captioned as Richard A. Dohn v. Wright, et al., Cause No. 2015-04405, in the 281st Judicial District Court, Harris County, Texas. This action makes substantially similar allegations to the Original Derivative Action against the same defendants. We received a copy of the proposed amended petition on October 12, 2018, but the proposed amended petition has not yet been filed. The parties jointly requested a stay on this case pending resolution of the Original Derivative Action. This case remains stayed until at least June 19, 2020. Prior to filing a lawsuit, an alleged shareholder, Robert J. Casey II (“Casey”), submitted a demand under Delaware law, which our Board of Directors refused. On May 19, 2016, Casey, purportedly on behalf of the Company, filed a lawsuit against us and certain of our current and former directors and former executive officers in the 55th Judicial District Court, Harris County, Texas, captioned as Casey, derivatively on behalf of Conn’s, Inc., v. Theodore M. Wright (former executive officer and former director), Michael J. Poppe (former executive officer), Brian Taylor (former executive officer), Bob L. Martin, Jon E.M. Jacoby (former director), Kelly M. Malson, Douglas H. Martin, David Schofman, Scott L. Thompson (former director) and William E. Saunders Jr., and Conn’s, Inc., Cause No. 2016-33135. The complaint asserts claims for breach of fiduciary duties and unjust enrichment based on substantially similar factual allegations as those asserted in the Original Derivative Action. The complaint does not specify the amount of damages sought. No further activity has occurred in this case since the Final Order and Judgment was entered in the Consolidated Securities Action. Other than Casey, none of the plaintiffs in the other 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. 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. 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 us. 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. The Company believes that any probable and reasonably estimable loss associated with the foregoing has been adequately reflected in the accompanying financial statements. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities From time to time, we securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. Under the terms of the respective securitization transactions, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of the asset-backed notes, and then to the residual equity holder. We retain the servicing of the securitized portfolio and receive 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 VIEs, will retain certain credit insurance income together with certain recoveries related to credit insurance and RSAs 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 VIEs. We consolidate VIEs when we determine that we are the primary beneficiary of these VIEs, we have the power to direct the activities that most significantly impact the performance of the VIEs and our obligation to absorb losses and the right to receive residual returns are significant. The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn’s, Inc.): (in thousands) January 31, January 31, Assets: Restricted cash $ 73,214 $ 57,475 Due from (due to) Conn’s, Inc., net 307 5,504 Customer accounts receivable: Customer accounts receivable 838,210 538,826 Restructured accounts 147,971 135,834 Allowance for uncollectible accounts (151,263 ) (106,327 ) Allowance for no-interest option credit programs (12,445 ) (8,047 ) Deferred fees and origination costs (8,255 ) (5,321 ) Total customer accounts receivable, net 814,218 554,965 Total assets $ 887,739 $ 617,944 Liabilities: Accrued expenses $ 5,517 $ 3,939 Other liabilities 7,584 5,513 Short-term debt: Warehouse Notes — 53,635 Long-term debt: 2017-B Class B Notes — 98,297 2017-B Class C Notes 59,655 78,640 2018-A Class A Notes 34,112 105,971 2018-A Class B Notes 20,572 63,908 2018-A Class C Notes 20,572 63,908 2019-A Class A Notes 76,241 — 2019-A Class B Notes 64,750 — 2019-A Class C Notes 62,510 — 2019-B Class A Notes 265,810 — 2019-B Class B Notes 85,540 — 2019-B Class C Notes 83,270 — 773,032 410,724 Less deferred debt issuance costs (4,911 ) (2,731 ) Total long-term debt 768,121 407,993 Total debt 768,121 461,628 Total liabilities $ 781,222 $ 471,080 The assets of the VIEs serve as collateral for the obligations of the VIEs. The holders of asset-backed notes have no recourse to assets outside of the respective VIEs. |
Segment Information
Segment Information | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise that engage in business activities and for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker to make decisions about how to allocate resources and assess performance. We are a leading specialty retailer and offer a broad selection of quality, branded durable consumer goods and related services in addition to a proprietary credit solution for our core credit-constrained consumers. We have two operating segments: (i) retail and (ii) credit. Our operating segments complement one another. The retail segment operates primarily through our stores and website. Our retail segment 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 segment offers affordable financing solutions to a large, under-served population of credit-constrained consumers who typically have limited credit alternatives. Our operating segments provide customers the opportunity to comparison shop across brands with confidence in our competitive prices as well as affordable monthly payment options, next day delivery and installation in the majority of our markets, and product repair service. The operating segments follow the same accounting policies used in our consolidated financial statements. We evaluate a segment’s performance based upon operating income before taxes. SG&A includes 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 calculated using an annual rate of 2.5% times the average outstanding portfolio balance for each applicable period. As of January 31, 2020 , we operated retail stores in 14 states with no operations outside of the United States. No single customer accounts for more than 10% of our total revenues. Financial information by segment is presented in the following tables: Year Ended January 31, 2020 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 370,931 $ — $ 370,931 Home appliance 360,441 — 360,441 Consumer electronics 221,449 — 221,449 Home office 73,074 — 73,074 Other 16,529 — 16,529 Product sales 1,042,424 — 1,042,424 Repair service agreement commissions 106,997 — 106,997 Service revenues 13,814 — 13,814 Total net sales 1,163,235 — 1,163,235 Finance charges and other revenues 810 379,641 380,451 Total revenues 1,164,045 379,641 1,543,686 Costs and expenses: Cost of goods sold 697,784 — 697,784 Selling, general and administrative expense (1) 346,108 156,916 503,024 Provision for bad debts 905 204,312 205,217 Charges and credits 1,933 1,209 3,142 Total costs and expenses 1,046,730 362,437 1,409,167 Operating income 117,315 17,204 134,519 Interest expense — 59,107 59,107 Loss on extinguishment of debt — 1,094 1,094 Income (loss) before income taxes $ 117,315 $ (42,997 ) $ 74,318 Additional Disclosures: Property and equipment additions $ 62,244 $ 200 $ 62,444 Depreciation expense $ 35,783 $ 1,058 $ 36,841 January 31, 2020 (in thousands) Retail Credit Total Total assets $ 641,812 $ 1,526,957 $ 2,168,769 Year Ended January 31, 2019 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 382,975 $ — $ 382,975 Home appliance 332,609 — 332,609 Consumer electronics 262,088 — 262,088 Home office 86,260 — 86,260 Other 14,703 — 14,703 Product sales 1,078,635 — 1,078,635 Repair service agreement commissions 101,928 — 101,928 Service revenues 14,111 — 14,111 Total net sales 1,194,674 — 1,194,674 Finance charges and other revenues 447 354,692 355,139 Total revenues 1,195,121 354,692 1,549,813 Costs and expenses: Cost of goods sold 702,135 — 702,135 Selling, general and administrative expense (1) 328,628 151,933 480,561 Provision for bad debts 1,009 197,073 198,082 Charges and credits 2,980 4,800 7,780 Total costs and expenses 1,034,752 353,806 1,388,558 Operating income 160,369 886 161,255 Interest expense — 62,704 62,704 Loss on extinguishment of debt — 1,773 1,773 Income (loss) before income taxes $ 160,369 $ (63,591 ) $ 96,778 Additional Disclosures: Property and equipment additions $ 36,110 $ 1,384 $ 37,494 Depreciation expense $ 30,739 $ 845 $ 31,584 January 31, 2019 (in thousands) Retail Credit Total Total assets $ 405,542 $ 1,479,365 $ 1,884,907 Year Ended January 31, 2018 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 393,853 $ — $ 393,853 Home appliance 337,538 — 337,538 Consumer electronics 248,727 — 248,727 Home office 80,330 — 80,330 Other 17,426 — 17,426 Product sales 1,077,874 — 1,077,874 Repair service agreement commissions 100,383 — 100,383 Service revenues 13,710 — 13,710 Total net sales 1,191,967 — 1,191,967 Finance charges and other revenues 341 323,723 324,064 Total revenues 1,192,308 323,723 1,516,031 Costs and expenses: Cost of goods sold 720,344 — 720,344 Selling, general and administrative expense (1) 316,325 134,088 450,413 Provision for bad debts 829 216,046 216,875 Charges and credits 13,331 — 13,331 Total costs and expenses 1,050,829 350,134 1,400,963 Operating income (loss) 141,479 (26,411 ) 115,068 Interest expense — 80,160 80,160 Loss on extinguishment of debt — 3,274 3,274 Income (loss) before income taxes $ 141,479 $ (109,845 ) $ 31,634 Additional Disclosures: Property and equipment additions $ 21,285 $ 42 $ 21,327 Depreciation expense $ 30,065 $ 741 $ 30,806 January 31, 2018 (in thousands) Retail Credit Total Total assets $ 344,327 $ 1,556,472 $ 1,900,799 (1) For the years ended January 31, 2020 , 2019 and 2018 , the amount of overhead allocated to each segment reflected in SG&A was $30.0 million , $36.4 million and $27.6 million , respectively. For the years ended January 31, 2020 , 2019 and 2018 , the amount of reimbursement made to the retail segment by the credit segment was $39.1 million , $38.1 million and $37.4 million , respectively. |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Jan. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements [Text Block] | 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, 2020 and 2019, the direct or indirect subsidiaries of Conn’s, Inc. that were not Guarantors (the “Non-Guarantor Subsidiaries”) were the VIEs and 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 dividends or distributions. The following financial information presents the Consolidated Balance Sheet, Statement of Operations, and Statement of Cash Flows for Conn’s, Inc. (the issuer of the Senior Notes), the Guarantors, and the Non-Guarantor Subsidiaries, together with certain eliminations. Investments in subsidiaries are accounted for by the parent company using the equity method for purposes of this presentation. Results of operations of subsidiaries are therefore reflected in the parent company’s investment accounts and operations. The consolidated financial information includes financial data for: (i) Conn’s, Inc. (on a parent-only basis), (ii) Guarantors, (iii) Non-Guarantor Subsidiaries, and (iv) the parent company and the subsidiaries on a consolidated basis at January 31, 2020 and 2019 (after the elimination of intercompany balances and transactions). Consolidated Balance Sheets as of January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 5,485 $ — $ — $ 5,485 Restricted cash — 2,156 73,214 — 75,370 Customer accounts receivable, net of allowances — 279,978 393,764 — 673,742 Other accounts receivable — 68,753 — — 68,753 Inventories — 219,756 — — 219,756 Other current assets — 19,452 307 (3,999 ) 15,760 Total current assets — 595,580 467,285 (3,999 ) 1,058,866 Investment in and advances to subsidiaries 832,980 106,517 — (939,497 ) — Long-term portion of customer accounts receivable, net of allowance — 243,307 420,454 — 663,761 Property and equipment, net — 173,031 — — 173,031 Operating lease right-of-use assets — 242,457 — — 242,457 Deferred income taxes 18,599 — — — 18,599 Other assets — 12,055 — — 12,055 Total assets $ 851,579 $ 1,372,947 $ 887,739 $ (943,496 ) $ 2,168,769 Liabilities and Stockholders’ Equity Current liabilities: Current maturities of debt and financing lease obligations $ — $ 605 $ — $ — $ 605 Accounts payable — 48,554 — — 48,554 Accrued expenses 686 60,886 5,517 (3,999 ) 63,090 Operating lease liability - current — 35,390 — — 35,390 Other current liabilities — 10,416 4,215 — 14,631 Total current liabilities 686 155,851 9,732 (3,999 ) 162,270 Operating lease liability - non current — 329,081 — — 329,081 Long-term debt and financing lease obligations 223,713 33,701 768,121 — 1,025,535 Other long-term liabilities — 21,334 3,369 — 24,703 Total liabilities 224,399 539,967 781,222 (3,999 ) 1,541,589 Total stockholders’ equity 627,180 832,980 106,517 (939,497 ) 627,180 Total liabilities and stockholders’ equity $ 851,579 $ 1,372,947 $ 887,739 $ (943,496 ) $ 2,168,769 Deferred income taxes related to tax attributes of the Guarantors and Non-Guarantor Subsidiaries are reflected under Conn’s, Inc. Consolidated Statements of Operations for the year ended January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,163,235 $ — $ — $ 1,163,235 Finance charges and other revenues — 219,442 161,009 — 380,451 Servicing fee revenue — 38,240 — (38,240 ) — Total revenues — 1,420,917 161,009 (38,240 ) 1,543,686 Costs and expenses: Cost of goods sold — 697,784 — — 697,784 Selling, general and administrative expense — 502,398 38,866 (38,240 ) 503,024 Provision for bad debts — 128,230 76,987 — 205,217 Charges and credits — 3,142 — — 3,142 Total costs and expenses — 1,331,554 115,853 (38,240 ) 1,409,167 Operating income — 89,363 45,156 — 134,519 Interest expense 17,777 11,986 29,344 — 59,107 Loss on extinguishment of debt — 1,094 — — 1,094 Income (loss) before income taxes (17,777 ) 76,283 15,812 — 74,318 Provision (benefit) for income taxes (4,381 ) 18,798 3,897 — 18,314 Net income (loss) (13,396 ) 57,485 11,915 — 56,004 Income from consolidated subsidiaries 69,399 11,915 — (81,314 ) — Consolidated net income $ 56,003 $ 69,400 $ 11,915 $ (81,314 ) $ 56,004 Consolidated Statements of Cash Flows for the year ended January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (988 ) $ 366,536 $ (285,482 ) $ — $ 80,066 Cash flows from investing activities: Purchase of customer accounts receivables — — (482,788 ) 482,788 — Sale of customer accounts receivables — — 482,788 (482,788 ) — Purchase of property and equipment — (57,546 ) — — (57,546 ) Proceeds from asset dispositions — 724 — — 724 Investment in subsidiary — (66,290 ) — 66,290 — Net cash used in investing activities — (123,112 ) — 66,290 (56,822 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 867,750 — 867,750 Payments on asset-backed notes — — (505,442 ) — (505,442 ) Borrowings from Revolving Credit Facility — 1,625,440 — — 1,625,440 Contribution from subsidiary 66,290 — — (66,290 ) — Payments on Revolving Credit Facility — (1,865,069 ) — — (1,865,069 ) Payments of debt issuance costs and amendment fees — (424 ) (7,452 ) — (7,876 ) Payments on warehouse facility — — (53,635 ) — (53,635 ) Proceeds from stock issued under employee benefit plans 988 — — — 988 Tax payments associated with equity-based compensation transactions — (2,216 ) — — (2,216 ) Payment for share repurchases (66,290 ) — — — (66,290 ) Other — (976 ) — — (976 ) Net cash provided by (used in) financing activities 988 (243,245 ) 301,221 (66,290 ) (7,326 ) Net change in cash, cash equivalents and restricted cash — 179 15,739 — 15,918 Cash, cash equivalents and restricted cash, beginning of period — 7,462 57,475 — 64,937 Cash, cash equivalents and restricted cash, end of period $ — $ 7,641 $ 73,214 $ — $ 80,855 Consolidated Balance Sheets as of January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 5,912 $ — $ — $ 5,912 Restricted cash — 1,550 57,475 — 59,025 Customer accounts receivable, net of allowances — 328,705 324,064 — 652,769 Other accounts receivable — 67,078 — — 67,078 Inventories — 220,034 — — 220,034 Other current assets — 12,344 5,504 (8,272 ) 9,576 Total current assets — 635,623 387,043 (8,272 ) 1,014,394 Investment in and advances to subsidiaries 815,524 146,864 — (962,388 ) — Long-term portion of customer accounts receivable, net of allowance — 455,443 230,901 — 686,344 Property and equipment, net — 148,983 — — 148,983 Deferred income taxes 27,535 — — — 27,535 Other assets — 7,651 — — 7,651 Total assets $ 843,059 $ 1,394,564 $ 617,944 $ (970,660 ) $ 1,884,907 Liabilities and Stockholders’ Equity Current liabilities: Current maturities of debt and financing lease obligations $ — $ 474 $ 53,635 $ — $ 54,109 Accounts payable — 71,118 — — 71,118 Accrued expenses 686 88,478 3,939 (2,768 ) 90,335 Other current liabilities — 24,918 2,592 (5,504 ) 22,006 Total current liabilities 686 184,988 60,166 (8,272 ) 237,568 Deferred rent — 93,127 — — 93,127 Long-term debt and financing lease obligations 222,398 270,831 407,993 — 901,222 Other long-term liabilities — 30,094 2,921 — 33,015 Total liabilities 223,084 579,040 471,080 (8,272 ) 1,264,932 Total stockholders’ equity 619,975 815,524 146,864 (962,388 ) 619,975 Total liabilities and stockholders’ equity $ 843,059 $ 1,394,564 $ 617,944 $ (970,660 ) $ 1,884,907 Consolidated Statement of Operations for the year ended January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,194,674 $ — $ — $ 1,194,674 Finance charges and other revenues — 193,583 161,556 — 355,139 Servicing fee revenue — 40,947 — (40,947 ) — Total revenues — 1,429,204 161,556 (40,947 ) 1,549,813 Costs and expenses: Cost of goods sold — 702,135 — — 702,135 Selling, general and administrative expense — 479,995 41,513 (40,947 ) 480,561 Provision for bad debts — 68,056 130,026 — 198,082 Charges and credits — 7,780 — — 7,780 Total costs and expenses — 1,257,966 171,539 (40,947 ) 1,388,558 Operating income (loss) — 171,238 (9,983 ) — 161,255 Interest expense 17,782 12,498 32,424 — 62,704 Loss on extinguishment of debt — 142 1,631 — 1,773 Income (loss) before income taxes (17,782 ) 158,598 (44,038 ) — 96,778 Provision (benefit) for income taxes (4,213 ) 37,577 (10,435 ) — 22,929 Net income (loss) (13,569 ) 121,021 (33,603 ) — 73,849 Income (loss) from consolidated subsidiaries 87,418 (33,603 ) — (53,815 ) — Consolidated net income (loss) $ 73,849 $ 87,418 $ (33,603 ) $ (53,815 ) $ 73,849 Consolidated Statement of Cash Flows for the year ended January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (1,237 ) $ 18,201 $ 134,837 $ — $ 151,801 Cash flows from investing activities: Purchase of customer accounts receivables — — (525,846 ) 525,846 — Sale of customer accounts receivables — — 525,846 (525,846 ) — Purchase of property and equipment — (32,814 ) — — (32,814 ) Net cash used in investing activities — (32,814 ) — — (32,814 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 358,300 — 358,300 Payments on asset-backed notes — (169,443 ) (570,432 ) — (739,875 ) Borrowings from Revolving Credit Facility — 1,836,822 — — 1,836,822 Payments on Revolving Credit Facility — (1,647,322 ) — — (1,647,322 ) Borrowings from warehouse facility — — 173,286 — 173,286 Payments of debt issuance costs and amendment fees — (3,230 ) (4,188 ) — (7,418 ) Payments on warehouse facility — — (119,650 ) — (119,650 ) Proceeds from stock issued under employee benefit plans 1,237 — — — 1,237 Tax payments associated with equity-based compensation transactions — (3,342 ) — — (3,342 ) Payments from extinguishment of debt — (1,178 ) — — (1,178 ) Other — (1,068 ) — — (1,068 ) Net cash provided by (used in) financing activities 1,237 11,239 (162,684 ) — (150,208 ) Net change in cash, cash equivalents and restricted cash — (3,374 ) (27,847 ) — (31,221 ) Cash, cash equivalents and restricted cash, beginning of period — 10,836 85,322 — 96,158 Cash, cash equivalents and restricted cash, end of period $ — $ 7,462 $ 57,475 $ — $ 64,937 Consolidated Statement of Operations for the year ended January 31, 2018 . (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,191,967 $ — $ — $ 1,191,967 Finance charges and other revenues — 173,539 150,525 — 324,064 Servicing fee revenue — 63,372 — (63,372 ) — Total revenues — 1,428,878 150,525 (63,372 ) 1,516,031 Costs and expenses: Cost of goods sold — 720,344 — — 720,344 Selling, general and administrative expense — 460,698 53,087 (63,372 ) 450,413 Provision for bad debts — 42,677 174,198 — 216,875 Charges and credits — 13,331 — — 13,331 Total costs and expenses — 1,237,050 227,285 (63,372 ) 1,400,963 Operating income (loss) — 191,828 (76,760 ) — 115,068 Interest expense 17,772 15,978 46,410 — 80,160 Loss on extinguishment of debt — 349 2,925 — 3,274 Income (loss) before income taxes (17,772 ) 175,501 (126,095 ) — 31,634 Provision (benefit) for income taxes (14,141 ) 139,647 (100,335 ) — 25,171 Net income (loss) (3,631 ) 35,854 (25,760 ) — 6,463 Income (loss) from consolidated subsidiaries 10,094 (25,760 ) — 15,666 — Consolidated net income (loss) $ 6,463 $ 10,094 $ (25,760 ) $ 15,666 $ 6,463 Consolidated Statement of Cash Flows for the year ended January 31, 2018 . (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (3,318 ) $ (925,182 ) $ 979,022 $ — $ 50,522 Cash flows from investing activities: Purchase of customer accounts receivables — — (1,112,903 ) 1,112,903 — Sale of customer accounts receivables — 1,112,903 — (1,112,903 ) — Purchase of property and equipment — (16,918 ) — — (16,918 ) Proceeds from asset dispositions — — — — — Net cash provided by (used in) investing activities — 1,095,985 (1,112,903 ) — (16,918 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 1,042,034 — 1,042,034 Payments on asset-backed notes — (77,104 ) (922,923 ) — (1,000,027 ) Borrowings from Revolving Credit Facility — 1,717,012 — — 1,717,012 Payments on Revolving Credit Facility — (1,817,512 ) — — (1,817,512 ) Payments of debt issuance costs and amendment fees — (3,268 ) (10,606 ) — (13,874 ) Proceeds from stock issued under employee benefit plans 3,318 — — — 3,318 Tax payments associated with equity-based compensation transactions — (1,182 ) — — (1,182 ) Payments from extinguishment of debt — (836 ) — — (836 ) Other — (643 ) — — (643 ) Net cash provided by (used in) financing activities 3,318 (183,533 ) 108,505 — (71,710 ) Net change in cash, cash equivalents and restricted cash — (12,730 ) (25,376 ) — (38,106 ) Cash, cash equivalents and restricted cash, beginning of period — 23,566 110,698 — 134,264 Cash, cash equivalents and restricted cash, end of period $ — $ 10,836 $ 85,322 $ — $ 96,158 |
Condensed Consolidated Statement of Cash Flows | Consolidated Statement of Cash Flows for the year ended January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (1,237 ) $ 18,201 $ 134,837 $ — $ 151,801 Cash flows from investing activities: Purchase of customer accounts receivables — — (525,846 ) 525,846 — Sale of customer accounts receivables — — 525,846 (525,846 ) — Purchase of property and equipment — (32,814 ) — — (32,814 ) Net cash used in investing activities — (32,814 ) — — (32,814 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 358,300 — 358,300 Payments on asset-backed notes — (169,443 ) (570,432 ) — (739,875 ) Borrowings from Revolving Credit Facility — 1,836,822 — — 1,836,822 Payments on Revolving Credit Facility — (1,647,322 ) — — (1,647,322 ) Borrowings from warehouse facility — — 173,286 — 173,286 Payments of debt issuance costs and amendment fees — (3,230 ) (4,188 ) — (7,418 ) Payments on warehouse facility — — (119,650 ) — (119,650 ) Proceeds from stock issued under employee benefit plans 1,237 — — — 1,237 Tax payments associated with equity-based compensation transactions — (3,342 ) — — (3,342 ) Payments from extinguishment of debt — (1,178 ) — — (1,178 ) Other — (1,068 ) — — (1,068 ) Net cash provided by (used in) financing activities 1,237 11,239 (162,684 ) — (150,208 ) Net change in cash, cash equivalents and restricted cash — (3,374 ) (27,847 ) — (31,221 ) Cash, cash equivalents and restricted cash, beginning of period — 10,836 85,322 — 96,158 Cash, cash equivalents and restricted cash, end of period $ — $ 7,462 $ 57,475 $ — $ 64,937 Consolidated Statement of Cash Flows for the year ended January 31, 2018 . (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (3,318 ) $ (925,182 ) $ 979,022 $ — $ 50,522 Cash flows from investing activities: Purchase of customer accounts receivables — — (1,112,903 ) 1,112,903 — Sale of customer accounts receivables — 1,112,903 — (1,112,903 ) — Purchase of property and equipment — (16,918 ) — — (16,918 ) Proceeds from asset dispositions — — — — — Net cash provided by (used in) investing activities — 1,095,985 (1,112,903 ) — (16,918 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 1,042,034 — 1,042,034 Payments on asset-backed notes — (77,104 ) (922,923 ) — (1,000,027 ) Borrowings from Revolving Credit Facility — 1,717,012 — — 1,717,012 Payments on Revolving Credit Facility — (1,817,512 ) — — (1,817,512 ) Payments of debt issuance costs and amendment fees — (3,268 ) (10,606 ) — (13,874 ) Proceeds from stock issued under employee benefit plans 3,318 — — — 3,318 Tax payments associated with equity-based compensation transactions — (1,182 ) — — (1,182 ) Payments from extinguishment of debt — (836 ) — — (836 ) Other — (643 ) — — (643 ) Net cash provided by (used in) financing activities 3,318 (183,533 ) 108,505 — (71,710 ) Net change in cash, cash equivalents and restricted cash — (12,730 ) (25,376 ) — (38,106 ) Cash, cash equivalents and restricted cash, beginning of period — 23,566 110,698 — 134,264 Cash, cash equivalents and restricted cash, end of period $ — $ 10,836 $ 85,322 $ — $ 96,158 Consolidated Statements of Cash Flows for the year ended January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (988 ) $ 366,536 $ (285,482 ) $ — $ 80,066 Cash flows from investing activities: Purchase of customer accounts receivables — — (482,788 ) 482,788 — Sale of customer accounts receivables — — 482,788 (482,788 ) — Purchase of property and equipment — (57,546 ) — — (57,546 ) Proceeds from asset dispositions — 724 — — 724 Investment in subsidiary — (66,290 ) — 66,290 — Net cash used in investing activities — (123,112 ) — 66,290 (56,822 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 867,750 — 867,750 Payments on asset-backed notes — — (505,442 ) — (505,442 ) Borrowings from Revolving Credit Facility — 1,625,440 — — 1,625,440 Contribution from subsidiary 66,290 — — (66,290 ) — Payments on Revolving Credit Facility — (1,865,069 ) — — (1,865,069 ) Payments of debt issuance costs and amendment fees — (424 ) (7,452 ) — (7,876 ) Payments on warehouse facility — — (53,635 ) — (53,635 ) Proceeds from stock issued under employee benefit plans 988 — — — 988 Tax payments associated with equity-based compensation transactions — (2,216 ) — — (2,216 ) Payment for share repurchases (66,290 ) — — — (66,290 ) Other — (976 ) — — (976 ) Net cash provided by (used in) financing activities 988 (243,245 ) 301,221 (66,290 ) (7,326 ) Net change in cash, cash equivalents and restricted cash — 179 15,739 — 15,918 Cash, cash equivalents and restricted cash, beginning of period — 7,462 57,475 — 64,937 Cash, cash equivalents and restricted cash, end of period $ — $ 7,641 $ 73,214 $ — $ 80,855 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 12 Months Ended |
Jan. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 16. Stockholders’ Equity Share Repurchases. On May 30, 2019, we entered into a stock repurchase program pursuant to which we had the authorization to repurchase up to $75.0 million of our outstanding common stock. The stock repurchase program expires on May 30, 2020. For the year ended January 31, 2020 , we repurchased 3,485,441 shares of our common stock at an average weighted cost per share of $19.02 for an aggregate amount of $66.3 million . |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Jan. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | Quarterly Information (Unaudited) The following tables set forth certain quarterly financial data for the years ended January 31, 2020 , 2019 and 2018 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: (dollars in thousands, except per share amounts) Fiscal Year 2020 Quarter Ended April 30 July 31 Restated October 31 (1) January 31 Revenues: Retail Segment $ 262,181 $ 306,265 $ 280,319 $ 315,280 Credit Segment 91,331 94,794 95,808 97,708 Total revenues $ 353,512 $ 401,059 $ 376,127 $ 412,988 Percent of annual revenues 22.9 % 26.0 % 24.4 % 26.7 % Costs and expenses: Cost of goods sold $ 157,228 $ 182,065 $ 170,453 $ 188,038 Operating income (loss): Retail Segment $ 25,897 $ 36,072 $ 19,598 $ 35,748 Credit Segment 13,122 5,702 10,706 (12,326 ) Total operating income $ 39,019 $ 41,774 $ 30,304 $ 23,422 Net income $ 19,509 $ 19,974 $ 11,469 $ 5,052 Income per share Basic (2) $ 0.61 $ 0.64 $ 0.39 $ 0.18 Diluted (2) $ 0.60 $ 0.62 $ 0.39 $ 0.17 (dollars in thousands, except per share amounts) Fiscal Year 2019 Quarter Ended April 30 July 31 October 31 January 31 Revenues: Retail Segment $ 275,770 $ 296,411 $ 284,053 $ 338,887 Credit Segment 82,617 88,209 89,771 94,095 Total revenues $ 358,387 $ 384,620 $ 373,824 $ 432,982 Percent of annual revenues 23.1 % 24.8 % 24.1 % 28.0 % Costs and expenses: Cost of goods sold $ 166,589 $ 173,627 $ 166,886 $ 195,033 Operating income (loss): Retail Segment $ 31,169 $ 39,238 $ 35,250 $ 54,712 Credit Segment 1,595 14 223 (946 ) Total operating income $ 32,764 $ 39,252 $ 35,473 $ 53,766 Net income $ 12,732 $ 17,011 $ 14,630 $ 29,476 Income per share: Basic (2) $ 0.40 $ 0.54 $ 0.46 $ 0.93 Diluted (2) $ 0.39 $ 0.53 $ 0.45 $ 0.91 Fiscal Year 2018 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 January 31 Revenues: Retail Segment $ 279,365 $ 286,505 $ 291,903 $ 334,535 Credit Segment 76,461 80,142 81,269 85,851 Total revenues $ 355,826 $ 366,647 $ 373,172 $ 420,386 Percent of annual revenues 23.5 % 24.2 % 24.6 % 27.7 % Costs and expenses: Cost of goods sold $ 171,950 $ 172,306 $ 175,591 $ 200,497 Operating income (loss): Retail Segment $ 32,011 $ 31,299 $ 29,586 $ 48,583 Credit Segment (11,829 ) (2,107 ) (8,733 ) (3,742 ) Total operating income $ 20,182 $ 29,192 $ 20,853 $ 44,841 Net income (loss) $ (2,580 ) $ 4,273 $ 1,569 $ 3,201 Income (loss) per share Basic (2) $ (0.08 ) $ 0.14 $ 0.05 $ 0.10 Diluted (2) $ (0.08 ) $ 0.14 $ 0.05 $ 0.10 (1) Quarterly information adjusted for the restatements noted below. (2) 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. As a result of the operation of the Company’s internal controls over financial reporting in connection with the preparation of this Annual Report on Form 10-K, the Company’s management became aware that the Company’s historical condensed consolidated interim financial statements for the three and nine month periods ended October 31, 2019 (the “Non-Reliance Periods”) contained errors in its calculation and reporting of finance charges and other revenues and provision for bad debts resulting from an error in its allowance for bad debts and uncollectible interest related to the implementation of its new loan management system. The condensed consolidated cash flow statement for the nine month Non-Reliance Period was not impacted by the errors. The correction of these errors reduces finance charges and other revenues in the condensed consolidated statements of income for the Non-Reliance Periods by $1.6 million and increases provision for bad debts for the Non-Reliance Periods by $3.3 million. Those changes have the following effects on the condensed consolidated balance sheets and the condensed consolidated statement of stockholders’ equity as of the end of the Non-Reliance Periods: customer accounts receivable, net of allowances, decreases by $4.9 million, income taxes receivable increases by $0.9 million and deferred income taxes increases by $0.3 million, resulting in a decrease in each of total assets, total stockholders’ equity and total liabilities and stockholders’ equity of approximately $3.7 million. The following tables present the effects this restatement had on the reported condensed consolidated interim financial statements for the Non-Reliance Periods: Statements of Income (dollars in thousands, except per share amounts) Three Months Ended October 31, 2019 As Previously Reported Q3 Corrections Restated Finance charges and other revenues $ 97,586 $ (1,581 ) $ 96,005 Total revenues 377,708 (1,581 ) 376,127 Provision for bad debts 42,586 3,339 45,925 Operating income 35,224 (4,920 ) 30,304 Income before taxes 20,173 (4,920 ) 15,253 Net income $ 15,143 $ (3,674 ) $ 11,469 Earnings per share: Basic $ 0.52 $ (0.13 ) $ 0.39 Diluted $ 0.51 $ (0.12 ) $ 0.39 Nine Months Ended October 31, 2019 As Previously Reported Q3 Corrections Restated Finance charges and other revenues $ 284,116 $ (1,581 ) $ 282,535 Total revenues 1,132,279 (1,581 ) 1,130,698 Provision for bad debts 132,368 3,339 135,707 Operating income 116,017 (4,920 ) 111,097 Income before taxes 72,073 (4,920 ) 67,153 Net income $ 54,626 $ (3,674 ) $ 50,952 Earnings per share: Basic $ 1.77 $ (0.12 ) $ 1.65 Diluted $ 1.74 $ (0.12 ) $ 1.62 Balance Sheet October 31, 2019 As Previously Reported Q3 Corrections Restated Customer accounts receivable, net of allowances $ 666,922 $ (4,920 ) $ 662,002 Income taxes receivable 1,688 912 2,600 Total current assets $ 1,047,752 $ (4,008 ) $ 1,043,744 Deferred income taxes 22,908 334 23,242 Total assets $ 2,156,825 $ (3,674 ) $ 2,153,151 Total stockholders’ equity $ 630,377 $ (3,674 ) $ 626,703 Total liabilities and stockholders’ equity $ 2,156,825 $ (3,674 ) $ 2,153,151 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events COVID-19. The COVID-19 outbreak in the United States has resulted in reduced customer traffic and the temporary reduction of operating hours for our stores as well as a limited number of temporary store closures where government mandated. In addition to the impact on store traffic, our credit business could be impacted if customers are unable to make timely payments on their Conn's credit accounts due to job loss, reduction of hours or furlough. These recent developments are expected to result in lower sales and gross margin. The situation is changing daily and there is significant uncertainty going forward. On March 18, 2020, the Company completed the borrowing of an additional $275.0 million under its $650.0 million Revolving Credit Facility, maturing on May 23, 2022. As of the date of the borrowing, the Company had an immediately available remaining borrowing capacity of approximately $123.0 million under its Revolving Credit Facility. The Company increased its borrowings under the Revolving Credit Facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty resulting from the COVID-19 outbreak. The proceeds from the incremental Revolving Credit Facility borrowings are currently being held on the Company’s balance sheet. The proceeds from the incremental Revolving Credit Facility borrowings may in the future be used for working capital, general corporate or other permitted purposes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Policies [Abstract] | |
Business | Business. Conn’s, Inc., a Delaware corporation, is a holding company with no independent assets or operations other than its investments in its subsidiaries. References to “we,” “our,” “us,” “the Company,” “Conn’s” or “CONN” refer to Conn’s, Inc. and, as apparent from the context, its subsidiaries. Conn’s is a leading specialty retailer that offers a broad selection of quality, branded durable consumer goods and related services in addition to proprietary credit solutions 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 credit alternatives. We operate two reportable segments: retail and credit. Our retail stores bear the “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 to our retail customers. The retail segment is not involved in credit approval decisions or collection efforts. Our management evaluates performance and allocates resources based on the operating results of the retail and credit segments. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and prevailing industry practices. |
Fiscal Year | 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. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of Conn’s, Inc. and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities. Variable Interest Entities (“VIEs”) are consolidated if the Company is the primary beneficiary. The primary beneficiary of a VIE is the party that has (i) the power to direct the activities that most significantly impact the performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We securitize customer accounts receivables by transferring the receivables to various bankruptcy-remote VIEs. We retain the servicing of the securitized portfolio and have a variable interest in each corresponding VIE by holding the residual equity. We have determined that we are the primary beneficiary of each respective 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 potentially could be significant. As a result, we consolidate the respective VIEs within our consolidated financial statements. |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with GAAP requires management to make informed judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ, even significantly, from these estimates. Management evaluates its estimates and related assumptions regularly, including those related to the allowance for doubtful accounts and allowances for no-interest option credit programs, which are particularly sensitive given the size of our customer portfolio balance. |
Cash and Cash Equivalents | Cash and Cash Equivalents. As of January 31, 2020 and 2019 , cash and cash equivalents included cash, credit card deposits in transit, and highly liquid debt instruments purchased with a maturity date of three months or less. Credit card deposits in transit included in cash and cash equivalents were $4.0 million and $2.5 million as of January 31, 2020 and 2019 , respectively. |
Restricted cash | Restricted Cash. The restricted cash balance as of January 31, 2020 and 2019 includes $59.7 million and $45.3 million , respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $13.9 million and $12.2 million , respectively, of cash held by the VIEs as additional collateral for the asset-backed notes. |
Customer accounts receivable | Customer Accounts Receivable. Customer accounts receivable reported in the Consolidated Balance Sheet includes total receivables managed, including both those transferred to the VIEs and those not transferred to the VIEs. Customer accounts receivable are recognized at the time the customer takes possession of the product. 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 accounts receivable include the net of unamortized deferred fees charged to customers and origination costs. 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 along with interest accrued subsequent to the last payment. 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 VIEs. The loan modifications are intended to maximize net cash flow after expenses and avoid the need to exercise legal remedies available to us. We may extend or “re-age” a portion of our customer accounts, which involves 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 principal 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 refinance their account, which typically does not change the interest rate or the total principal amount due from the customer but does reduce the monthly contractual payments and extend the term. We consider accounts that have been re-aged in excess of three months or refinanced as Troubled Debt Restructurings (“TDR” or “Restructured Accounts”). |
Interest Income on Customer Accounts Receivable | Interest Income on Customer Accounts Receivable. Interest income, which includes interest income and amortization of deferred fees and origination costs, is recorded using the interest method and is reflected in finance charges and other revenues. Typically, interest income is recorded until the customer account is paid off or charged-off, and we provide an allowance for estimated uncollectible interest. Any contractual interest income received from customers in excess of the interest income calculated using the interest method is recorded as deferred revenue on our balance sheets. At January 31, 2020 and 2019 , there were $10.6 million and $11.2 million , respectively, of deferred interest included in deferred revenues and other credits and other long-term liabilities. The deferred interest will ultimately be brought into income as the accounts pay off or charge-off. We offer a 12 -month no -interest option program. 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 option 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 estimated accrued interest earned to date on all no -interest option finance programs with an offsetting reserve for those customers expected to satisfy the requirements of the program based on our historical experience. 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 equals the present value of expected future cash flows. We place accounts in non-accrual status when legally required. Payments received on non-accrual loans will be applied to principal and reduce the balance of the loan. At January 31, 2020 and 2019 , the carrying value of customer accounts receivable in non-accrual status was $12.5 million and $13.9 million , respectively. At January 31, 2020 and 2019 , the carrying value of customer accounts receivable that were past due 90 days or more and still accruing interest totaled $132.7 million and $106.5 million , respectively. At January 31, 2020 and January 31, 2019 , the carrying value of customer accounts receivable in a bankruptcy status that were less than 60 days past due of $12.1 million and $12.0 million , respectively, were included within the customer receivables balance carried in non-accrual status. |
Allowance for doubtful accounts | Allowance for Doubtful Accounts. The determination of the amount of the allowance for bad debts is, by nature, highly complex and subjective. Future events that are inherently uncertain could result in material changes to the level of the allowance for bad debts. General economic conditions, changes to state or federal regulations and a variety of other factors that affect the ability of borrowers to service their debts or our ability to collect will impact the future performance of the portfolio. 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 accounts receivable 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 on our non-TDR customer accounts receivable that we expect to charge-off over the next 12 months based on historical gross charge-off rates over the last 24 months. We incorporate an adjustment to historical gross charge-off rates for a scaled factor of the year-over-year change in six month average first payment default rates and the year-over-year change in the balance of customer accounts receivable that are 60 days or more past due. In addition to adjusted historical gross charge-off rates, estimates of post-charge-off recoveries, including cash payments from customers, amounts realized from the repossession of the products financed, sales tax recoveries from taxing jurisdictions, and payments received under credit insurance and repair service agreement (“RSA”) policies are also considered. During the year, we shortened the lookback period used to estimate post-charge-off recoveries for customer balances from a cumulative average collection rate to a 24 month average collection rate. The 24 month lookback period is consistent with the lookback period used elsewhere in the allowance for bad debt calculation and is more closely aligned with current collections practices. Qualitative adjustments are made to the allowance for bad debts when, based on management’s judgment, there are internal or external factors impacting probable incurred losses not taken into account by the quantitative calculations. These qualitative considerations are based on the following factors: changes in lending policies and procedures, changes in economic and business conditions, changes in the nature and volume of the portfolio, changes in lending management, changes in credit quality statistics, changes in concentrations of credit and other internal or external factor changes. We utilize an economic qualitative adjustment based on changes in unemployment rates if current unemployment rates in our markets are worse than they were on average over the last 24 months. We also qualitatively limit the impact of changes in first payment default rates and changes in delinquency when those changes result in a decrease to the allowance for bad debts based on a measure of the dispersion of historical charge-off rates. At January 31, 2020, we made a qualitative adjustment related to changes in the nature of the portfolio of $4.0 million. The qualitative adjustment primarily related to the impact of the performance of certain re-aged accounts. 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 based primarily on the performance of TDR loans over the last 24 months. The cash flows are discounted based on the weighted-average effective interest rate of the TDR accounts. The excess of the carrying amount over the discounted cash flow amount is recorded as an allowance for loss on those accounts . |
Inventories | Inventories. Inventories consist of merchandise purchased for resale and service parts and are recorded at the lower of cost or net realizable value. The carrying value of the inventory is reduced to its net realizable value for any product lines with excess of carrying amount, typically weighted-average cost, over the amount we expect to realize from the ultimate sale or other disposition of the inventory, with a corresponding charge to cost of sales. The write-down of inventory to net realizable value is estimated based on assumptions regarding inventory aging and historical product sales. |
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 an 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, 2020 , 2019 and 2018 , we recorded $156.6 million , $143.3 million and $153.0 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 expensed as incurred. Depreciation, which includes amortization of financed leases, is computed using 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 leases. |
Internal-Use Software Costs | Internal-Use Software Costs. Costs related to software developed or obtained for internal use and cloud-based computing arrangements 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. Costs incurred during the post implementation stage are expensed as incurred. Once placed into service, capitalized costs are amortized over periods of up to 10 years. For the year ended January 31, 2020, we incurred a $1.2 million loss on impairments of software costs for a loan management system that was abandoned during fiscal year 2020. No software costs were written-off in the year ended January 31, 2019. For the year ended January 31, 2018, we incurred a $5.9 million loss from the write-off of previously capitalized costs for a software project that was abandoned during fiscal year 2018. See Note 4, Charges and Credits, for further details regarding both the fiscal year 2020 and fiscal year 2018 write-offs. |
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. During the year ended January 31, 2020 , we recognized $3.2 million in impairments from the exiting of certain leases. See Note 4, Charges and Credits, for details. For the years ended January 31, 2019 and 2018 , no impairment charges were recorded. |
Debt Issuance Costs | Debt Issuance Costs. Costs that are direct and incremental to debt issuance are deferred and amortized to interest expense using the effective interest method over the expected life of the debt. All other costs related to debt issuance are expensed as incurred. We present debt issuance costs associated with long-term debt as a reduction of the carrying amount of the debt. Unamortized costs related to the Revolving Credit Facility, as defined in Note 6, Debt and Financing Lease Obligations , are included in other assets on our Consolidated Balance Sheet and were $3.5 million and $6.1 million as of January 31, 2020 and 2019 , respectively. |
Revenue Recognition | Revenue Recognition. The adoption of ASC 606 resulted in a change to our accounting policy related to retrospective income on RSAs. We participate in profit sharing agreements with the underwriters of our RSA products, payment from which is contingent upon the actual performance of the portfolio of the RSAs sold. Prior to the adoption of ASC 606, we recognized this revenue and related receivable as the amount due to us at each reporting date based on the performance of the portfolio through such date. The Company concluded that this retrospective income represents variable consideration under ASC 606 for which the Company’s performance obligation is satisfied when the RSA is sold to the customer. Under ASC 606, an estimate of variable consideration, subject to constraints, is to be included in the transaction price and recognized when or as the performance obligation is satisfied. As a result of the adoption of ASC 606, the Company changed its accounting policy related to retrospective income on RSAs to record an estimate of retrospective income when the RSA is sold, subject to constraints in the estimate. The Company’s estimate of the amount of variable consideration is recorded as a contract asset, representing a conditional right to payment, and is included within other accounts receivable in the Consolidated Balance Sheet. The estimated contract asset will be reassessed at the end of each reporting period, with changes thereto recorded as adjustments to revenue. The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 606 were as follows (in thousands): Impact of Adoption of ASC 606 (in thousands) Balance at January 31, 2018 Adjustments due to ASC 606 Balance at February 1, 2018 Assets Other Accounts Receivable $ 71,186 $ 1,210 $ 72,396 Deferred Income Taxes 21,565 (254 ) 21,311 Stockholder’s Equity $ 535,068 $ 956 $ 536,024 The adoption of ASC 606 did not have a material impact on the consolidated financial statements for the year ended January 31, 2018. The Company has the following material revenue streams: the sale of products (e.g. appliances, electronics) including delivery; the sale of third party warranty and insurance programs, including retrospective income; service income; interest income generated from the financing of point of sale transactions; and volume rebate incentives received from a third party financier. Interest income related to our customer accounts receivable balance and loan origination costs (including sales commissions) meet the scope exception of ASC 606 and are therefore not impacted by the adoption of this standard. For our twelve month no-interest option program, as a practical expedient acceptable under ASC 606, we do not adjust for the time value of money. Sale of Products Including Delivery: The Company has a single performance obligation associated with these contracts: the delivery of the product to the customer, at which point control transfers. Revenue for the sale of products is recognized at the time of delivery, net of any adjustments for sales incentives such as discounts, coupons, rebates or other free products or services. Sales financed through third-party no-interest option programs typically require us to pay a fee to the third party on each completed sale, which is recorded as a reduction of net sales in the retail segment. Sale of Third Party Warranty and Insurance Programs, Including Retrospective Income: We sell RSA and credit insurance contracts on behalf of unrelated third-parties. The Company has a single performance obligation associated with these contracts: the delivery of the product to the customer, at which point control transfers. Commissions related to these contracts are recognized in revenue upon delivery of the product. We also may serve as the administrator of the RSAs sold and defer 5% of the revenue received from the sale of RSAs as compensation for this performance obligation as 5% represents the estimated stand-alone sales price to serve as the administrator. The deferred RSA administration fee is recorded in income ratably over the life of the RSA contract sold. Retrospective income on RSA contracts is recognized upon delivery of the product based on an estimate of claims and is adjusted throughout the life of the contracts as actual claims materialize. Retrospective income on insurance contracts is recognized when earned as that is the point at which we no longer believe a significant reversal of income is probable as the consideration is highly susceptible to factors outside of our influence. Service Income: The Company has a single performance obligation associated with these contracts: the servicing of the RSA claims. Service revenues are recognized at the time service is provided to the customer. Volume Rebate Incentive: As part of our agreement with our third-party provider of no-interest option programs, we may receive a volume rebate incentive based on the total dollar value of sales made under our third-party provider. The Company has a single performance obligation associated with this contract: the delivery of the product to the customer, at which point control transfers. Revenue for the volume rebate incentive is recognized upon delivery of the product to the customer based on the projected total annual dollar value of sales to be made under our third-party provider. ASC 606 requires disaggregation of revenue recognized from contracts with customers to depict how the nature, amount, timing and uncertainty of revenue is affected by economic factors. The Company concluded that the disaggregated discrete financial information presented in Note 5, Finance Charges and Other Revenues , and Note 14, Segment Information , reviewed by our chief operating decision maker in evaluating the financial performance of our operating segments adequately addresses the disaggregation of revenue requirements of ASC 606. |
Deferred Revenue | Deferred Revenue. Deferred revenue related to contracts with customers consists of deferred customer deposits and deferred RSA administration fees. During the twelve months ended January 31, 2020, we recognized $1.0 million of revenue for customer deposits deferred as of the beginning of the period compared to $1.8 million recognized during the twelve months ended January 31, 2019. During the twelve months ended January 31, 2020, we recognized $5.1 million of revenue for RSA administrative fees deferred as of the beginning of the period compared to $5.4 million recognized during the twelve months ended January 31, 2019. |
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 (“SG&A”). |
Advertising Costs | Advertising Costs. Advertising costs are expensed as incurred. For fiscal years 2020 , 2019 and 2018 , advertising expense was $84.8 million , $80.5 million and $86.8 million , respectively. |
Stock-Based Compensation | Stock-based Compensation. Stock-based compensation expense is recorded, net of estimated forfeitures, for share-based compensation awards over the requisite service period using the straight-line method. An adjustment is made to compensation cost for any difference between the estimated forfeitures and the actual forfeitures related to the awards. For equity-classified share-based compensation awards, expense is recognized based on the grant-date fair value. 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. For grants of performance-based restricted stock units, the fair value of the grant is the market value of our stock at the date of issuance adjusted for a market condition, a performance condition and a service condition. |
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 net aggregate liability for claims incurred using development factors based on historical experience. |
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 GAAP 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 in which the enactment occurs. A valuation allowance is provided when it is more-likely-than-not that some portion or 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. |
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 includes the dilutive effects of any stock options, restricted stock unit awards (“RSUs”) and performance stock awards (“PSUs”), which are calculated using the treasury-stock method. The following table sets forth the shares outstanding for the earnings per share calculations: Year Ended January 31, 2020 2019 2018 Weighted-average common shares outstanding - Basic 30,275,662 31,668,370 31,192,439 Dilutive effect of stock options, RSUs and PSUs 539,113 706,005 585,384 Weighted-average common shares outstanding - Diluted 30,814,775 32,374,375 31,777,823 For the years ended January 31, 2020 , 2019 and 2018 , the weighted-average number of stock options, RSUs, and PSUs not included in the calculation due to their anti-dilutive effect, was 898,449 , 578,951 and 278,740 , respectively. |
Contingencies | Contingencies. An estimated loss from a contingency is recorded if it is probable that an asset has been impaired or a liability has 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 – Inputs represent unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (for example, quoted market prices for similar assets or liabilities in active markets or quoted market prices for identical assets or liabilities in markets not considered to be active, inputs other than quoted prices that are observable for the asset or liability, or market-corroborated inputs). • Level 3 – Inputs that are not observable from objective sources such as our internally developed assumptions used in pricing an asset or liability (for example, an estimate of future cash flows used in our internally developed present value of future cash flows model that underlies the fair-value measurement). In determining fair value, we use observable market data when available, or models that incorporate observable market data. When we are required to measure fair value and there is not a market-observable price for the asset or liability or for a similar asset or liability, we use the cost or income approach depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach is based on management’s best assumptions regarding expectations of future net cash flows and discounts the expected cash flows using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment, and the results are based on expected future events or conditions such as sales prices, economic and regulatory climates, and other factors, most of which are often outside of management’s control. However, we believe assumptions used reflect a market participant’s view of long-term prices, costs, and other factors and are consistent with assumptions used in our business plans and investment decisions. In arriving at fair-value estimates, we use relevant observable inputs available for the valuation technique employed. If a fair-value measurement reflects inputs at multiple levels within the hierarchy, the fair-value measurement is characterized based on the lowest level of input that is significant to the fair-value measurement. The fair value of cash and cash equivalents, restricted cash and accounts payable approximate their carrying amounts because of the short maturity of these instruments. The fair value of customer accounts receivable, determined using a Level 3 discounted cash flow analysis, approximates their carrying value, net of the allowance for doubtful accounts. 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, 2020 , the fair value of the Senior Notes outstanding, which was determined using Level 1 inputs, was $224.7 million as compared to the carrying value of $227.0 million , excluding the impact of the related discount. At January 31, 2020 , the fair value of the asset-backed notes approximates their carrying value and was determined using Level 2 inputs based on inactive trading activity. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted. In February 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize assets and liabilities for most leases. Effective February 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach. For most leases, a liability was 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 recognize a single lease cost on a straight line basis. Other leases are required to be accounted for as financing arrangements similar to how we previously accounted for capital leases. Upon adoption we elected a package of practical expedients permitted under the transition guidance within the new standard. The practical expedients adopted allowed us to carry forward the historical lease classification, allowed us to not separate and allocate the consideration paid between lease and non-lease components included within a contract and allowed us to carry forward our accounting treatment for land easements on existing agreements. We also adopted an optional transition method finalized by the FASB in July 2018 that waives the requirement to apply this ASU in the comparative periods presented within the financial statements in the year of adoption. Therefore, results for reporting periods beginning after February 1, 2019 are presented under ASC Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under ASC Topic 840. Additionally, we have elected the short-term policy election for the Company for any lease that, at the commencement date, has a lease term of twelve months or less. We will not recognize a lease liability or right-of-use asset on the balance sheet for any of our short-term leases. Rather, the short-term lease payments will be recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects our short-term lease commitments. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as a result of the adoption of ASC 842 were as follows (in thousands): Impact of Adoption of ASC 842 (in thousands) Balance at January 31, 2019 Adjustments due to ASC 842 Balance at February 1, 2019 Assets Current assets (1) $ 1,014,394 $ (2,983 ) $ 1,011,411 Operating lease right-of-use assets (2) — 227,421 227,421 Deferred income taxes (3) 27,535 (1,447 ) 26,088 Liabilities Current liabilities (4) 237,568 (12,426 ) 225,142 Operating lease liability - current (5) — 29,815 29,815 Deferred rent (4) 93,127 (93,127 ) — Operating lease liability - non-current (5) — 300,170 300,170 Other long-term liabilities (3) 33,015 (7,606 ) 25,409 Stockholder’s equity (3) 619,975 6,160 626,135 (1) Reclassification of the $3.0 million January 31, 2019 balance of accounts receivable for tenant improvement allowances to a reduction in the operating lease liability. (2) The operating lease right-of-use assets represent the present value of the lease liability offset by the full value of deferred rent and tenant improvement allowances received from the lessor which had not been utilized as of the date of adoption. (3) A net cumulative-effect adjustment to increase retained earnings by $6.2 million to recognize the $7.6 million January 31, 2019 balance of deferred gains which resulted from sale and operating leaseback transactions made at off-market terms offset by the $1.4 million impact on our deferred tax asset related to the sale-leaseback transactions. (4) Reclassification of the full value of deferred rent and tenant improvement allowances received from lessors, which were previously recorded as liabilities as they had not been utilized as of the date of adoption, to a reduction of the operating lease right-of-use assets. (5) The operating lease liability represents the $340.5 million present value of future operating lease obligations as of January 31, 2019, offset by $10.5 million of accounts receivable for tenant improvement allowances. Cloud Computing Arrangements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires companies to apply the accounting guidance as prescribed by ASC 350- 40, Internal Use Software , in determining which cloud-based implementation costs should be capitalized as assets or expensed as incurred. The internal-use software guidance requires the capitalization of certain costs incurred during the application development stage of an internal-use software project, while requiring companies to expense all costs incurred during preliminary project and post-implementation project stages. The standard may be applied either prospectively to all implementation costs incurred after the adoption date or retrospectively. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company elected to early adopt ASU 2018-15 on a prospective basis effective February 1, 2019. Costs eligible for capitalization will be capitalized within prepaid expenses and other assets and expensed through operating expenses in the consolidated balance sheets and statements of operations, respectively. Prior to adoption, eligible costs were capitalized within property and equipment and expensed through depreciation. As of January 31, 2020, there was $8.5 million in capitalized cloud-based implementation costs included on the balance sheet. Recent Accounting Pronouncements Yet To Be Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) . ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is a change from the current incurred loss model. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2019-04 requires that the current estimate of recoveries is included in the allowance for credit losses. The standards will become effective for us in the first quarter of fiscal year 2021, under a modified retrospective approach. Any changes in reserves will be recorded in retained earnings as of the beginning of the reporting period of adoption as a cumulative-effect adjustment. We performed a scoping analysis of our balance sheet to determine which accounts would be impacted by the new standard. Based on this review, it was determined that aside from the customer accounts receivable balance, no other financial statement line items would be materially impacted by CECL. We have formed a cross-functional working group comprised of individuals from various functional areas including credit, finance, accounting, and information technology to oversee our CECL implementation. We have developed a model based on our historical gross charge-off history, adjusted for expected recoveries and run the existing portfolio through preliminary simulations, which incorporated portfolio composition and economic expectations as of February 1, 2020. The results of those preliminary simulations indicate that our reserves for credit losses could increase between 40 - 60% upon implementation of ASU 2016-13. This projected increase is primarily driven by the required change from incurred to lifetime expected losses. However, we continue to refine and validate our model through review of key assumptions and parallel testing against both our current incurred loss model and a challenger model. These parallel runs will continue through fiscal year 2021. The ultimate impact on the date of adoption will depend on the size and composition of our portfolio, the portfolio’s credit quality and economic conditions at the time of adoption, in addition to refinements to our model, methodology and key assumptions. We have established formal policies supporting the accounting, controls and additional disclosures around the ASU 2016-13 implementation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 2019 2018 Weighted-average common shares outstanding - Basic 30,275,662 31,668,370 31,192,439 Dilutive effect of stock options, RSUs and PSUs 539,113 706,005 585,384 Weighted-average common shares outstanding - Diluted 30,814,775 32,374,375 31,777,823 |
Cumulative effect of the changes for adoption of Topic 842 | Impact of Adoption of ASC 842 (in thousands) Balance at January 31, 2019 Adjustments due to ASC 842 Balance at February 1, 2019 Assets Current assets (1) $ 1,014,394 $ (2,983 ) $ 1,011,411 Operating lease right-of-use assets (2) — 227,421 227,421 Deferred income taxes (3) 27,535 (1,447 ) 26,088 Liabilities Current liabilities (4) 237,568 (12,426 ) 225,142 Operating lease liability - current (5) — 29,815 29,815 Deferred rent (4) 93,127 (93,127 ) — Operating lease liability - non-current (5) — 300,170 300,170 Other long-term liabilities (3) 33,015 (7,606 ) 25,409 Stockholder’s equity (3) 619,975 6,160 626,135 The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 606 were as follows (in thousands): Impact of Adoption of ASC 606 (in thousands) Balance at January 31, 2018 Adjustments due to ASC 606 Balance at February 1, 2018 Assets Other Accounts Receivable $ 71,186 $ 1,210 $ 72,396 Deferred Income Taxes 21,565 (254 ) 21,311 Stockholder’s Equity $ 535,068 $ 956 $ 536,024 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted. In February 2016 the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize assets and liabilities for most leases. Effective February 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach. For most leases, a liability was 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 recognize a single lease cost on a straight line basis. Other leases are required to be accounted for as financing arrangements similar to how we previously accounted for capital leases. Upon adoption we elected a package of practical expedients permitted under the transition guidance within the new standard. The practical expedients adopted allowed us to carry forward the historical lease classification, allowed us to not separate and allocate the consideration paid between lease and non-lease components included within a contract and allowed us to carry forward our accounting treatment for land easements on existing agreements. We also adopted an optional transition method finalized by the FASB in July 2018 that waives the requirement to apply this ASU in the comparative periods presented within the financial statements in the year of adoption. Therefore, results for reporting periods beginning after February 1, 2019 are presented under ASC Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under ASC Topic 840. Additionally, we have elected the short-term policy election for the Company for any lease that, at the commencement date, has a lease term of twelve months or less. We will not recognize a lease liability or right-of-use asset on the balance sheet for any of our short-term leases. Rather, the short-term lease payments will be recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects our short-term lease commitments. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as a result of the adoption of ASC 842 were as follows (in thousands): Impact of Adoption of ASC 842 (in thousands) Balance at January 31, 2019 Adjustments due to ASC 842 Balance at February 1, 2019 Assets Current assets (1) $ 1,014,394 $ (2,983 ) $ 1,011,411 Operating lease right-of-use assets (2) — 227,421 227,421 Deferred income taxes (3) 27,535 (1,447 ) 26,088 Liabilities Current liabilities (4) 237,568 (12,426 ) 225,142 Operating lease liability - current (5) — 29,815 29,815 Deferred rent (4) 93,127 (93,127 ) — Operating lease liability - non-current (5) — 300,170 300,170 Other long-term liabilities (3) 33,015 (7,606 ) 25,409 Stockholder’s equity (3) 619,975 6,160 626,135 (1) Reclassification of the $3.0 million January 31, 2019 balance of accounts receivable for tenant improvement allowances to a reduction in the operating lease liability. (2) The operating lease right-of-use assets represent the present value of the lease liability offset by the full value of deferred rent and tenant improvement allowances received from the lessor which had not been utilized as of the date of adoption. (3) A net cumulative-effect adjustment to increase retained earnings by $6.2 million to recognize the $7.6 million January 31, 2019 balance of deferred gains which resulted from sale and operating leaseback transactions made at off-market terms offset by the $1.4 million impact on our deferred tax asset related to the sale-leaseback transactions. (4) Reclassification of the full value of deferred rent and tenant improvement allowances received from lessors, which were previously recorded as liabilities as they had not been utilized as of the date of adoption, to a reduction of the operating lease right-of-use assets. (5) The operating lease liability represents the $340.5 million present value of future operating lease obligations as of January 31, 2019, offset by $10.5 million of accounts receivable for tenant improvement allowances. Cloud Computing Arrangements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires companies to apply the accounting guidance as prescribed by ASC 350- 40, Internal Use Software , in determining which cloud-based implementation costs should be capitalized as assets or expensed as incurred. The internal-use software guidance requires the capitalization of certain costs incurred during the application development stage of an internal-use software project, while requiring companies to expense all costs incurred during preliminary project and post-implementation project stages. The standard may be applied either prospectively to all implementation costs incurred after the adoption date or retrospectively. ASU 2018-15 is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. The Company elected to early adopt ASU 2018-15 on a prospective basis effective February 1, 2019. Costs eligible for capitalization will be capitalized within prepaid expenses and other assets and expensed through operating expenses in the consolidated balance sheets and statements of operations, respectively. Prior to adoption, eligible costs were capitalized within property and equipment and expensed through depreciation. As of January 31, 2020, there was $8.5 million in capitalized cloud-based implementation costs included on the balance sheet. Recent Accounting Pronouncements Yet To Be Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (CECL) . ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. This is a change from the current incurred loss model. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses . ASU 2019-04 requires that the current estimate of recoveries is included in the allowance for credit losses. The standards will become effective for us in the first quarter of fiscal year 2021, under a modified retrospective approach. Any changes in reserves will be recorded in retained earnings as of the beginning of the reporting period of adoption as a cumulative-effect adjustment. We performed a scoping analysis of our balance sheet to determine which accounts would be impacted by the new standard. Based on this review, it was determined that aside from the customer accounts receivable balance, no other financial statement line items would be materially impacted by CECL. We have formed a cross-functional working group comprised of individuals from various functional areas including credit, finance, accounting, and information technology to oversee our CECL implementation. We have developed a model based on our historical gross charge-off history, adjusted for expected recoveries and run the existing portfolio through preliminary simulations, which incorporated portfolio composition and economic expectations as of February 1, 2020. The results of those preliminary simulations indicate that our reserves for credit losses could increase between 40 - 60% upon implementation of ASU 2016-13. This projected increase is primarily driven by the required change from incurred to lifetime expected losses. However, we continue to refine and validate our model through review of key assumptions and parallel testing against both our current incurred loss model and a challenger model. These parallel runs will continue through fiscal year 2021. The ultimate impact on the date of adoption will depend on the size and composition of our portfolio, the portfolio’s credit quality and economic conditions at the time of adoption, in addition to refinements to our model, methodology and key assumptions. We have established formal policies supporting the accounting, controls and additional disclosures around the ASU 2016-13 implementation. |
Customer Accounts Receivable (T
Customer Accounts Receivable (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Receivables [Abstract] | |
Schedule of customer accounts receivable | Customer accounts receivable consisted of the following: (in thousands) January 31, January 31, Customer accounts receivable portfolio balance $ 1,602,037 $ 1,589,828 Deferred fees and origination costs, net (15,746 ) (16,579 ) Allowance for no-interest option credit programs (14,984 ) (19,257 ) Allowance for uncollectible interest (23,662 ) (15,555 ) Carrying value of customer accounts receivable 1,547,645 1,538,437 Allowance for bad debts (210,142 ) (199,324 ) Carrying value of customer accounts receivable, net of allowance for bad debts 1,337,503 1,339,113 Short-term portion of customer accounts receivable, net $ (673,742 ) $ (652,769 ) Long-term customer accounts receivable, net $ 663,761 $ 686,344 Carrying Value (in thousands) January 31, January 31, Customer accounts receivable 60+ days past due (1) $ 193,797 $ 146,188 Re-aged customer accounts receivable (2)(3)(4) 455,704 395,576 Restructured customer accounts receivable (5) 211,857 183,641 (1) As of January 31, 2020 and 2019 , the carrying value of customer accounts receivable past due one day or greater was $527.0 million and $420.9 million , respectively. These amounts include the 60+ days past due balances shown above. (2) The re-aged carrying value as of January 31, 2020 and 2019 includes $131.4 million and $92.4 million in carrying value that are both 60+ days past due and re-aged. (3) The re-aged carrying value as of January 31, 2020 and 2019 includes $9.2 million and $26.5 million in first time re-ages related to customers within FEMA-designated Hurricane Harvey disaster areas. (4) The re-aged carrying value as of January 31, 2020 includes $6.9 million in first time re-ages related to customers within FEMA-designated Tropical Storm Imelda disaster areas. (5) The restructured carrying value as of January 31, 2020 and 2019 includes $64.8 million and $43.9 million in carrying value that are both 60+ days past due and restructured. |
Allowance for doubtful accounts and uncollectible interest for customer receivables | The following presents the activity in our allowance for doubtful accounts and uncollectible interest for customer accounts receivable: January 31, 2020 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 147,123 $ 67,756 $ 214,879 Provision (1) 177,250 91,356 268,606 Principal charge-offs (2) (158,773 ) (63,074 ) (221,847 ) Interest charge-offs (37,850 ) (15,037 ) (52,887 ) Recoveries (2) 17,930 7,123 25,053 Allowance at end of period $ 145,680 $ 88,124 $ 233,804 Average total customer portfolio balance $ 1,367,260 $ 200,618 $ 1,567,878 January 31, 2019 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 148,856 $ 54,716 $ 203,572 Provision (1) 174,552 74,514 249,066 Principal charge-offs (2) (157,789 ) (55,024 ) (212,813 ) Interest charge-offs (32,432 ) (11,310 ) (43,742 ) Recoveries (2) 13,936 4,860 18,796 Allowance at end of period $ 147,123 $ 67,756 $ 214,879 Average total customer portfolio balance $ 1,355,011 $ 171,717 $ 1,526,728 January 31, 2018 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 158,992 $ 51,183 $ 210,175 Provision (1) 189,786 71,047 260,833 Principal charge-offs (2) (177,682 ) (60,003 ) (237,685 ) Interest charge-offs (30,379 ) (10,259 ) (40,638 ) Recoveries (2) 8,139 2,748 10,887 Allowance at end of period $ 148,856 $ 54,716 $ 203,572 Average total customer portfolio balance $ 1,357,455 $ 143,245 $ 1,500,700 (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 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, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated January 31, (dollars in thousands) Useful Lives 2020 2019 Land — $ 1,644 $ 4,130 Buildings 30 years 4,115 1,748 Leasehold improvements 5 to 15 years 285,524 246,404 Equipment and fixtures 3 to 5 years 92,634 78,562 Finance/Capital leases 3 to 20 years 8,032 9,646 Construction in progress — 8,846 9,696 400,795 350,186 Less accumulated depreciation (227,764 ) (201,203 ) $ 173,031 $ 148,983 |
Charges and Credits (Tables)
Charges and Credits (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Charges and Credits [Abstract] | |
Schedule of Charges and Credits | Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Store and facility closure and relocation costs $ 1,933 $ — $ 2,381 Legal and professional fees and related reserves associated with the exploration of strategic alternatives, securities-related litigation, a legal judgment and other legal matters — 5,100 1,177 Indirect tax audit reserve — 1,943 2,595 Employee severance and executive management transition costs — 737 1,317 Write-off of capitalized software costs 1,209 — 5,861 $ 3,142 $ 7,780 $ 13,331 |
Finance Charges and Other Rev_2
Finance Charges and Other Revenues (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | |
Summary of finance charges and other revenues | Finance charges and other revenues consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Interest income and fees $ 341,224 $ 325,136 $ 289,005 Insurance income 38,417 29,556 34,718 Other revenues 810 447 341 Total finance charges and other revenues $ 380,451 $ 355,139 $ 324,064 |
Debt and Capital Lease Obliga_2
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long term debt | Debt and finance lease obligations consisted of the following: January 31, (in thousands) 2020 2019 Revolving Credit Facility $ 29,100 $ 266,500 Senior Notes 227,000 227,000 2017-B VIE Asset-backed Class B Notes — 98,297 2017-B VIE Asset-backed Class C Notes 59,655 78,640 2018-A VIE Asset-backed Class A Notes 34,112 105,971 2018-A VIE Asset-backed Class B Notes 20,572 63,908 2018-A VIE Asset-backed Class C Notes 20,572 63,908 2019-A VIE Asset-backed Class A Notes 76,241 — 2019-A VIE Asset-backed Class B Notes 64,750 — 2019-A VIE Asset-backed Class C Notes 62,510 — 2019-B VIE Asset-backed Class A Notes 265,810 — 2019-B VIE Asset-backed Class B Notes 85,540 — 2019-B VIE Asset-backed Class C Notes 83,270 — Warehouse Notes — 53,635 Financing lease obligations 5,209 5,075 Total debt and financing lease obligations 1,034,341 962,934 Less: Discount on debt (1,404 ) (1,966 ) Deferred debt issuance costs (6,797 ) (5,637 ) Current maturities of long-term debt and financing lease obligations (605 ) (54,109 ) Long-term debt and financing lease obligations $ 1,025,535 $ 901,222 |
Aggregate maturities of long-term debt | Future maturities of debt, excluding financing lease obligations, as of January 31, 2020 are as follows: (in thousands) Year Ended January 31, 2021 $ — 2022 — 2023 391,011 2024 203,501 2025 434,620 Total $ 1,029,132 |
Schedule of asset-backed notes | The asset-backed notes outstanding as of January 31, 2020 consisted of the following: Asset-Backed Notes Original Principal Amount Original Net Proceeds (1) Current Principal Amount Issuance Date Maturity Date Contractual Interest Rate Effective Interest Rate (2) 2017-B Class C Notes $ 78,640 $ 77,843 $ 59,655 12/20/2017 11/15/2022 5.95% 6.40% 2018-A Class A Notes 219,200 217,832 34,112 8/15/2018 1/17/2023 3.25% 4.82% 2018-A Class B Notes 69,550 69,020 20,572 8/15/2018 1/17/2023 4.65% 5.61% 2018-A Class C Notes 69,550 68,850 20,572 8/15/2018 1/17/2023 6.02% 6.98% 2019-A Class A Notes 254,530 253,026 76,241 4/24/2019 10/16/2023 3.40% 4.85% 2019-A Class B Notes 64,750 64,276 64,750 4/24/2019 10/16/2023 4.36% 5.14% 2019-A Class C Notes 62,510 61,898 62,510 4/24/2019 10/16/2023 5.29% 6.10% 2019-B Class A Notes 317,150 315,417 265,810 11/26/2019 6/17/2024 2.66% 3.63% 2019-B Class B Notes 85,540 84,916 85,540 11/26/2019 6/17/2024 3.62% 4.19% 2019-B Class C Notes 83,270 82,456 83,270 11/26/2019 6/17/2024 4.60% 5.17% Total $ 1,304,690 $ 1,295,534 $ 773,032 (1) After giving effect to debt issuance costs. (2) For the year ended January 31, 2020 , and inclusive of the impact of changes in timing of actual and expected cash flows. |
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, 2020 is presented below: Actual Required Interest Coverage Ratio for the quarter must equal or exceed minimum 3.29:1.00 1.00:1.00 Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum 3.34:1.00 1.50:1.00 Leverage Ratio must not exceed maximum 1.98:1.00 4.00:1.00 ABS Excluded Leverage Ratio must not exceed maximum 0.85:1.00 2.00:1.00 Capital Expenditures, net, must not exceed maximum $32.4 million $100.0 million |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2020 2019 Deferred tax assets: Allowance for doubtful accounts $ 18,642 $ 22,637 Deferred rent — 6,200 Deferred gains on sale-leaseback transactions — 1,447 Deferred revenue 807 908 Indirect tax reserve 3,039 3,025 Inventories 1,796 1,711 Lease liability 81,241 — Stock-based compensation 1,982 1,825 State net operating loss carryforwards 904 1,127 Other 2,614 3,093 Total deferred tax assets 111,025 41,973 Deferred tax liabilities: Right-of-use asset (54,492 ) — Vendor prepayments (1,147 ) (1,066 ) Sales tax receivable (4,842 ) (4,155 ) Property and equipment (31,627 ) (8,694 ) Other (318 ) (523 ) Total deferred tax liabilities (92,426 ) (14,438 ) Net deferred tax asset $ 18,599 $ 27,535 |
Components of provision (benefit) for income taxes | Provision for income taxes consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Current: Federal $ 9,215 $ 29,919 $ (25,891 ) State 1,611 2,308 1,184 Total current 10,826 32,227 (24,707 ) Deferred: Federal 7,590 (9,419 ) 49,536 State (102 ) 121 342 Total deferred 7,488 (9,298 ) 49,878 Provision for income taxes $ 18,314 $ 22,929 $ 25,171 |
Reconciliation of tax provision at statutory rate | A reconciliation of the provision (benefit) 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) 2020 2019 2018 Income tax provision at U.S. federal statutory rate (1) $ 15,607 $ 20,323 $ 10,696 State income taxes, net of federal benefit 2,011 2,068 1,910 Tax Act and other deferred tax adjustments (910 ) — 13,387 Provision to return adjustments — — (1,142 ) Employee benefits 1,873 1,096 — Other (267 ) (558 ) 320 Provision for income taxes $ 18,314 $ 22,929 $ 25,171 (1) As a result of H.R. 1 originally known as the Tax Cuts and Jobs Act (the “Tax Act”), the Company recorded a $0.3 million current income tax benefit in the fourth quarter of fiscal year 2018 as a result of using a 33.81% blended statutory rate for fiscal year 2018 instead of the prior statutory rate of 35%. |
Changes in balance of unrecognized tax benefits | Changes in the balance of unrecognized tax benefits, including interest and penalties on uncertain tax positions, were as follows: Year Ended January 31, (in thousands) 2020 2019 2018 Balance at February 1 $ (11,625 ) $ — $ — Increases related to prior year tax positions — (12,084 ) — Decreases related to prior year tax positions 241 459 — Balance at January 31 $ (11,384 ) $ (11,625 ) $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Leases, Operating [Abstract] | |
Lease, Cost [Table Text Block] | Supplemental lease information is summarized below: January 31, (in thousands) Balance sheet classification 2020 Assets Operating lease assets Operating lease right-of-use assets $ 242,457 Finance lease assets Property and equipment, net 5,028 Total leased assets $ 247,485 Liabilities Operating (1) Operating lease liability - current $ 47,118 Finance Current maturities of debt and finance lease obligations 605 Operating Operating lease liability - non current 329,081 Finance Long-term debt and finance lease obligations 4,604 Total lease liabilities $ 381,408 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2020 , we had $11.7 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2020 Operating lease costs (1) Selling, general and administrative expense $ 57,501 Impairment of ROU asset Charges and credits 1,933 Total operating lease cost $ 59,434 (1) Includes short-term and variable lease costs, which are not significant. Additional details regarding the Company’s leasing activities as a lessee are presented below: Other Information Year Ended January 31, (dollars in thousands) 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 69,829 Weighted-average remaining lease term (in years) Finance leases 11.2 Operating leases 7.1 Weighted-average discount rate Finance leases 6.1 % Operating leases (1) 8.3 % (1) Upon adoption of ASC 842, discount rates for existing operating leases were established as of February 1, 2019. |
Schedule of future minimum base rental payments | The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2020 : (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2021 $ 75,906 $ 916 $ 76,822 2022 75,660 916 76,576 2023 73,880 661 74,541 2024 68,519 831 69,350 2025 58,024 551 58,575 Thereafter 147,181 3,448 150,629 Total undiscounted cash flows 499,170 7,323 506,493 Less: Interest 122,971 2,114 125,085 Total lease liabilities $ 376,199 $ 5,209 $ 381,408 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expense | Total stock-based compensation expense, recognized primarily in SG&A, from stock-based compensation consisted of the following: Year Ended January 31, (in thousands) 2020 2019 2018 Stock options $ 3,978 $ 3,414 $ 236 RSUs and PSUs 8,316 8,540 7,622 Employee stock purchase plan 256 263 220 Accelerated RSU expense charged to severance — — 602 $ 12,550 $ 12,217 $ 8,680 |
Summary of incentive stock option plan activity | The following table summarizes the activity for outstanding stock options: Shares Under Option Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Outstanding, January 31, 2019 772,731 $ 28.49 Granted — $ — Exercised (24,340 ) $ 9.11 Forfeited and expired (4,200 ) $ 4.84 Outstanding, January 31, 2020 744,191 $ 29.73 7.7 Vested and expected to vest, January 31, 2020 744,191 $ 29.73 7.7 Exercisable, January 31, 2020 99,023 $ 16.03 5.3 |
Summary of the restricted stock units granted under the Omnibus Incentive Plan activity | The following table summarizes the activity for RSUs and PSUs: Time-Based RSUs Performance-Based RSUs Number of Units Weighted-Average Grant Date Fair Value Number of Units Weighted-Average Grant Date Fair Value Total Number of Units Balance, January 31, 2019 884,275 $ 18.73 467,000 $ 11.66 1,351,275 Granted 108,588 $ 19.68 33,894 $ 23.39 142,482 Vested and converted to common stock (369,839 ) $ 16.99 — $ — (369,839 ) Forfeited (34,201 ) $ 20.05 (7,000 ) $ 11.60 (41,201 ) Balance, January 31, 2020 588,823 $ 19.92 493,894 $ 12.47 1,082,717 |
Significant Vendors (Tables)
Significant Vendors (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 2019 2018 Vendor A 33.6 % 25.3 % 27.6 % Vendor B 16.3 16.1 14.8 Vendor C 11.0 7.0 6.5 Vendor D 9.6 6.7 5.3 Vendor E 9.5 5.2 4.1 Vendor F 5.7 5.0 3.8 85.7 % 65.3 % 62.1 % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents the assets and liabilities held by the VIEs (for legal purposes, the assets and liabilities of the VIEs will remain distinct from Conn’s, Inc.): (in thousands) January 31, January 31, Assets: Restricted cash $ 73,214 $ 57,475 Due from (due to) Conn’s, Inc., net 307 5,504 Customer accounts receivable: Customer accounts receivable 838,210 538,826 Restructured accounts 147,971 135,834 Allowance for uncollectible accounts (151,263 ) (106,327 ) Allowance for no-interest option credit programs (12,445 ) (8,047 ) Deferred fees and origination costs (8,255 ) (5,321 ) Total customer accounts receivable, net 814,218 554,965 Total assets $ 887,739 $ 617,944 Liabilities: Accrued expenses $ 5,517 $ 3,939 Other liabilities 7,584 5,513 Short-term debt: Warehouse Notes — 53,635 Long-term debt: 2017-B Class B Notes — 98,297 2017-B Class C Notes 59,655 78,640 2018-A Class A Notes 34,112 105,971 2018-A Class B Notes 20,572 63,908 2018-A Class C Notes 20,572 63,908 2019-A Class A Notes 76,241 — 2019-A Class B Notes 64,750 — 2019-A Class C Notes 62,510 — 2019-B Class A Notes 265,810 — 2019-B Class B Notes 85,540 — 2019-B Class C Notes 83,270 — 773,032 410,724 Less deferred debt issuance costs (4,911 ) (2,731 ) Total long-term debt 768,121 407,993 Total debt 768,121 461,628 Total liabilities $ 781,222 $ 471,080 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial information by segment | Financial information by segment is presented in the following tables: Year Ended January 31, 2020 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 370,931 $ — $ 370,931 Home appliance 360,441 — 360,441 Consumer electronics 221,449 — 221,449 Home office 73,074 — 73,074 Other 16,529 — 16,529 Product sales 1,042,424 — 1,042,424 Repair service agreement commissions 106,997 — 106,997 Service revenues 13,814 — 13,814 Total net sales 1,163,235 — 1,163,235 Finance charges and other revenues 810 379,641 380,451 Total revenues 1,164,045 379,641 1,543,686 Costs and expenses: Cost of goods sold 697,784 — 697,784 Selling, general and administrative expense (1) 346,108 156,916 503,024 Provision for bad debts 905 204,312 205,217 Charges and credits 1,933 1,209 3,142 Total costs and expenses 1,046,730 362,437 1,409,167 Operating income 117,315 17,204 134,519 Interest expense — 59,107 59,107 Loss on extinguishment of debt — 1,094 1,094 Income (loss) before income taxes $ 117,315 $ (42,997 ) $ 74,318 Additional Disclosures: Property and equipment additions $ 62,244 $ 200 $ 62,444 Depreciation expense $ 35,783 $ 1,058 $ 36,841 January 31, 2020 (in thousands) Retail Credit Total Total assets $ 641,812 $ 1,526,957 $ 2,168,769 Year Ended January 31, 2019 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 382,975 $ — $ 382,975 Home appliance 332,609 — 332,609 Consumer electronics 262,088 — 262,088 Home office 86,260 — 86,260 Other 14,703 — 14,703 Product sales 1,078,635 — 1,078,635 Repair service agreement commissions 101,928 — 101,928 Service revenues 14,111 — 14,111 Total net sales 1,194,674 — 1,194,674 Finance charges and other revenues 447 354,692 355,139 Total revenues 1,195,121 354,692 1,549,813 Costs and expenses: Cost of goods sold 702,135 — 702,135 Selling, general and administrative expense (1) 328,628 151,933 480,561 Provision for bad debts 1,009 197,073 198,082 Charges and credits 2,980 4,800 7,780 Total costs and expenses 1,034,752 353,806 1,388,558 Operating income 160,369 886 161,255 Interest expense — 62,704 62,704 Loss on extinguishment of debt — 1,773 1,773 Income (loss) before income taxes $ 160,369 $ (63,591 ) $ 96,778 Additional Disclosures: Property and equipment additions $ 36,110 $ 1,384 $ 37,494 Depreciation expense $ 30,739 $ 845 $ 31,584 January 31, 2019 (in thousands) Retail Credit Total Total assets $ 405,542 $ 1,479,365 $ 1,884,907 Year Ended January 31, 2018 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 393,853 $ — $ 393,853 Home appliance 337,538 — 337,538 Consumer electronics 248,727 — 248,727 Home office 80,330 — 80,330 Other 17,426 — 17,426 Product sales 1,077,874 — 1,077,874 Repair service agreement commissions 100,383 — 100,383 Service revenues 13,710 — 13,710 Total net sales 1,191,967 — 1,191,967 Finance charges and other revenues 341 323,723 324,064 Total revenues 1,192,308 323,723 1,516,031 Costs and expenses: Cost of goods sold 720,344 — 720,344 Selling, general and administrative expense (1) 316,325 134,088 450,413 Provision for bad debts 829 216,046 216,875 Charges and credits 13,331 — 13,331 Total costs and expenses 1,050,829 350,134 1,400,963 Operating income (loss) 141,479 (26,411 ) 115,068 Interest expense — 80,160 80,160 Loss on extinguishment of debt — 3,274 3,274 Income (loss) before income taxes $ 141,479 $ (109,845 ) $ 31,634 Additional Disclosures: Property and equipment additions $ 21,285 $ 42 $ 21,327 Depreciation expense $ 30,065 $ 741 $ 30,806 January 31, 2018 (in thousands) Retail Credit Total Total assets $ 344,327 $ 1,556,472 $ 1,900,799 (1) For the years ended January 31, 2020 , 2019 and 2018 , the amount of overhead allocated to each segment reflected in SG&A was $30.0 million , $36.4 million and $27.6 million , respectively. For the years ended January 31, 2020 , 2019 and 2018 , the amount of reimbursement made to the retail segment by the credit segment was $39.1 million , $38.1 million and $37.4 million , respectively. |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidated Balance Sheet | Consolidated Balance Sheets as of January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 5,485 $ — $ — $ 5,485 Restricted cash — 2,156 73,214 — 75,370 Customer accounts receivable, net of allowances — 279,978 393,764 — 673,742 Other accounts receivable — 68,753 — — 68,753 Inventories — 219,756 — — 219,756 Other current assets — 19,452 307 (3,999 ) 15,760 Total current assets — 595,580 467,285 (3,999 ) 1,058,866 Investment in and advances to subsidiaries 832,980 106,517 — (939,497 ) — Long-term portion of customer accounts receivable, net of allowance — 243,307 420,454 — 663,761 Property and equipment, net — 173,031 — — 173,031 Operating lease right-of-use assets — 242,457 — — 242,457 Deferred income taxes 18,599 — — — 18,599 Other assets — 12,055 — — 12,055 Total assets $ 851,579 $ 1,372,947 $ 887,739 $ (943,496 ) $ 2,168,769 Liabilities and Stockholders’ Equity Current liabilities: Current maturities of debt and financing lease obligations $ — $ 605 $ — $ — $ 605 Accounts payable — 48,554 — — 48,554 Accrued expenses 686 60,886 5,517 (3,999 ) 63,090 Operating lease liability - current — 35,390 — — 35,390 Other current liabilities — 10,416 4,215 — 14,631 Total current liabilities 686 155,851 9,732 (3,999 ) 162,270 Operating lease liability - non current — 329,081 — — 329,081 Long-term debt and financing lease obligations 223,713 33,701 768,121 — 1,025,535 Other long-term liabilities — 21,334 3,369 — 24,703 Total liabilities 224,399 539,967 781,222 (3,999 ) 1,541,589 Total stockholders’ equity 627,180 832,980 106,517 (939,497 ) 627,180 Total liabilities and stockholders’ equity $ 851,579 $ 1,372,947 $ 887,739 $ (943,496 ) $ 2,168,769 Consolidated Balance Sheets as of January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ 5,912 $ — $ — $ 5,912 Restricted cash — 1,550 57,475 — 59,025 Customer accounts receivable, net of allowances — 328,705 324,064 — 652,769 Other accounts receivable — 67,078 — — 67,078 Inventories — 220,034 — — 220,034 Other current assets — 12,344 5,504 (8,272 ) 9,576 Total current assets — 635,623 387,043 (8,272 ) 1,014,394 Investment in and advances to subsidiaries 815,524 146,864 — (962,388 ) — Long-term portion of customer accounts receivable, net of allowance — 455,443 230,901 — 686,344 Property and equipment, net — 148,983 — — 148,983 Deferred income taxes 27,535 — — — 27,535 Other assets — 7,651 — — 7,651 Total assets $ 843,059 $ 1,394,564 $ 617,944 $ (970,660 ) $ 1,884,907 Liabilities and Stockholders’ Equity Current liabilities: Current maturities of debt and financing lease obligations $ — $ 474 $ 53,635 $ — $ 54,109 Accounts payable — 71,118 — — 71,118 Accrued expenses 686 88,478 3,939 (2,768 ) 90,335 Other current liabilities — 24,918 2,592 (5,504 ) 22,006 Total current liabilities 686 184,988 60,166 (8,272 ) 237,568 Deferred rent — 93,127 — — 93,127 Long-term debt and financing lease obligations 222,398 270,831 407,993 — 901,222 Other long-term liabilities — 30,094 2,921 — 33,015 Total liabilities 223,084 579,040 471,080 (8,272 ) 1,264,932 Total stockholders’ equity 619,975 815,524 146,864 (962,388 ) 619,975 Total liabilities and stockholders’ equity $ 843,059 $ 1,394,564 $ 617,944 $ (970,660 ) $ 1,884,907 |
Condensed Consolidated Statement of Operations | Consolidated Statement of Operations for the year ended January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,194,674 $ — $ — $ 1,194,674 Finance charges and other revenues — 193,583 161,556 — 355,139 Servicing fee revenue — 40,947 — (40,947 ) — Total revenues — 1,429,204 161,556 (40,947 ) 1,549,813 Costs and expenses: Cost of goods sold — 702,135 — — 702,135 Selling, general and administrative expense — 479,995 41,513 (40,947 ) 480,561 Provision for bad debts — 68,056 130,026 — 198,082 Charges and credits — 7,780 — — 7,780 Total costs and expenses — 1,257,966 171,539 (40,947 ) 1,388,558 Operating income (loss) — 171,238 (9,983 ) — 161,255 Interest expense 17,782 12,498 32,424 — 62,704 Loss on extinguishment of debt — 142 1,631 — 1,773 Income (loss) before income taxes (17,782 ) 158,598 (44,038 ) — 96,778 Provision (benefit) for income taxes (4,213 ) 37,577 (10,435 ) — 22,929 Net income (loss) (13,569 ) 121,021 (33,603 ) — 73,849 Income (loss) from consolidated subsidiaries 87,418 (33,603 ) — (53,815 ) — Consolidated net income (loss) $ 73,849 $ 87,418 $ (33,603 ) $ (53,815 ) $ 73,849 Consolidated Statement of Operations for the year ended January 31, 2018 . (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,191,967 $ — $ — $ 1,191,967 Finance charges and other revenues — 173,539 150,525 — 324,064 Servicing fee revenue — 63,372 — (63,372 ) — Total revenues — 1,428,878 150,525 (63,372 ) 1,516,031 Costs and expenses: Cost of goods sold — 720,344 — — 720,344 Selling, general and administrative expense — 460,698 53,087 (63,372 ) 450,413 Provision for bad debts — 42,677 174,198 — 216,875 Charges and credits — 13,331 — — 13,331 Total costs and expenses — 1,237,050 227,285 (63,372 ) 1,400,963 Operating income (loss) — 191,828 (76,760 ) — 115,068 Interest expense 17,772 15,978 46,410 — 80,160 Loss on extinguishment of debt — 349 2,925 — 3,274 Income (loss) before income taxes (17,772 ) 175,501 (126,095 ) — 31,634 Provision (benefit) for income taxes (14,141 ) 139,647 (100,335 ) — 25,171 Net income (loss) (3,631 ) 35,854 (25,760 ) — 6,463 Income (loss) from consolidated subsidiaries 10,094 (25,760 ) — 15,666 — Consolidated net income (loss) $ 6,463 $ 10,094 $ (25,760 ) $ 15,666 $ 6,463 Consolidated Statements of Operations for the year ended January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Revenues: Total net sales $ — $ 1,163,235 $ — $ — $ 1,163,235 Finance charges and other revenues — 219,442 161,009 — 380,451 Servicing fee revenue — 38,240 — (38,240 ) — Total revenues — 1,420,917 161,009 (38,240 ) 1,543,686 Costs and expenses: Cost of goods sold — 697,784 — — 697,784 Selling, general and administrative expense — 502,398 38,866 (38,240 ) 503,024 Provision for bad debts — 128,230 76,987 — 205,217 Charges and credits — 3,142 — — 3,142 Total costs and expenses — 1,331,554 115,853 (38,240 ) 1,409,167 Operating income — 89,363 45,156 — 134,519 Interest expense 17,777 11,986 29,344 — 59,107 Loss on extinguishment of debt — 1,094 — — 1,094 Income (loss) before income taxes (17,777 ) 76,283 15,812 — 74,318 Provision (benefit) for income taxes (4,381 ) 18,798 3,897 — 18,314 Net income (loss) (13,396 ) 57,485 11,915 — 56,004 Income from consolidated subsidiaries 69,399 11,915 — (81,314 ) — Consolidated net income $ 56,003 $ 69,400 $ 11,915 $ (81,314 ) $ 56,004 |
Condensed Consolidated Statement of Cash Flows | Consolidated Statement of Cash Flows for the year ended January 31, 2019 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (1,237 ) $ 18,201 $ 134,837 $ — $ 151,801 Cash flows from investing activities: Purchase of customer accounts receivables — — (525,846 ) 525,846 — Sale of customer accounts receivables — — 525,846 (525,846 ) — Purchase of property and equipment — (32,814 ) — — (32,814 ) Net cash used in investing activities — (32,814 ) — — (32,814 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 358,300 — 358,300 Payments on asset-backed notes — (169,443 ) (570,432 ) — (739,875 ) Borrowings from Revolving Credit Facility — 1,836,822 — — 1,836,822 Payments on Revolving Credit Facility — (1,647,322 ) — — (1,647,322 ) Borrowings from warehouse facility — — 173,286 — 173,286 Payments of debt issuance costs and amendment fees — (3,230 ) (4,188 ) — (7,418 ) Payments on warehouse facility — — (119,650 ) — (119,650 ) Proceeds from stock issued under employee benefit plans 1,237 — — — 1,237 Tax payments associated with equity-based compensation transactions — (3,342 ) — — (3,342 ) Payments from extinguishment of debt — (1,178 ) — — (1,178 ) Other — (1,068 ) — — (1,068 ) Net cash provided by (used in) financing activities 1,237 11,239 (162,684 ) — (150,208 ) Net change in cash, cash equivalents and restricted cash — (3,374 ) (27,847 ) — (31,221 ) Cash, cash equivalents and restricted cash, beginning of period — 10,836 85,322 — 96,158 Cash, cash equivalents and restricted cash, end of period $ — $ 7,462 $ 57,475 $ — $ 64,937 Consolidated Statement of Cash Flows for the year ended January 31, 2018 . (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (3,318 ) $ (925,182 ) $ 979,022 $ — $ 50,522 Cash flows from investing activities: Purchase of customer accounts receivables — — (1,112,903 ) 1,112,903 — Sale of customer accounts receivables — 1,112,903 — (1,112,903 ) — Purchase of property and equipment — (16,918 ) — — (16,918 ) Proceeds from asset dispositions — — — — — Net cash provided by (used in) investing activities — 1,095,985 (1,112,903 ) — (16,918 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 1,042,034 — 1,042,034 Payments on asset-backed notes — (77,104 ) (922,923 ) — (1,000,027 ) Borrowings from Revolving Credit Facility — 1,717,012 — — 1,717,012 Payments on Revolving Credit Facility — (1,817,512 ) — — (1,817,512 ) Payments of debt issuance costs and amendment fees — (3,268 ) (10,606 ) — (13,874 ) Proceeds from stock issued under employee benefit plans 3,318 — — — 3,318 Tax payments associated with equity-based compensation transactions — (1,182 ) — — (1,182 ) Payments from extinguishment of debt — (836 ) — — (836 ) Other — (643 ) — — (643 ) Net cash provided by (used in) financing activities 3,318 (183,533 ) 108,505 — (71,710 ) Net change in cash, cash equivalents and restricted cash — (12,730 ) (25,376 ) — (38,106 ) Cash, cash equivalents and restricted cash, beginning of period — 23,566 110,698 — 134,264 Cash, cash equivalents and restricted cash, end of period $ — $ 10,836 $ 85,322 $ — $ 96,158 Consolidated Statements of Cash Flows for the year ended January 31, 2020 (in thousands) Conn’s, Inc. Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (988 ) $ 366,536 $ (285,482 ) $ — $ 80,066 Cash flows from investing activities: Purchase of customer accounts receivables — — (482,788 ) 482,788 — Sale of customer accounts receivables — — 482,788 (482,788 ) — Purchase of property and equipment — (57,546 ) — — (57,546 ) Proceeds from asset dispositions — 724 — — 724 Investment in subsidiary — (66,290 ) — 66,290 — Net cash used in investing activities — (123,112 ) — 66,290 (56,822 ) Cash flows from financing activities: Proceeds from issuance of asset-backed notes — — 867,750 — 867,750 Payments on asset-backed notes — — (505,442 ) — (505,442 ) Borrowings from Revolving Credit Facility — 1,625,440 — — 1,625,440 Contribution from subsidiary 66,290 — — (66,290 ) — Payments on Revolving Credit Facility — (1,865,069 ) — — (1,865,069 ) Payments of debt issuance costs and amendment fees — (424 ) (7,452 ) — (7,876 ) Payments on warehouse facility — — (53,635 ) — (53,635 ) Proceeds from stock issued under employee benefit plans 988 — — — 988 Tax payments associated with equity-based compensation transactions — (2,216 ) — — (2,216 ) Payment for share repurchases (66,290 ) — — — (66,290 ) Other — (976 ) — — (976 ) Net cash provided by (used in) financing activities 988 (243,245 ) 301,221 (66,290 ) (7,326 ) Net change in cash, cash equivalents and restricted cash — 179 15,739 — 15,918 Cash, cash equivalents and restricted cash, beginning of period — 7,462 57,475 — 64,937 Cash, cash equivalents and restricted cash, end of period $ — $ 7,641 $ 73,214 $ — $ 80,855 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
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, 2020 , 2019 and 2018 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: (dollars in thousands, except per share amounts) Fiscal Year 2020 Quarter Ended April 30 July 31 Restated October 31 (1) January 31 Revenues: Retail Segment $ 262,181 $ 306,265 $ 280,319 $ 315,280 Credit Segment 91,331 94,794 95,808 97,708 Total revenues $ 353,512 $ 401,059 $ 376,127 $ 412,988 Percent of annual revenues 22.9 % 26.0 % 24.4 % 26.7 % Costs and expenses: Cost of goods sold $ 157,228 $ 182,065 $ 170,453 $ 188,038 Operating income (loss): Retail Segment $ 25,897 $ 36,072 $ 19,598 $ 35,748 Credit Segment 13,122 5,702 10,706 (12,326 ) Total operating income $ 39,019 $ 41,774 $ 30,304 $ 23,422 Net income $ 19,509 $ 19,974 $ 11,469 $ 5,052 Income per share Basic (2) $ 0.61 $ 0.64 $ 0.39 $ 0.18 Diluted (2) $ 0.60 $ 0.62 $ 0.39 $ 0.17 (dollars in thousands, except per share amounts) Fiscal Year 2019 Quarter Ended April 30 July 31 October 31 January 31 Revenues: Retail Segment $ 275,770 $ 296,411 $ 284,053 $ 338,887 Credit Segment 82,617 88,209 89,771 94,095 Total revenues $ 358,387 $ 384,620 $ 373,824 $ 432,982 Percent of annual revenues 23.1 % 24.8 % 24.1 % 28.0 % Costs and expenses: Cost of goods sold $ 166,589 $ 173,627 $ 166,886 $ 195,033 Operating income (loss): Retail Segment $ 31,169 $ 39,238 $ 35,250 $ 54,712 Credit Segment 1,595 14 223 (946 ) Total operating income $ 32,764 $ 39,252 $ 35,473 $ 53,766 Net income $ 12,732 $ 17,011 $ 14,630 $ 29,476 Income per share: Basic (2) $ 0.40 $ 0.54 $ 0.46 $ 0.93 Diluted (2) $ 0.39 $ 0.53 $ 0.45 $ 0.91 Fiscal Year 2018 (dollars in thousands, except per share amounts) Quarter Ended April 30 July 31 October 31 January 31 Revenues: Retail Segment $ 279,365 $ 286,505 $ 291,903 $ 334,535 Credit Segment 76,461 80,142 81,269 85,851 Total revenues $ 355,826 $ 366,647 $ 373,172 $ 420,386 Percent of annual revenues 23.5 % 24.2 % 24.6 % 27.7 % Costs and expenses: Cost of goods sold $ 171,950 $ 172,306 $ 175,591 $ 200,497 Operating income (loss): Retail Segment $ 32,011 $ 31,299 $ 29,586 $ 48,583 Credit Segment (11,829 ) (2,107 ) (8,733 ) (3,742 ) Total operating income $ 20,182 $ 29,192 $ 20,853 $ 44,841 Net income (loss) $ (2,580 ) $ 4,273 $ 1,569 $ 3,201 Income (loss) per share Basic (2) $ (0.08 ) $ 0.14 $ 0.05 $ 0.10 Diluted (2) $ (0.08 ) $ 0.14 $ 0.05 $ 0.10 (1) Quarterly information adjusted for the restatements noted below. (2) 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. |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) Correction of Error (Tables) | 12 Months Ended |
Jan. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following tables present the effects this restatement had on the reported condensed consolidated interim financial statements for the Non-Reliance Periods: Statements of Income (dollars in thousands, except per share amounts) Three Months Ended October 31, 2019 As Previously Reported Q3 Corrections Restated Finance charges and other revenues $ 97,586 $ (1,581 ) $ 96,005 Total revenues 377,708 (1,581 ) 376,127 Provision for bad debts 42,586 3,339 45,925 Operating income 35,224 (4,920 ) 30,304 Income before taxes 20,173 (4,920 ) 15,253 Net income $ 15,143 $ (3,674 ) $ 11,469 Earnings per share: Basic $ 0.52 $ (0.13 ) $ 0.39 Diluted $ 0.51 $ (0.12 ) $ 0.39 Nine Months Ended October 31, 2019 As Previously Reported Q3 Corrections Restated Finance charges and other revenues $ 284,116 $ (1,581 ) $ 282,535 Total revenues 1,132,279 (1,581 ) 1,130,698 Provision for bad debts 132,368 3,339 135,707 Operating income 116,017 (4,920 ) 111,097 Income before taxes 72,073 (4,920 ) 67,153 Net income $ 54,626 $ (3,674 ) $ 50,952 Earnings per share: Basic $ 1.77 $ (0.12 ) $ 1.65 Diluted $ 1.74 $ (0.12 ) $ 1.62 Balance Sheet October 31, 2019 As Previously Reported Q3 Corrections Restated Customer accounts receivable, net of allowances $ 666,922 $ (4,920 ) $ 662,002 Income taxes receivable 1,688 912 2,600 Total current assets $ 1,047,752 $ (4,008 ) $ 1,043,744 Deferred income taxes 22,908 334 23,242 Total assets $ 2,156,825 $ (3,674 ) $ 2,153,151 Total stockholders’ equity $ 630,377 $ (3,674 ) $ 626,703 Total liabilities and stockholders’ equity $ 2,156,825 $ (3,674 ) $ 2,153,151 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||
Jan. 31, 2020USD ($)segmentshares | Jan. 31, 2019USD ($)shares | Jan. 31, 2018USD ($)shares | Jan. 31, 2017USD ($) | |
Schedule of Earnings Per Share [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | $ 233,804,000 | $ 214,879,000 | $ 203,572,000 | $ 210,175,000 |
Business | ||||
Operating segments | segment | 2 | |||
Cash and cash equivalents | ||||
Credit card deposits in-transit | $ 4,000,000 | 2,500,000 | ||
Customer Accounts Receivable | ||||
Delinquent accounts charged-off (more than) | 209 days | |||
Interest Income on Customer Accounts Receivable | ||||
Receivables in non-accrual status | $ 12,500,000 | 13,900,000 | ||
Receivables past due | 132,700,000 | 106,500,000 | ||
Amount in bankruptcy and less than 60 days past due | 12,100,000 | 12,000,000 | ||
Vendor Allowances | ||||
Vendor rebates | 156,600,000 | 143,300,000 | 153,000,000 | |
Internal-Use Software Costs | ||||
Write-off of capitalized software costs | 1,200,000 | 0 | 5,861,000 | |
Impairment of Long-Lived Assets | ||||
Impairment charges recorded | 3,200,000 | 0 | 0 | |
Debt Issuance Costs | ||||
Deferred debt issuance costs | (6,797,000) | (5,637,000) | ||
Advertising Costs | ||||
Advertising expense included in Selling, general and administrative expense | $ 84,800,000 | $ 80,500,000 | $ 86,800,000 | |
Earnings per Share | ||||
Weighted average common shares outstanding - Basic (in shares) | shares | 30,275,662 | 31,668,370 | 31,192,439 | |
Dilutive effect of stock options and restricted stock units (in shares) | shares | 539,113 | 706,005 | 585,384 | |
Weighted average common shares outstanding - Diluted (in shares) | shares | 30,814,775 | 32,374,375 | 31,777,823 | |
Weighted average number of options not included in the calculation of the dilutive effect of stock options and restricted stock units (in shares) | shares | 898,449 | 578,951 | 278,740 | |
Fair Value of Financial Instruments | ||||
Fair value of debt | $ 224,700,000 | |||
Secured debt | ||||
Fair Value of Financial Instruments | ||||
Carrying amount of debt | $ 227,000,000 | |||
Minimum | Equipment | ||||
Leases | ||||
Term of lease | 3 years | |||
Maximum | Equipment | ||||
Leases | ||||
Term of lease | 5 years | |||
Revolving Credit Facility | ||||
Debt Issuance Costs | ||||
Deferred debt issuance costs | $ (3,500,000) | $ (6,100,000) | ||
Customer Accounts Receivable | ||||
Interest Income on Customer Accounts Receivable | ||||
Deferred interest | 10,600,000 | 11,200,000 | ||
Securitized Receivables Servicer [Member] | ||||
Cash and cash equivalents | ||||
Restricted cash and cash equivalents | 59,700,000 | 45,300,000 | ||
Customer deposits | ||||
Fair Value of Financial Instruments | ||||
Deferred Revenue, Revenue Recognized | 1,000,000 | 1,800,000 | ||
RSA administrative fees | ||||
Fair Value of Financial Instruments | ||||
Deferred Revenue, Revenue Recognized | 5,100,000 | 5,400,000 | ||
VIE | ||||
Schedule of Earnings Per Share [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | 151,263,000 | 106,327,000 | ||
Interest Income on Customer Accounts Receivable | ||||
Deferred interest | 7,584,000 | 5,513,000 | ||
Debt Issuance Costs | ||||
Deferred debt issuance costs | (4,911,000) | (2,731,000) | ||
Fair Value of Financial Instruments | ||||
Carrying amount of debt | 768,121,000 | 461,628,000 | ||
VIE | Securitized Receivables Servicer [Member] | ||||
Cash and cash equivalents | ||||
Restricted cash and cash equivalents | $ 13,900,000 | $ 12,200,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Recent Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Feb. 01, 2019 | Feb. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans and Leases Receivable, Allowance | $ 11,700 | ||||
Net after-tax cumulative effect adjustment to retained earnings | $ 6,160 | $ 956 | |||
Decrease in cash used in financing activities | (7,326) | $ (150,208) | $ (71,710) | ||
Payment for debt extinguishment | 0 | $ 1,178 | $ 836 | ||
CapitalizedCloudBasedImplementationCosts | $ 8,500 | ||||
RSA administrative fees | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred Revenue, Percent Of Revenue Deferred | 5.00% | ||||
ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loans and Leases Receivable, Allowance | 10,500 | ||||
Sale Leaseback Transaction, Deferred Gain, Gross | (7,600) | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net after-tax cumulative effect adjustment to retained earnings | 6,160 | $ 956 | |||
Retained Earnings | ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net after-tax cumulative effect adjustment to retained earnings | $ 6,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cumulative Effect of the Changes for Adoption of Topic 606 (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | Feb. 01, 2018 | Jan. 31, 2018 | Jan. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Assets, Current | $ 1,058,866 | $ 1,043,744 | $ 1,011,411 | $ 1,014,394 | |||
Other accounts receivable | 68,753 | 67,078 | |||||
Operating lease right-of-use assets (2) | 18,599 | 23,242 | 26,088 | 27,535 | |||
Deferred income taxes (3) | 627,180 | $ 626,703 | 626,135 | 619,975 | $ 535,068 | $ 517,790 | |
Operating Lease, Right-of-Use Asset | 242,457 | 227,421 | 0 | ||||
Liabilities, Current | 162,270 | 225,142 | 237,568 | ||||
Operating Lease, Liability, Current | 35,390 | 29,815 | 0 | ||||
Deferred Rent Credit, Noncurrent | 0 | 0 | 93,127 | ||||
Operating Lease, Liability, Noncurrent | 329,081 | 300,170 | 0 | ||||
Other Liabilities, Noncurrent | $ 24,703 | 25,409 | $ 33,015 | ||||
ASU 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accounts receivable | $ 72,396 | ||||||
Operating lease right-of-use assets (2) | 21,311 | ||||||
Deferred income taxes (3) | 536,024 | ||||||
ASU 2014-09 | Balance at January 31, 2019 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accounts receivable | 71,186 | ||||||
Operating lease right-of-use assets (2) | 21,565 | ||||||
Deferred income taxes (3) | $ 535,068 | ||||||
ASU 2014-09 | Adjustments due to ASC 842 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Other accounts receivable | 1,210 | ||||||
Operating lease right-of-use assets (2) | (254) | ||||||
Deferred income taxes (3) | $ 956 | ||||||
ASU 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Assets, Current | (2,983) | ||||||
Operating lease right-of-use assets (2) | (1,447) | ||||||
Deferred income taxes (3) | 6,160 | ||||||
Operating Lease, Right-of-Use Asset | 227,421 | ||||||
Liabilities, Current | (12,426) | ||||||
Operating Lease, Liability, Current | 29,815 | ||||||
Deferred Rent Credit, Noncurrent | (93,127) | ||||||
Operating Lease, Liability, Noncurrent | 300,170 | ||||||
Other Liabilities, Noncurrent | $ (7,606) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recent Accounting Pronouncements Yet To Be Adopted (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred Income Tax Assets, Net | $ 18,599 | $ 23,242 | $ 26,088 | $ 27,535 |
Operating Lease, Liability | 376,199 | |||
Right-of-use assets | $ 242,457 | 227,421 | $ 0 | |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
AllowanceforLoanLossesEstimatedIncreaseDecreasePercent | 40.00% | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
AllowanceforLoanLossesEstimatedIncreaseDecreasePercent | 60.00% | |||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Deferred Income Tax Assets, Net | (1,447) | |||
Operating Lease, Liability | 340,500 | |||
Right-of-use assets | $ 227,421 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Allowance for Doubtful Accounts (Details) $ in Millions | Jan. 31, 2020USD ($) |
Allowance for Doubtful Accounts [Abstract] | |
Portfolio Qualitative Adjustment | $ 4 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Revenue Recognition (Details) | Jan. 31, 2020 |
RSA administrative fees | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Deferred Revenue, Percent Of Revenue Deferred | 5.00% |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Business (Details) | 12 Months Ended |
Jan. 31, 2020segment | |
Business [Abstract] | |
Operating segments | 2 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Credit card deposits in-transit | $ 4 | $ 2.5 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Restricted Cash (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Jan. 31, 2019 |
Securitized Receivables Servicer [Member] | ||
Restricted cash and cash equivalents | $ 59.7 | $ 45.3 |
Customer Accounts Receivable -
Customer Accounts Receivable - Schedule of Customer Accounts Receivable (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2019 |
Receivables [Abstract] | |||
Customer accounts receivable portfolio balance | $ 1,602,037 | $ 1,589,828 | |
Deferred fees and origination costs, net | (15,746) | (16,579) | |
Allowance for no-interest option credit programs | (14,984) | (19,257) | |
Allowance for uncollectible interest | (23,662) | (15,555) | |
Carrying value of customer accounts receivable | 1,547,645 | 1,538,437 | |
Allowance for bad debts | 210,142 | 199,324 | |
Carrying value of customer accounts receivable, net of allowance for bad debts | 1,337,503 | 1,339,113 | |
Short-term portion of customer accounts receivable, net | (673,742) | $ (662,002) | (652,769) |
Long-term customer accounts receivable, net | 663,761 | 686,344 | |
Customer accounts receivable 60 plus days past due | 193,797 | 146,188 | |
Re-aged customer accounts receivable | 455,704 | 395,576 | |
Restructured customer accounts receivable | 211,857 | 183,641 | |
Total amount of customer receivables past due one day or greater | 527,000 | 420,900 | |
Amounts included within past due and reaged accounts | 131,400 | 92,400 | |
Re-aged receivable balance | 9,200 | 26,500 | |
Finance Receivable, Re-Aged Imelda | 6,900 | ||
Amounts included within past due and restructured accounts | $ 64,800 | $ 43,900 |
Customer Accounts Receivable _2
Customer Accounts Receivable - Allowance for Doubtful Accounts and Uncollectible Interest for Customer Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | $ 214,879 | $ 203,572 | $ 210,175 |
Provision | 268,606 | 249,066 | 260,833 |
Principal charge-offs | (221,847) | (212,813) | (237,685) |
Interest charge-offs | (52,887) | (43,742) | (40,638) |
Recoveries | 25,053 | 18,796 | 10,887 |
Allowance at end of period | 233,804 | 214,879 | 203,572 |
Average total customer portfolio balance | 1,567,878 | 1,526,728 | 1,500,700 |
Customer Accounts Receivable | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 147,123 | 148,856 | 158,992 |
Provision | 177,250 | 174,552 | 189,786 |
Principal charge-offs | (158,773) | (157,789) | (177,682) |
Interest charge-offs | (37,850) | (32,432) | (30,379) |
Recoveries | 17,930 | 13,936 | 8,139 |
Allowance at end of period | 145,680 | 147,123 | 148,856 |
Average total customer portfolio balance | 1,367,260 | 1,355,011 | 1,357,455 |
Restructured Accounts | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 67,756 | 54,716 | 51,183 |
Provision | 91,356 | 74,514 | 71,047 |
Principal charge-offs | (63,074) | (55,024) | (60,003) |
Interest charge-offs | (15,037) | (11,310) | (10,259) |
Recoveries | 7,123 | 4,860 | 2,748 |
Allowance at end of period | 88,124 | 67,756 | 54,716 |
Average total customer portfolio balance | $ 200,618 | $ 171,717 | $ 143,245 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 400,795 | $ 350,186 |
Less accumulated depreciation | (227,764) | (201,203) |
Total property and equipment, net | 173,031 | 148,983 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | 1,644 | 4,130 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 4,115 | 1,748 |
Estimated life | 30 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 285,524 | 246,404 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 15 years | |
Equipment and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 92,634 | 78,562 |
Equipment and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 3 years | |
Equipment and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 5 years | |
Finance/Capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 8,032 | 9,646 |
Finance/Capital leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 3 years | |
Finance/Capital leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 20 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 8,846 | $ 9,696 |
Property and Equipment - Additi
Property and Equipment - Additional Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 36,841 | $ 31,584 | $ 30,806 |
Charges and Credits (Details)
Charges and Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Gain (Loss) on Disposition of Assets | $ 600 | ||
Sublease Income | 700 | ||
LegalJudgment | $ 4,800 | ||
Store and facility closure and relocation costs | 1,933 | 0 | $ 2,381 |
Legal and professional fees and related reserves associated with the exploration of strategic alternatives, securities-related litigation, a legal judgment and other legal matters | 0 | 5,100 | 1,177 |
Indirect tax audit reserve | 0 | 1,943 | 2,595 |
Employee severance and executive management transition costs | 0 | 737 | 1,317 |
Write-off of capitalized software costs | 1,200 | 0 | 5,861 |
Charges and credits | 3,142 | $ 7,780 | $ 13,331 |
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of Leasehold | $ 3,200 |
Finance Charges and Other Rev_3
Finance Charges and Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | |||||
Interest income and fees | $ 341,224 | $ 325,136 | $ 289,005 | ||
Insurance income | 38,417 | 29,556 | 34,718 | ||
Other FCO Revenue | 810 | 447 | 341 | ||
Other Income | $ 96,005 | $ 282,535 | 380,451 | 355,139 | 324,064 |
Provisions for uncollectible interest | 64,100 | 52,000 | 44,800 | ||
Financing Receivable, Modifications [Line Items] | |||||
Interest income and fees | 341,224 | 325,136 | 289,005 | ||
Insurance income | 38,417 | 29,556 | 34,718 | ||
Other FCO Revenue | 810 | 447 | 341 | ||
Other Income | $ 96,005 | $ 282,535 | 380,451 | 355,139 | 324,064 |
Provisions for uncollectible interest | 64,100 | 52,000 | 44,800 | ||
TDR accounts | |||||
Supplemental Disclosure of Finance Charges and Other Revenue [Abstract] | |||||
Interest income and fees | 35,300 | 27,200 | 19,300 | ||
Financing Receivable, Modifications [Line Items] | |||||
Interest income and fees | $ 35,300 | $ 27,200 | $ 19,300 |
Debt and Capital Lease Obliga_3
Debt and Capital Lease Obligations - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Debt Instrument [Line Items] | ||
Current Principal Amount | $ 1,029,132 | |
Financing lease obligations | 5,209 | $ 5,075 |
Total debt and financing lease obligations | 1,034,341 | 962,934 |
Discount on debt | (1,404) | (1,966) |
Deferred debt issuance costs | (6,797) | (5,637) |
Current maturities of long-term debt and financing lease obligations | (605) | (54,109) |
Long-term debt and capital lease obligations | 1,025,535 | 901,222 |
VIE | Warehouse Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 53,635 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs | (3,500) | (6,100) |
Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 29,100 | 266,500 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 227,000 | 227,000 |
Secured debt | 2019-A VIE Class A Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 76,241 | 0 |
Secured debt | 2019-A VIE Class B Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 64,750 | 0 |
Secured debt | 2019-B VIE Class C Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 83,270 | 0 |
Secured debt | 2019-A VIE Class C Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 62,510 | 0 |
Secured debt | 2019-B VIE Class A Notes [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 265,810 | $ 0 |
Debt and Capital Lease Obliga_4
Debt and Capital Lease Obligations - Maturities of Long-term Debt (Details) $ in Thousands | Jan. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 391,011 |
2023 | 203,501 |
2024 | 434,620 |
Total | $ 1,029,132 |
Debt and Capital Lease Obliga_5
Debt and Capital Lease Obligations - Senior Notes (Details) - Senior Notes - Senior unsecured notes due July 2022 - USD ($) | Jan. 31, 2020 | Jul. 01, 2014 |
Debt Instrument [Line Items] | ||
Original Principal Amount | $ 250,000,000 | |
Contractual Interest Rate | 7.25% | |
Effective interest rate percentage | 7.80% | |
Restrictions on payment of dividends, amount free from restriction | $ 190,100,000 | |
Debt default trigger amount | $ 25,000,000 |
Debt and Capital Lease Obliga_6
Debt and Capital Lease Obligations - Asset-backed Notes (Details) - USD ($) $ in Thousands | Nov. 26, 2019 | Apr. 24, 2019 | Jan. 31, 2020 |
2019-B VIE Class B Notes [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 85,540 | ||
Proceeds from issuance of debt | $ 84,916 | ||
Contractual Interest Rate | 3.62% | 3.62% | |
Effective interest rate percentage | 4.19% | ||
2019-B VIE Class C Notes [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 83,270 | ||
Proceeds from issuance of debt | $ 82,456 | ||
Contractual Interest Rate | 4.60% | 4.60% | |
Effective interest rate percentage | 5.17% | ||
2019-B VIE Class A, B, C Notes [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 486,000 | ||
Proceeds from issuance of debt | 482,800 | ||
2019-B VIE Class A Notes [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | 317,150 | ||
Proceeds from issuance of debt | $ 315,417 | ||
Contractual Interest Rate | 2.66% | 2.66% | |
Effective interest rate percentage | 3.63% | ||
2019-A VIE Class A, B, And C Notes [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 381,800 | ||
Proceeds from issuance of debt | 379,200 | ||
2019-A VIE Class A Notes [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | 254,530 | ||
Proceeds from issuance of debt | $ 253,026 | ||
Contractual Interest Rate | 3.40% | 3.40% | |
Effective interest rate percentage | 4.85% | ||
2019-A VIE Class B Notes [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 64,750 | ||
Proceeds from issuance of debt | $ 64,276 | ||
Contractual Interest Rate | 4.36% | 4.36% | |
Effective interest rate percentage | 5.14% | ||
2019-A VIE Class C Notes [Member] | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 62,510 | ||
Proceeds from issuance of debt | $ 61,898 | ||
Contractual Interest Rate | 5.29% | 5.29% | |
Effective interest rate percentage | 6.10% | ||
Asset-backed receivables | |||
Debt Instrument [Line Items] | |||
Monthly fee received (annualized) (as percent) | 4.75% | ||
Secured debt | 2017-B Class C Notes | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 5.95% | ||
Effective interest rate percentage | 6.40% | ||
Secured debt | 2018-A Class A Notes | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 3.25% | ||
Effective interest rate percentage | 4.82% | ||
Secured debt | 2018-A Class B Notes | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 4.65% | ||
Effective interest rate percentage | 5.61% | ||
Secured debt | 2018-A Class C Notes | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 6.02% | ||
Effective interest rate percentage | 6.98% |
Debt and Capital Lease Obliga_7
Debt and Capital Lease Obligations - Schedule of Asset-Backed Notes (Details) - VIE - USD ($) | Aug. 15, 2018 | Dec. 20, 2017 | Jan. 31, 2020 | Jan. 31, 2019 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 768,121,000 | $ 461,628,000 | ||
Current Principal Amount | 773,032,000 | 410,724,000 | ||
Asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Original Principal Amount | 1,304,690,000 | |||
Original Net Proceeds | 1,295,534,000 | |||
Current Principal Amount | 773,032,000 | |||
Secured debt | 2017-B Class B Notes | ||||
Debt Instrument [Line Items] | ||||
Current Principal Amount | 0 | 98,297,000 | ||
Secured debt | 2017-B Class C Notes | ||||
Debt Instrument [Line Items] | ||||
Original Principal Amount | $ 78,640,000 | |||
Original Net Proceeds | $ 77,843,000 | |||
Current Principal Amount | 59,655,000 | 78,640,000 | ||
Secured debt | 2018-A Class A Notes | ||||
Debt Instrument [Line Items] | ||||
Original Principal Amount | $ 219,200,000 | |||
Original Net Proceeds | 217,832,000 | |||
Current Principal Amount | 34,112,000 | 105,971,000 | ||
Secured debt | 2018-A Class B Notes | ||||
Debt Instrument [Line Items] | ||||
Original Principal Amount | 69,550,000 | |||
Original Net Proceeds | 69,020,000 | |||
Current Principal Amount | 20,572,000 | 63,908,000 | ||
Secured debt | 2018-A Class C Notes | ||||
Debt Instrument [Line Items] | ||||
Original Principal Amount | 69,550,000 | |||
Original Net Proceeds | $ 68,850,000 | |||
Current Principal Amount | $ 20,572,000 | $ 63,908,000 |
Debt and Capital Lease Obliga_8
Debt and Capital Lease Obligations - Revolving Credit Facility (Details) | 12 Months Ended | 20 Months Ended | |
Jan. 31, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Interest Coverage Ratio for the trailing two quarters must equal or exceed (minimum) | 3.34 | ||
Interest Coverage Ratio for the quarter must equal or exceed minimum | 1 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 416,800,000 | $ 416,800,000 | |
Outstanding letters of credit | 2,500,000 | 2,500,000 | |
Line Of Credit Facility Additional Remaining Borrowing Capacity | $ 201,600,000 | $ 201,600,000 | |
Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 650,000,000 | ||
Weighted average interest rate | 6.40% | 6.40% | |
Restrictions on payment of dividends, amount free from restriction | $ 308,600,000 | $ 308,600,000 | |
Sub-facility letters of credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Original Principal Amount | $ 40,000,000 | $ 40,000,000 | |
LIBOR | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 1.00% | ||
Federal funds rate | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 0.50% | ||
Minimum | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Unused capacity fee percentage | 0.25% | ||
Minimum | LIBOR | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 2.50% | ||
Minimum | Base rate | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 1.50% | ||
Maximum | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Unused capacity fee percentage | 0.50% | ||
Maximum | LIBOR | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 3.25% | ||
Maximum | Base rate | Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Contractual Interest Rate | 2.25% |
Debt and Capital Lease Obliga_9
Debt and Capital Lease Obligations - Debt Covenants (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2020USD ($) | |
Actual | |
Interest Coverage Ratio for the quarter must equal or exceed minimum | 3.29 |
Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum | 3.34 |
Leverage Ratio must not exceed maximum | 1.98 |
ABS Excluded Leverage Ratio must not exceed maximum | 0.85 |
Capital Expenditures, net, must not exceed maximum | $ 32.4 |
Required Minimum/ Maximum | |
Interest Coverage Ratio for the quarter must equal or exceed minimum | 1 |
Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum | 1.50 |
Leverage Ratio must not exceed maximum | 4 |
ABS Excluded Leverage Ratio must not exceed maximum | 2 |
Capital Expenditures, net, must not exceed maximum | $ 100 |
Cash recovery percent covenant determination period | 4 years |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Jan. 31, 2019 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 18,642 | $ 22,637 |
Deferred rent | 0 | 6,200 |
Deferred gains on sale-leaseback transactions | 0 | 1,447 |
Deferred revenue | 807 | 908 |
Indirect tax reserve | 3,039 | 3,025 |
Inventories | 1,796 | 1,711 |
DeferredTaxAssetsOperatingLeaseLiability | 81,241 | 0 |
Stock-based compensation | 1,982 | 1,825 |
State net operating loss carryforwards | 904 | 1,127 |
Other | 2,614 | 3,093 |
Total deferred tax assets | 111,025 | 41,973 |
Deferred tax liabilities: | ||
DeferredTaxLiabilitiesOperatingLeaseRightOfUseAssets | (54,492) | 0 |
Vendor prepayments | (1,147) | (1,066) |
Sales tax receivable | (4,842) | (4,155) |
Property and equipment | (31,627) | (8,694) |
Other | (318) | (523) |
Total deferred tax liabilities | 92,426 | 14,438 |
Net deferred tax asset | $ 18,599 | $ 27,535 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Current: | |||
Federal | $ 9,215 | $ 29,919 | $ (25,891) |
Federal | 1,611 | 2,308 | 1,184 |
Total current | 10,826 | 32,227 | (24,707) |
Deferred: | |||
Federal | 7,590 | (9,419) | 49,536 |
State | (102) | 121 | 342 |
Total deferred | 7,488 | (9,298) | |
Total deferred | 7,488 | (6,224) | 49,878 |
Provision (benefit) for income taxes | $ 18,314 | $ 22,929 | $ 25,171 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Provision at Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) at U.S. federal statutory rate | $ 15,607 | $ 20,323 | $ 10,696 |
State income taxes, net of federal benefit | 2,011 | 2,068 | 1,910 |
Tax Act and other deferred tax adjustments | (910) | 0 | 13,387 |
Provision to return adjustments | 0 | 0 | (1,142) |
Employee benefits | 1,873 | 1,096 | 0 |
Other | (267) | (558) | 320 |
Provision (benefit) for income taxes | $ 18,314 | $ 22,929 | $ 25,171 |
Income Taxes - Additional Discl
Income Taxes - Additional Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Current tax benefit related to the change in tax rate | $ 0.3 | |||
Blended rate | 33.81% | |||
Unrecognized tax benefits that if recognized would affect the annual effective tax rate | $ 3.5 | $ 3.5 | $ 3.5 | |
Interest and penalties | $ 0.7 | $ 0.1 |
Income Taxes - Changes in Balan
Income Taxes - Changes in Balance of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at February 1 | $ (11,625) | $ 0 | $ 0 |
Increases related to prior year tax positions | 0 | (12,084) | 0 |
Decreases related to prior year tax positions | 241 | 459 | 0 |
Balance at January 31 | $ (11,384) | $ (11,625) | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Feb. 01, 2019 | |
Operating Lease, Payments | $ 69,829 | |||
Operating Lease, Cost | 57,501 | |||
Operating Lease, Right-of-Use Asset | 242,457 | $ 0 | $ 227,421 | |
Total rent expense | 58,100 | 52,700 | $ 51,400 | |
Operating Leases | ||||
2020 | 75,906 | |||
2021 | 75,660 | |||
2022 | 73,880 | |||
2023 | 68,519 | |||
2024 | 58,024 | |||
Thereafter | 147,181 | |||
Total undiscounted cash flows | 499,170 | |||
Finance Leases | ||||
2020 | 916 | |||
2021 | 916 | |||
2022 | 661 | |||
2023 | 831 | |||
2024 | 551 | |||
Thereafter | 3,448 | |||
Total undiscounted cash flows | 7,323 | |||
Lessee, Lease, Liability, Payments, Due | 506,493 | |||
Lessee, Lease, Liability, Payments, Due After Year Five | 150,629 | |||
Lessee, Lease, Liability, Payments, Due Year Five | 58,575 | |||
Lessee, Lease, Liability, Payments, Due Year Four | 69,350 | |||
Lessee, Lease, Liability, Payments, Due Year Three | 74,541 | |||
Lessee, Lease, Liability, Payments, Due Year Two | 76,576 | |||
Lessee, Lease, Liability, Payments, Remainder Of Fiscal Year | 76,822 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 122,971 | |||
Less: Interest | 2,114 | |||
Lessee, Lease, Liability, Payments, Undiscounted Excess Amount | 125,085 | |||
Operating Lease, Liability | 376,199 | |||
Total lease liabilities | 5,209 | |||
Finance Lease, Right-of-Use Asset | 5,028 | |||
Lease, Right-Of-Use Asset | 247,485 | |||
Gross Operating Lease, Liability, Current | 47,118 | |||
Finance Lease, Liability, Current | 605 | |||
Operating Lease, Liability, Noncurrent | 329,081 | $ 0 | $ 300,170 | |
Finance Lease, Liability, Noncurrent | 4,604 | |||
Lease, Liability | 381,408 | |||
Operating Lease, Impairment Loss | 1,933 | |||
Lease, Cost | $ 59,434 | |||
Finance Lease, Weighted Average Remaining Lease Term | 11 years 2 months 12 days | |||
Operating Lease, Weighted Average Remaining Lease Term | 7 years 1 month 24 days | |||
Finance Lease, Weighted Average Discount Rate, Percent | 6.10% | |||
Operating Lease, Weighted Average Discount Rate, Percent | 8.30% | |||
Lease, Liability, LeaseDatabase | $ 381,408 | |||
Maximum | Land, Buildings and Improvements [Member] | ||||
Lessee, Operating Lease, Term of Contract | 15 years | |||
Minimum | Land, Buildings and Improvements [Member] | ||||
Lessee, Operating Lease, Term of Contract | 5 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Narrative (Details) - shares | May 31, 2017 | Jan. 31, 2020 | May 25, 2016 |
Stock options and restricted stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and restricted stock units vesting period | 4 years | ||
Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for future issuance (in shares) | 1,396,632 | 1,200,000 | |
Additional shares authorized (in shares) | 1,400,000 | ||
Number of years until a grant expires | 10 years | ||
2003and2011Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 795,998 | ||
2016Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 790,161 | ||
Non-Employee Director Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for future issuance (in shares) | 120,000 | ||
Non-Employee Director Restricted Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for future issuance (in shares) | 48,991 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | $ 12,550 | $ 12,217 | $ 8,680 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 256 | 263 | 220 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 3,978 | 3,414 | 236 |
RSUs and PSUs | Accelerated RSU expense charged to severance | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 0 | 0 | 602 |
Performance-Based Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | $ 8,316 | $ 8,540 | $ 7,622 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized tax benefits related to compensation cost | $ 1,400 | $ 1,700 | $ 1,700 |
Stock-based compensation expense | $ 12,550 | 12,217 | 8,680 |
Recognition period for unrecognized compensation cost related to all non-vested stock compensation awards | 1 year 10 months 16 days | ||
Fair value of stock options vested | $ 8,400 | $ 12,600 | $ 6,000 |
Nonvested | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 13,200 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised | $ 0.4 | $ 0.4 | $ 2.3 |
Aggregate intrinsic value of stock options vested and expected to vest and exercisable | 0.1 | ||
Fair value of stock options vested | 8.4 | 12.6 | 6 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock options vested | $ 0.3 | $ 0.5 | $ 0.9 |
Incentive Stock Option Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 620,166 | |
Granted (in dollars per share) | $ 0 | $ 32.35 | |
Number of years until a grant expires | 10 years | ||
Expected volatility (as percent) | 68.00% | ||
Risk-free interest rate (as percent) | 2.69% | ||
Incentive Stock Option Plan | Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and restricted stock units vesting period | 3 years | ||
Fair value at grant date (in dollars per share) | $ 20 | ||
Expected term | 6 years | ||
Incentive Stock Option Plan | Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and restricted stock units vesting period | 4 years | ||
Fair value at grant date (in dollars per share) | $ 21.67 | ||
Expected term | 7 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Incentive Stock Option Plan activity (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
Shares Under Option | ||
Vested and expected to vest, end of period (in shares) | 744,191 | |
Weighted- Average Exercise Price | ||
Vested and expected to vest, end of period (in dollar per shares) | $ 29.73 | |
Weighted- Average Remaining Contractual Life | ||
Vested and expected to vest, end of period | 7 years 8 months | |
Incentive Stock Option Plan | Stock options | ||
Shares Under Option | ||
Outstanding, beginning of period (in shares) | 772,731 | |
Granted (in shares) | 0 | 620,166 |
Exercised (in shares) | (24,340) | |
Forfeited (in shares) | (4,200) | |
Outstanding, end of period (in shares) | 744,191 | 772,731 |
Exercisable, end of period (in shares) | 99,023 | |
Weighted- Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 28.49 | |
Granted (in dollars per share) | 0 | $ 32.35 |
Exercised (in dollars per share) | 9.11 | |
Forfeited (in dollars per share) | 4.84 | |
Outstanding, end of period (in dollars per share) | 29.73 | $ 28.49 |
Exercisable, end of period (in dollars per share) | $ 16.03 | |
Weighted- Average Remaining Contractual Life | ||
Outstanding, end of period | 7 years 8 months | |
Exercisable, end of period | 5 years 3 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
RSUs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of shares vested | $ 8.1 | $ 12.1 | $ 5.1 | |
Fair value of shares granted | $ 2.9 | $ 7.6 | $ 17.2 | |
Performance-Based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Return on invested capital period (generally) | 3 years | |||
Percentage of shares to be vested (as percent) | 150.00% | |||
Omnibus Incentive Plan | Time-Based RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 5 years | |||
Omnibus Incentive Plan | Time-Based RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and restricted stock units vesting period | 3 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity of RSUs (Details) | 12 Months Ended |
Jan. 31, 2020$ / sharesshares | |
RSUs and PSUs | |
Number of Units | |
Outstanding, beginning of period (in shares) | 1,351,275 |
Restricted stock units granted (in shares) | 142,482 |
Vested and converted to common stock (in shares) | 369,839 |
Restricted stock units forfeited (in shares) | (41,201) |
Outstanding, end of year (in shares) | 1,082,717 |
Omnibus Incentive Plan | Time-Based RSUs | |
Number of Units | |
Outstanding, beginning of period (in shares) | 884,275 |
Restricted stock units granted (in shares) | 108,588 |
Vested and converted to common stock (in shares) | 369,839 |
Restricted stock units forfeited (in shares) | (34,201) |
Outstanding, end of year (in shares) | 588,823 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning of year (in dollars per share) | $ / shares | $ 18.73 |
Options granted (in dollars per share) | $ / shares | 19.68 |
Options vested (in dollars per share) | $ / shares | 16.99 |
Forfeited (in dollars per share) | $ / shares | 20.05 |
Nonvested, end of year (in dollars per share) | $ / shares | $ 19.92 |
Omnibus Incentive Plan | Performance-Based RSUs | |
Number of Units | |
Outstanding, beginning of period (in shares) | 467,000 |
Restricted stock units granted (in shares) | 33,894 |
Vested and converted to common stock (in shares) | 0 |
Restricted stock units forfeited (in shares) | (7,000) |
Outstanding, end of year (in shares) | 493,894 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning of year (in dollars per share) | $ / shares | $ 11.66 |
Options granted (in dollars per share) | $ / shares | 23.39 |
Options vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 11.60 |
Nonvested, end of year (in dollars per share) | $ / shares | $ 12.47 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - shares | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 53,459 | 34,922 | 57,937 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of fair market value that shares are acquired at (as percent) | 85.00% | ||
Number of shares reserved for future issuance (in shares) | 718,263 |
Significant Vendors (Details)
Significant Vendors (Details) - vendor | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Significant Vendors [Abstract] | |||
Number of vendors the company purchased merchandise from | 6 | ||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 85.70% | 65.30% | 62.10% |
Vendors | Vendor A | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 33.60% | 25.30% | 27.60% |
Vendors | Vendor B | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 16.30% | 16.10% | 14.80% |
Vendors | Vendor C | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 11.00% | 7.00% | 6.50% |
Vendors | Vendor D | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 9.60% | 6.70% | 5.30% |
Vendors | Vendor E | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 9.50% | 5.20% | 4.10% |
Vendors | Vendor F | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 5.70% | 5.00% | 3.80% |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Maximum employee contribution percentage (as percent) | 50.00% | ||
Employer matching percent | 100.00% | ||
Percentage contribution which company matches on first 3% of contributions (as percent) | 3.00% | ||
Employer matching percent on next 2% | 50.00% | ||
Percentage contribution which company matches on next 2% of contributions (as percent) | 2.00% | ||
Supplemental contributions by employer | $ 0 | $ 0 | $ 0 |
Total matching contribution made by company | $ 1,900,000 | $ 1,400,000 | $ 1,100,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Assets: | |||||
Restricted cash | $ 75,370 | $ 59,025 | |||
Customer accounts receivable: | |||||
Restructured accounts | 211,857 | 183,641 | |||
Allowance for uncollectible accounts | (233,804) | (214,879) | $ (203,572) | $ (210,175) | |
Deferred fees and origination costs | (15,746) | (16,579) | |||
Carrying value of customer accounts receivable, net of allowance for bad debts | 1,337,503 | 1,339,113 | |||
Total assets | 2,168,769 | $ 2,153,151 | 1,884,907 | $ 1,900,799 | |
Liabilities: | |||||
Accrued expenses | 52,295 | 54,381 | |||
Long-term Debt, Gross | 1,029,132 | ||||
Less deferred debt issuance costs | (6,797) | (5,637) | |||
Long-term Debt less Debt Issuance Cost | 768,121 | 407,993 | |||
Total liabilities | 1,541,589 | 1,264,932 | |||
VIE | Warehouse Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | 0 | 53,635 | |||
Secured debt | 2019-A VIE Class A Notes [Member] | |||||
Liabilities: | |||||
Total debt | 76,241 | 0 | |||
Secured debt | 2019-B VIE Class B Notes [Member] [Member] | |||||
Liabilities: | |||||
Total debt | 85,540 | ||||
Secured debt | 2019-A VIE Class B Notes [Member] | |||||
Liabilities: | |||||
Total debt | 64,750 | 0 | |||
Secured debt | 2019-B VIE Class C Notes [Member] [Member] | |||||
Liabilities: | |||||
Total debt | 83,270 | 0 | |||
Secured debt | 2019-A VIE Class C Notes [Member] | |||||
Liabilities: | |||||
Total debt | 62,510 | 0 | |||
Secured debt | 2019-B VIE Class A Notes [Member] [Member] | |||||
Liabilities: | |||||
Total debt | 265,810 | 0 | |||
VIE | |||||
Assets: | |||||
Restricted cash | 73,214 | 57,475 | |||
Due from (due to) Conn’s, Inc., net | 307 | 5,504 | |||
Customer accounts receivable: | |||||
Customer accounts receivable | 838,210 | 538,826 | |||
Restructured accounts | 147,971 | 135,834 | |||
Allowance for uncollectible accounts | (151,263) | (106,327) | |||
Allowance for no-interest option credit programs | (12,445) | (8,047) | |||
Deferred fees and origination costs | (8,255) | (5,321) | |||
Carrying value of customer accounts receivable, net of allowance for bad debts | 814,218 | 554,965 | |||
Total assets | 887,739 | 617,944 | |||
Liabilities: | |||||
Accrued expenses | 5,517 | 3,939 | |||
Other liabilities | 7,584 | 5,513 | |||
Long-term Debt, Gross | 773,032 | 410,724 | |||
Less deferred debt issuance costs | (4,911) | (2,731) | |||
Total debt | 768,121 | 461,628 | |||
Total liabilities | 781,222 | 471,080 | |||
VIE | Warehouse Notes | |||||
Liabilities: | |||||
Warehouse Notes | 0 | 53,635 | |||
VIE | Secured debt | 2017-B Class B Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | 0 | 98,297 | |||
VIE | Secured debt | 2017-B Class C Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | 59,655 | 78,640 | |||
VIE | Secured debt | 2018-A Class A Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | 34,112 | 105,971 | |||
VIE | Secured debt | 2018-A Class B Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | 20,572 | 63,908 | |||
VIE | Secured debt | 2018-A Class C Notes | |||||
Liabilities: | |||||
Long-term Debt, Gross | $ 20,572 | $ 63,908 |
Segment Information - Additiona
Segment Information - Additional Disclosures (Details) | 12 Months Ended |
Jan. 31, 2020segmentstorestate | |
Segment Reporting Information [Line Items] | |
Operating segments | segment | 2 |
Estimated annual rate of reimbursement (as percent) | 2.50% |
Number of states in which entity operates | state | 14 |
Outside of the United States | |
Segment Reporting Information [Line Items] | |
Number of retail stores | store | 0 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||||||||||
Total Net Sales | $ 1,163,235 | $ 1,194,674 | $ 1,191,967 | |||||||||||||
Cost of Goods and Services Sold | $ 188,038 | $ 170,453 | $ 182,065 | $ 157,228 | $ 195,033 | $ 166,886 | $ 173,627 | $ 166,589 | $ 200,497 | $ 175,591 | $ 172,306 | $ 171,950 | 697,784 | 702,135 | 720,344 | |
Revenues: | ||||||||||||||||
Repair service agreement commissions | 101,928 | 100,383 | ||||||||||||||
Other Income | 96,005 | $ 282,535 | 380,451 | 355,139 | 324,064 | |||||||||||
Total revenues | 412,988 | 376,127 | 401,059 | 353,512 | 432,982 | 373,824 | 384,620 | 358,387 | 420,386 | 373,172 | 366,647 | 355,826 | 1,130,698 | 1,543,686 | 1,549,813 | 1,516,031 |
Costs and expenses: | ||||||||||||||||
Selling, general and administrative expense | 503,024 | 480,561 | 450,413 | |||||||||||||
Provision for bad debts | 45,925 | 135,707 | 205,217 | 198,082 | 216,875 | |||||||||||
Charges and credits | 3,142 | 7,780 | 13,331 | |||||||||||||
Total costs and expenses | 1,409,167 | 1,388,558 | 1,400,963 | |||||||||||||
Operating income | 23,422 | 30,304 | 41,774 | 39,019 | 53,766 | 35,473 | 39,252 | 32,764 | 44,841 | 20,853 | 29,192 | 20,182 | 111,097 | 134,519 | 161,255 | 115,068 |
Interest expense | 59,107 | 62,704 | 80,160 | |||||||||||||
Loss on extinguishment of debt | 1,094 | 1,773 | 3,274 | |||||||||||||
Income before income taxes | 15,253 | 67,153 | 74,318 | 96,778 | 31,634 | |||||||||||
Property and equipment additions | 62,444 | 37,494 | 21,327 | |||||||||||||
Depreciation expense | 36,841 | 31,584 | 30,806 | |||||||||||||
Total assets | 2,168,769 | 2,153,151 | 1,884,907 | 1,900,799 | 2,153,151 | 2,168,769 | 1,884,907 | 1,900,799 | ||||||||
Allocation of overhead by operating segments | 30,000 | 36,400 | 27,600 | |||||||||||||
Amount of reimbursement made by operating segments | 412,988 | 376,127 | 401,059 | 353,512 | 432,982 | 373,824 | 384,620 | 358,387 | 420,386 | 373,172 | 366,647 | 355,826 | $ 1,130,698 | 1,543,686 | 1,549,813 | 1,516,031 |
Reimbursement | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 39,100 | 38,100 | 37,400 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 39,100 | 38,100 | 37,400 | |||||||||||||
Retail | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Total Net Sales | 1,163,235 | 1,194,674 | 1,191,967 | |||||||||||||
Cost of Goods and Services Sold | 697,784 | 702,135 | 720,344 | |||||||||||||
Revenues: | ||||||||||||||||
Repair service agreement commissions | 101,928 | 100,383 | ||||||||||||||
Other Income | 810 | 447 | 341 | |||||||||||||
Total revenues | 315,280 | 280,319 | 306,265 | 262,181 | 338,887 | 284,053 | 296,411 | 275,770 | 334,535 | 291,903 | 286,505 | 279,365 | 1,164,045 | 1,195,121 | 1,192,308 | |
Costs and expenses: | ||||||||||||||||
Selling, general and administrative expense | 346,108 | 328,628 | 316,325 | |||||||||||||
Provision for bad debts | 905 | 1,009 | 829 | |||||||||||||
Charges and credits | 1,933 | 2,980 | 13,331 | |||||||||||||
Total costs and expenses | 1,046,730 | 1,034,752 | 1,050,829 | |||||||||||||
Operating income | 35,748 | 19,598 | 36,072 | 25,897 | 54,712 | 35,250 | 39,238 | 31,169 | 48,583 | 29,586 | 31,299 | 32,011 | 117,315 | 160,369 | 141,479 | |
Interest expense | 0 | 0 | 0 | |||||||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | |||||||||||||
Income before income taxes | 117,315 | 160,369 | 141,479 | |||||||||||||
Property and equipment additions | 62,244 | 36,110 | 21,285 | |||||||||||||
Depreciation expense | 35,783 | 30,739 | 30,065 | |||||||||||||
Total assets | 641,812 | 405,542 | 344,327 | 641,812 | 405,542 | 344,327 | ||||||||||
Amount of reimbursement made by operating segments | 315,280 | 280,319 | 306,265 | 262,181 | 338,887 | 284,053 | 296,411 | 275,770 | 334,535 | 291,903 | 286,505 | 279,365 | 1,164,045 | 1,195,121 | 1,192,308 | |
Credit | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Total Net Sales | 0 | 0 | 0 | |||||||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | |||||||||||||
Revenues: | ||||||||||||||||
Repair service agreement commissions | 0 | 0 | ||||||||||||||
Other Income | 379,641 | 354,692 | 323,723 | |||||||||||||
Total revenues | 97,708 | 95,808 | 94,794 | 91,331 | 94,095 | 89,771 | 88,209 | 82,617 | 85,851 | 81,269 | 80,142 | 76,461 | 379,641 | 354,692 | 323,723 | |
Costs and expenses: | ||||||||||||||||
Selling, general and administrative expense | 156,916 | 151,933 | 134,088 | |||||||||||||
Provision for bad debts | 204,312 | 197,073 | 216,046 | |||||||||||||
Charges and credits | 1,209 | 4,800 | 0 | |||||||||||||
Total costs and expenses | 362,437 | 353,806 | 350,134 | |||||||||||||
Operating income | (12,326) | 10,706 | 5,702 | 13,122 | (946) | 223 | 14 | 1,595 | (3,742) | (8,733) | (2,107) | (11,829) | 17,204 | 886 | (26,411) | |
Interest expense | 59,107 | 62,704 | 80,160 | |||||||||||||
Loss on extinguishment of debt | 1,094 | 1,773 | 3,274 | |||||||||||||
Income before income taxes | (42,997) | (63,591) | (109,845) | |||||||||||||
Property and equipment additions | 200 | 1,384 | 42 | |||||||||||||
Depreciation expense | 1,058 | 845 | 741 | |||||||||||||
Total assets | 1,526,957 | 1,479,365 | 1,556,472 | 1,526,957 | 1,479,365 | 1,556,472 | ||||||||||
Amount of reimbursement made by operating segments | $ 97,708 | $ 95,808 | $ 94,794 | $ 91,331 | $ 94,095 | $ 89,771 | $ 88,209 | $ 82,617 | $ 85,851 | $ 81,269 | $ 80,142 | $ 76,461 | 379,641 | 354,692 | 323,723 | |
Furniture and mattress | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 370,931 | 382,975 | 393,853 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 370,931 | 382,975 | 393,853 | |||||||||||||
Furniture and mattress | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 370,931 | 382,975 | 393,853 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 370,931 | 382,975 | 393,853 | |||||||||||||
Furniture and mattress | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
Home appliance | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 360,441 | 332,609 | 337,538 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 360,441 | 332,609 | 337,538 | |||||||||||||
Home appliance | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 360,441 | 332,609 | 337,538 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 360,441 | 332,609 | 337,538 | |||||||||||||
Home appliance | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
Consumer electronics | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 221,449 | 262,088 | 248,727 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 221,449 | 262,088 | 248,727 | |||||||||||||
Consumer electronics | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 221,449 | 262,088 | 248,727 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 221,449 | 262,088 | 248,727 | |||||||||||||
Consumer electronics | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
Home office | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 73,074 | 86,260 | 80,330 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 73,074 | 86,260 | 80,330 | |||||||||||||
Home office | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 73,074 | 86,260 | 80,330 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 73,074 | 86,260 | 80,330 | |||||||||||||
Home office | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
Other | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 16,529 | 14,703 | 17,426 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 16,529 | 14,703 | 17,426 | |||||||||||||
Other | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 16,529 | 14,703 | 17,426 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 16,529 | 14,703 | 17,426 | |||||||||||||
Other | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
Product [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 1,042,424 | 1,078,635 | 1,077,874 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 1,042,424 | 1,078,635 | 1,077,874 | |||||||||||||
Product [Member] | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 1,042,424 | 1,078,635 | 1,077,874 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 1,042,424 | 1,078,635 | 1,077,874 | |||||||||||||
Product [Member] | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | 0 | 0 | |||||||||||||
RSA Commission [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 106,997 | 101,928 | 100,383 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 106,997 | 101,928 | 100,383 | |||||||||||||
RSA Commission [Member] | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 106,997 | |||||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 106,997 | |||||||||||||||
RSA Commission [Member] | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | |||||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 0 | |||||||||||||||
Service [Member] | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 13,814 | 14,111 | 13,710 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 13,814 | 14,111 | 13,710 | |||||||||||||
Service [Member] | Retail | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 13,814 | 14,111 | 13,710 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | 13,814 | 14,111 | 13,710 | |||||||||||||
Service [Member] | Credit | ||||||||||||||||
Revenues: | ||||||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Amount of reimbursement made by operating segments | $ 0 | $ 0 | $ 0 |
Guarantor Financial Informati_3
Guarantor Financial Information - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Oct. 31, 2019 | Feb. 01, 2019 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | $ 5,485 | $ 5,912 | ||||
Restricted cash | 75,370 | 59,025 | ||||
Customer accounts receivable, net of allowances | 673,742 | $ 662,002 | 652,769 | |||
Other accounts receivable | 68,753 | 67,078 | ||||
Inventories | 219,756 | 220,034 | ||||
Other current assets | 15,760 | 9,576 | ||||
Total current assets | 1,058,866 | 1,043,744 | $ 1,011,411 | 1,014,394 | ||
Investment in and advances to subsidiaries | 0 | 0 | ||||
Long-term portion of customer accounts receivable, net of allowance | 663,761 | 686,344 | ||||
Property and equipment, net | 173,031 | 148,983 | ||||
Deferred Income Tax Assets, Net | 18,599 | 23,242 | 26,088 | 27,535 | ||
Operating Lease, Right-of-Use Asset | 242,457 | 227,421 | 0 | |||
Other assets | 12,055 | 7,651 | ||||
Total assets | 2,168,769 | 2,153,151 | 1,884,907 | $ 1,900,799 | ||
Current maturities of debt and financing lease obligations | 605 | 54,109 | ||||
Accounts payable | 48,554 | 71,118 | ||||
Accrued expenses | 63,090 | 90,335 | ||||
Operating Lease, Liability, Current | 35,390 | 29,815 | 0 | |||
Other current liabilities | 14,631 | 22,006 | ||||
Total current liabilities | 162,270 | 225,142 | 237,568 | |||
Deferred rent | 0 | 0 | 93,127 | |||
Operating Lease, Liability, Noncurrent | 329,081 | 300,170 | 0 | |||
Long-term debt and financing lease obligations | 1,025,535 | 901,222 | ||||
Other long-term liabilities | 24,703 | 25,409 | 33,015 | |||
Total liabilities | 1,541,589 | 1,264,932 | ||||
Total stockholders’ equity | 627,180 | 626,703 | $ 626,135 | 619,975 | $ 535,068 | $ 517,790 |
Total liabilities and stockholders’ equity | 2,168,769 | $ 2,153,151 | 1,884,907 | |||
Eliminations | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Customer accounts receivable, net of allowances | 0 | 0 | ||||
Other accounts receivable | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | (3,999) | (8,272) | ||||
Total current assets | (3,999) | (8,272) | ||||
Investment in and advances to subsidiaries | (939,497) | (962,388) | ||||
Long-term portion of customer accounts receivable, net of allowance | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Deferred Income Tax Assets, Net | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Other assets | 0 | 0 | ||||
Total assets | (943,496) | (970,660) | ||||
Current maturities of debt and financing lease obligations | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Accrued expenses | (3,999) | (2,768) | ||||
Operating Lease, Liability, Current | 0 | |||||
Other current liabilities | 0 | (5,504) | ||||
Total current liabilities | (3,999) | (8,272) | ||||
Deferred rent | 0 | |||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Long-term debt and financing lease obligations | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | (3,999) | (8,272) | ||||
Total stockholders’ equity | (939,497) | (962,388) | ||||
Total liabilities and stockholders’ equity | (943,496) | (970,660) | ||||
Conn’s, Inc. | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Customer accounts receivable, net of allowances | 0 | 0 | ||||
Other accounts receivable | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 0 | 0 | ||||
Investment in and advances to subsidiaries | 832,980 | 815,524 | ||||
Long-term portion of customer accounts receivable, net of allowance | 0 | 0 | ||||
Property and equipment, net | 0 | 0 | ||||
Deferred Income Tax Assets, Net | 18,599 | 27,535 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Other assets | 0 | 0 | ||||
Total assets | 851,579 | 843,059 | ||||
Current maturities of debt and financing lease obligations | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Accrued expenses | 686 | 686 | ||||
Operating Lease, Liability, Current | 0 | |||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 686 | 686 | ||||
Deferred rent | 0 | |||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Long-term debt and financing lease obligations | 223,713 | 222,398 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | 224,399 | 223,084 | ||||
Total stockholders’ equity | 627,180 | 619,975 | ||||
Total liabilities and stockholders’ equity | 851,579 | 843,059 | ||||
Guarantors | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 5,485 | 5,912 | ||||
Restricted cash | 2,156 | 1,550 | ||||
Customer accounts receivable, net of allowances | 279,978 | 328,705 | ||||
Other accounts receivable | 68,753 | 67,078 | ||||
Inventories | 219,756 | 220,034 | ||||
Other current assets | 19,452 | 12,344 | ||||
Total current assets | 595,580 | 635,623 | ||||
Investment in and advances to subsidiaries | 106,517 | 146,864 | ||||
Long-term portion of customer accounts receivable, net of allowance | 243,307 | 455,443 | ||||
Property and equipment, net | 173,031 | 148,983 | ||||
Deferred Income Tax Assets, Net | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 242,457 | |||||
Other assets | 12,055 | 7,651 | ||||
Total assets | 1,372,947 | 1,394,564 | ||||
Current maturities of debt and financing lease obligations | 605 | 474 | ||||
Accounts payable | 48,554 | 71,118 | ||||
Accrued expenses | 60,886 | 88,478 | ||||
Operating Lease, Liability, Current | 35,390 | |||||
Other current liabilities | 10,416 | 24,918 | ||||
Total current liabilities | 155,851 | 184,988 | ||||
Deferred rent | 93,127 | |||||
Operating Lease, Liability, Noncurrent | 329,081 | |||||
Long-term debt and financing lease obligations | 33,701 | 270,831 | ||||
Other long-term liabilities | 21,334 | 30,094 | ||||
Total liabilities | 539,967 | 579,040 | ||||
Total stockholders’ equity | 832,980 | 815,524 | ||||
Total liabilities and stockholders’ equity | 1,372,947 | 1,394,564 | ||||
Non-Guarantor Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 57,475 | |||||
Customer accounts receivable, net of allowances | 393,764 | 324,064 | ||||
Other accounts receivable | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Other current assets | 5,504 | |||||
Total current assets | 467,285 | 387,043 | ||||
Investment in and advances to subsidiaries | 0 | 0 | ||||
Long-term portion of customer accounts receivable, net of allowance | 420,454 | 230,901 | ||||
Property and equipment, net | 0 | 0 | ||||
Deferred Income Tax Assets, Net | 0 | 0 | ||||
Operating Lease, Right-of-Use Asset | 0 | |||||
Other assets | 0 | 0 | ||||
Total assets | 887,739 | 617,944 | ||||
Current maturities of debt and financing lease obligations | 0 | 53,635 | ||||
Accounts payable | 0 | 0 | ||||
Accrued expenses | 3,939 | |||||
Operating Lease, Liability, Current | 0 | |||||
Other current liabilities | 4,215 | 2,592 | ||||
Total current liabilities | 9,732 | 60,166 | ||||
Deferred rent | 0 | |||||
Operating Lease, Liability, Noncurrent | 0 | |||||
Long-term debt and financing lease obligations | 768,121 | 407,993 | ||||
Other long-term liabilities | 3,369 | 2,921 | ||||
Total liabilities | 781,222 | 471,080 | ||||
Total stockholders’ equity | 106,517 | 146,864 | ||||
Total liabilities and stockholders’ equity | $ 887,739 | $ 617,944 |
Guarantor Financial Informati_4
Guarantor Financial Information - Condensed Consolidated Statements of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Net Sales | $ 1,163,235,000 | $ 1,194,674,000 | $ 1,191,967,000 | |||||||||||||
Other Income | $ 96,005,000 | $ 282,535,000 | 380,451,000 | 355,139,000 | 324,064,000 | |||||||||||
Servicing fee revenue | 0 | 0 | 0 | |||||||||||||
Total revenues | $ 412,988,000 | 376,127,000 | $ 401,059,000 | $ 353,512,000 | $ 432,982,000 | $ 373,824,000 | $ 384,620,000 | $ 358,387,000 | $ 420,386,000 | $ 373,172,000 | $ 366,647,000 | $ 355,826,000 | 1,130,698,000 | 1,543,686,000 | 1,549,813,000 | 1,516,031,000 |
Cost of Goods and Services Sold | 188,038,000 | 170,453,000 | 182,065,000 | 157,228,000 | 195,033,000 | 166,886,000 | 173,627,000 | 166,589,000 | 200,497,000 | 175,591,000 | 172,306,000 | 171,950,000 | 697,784,000 | 702,135,000 | 720,344,000 | |
Selling, general and administrative expense | 503,024,000 | 480,561,000 | 450,413,000 | |||||||||||||
Provision for bad debts | 45,925,000 | 135,707,000 | 205,217,000 | 198,082,000 | 216,875,000 | |||||||||||
Charges and credits | 3,142,000 | 7,780,000 | 13,331,000 | |||||||||||||
Total costs and expenses | 1,409,167,000 | 1,388,558,000 | 1,400,963,000 | |||||||||||||
Operating income | 23,422,000 | 30,304,000 | 41,774,000 | 39,019,000 | 53,766,000 | 35,473,000 | 39,252,000 | 32,764,000 | 44,841,000 | 20,853,000 | 29,192,000 | 20,182,000 | 111,097,000 | 134,519,000 | 161,255,000 | 115,068,000 |
Interest expense | 59,107,000 | 62,704,000 | 80,160,000 | |||||||||||||
Loss on extinguishment of debt | 1,094,000 | 1,773,000 | 3,274,000 | |||||||||||||
Income before income taxes | 15,253,000 | 67,153,000 | 74,318,000 | 96,778,000 | 31,634,000 | |||||||||||
Provision (benefit) for income taxes | 18,314,000 | 22,929,000 | 25,171,000 | |||||||||||||
Net income (loss) | 56,004,000 | 73,849,000 | 6,463,000 | |||||||||||||
Income from consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||
Net income (loss) | $ 5,052,000 | $ 11,469,000 | $ 19,974,000 | $ 19,509,000 | $ 29,476,000 | $ 14,630,000 | $ 17,011,000 | $ 12,732,000 | $ 3,201,000 | $ 1,569,000 | $ 4,273,000 | $ (2,580,000) | $ 50,952,000 | 56,004,000 | 73,849,000 | 6,463,000 |
Eliminations | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Net Sales | 0 | 0 | 0 | |||||||||||||
Other Income | 0 | 0 | 0 | |||||||||||||
Servicing fee revenue | (38,240,000) | (40,947,000) | (63,372,000) | |||||||||||||
Total revenues | (38,240,000) | (40,947,000) | (63,372,000) | |||||||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | |||||||||||||
Selling, general and administrative expense | (38,240,000) | (40,947,000) | (63,372,000) | |||||||||||||
Provision for bad debts | 0 | 0 | 0 | |||||||||||||
Charges and credits | 0 | 0 | 0 | |||||||||||||
Total costs and expenses | (38,240,000) | (40,947,000) | (63,372,000) | |||||||||||||
Operating income | 0 | 0 | 0 | |||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | |||||||||||||
Income before income taxes | 0 | 0 | 0 | |||||||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | |||||||||||||
Net income (loss) | 0 | 0 | 0 | |||||||||||||
Income from consolidated subsidiaries | (81,314,000) | (53,815,000) | 15,666,000 | |||||||||||||
Net income (loss) | (81,314,000) | (53,815,000) | 15,666,000 | |||||||||||||
Conn’s, Inc. | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Net Sales | 0 | 0 | 0 | |||||||||||||
Other Income | 0 | 0 | 0 | |||||||||||||
Servicing fee revenue | 0 | 0 | 0 | |||||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | |||||||||||||
Selling, general and administrative expense | 0 | 0 | 0 | |||||||||||||
Provision for bad debts | 0 | 0 | 0 | |||||||||||||
Charges and credits | 0 | 0 | 0 | |||||||||||||
Total costs and expenses | 0 | 0 | 0 | |||||||||||||
Operating income | 0 | 0 | 0 | |||||||||||||
Interest expense | 17,777,000 | 17,782,000 | 17,772,000 | |||||||||||||
Loss on extinguishment of debt | 0 | 0 | 0 | |||||||||||||
Income before income taxes | (17,777,000) | (17,782,000) | (17,772,000) | |||||||||||||
Provision (benefit) for income taxes | (4,381,000) | (4,213,000) | (14,141,000) | |||||||||||||
Net income (loss) | (13,396,000) | (13,569,000) | (3,631,000) | |||||||||||||
Income from consolidated subsidiaries | 69,399,000 | 87,418,000 | 10,094,000 | |||||||||||||
Net income (loss) | 56,003,000 | 73,849,000 | 6,463,000 | |||||||||||||
Guarantors | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Net Sales | 1,163,235,000 | 1,194,674,000 | 1,191,967,000 | |||||||||||||
Other Income | 219,442,000 | 193,583,000 | 173,539,000 | |||||||||||||
Servicing fee revenue | 38,240,000 | 40,947,000 | 63,372,000 | |||||||||||||
Total revenues | 1,420,917,000 | 1,429,204,000 | 1,428,878,000 | |||||||||||||
Cost of Goods and Services Sold | 697,784,000 | 702,135,000 | 720,344,000 | |||||||||||||
Selling, general and administrative expense | 502,398,000 | 479,995,000 | 460,698,000 | |||||||||||||
Provision for bad debts | 128,230,000 | 68,056,000 | 42,677,000 | |||||||||||||
Charges and credits | 3,142,000 | 7,780,000 | 13,331,000 | |||||||||||||
Total costs and expenses | 1,331,554,000 | 1,257,966,000 | 1,237,050,000 | |||||||||||||
Operating income | 89,363,000 | 171,238,000 | 191,828,000 | |||||||||||||
Interest expense | 11,986,000 | 12,498,000 | 15,978,000 | |||||||||||||
Loss on extinguishment of debt | 1,094,000 | 142,000 | 349,000 | |||||||||||||
Income before income taxes | 76,283,000 | 158,598,000 | 175,501,000 | |||||||||||||
Provision (benefit) for income taxes | 18,798,000 | 37,577,000 | 139,647,000 | |||||||||||||
Net income (loss) | 57,485,000 | 121,021,000 | 35,854,000 | |||||||||||||
Income from consolidated subsidiaries | 11,915,000 | (33,603,000) | (25,760,000) | |||||||||||||
Net income (loss) | 69,400,000 | 87,418,000 | 10,094,000 | |||||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Total Net Sales | 0 | 0 | 0 | |||||||||||||
Other Income | 161,009,000 | 161,556,000 | 150,525,000 | |||||||||||||
Servicing fee revenue | 0 | 0 | 0 | |||||||||||||
Total revenues | 161,009,000 | 161,556,000 | 150,525,000 | |||||||||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | |||||||||||||
Selling, general and administrative expense | 38,866,000 | 41,513,000 | 53,087,000 | |||||||||||||
Provision for bad debts | 76,987,000 | 130,026,000 | 174,198,000 | |||||||||||||
Charges and credits | 0 | 0 | 0 | |||||||||||||
Total costs and expenses | 115,853,000 | 171,539,000 | 227,285,000 | |||||||||||||
Operating income | 45,156,000 | (9,983,000) | (76,760,000) | |||||||||||||
Interest expense | 29,344,000 | 32,424,000 | 46,410,000 | |||||||||||||
Loss on extinguishment of debt | 0 | 1,631,000 | 2,925,000 | |||||||||||||
Income before income taxes | 15,812,000 | (44,038,000) | (126,095,000) | |||||||||||||
Provision (benefit) for income taxes | 3,897,000 | (10,435,000) | (100,335,000) | |||||||||||||
Net income (loss) | 11,915,000 | (33,603,000) | (25,760,000) | |||||||||||||
Income from consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||
Net income (loss) | $ 11,915,000 | $ (33,603,000) | $ (25,760,000) |
Guarantor Financial Informati_5
Guarantor Financial Information - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | $ 80,066 | $ 151,801 | $ 50,522 |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | 0 | 0 |
Sale of customer accounts receivables | 0 | 0 | 0 |
Purchase of property and equipment | (57,546) | (32,814) | (16,918) |
Proceeds from asset dispositions | 724 | 0 | 0 |
Investment in subsidiary | 0 | ||
Net cash used in investing activities | (56,822) | (32,814) | (16,918) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 867,750 | 358,300 | 1,042,034 |
Payments on asset-backed notes | (505,442) | (739,875) | (1,000,027) |
Borrowings under revolving credit facility | 1,625,440 | 1,836,822 | 1,717,012 |
Contribution to (from) subsidiary | 0 | ||
Payments on Revolving Credit Facility | (1,865,069) | (1,647,322) | (1,817,512) |
Borrowings from warehouse facility | 0 | 173,286 | 79,940 |
Payment of debt issuance costs and amendment fees | (7,876) | (7,418) | (13,874) |
Payments on warehouse facility | (53,635) | (119,650) | (79,940) |
Proceeds from stock issued under employee benefit plans | 988 | 1,237 | 3,318 |
Tax payments associated with equity-based compensation transactions | (2,216) | (3,342) | (1,182) |
Payment from extinguishment of debt | 0 | (1,178) | (836) |
Payments for Repurchase of Common Stock | (66,290) | 0 | 0 |
Other | (976) | (1,068) | (643) |
Net cash used in financing activities | (7,326) | (150,208) | (71,710) |
Net change in cash, cash equivalents and restricted cash | 15,918 | (31,221) | (38,106) |
Cash, cash equivalents and restricted cash, beginning of period | 64,937 | 96,158 | 134,264 |
Cash, cash equivalents and restricted cash, end of period | 80,855 | 64,937 | 96,158 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 482,788 | 525,846 | 1,112,903 |
Sale of customer accounts receivables | (482,788) | (525,846) | (1,112,903) |
Purchase of property and equipment | 0 | 0 | 0 |
Proceeds from asset dispositions | 0 | 0 | |
Investment in subsidiary | 66,290 | ||
Net cash used in investing activities | 66,290 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | 0 | 0 |
Payments on asset-backed notes | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Contribution to (from) subsidiary | (66,290) | ||
Payments on Revolving Credit Facility | 0 | 0 | 0 |
Borrowings from warehouse facility | 0 | ||
Payment of debt issuance costs and amendment fees | 0 | 0 | 0 |
Payments on warehouse facility | 0 | 0 | |
Proceeds from stock issued under employee benefit plans | 0 | 0 | 0 |
Tax payments associated with equity-based compensation transactions | 0 | 0 | 0 |
Payment from extinguishment of debt | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | ||
Other | 0 | 0 | 0 |
Net cash used in financing activities | (66,290) | 0 | 0 |
Net change in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 | 0 |
Conn’s, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (988) | (1,237) | (3,318) |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | 0 | 0 |
Sale of customer accounts receivables | 0 | 0 | 0 |
Purchase of property and equipment | 0 | 0 | 0 |
Proceeds from asset dispositions | 0 | 0 | |
Investment in subsidiary | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | 0 | 0 |
Payments on asset-backed notes | 0 | 0 | 0 |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Contribution to (from) subsidiary | 66,290 | ||
Payments on Revolving Credit Facility | 0 | 0 | 0 |
Borrowings from warehouse facility | 0 | ||
Payment of debt issuance costs and amendment fees | 0 | 0 | 0 |
Payments on warehouse facility | 0 | 0 | |
Proceeds from stock issued under employee benefit plans | 988 | 1,237 | 3,318 |
Tax payments associated with equity-based compensation transactions | 0 | 0 | 0 |
Payment from extinguishment of debt | 0 | 0 | |
Payments for Repurchase of Common Stock | (66,290) | ||
Other | 0 | 0 | 0 |
Net cash used in financing activities | 988 | 1,237 | 3,318 |
Net change in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash, end of period | 0 | 0 | 0 |
Guarantors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | 366,536 | 18,201 | (925,182) |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | 0 | 0 | 0 |
Sale of customer accounts receivables | 0 | 0 | 1,112,903 |
Purchase of property and equipment | (57,546) | (32,814) | (16,918) |
Proceeds from asset dispositions | 724 | 0 | |
Investment in subsidiary | (66,290) | ||
Net cash used in investing activities | (123,112) | (32,814) | 1,095,985 |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 0 | 0 | 0 |
Payments on asset-backed notes | 0 | (169,443) | (77,104) |
Borrowings under revolving credit facility | 1,625,440 | 1,836,822 | 1,717,012 |
Contribution to (from) subsidiary | 0 | ||
Payments on Revolving Credit Facility | (1,865,069) | (1,647,322) | (1,817,512) |
Borrowings from warehouse facility | 0 | ||
Payment of debt issuance costs and amendment fees | (424) | (3,230) | (3,268) |
Payments on warehouse facility | 0 | 0 | |
Proceeds from stock issued under employee benefit plans | 0 | 0 | 0 |
Tax payments associated with equity-based compensation transactions | (2,216) | (3,342) | (1,182) |
Payment from extinguishment of debt | (1,178) | (836) | |
Payments for Repurchase of Common Stock | 0 | ||
Other | (976) | (1,068) | (643) |
Net cash used in financing activities | (243,245) | 11,239 | (183,533) |
Net change in cash, cash equivalents and restricted cash | 179 | (3,374) | (12,730) |
Cash, cash equivalents and restricted cash, beginning of period | 7,462 | 10,836 | 23,566 |
Cash, cash equivalents and restricted cash, end of period | 7,641 | 7,462 | 10,836 |
Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by (used in) operating activities | (285,482) | 134,837 | 979,022 |
Cash flows from investing activities: | |||
Purchase of customer accounts receivables | (482,788) | (525,846) | (1,112,903) |
Sale of customer accounts receivables | 482,788 | 525,846 | 0 |
Purchase of property and equipment | 0 | 0 | 0 |
Proceeds from asset dispositions | 0 | 0 | |
Investment in subsidiary | 0 | ||
Net cash used in investing activities | 0 | 0 | (1,112,903) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 867,750 | 358,300 | 1,042,034 |
Payments on asset-backed notes | (505,442) | (570,432) | (922,923) |
Borrowings under revolving credit facility | 0 | 0 | 0 |
Contribution to (from) subsidiary | 0 | ||
Payments on Revolving Credit Facility | 0 | 0 | 0 |
Borrowings from warehouse facility | 173,286 | ||
Payment of debt issuance costs and amendment fees | (7,452) | (4,188) | (10,606) |
Payments on warehouse facility | (53,635) | (119,650) | |
Proceeds from stock issued under employee benefit plans | 0 | 0 | 0 |
Tax payments associated with equity-based compensation transactions | 0 | 0 | 0 |
Payment from extinguishment of debt | 0 | 0 | |
Payments for Repurchase of Common Stock | 0 | ||
Other | 0 | 0 | 0 |
Net cash used in financing activities | 301,221 | (162,684) | 108,505 |
Net change in cash, cash equivalents and restricted cash | 15,739 | (27,847) | (25,376) |
Cash, cash equivalents and restricted cash, beginning of period | 57,475 | 85,322 | 110,698 |
Cash, cash equivalents and restricted cash, end of period | $ 73,214 | $ 57,475 | $ 85,322 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2020 | May 31, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Stock Repurchase Program, Authorized Amount | $ 75 | |
Treasury Stock, Shares, Acquired | 3,485,441 | |
Treasury Stock Acquired, Average Cost Per Share | $ 19.02 | |
Treasury Stock, Value, Acquired, Cost Method | $ 66,300,000 |
Quarterly Information (Unaudi_4
Quarterly Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Revenues [Abstract] | ||||||||||||||||
Total revenues | $ 412,988,000 | $ 376,127,000 | $ 401,059,000 | $ 353,512,000 | $ 432,982,000 | $ 373,824,000 | $ 384,620,000 | $ 358,387,000 | $ 420,386,000 | $ 373,172,000 | $ 366,647,000 | $ 355,826,000 | $ 1,130,698,000 | $ 1,543,686,000 | $ 1,549,813,000 | $ 1,516,031,000 |
Percent of annual revenues (as percent) | 26.70% | 24.40% | 26.00% | 22.90% | 28.00% | 24.10% | 24.80% | 23.10% | 27.70% | 24.60% | 24.20% | 23.50% | ||||
Cost of Goods and Services Sold | $ 188,038,000 | $ 170,453,000 | $ 182,065,000 | $ 157,228,000 | $ 195,033,000 | $ 166,886,000 | $ 173,627,000 | $ 166,589,000 | $ 200,497,000 | $ 175,591,000 | $ 172,306,000 | $ 171,950,000 | 697,784,000 | 702,135,000 | 720,344,000 | |
Operating income [Abstract] | ||||||||||||||||
Operating income | 23,422,000 | 30,304,000 | 41,774,000 | 39,019,000 | 53,766,000 | 35,473,000 | 39,252,000 | 32,764,000 | 44,841,000 | 20,853,000 | 29,192,000 | 20,182,000 | 111,097,000 | 134,519,000 | 161,255,000 | 115,068,000 |
Net income (loss) | $ 5,052,000 | $ 11,469,000 | $ 19,974,000 | $ 19,509,000 | $ 29,476,000 | $ 14,630,000 | $ 17,011,000 | $ 12,732,000 | $ 3,201,000 | $ 1,569,000 | $ 4,273,000 | $ (2,580,000) | $ 50,952,000 | $ 56,004,000 | $ 73,849,000 | $ 6,463,000 |
Income (loss) per share | ||||||||||||||||
Basic (in dollars per share) | $ 0.18 | $ 0.39 | $ 0.64 | $ 0.61 | $ 0.93 | $ 0.46 | $ 0.54 | $ 0.40 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.65 | $ 1.85 | $ 2.33 | $ 0.21 |
Diluted (in dollars per share) | $ 0.17 | $ 0.39 | $ 0.62 | $ 0.60 | $ 0.91 | $ 0.45 | $ 0.53 | $ 0.39 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.62 | $ 1.82 | $ 2.28 | $ 0.20 |
Retail Segment | ||||||||||||||||
Revenues [Abstract] | ||||||||||||||||
Total revenues | $ 315,280,000 | $ 280,319,000 | $ 306,265,000 | $ 262,181,000 | $ 338,887,000 | $ 284,053,000 | $ 296,411,000 | $ 275,770,000 | $ 334,535,000 | $ 291,903,000 | $ 286,505,000 | $ 279,365,000 | $ 1,164,045,000 | $ 1,195,121,000 | $ 1,192,308,000 | |
Cost of Goods and Services Sold | 697,784,000 | 702,135,000 | 720,344,000 | |||||||||||||
Operating income [Abstract] | ||||||||||||||||
Operating income | 35,748,000 | 19,598,000 | 36,072,000 | 25,897,000 | 54,712,000 | 35,250,000 | 39,238,000 | 31,169,000 | 48,583,000 | 29,586,000 | 31,299,000 | 32,011,000 | 117,315,000 | 160,369,000 | 141,479,000 | |
Credit Segment | ||||||||||||||||
Revenues [Abstract] | ||||||||||||||||
Total revenues | 97,708,000 | 95,808,000 | 94,794,000 | 91,331,000 | 94,095,000 | 89,771,000 | 88,209,000 | 82,617,000 | 85,851,000 | 81,269,000 | 80,142,000 | 76,461,000 | 379,641,000 | 354,692,000 | 323,723,000 | |
Cost of Goods and Services Sold | 0 | 0 | 0 | |||||||||||||
Operating income [Abstract] | ||||||||||||||||
Operating income | $ (12,326,000) | $ 10,706,000 | $ 5,702,000 | $ 13,122,000 | $ (946,000) | $ 223,000 | $ 14,000 | $ 1,595,000 | $ (3,742,000) | $ (8,733,000) | $ (2,107,000) | $ (11,829,000) | $ 17,204,000 | $ 886,000 | $ (26,411,000) |
Quarterly Information (Unaudi_5
Quarterly Information (Unaudited) Correction of Error (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Oct. 31, 2019 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Feb. 01, 2019 | Jan. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Other Income | $ 96,005,000 | $ 282,535,000 | $ 380,451,000 | $ 355,139,000 | $ 324,064,000 | |||||||||||||
Total revenues | $ 412,988,000 | 376,127,000 | $ 401,059,000 | $ 353,512,000 | $ 432,982,000 | $ 373,824,000 | $ 384,620,000 | $ 358,387,000 | $ 420,386,000 | $ 373,172,000 | $ 366,647,000 | $ 355,826,000 | 1,130,698,000 | 1,543,686,000 | 1,549,813,000 | 1,516,031,000 | ||
Provision for bad debts | 45,925,000 | 135,707,000 | 205,217,000 | 198,082,000 | 216,875,000 | |||||||||||||
Operating income | 23,422,000 | 30,304,000 | 41,774,000 | 39,019,000 | 53,766,000 | 35,473,000 | 39,252,000 | 32,764,000 | 44,841,000 | 20,853,000 | 29,192,000 | 20,182,000 | 111,097,000 | 134,519,000 | 161,255,000 | 115,068,000 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 15,253,000 | 67,153,000 | 74,318,000 | 96,778,000 | 31,634,000 | |||||||||||||
Net income (loss) | $ 5,052,000 | $ 11,469,000 | $ 19,974,000 | $ 19,509,000 | $ 29,476,000 | $ 14,630,000 | $ 17,011,000 | $ 12,732,000 | $ 3,201,000 | $ 1,569,000 | $ 4,273,000 | $ (2,580,000) | $ 50,952,000 | $ 56,004,000 | $ 73,849,000 | $ 6,463,000 | ||
Basic (in dollars per share) | $ 0.18 | $ 0.39 | $ 0.64 | $ 0.61 | $ 0.93 | $ 0.46 | $ 0.54 | $ 0.40 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.65 | $ 1.85 | $ 2.33 | $ 0.21 | ||
Diluted (in dollars per share) | $ 0.17 | $ 0.39 | $ 0.62 | $ 0.60 | $ 0.91 | $ 0.45 | $ 0.53 | $ 0.39 | $ 0.10 | $ 0.05 | $ 0.14 | $ (0.08) | $ 1.62 | $ 1.82 | $ 2.28 | $ 0.20 | ||
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | $ 673,742,000 | $ 662,002,000 | $ 652,769,000 | $ 662,002,000 | $ 673,742,000 | $ 652,769,000 | ||||||||||||
Income taxes receivable | 4,315,000 | 2,600,000 | 407,000 | 2,600,000 | 4,315,000 | 407,000 | ||||||||||||
Assets, Current | 1,058,866,000 | 1,043,744,000 | 1,014,394,000 | 1,043,744,000 | 1,058,866,000 | 1,014,394,000 | $ 1,011,411,000 | |||||||||||
Deferred Income Tax Assets, Net | 18,599,000 | 23,242,000 | 27,535,000 | 23,242,000 | 18,599,000 | 27,535,000 | 26,088,000 | |||||||||||
Total assets | 2,168,769,000 | 2,153,151,000 | 1,884,907,000 | $ 1,900,799,000 | 2,153,151,000 | 2,168,769,000 | 1,884,907,000 | $ 1,900,799,000 | ||||||||||
Total stockholders’ equity | 627,180,000 | 626,703,000 | 619,975,000 | $ 535,068,000 | 626,703,000 | 627,180,000 | 619,975,000 | $ 535,068,000 | $ 626,135,000 | $ 517,790,000 | ||||||||
Liabilities and Equity | $ 2,168,769,000 | 2,153,151,000 | $ 1,884,907,000 | 2,153,151,000 | $ 2,168,769,000 | $ 1,884,907,000 | ||||||||||||
Previously Reported [Member] | ||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Other Income | 97,586,000 | 284,116,000 | ||||||||||||||||
Total revenues | 377,708,000 | 1,132,279,000 | ||||||||||||||||
Provision for bad debts | 42,586,000 | 132,368,000 | ||||||||||||||||
Operating income | 35,224,000 | 116,017,000 | ||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 20,173,000 | 72,073,000 | ||||||||||||||||
Net income (loss) | $ 15,143,000 | $ 54,626,000 | ||||||||||||||||
Basic (in dollars per share) | $ 0.52 | $ 1.77 | ||||||||||||||||
Diluted (in dollars per share) | $ 0.51 | $ 1.74 | ||||||||||||||||
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | $ 666,922,000 | $ 666,922,000 | ||||||||||||||||
Income taxes receivable | 1,688,000 | 1,688,000 | ||||||||||||||||
Assets, Current | 1,047,752,000 | 1,047,752,000 | ||||||||||||||||
Deferred Income Tax Assets, Net | 22,908,000 | 22,908,000 | ||||||||||||||||
Total assets | 2,156,825,000 | 2,156,825,000 | ||||||||||||||||
Total stockholders’ equity | 630,377,000 | 630,377,000 | ||||||||||||||||
Liabilities and Equity | 2,156,825,000 | 2,156,825,000 | ||||||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||||
Other Income | (1,581,000) | (1,581,000) | ||||||||||||||||
Total revenues | (1,581,000) | (1,581,000) | ||||||||||||||||
Provision for bad debts | 3,339,000 | 3,339,000 | ||||||||||||||||
Operating income | (4,920,000) | (4,920,000) | ||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (4,920,000) | (4,920,000) | ||||||||||||||||
Net income (loss) | $ (3,674,000) | $ (3,674,000) | ||||||||||||||||
Basic (in dollars per share) | $ (0.13) | $ (0.12) | ||||||||||||||||
Diluted (in dollars per share) | $ (0.12) | $ (0.12) | ||||||||||||||||
Customer accounts receivable, net of allowance (includes VIE balances of $393,764 and $324,064, respectively) | $ (4,920,000) | $ (4,920,000) | ||||||||||||||||
Income taxes receivable | 912,000 | 912,000 | ||||||||||||||||
Assets, Current | (4,008,000) | (4,008,000) | ||||||||||||||||
Deferred Income Tax Assets, Net | 334,000 | 334,000 | ||||||||||||||||
Total assets | (3,674,000) | (3,674,000) | ||||||||||||||||
Total stockholders’ equity | (3,674,000) | (3,674,000) | ||||||||||||||||
Liabilities and Equity | $ (3,674,000) | $ (3,674,000) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Mar. 18, 2020 | Jan. 31, 2020 | Apr. 01, 2020 | Oct. 30, 2015 | |
Subsequent Event [Line Items] | ||||
Cash recovery percent covenant determination period | 4 years | |||
Revolving Credit Facility | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650 | |||
Subsequent event | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Lines of Credit | $ 275 | |||
Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 416.8 | |||
Revolving Credit Facility | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 123 |