Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Mar. 21, 2022 | Jul. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2022 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34956 | ||
Entity Registrant Name | CONN’S, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 06-1672840 | ||
Entity Address, City or Town | 2445 Technology Forest Blvd., | ||
Entity Address, Address Line Two | Suite 800, | ||
Entity Address, City or Town | The Woodlands, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77381 | ||
City Area Code | 936 | ||
Local Phone Number | 230-5899 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | CONN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 326.6 | ||
Entity Common Stock, Shares Outstanding | 24,124,773 | ||
Documents Incorporated by Reference | Certain information required to be furnished pursuant to Part III of this Form 10-K is set forth in, and is hereby incorporated by reference herein from, Conn’s definitive proxy statement for its 2022 Annual Meeting of Stockholders, to be filed by Conn’s with the Securities and Exchange Commission (“SEC”) pursuant to Regulation 14A within 120 days after January 31, 2022. | ||
Entity Central Index Key | 0001223389 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Jan. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Houston, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 7,707 | $ 9,703 |
Restricted cash (includes VIE balances of $29,872 and $48,622, respectively) | 31,930 | 50,557 |
Customer accounts receivable, net of allowance (includes VIE balances of $212,259 and $259,811, respectively) | 455,787 | 478,734 |
Other accounts receivable | 63,055 | 61,716 |
Inventories | 246,826 | 196,463 |
Income taxes receivable | 6,745 | 38,059 |
Prepaid expenses and other current assets | 8,756 | 8,831 |
Total current assets | 820,806 | 844,063 |
Long-term portion of customer accounts receivable, net of allowances (includes VIE balances of $167,905 and $184,304, respectively) | 432,431 | 430,749 |
Property and equipment, net | 192,763 | 190,962 |
Operating lease right-of-use assets | 256,267 | 265,798 |
Deferred income taxes | 0 | 9,448 |
Other assets | 52,199 | 14,064 |
Total assets | 1,754,466 | 1,755,084 |
Current liabilities: | ||
Current finance lease obligations | 889 | 934 |
Accounts payable | 74,705 | 69,367 |
Accrued compensation and related expenses | 36,677 | 24,944 |
Accrued expenses | 73,035 | 58,046 |
Operating lease liability - current | 54,534 | 44,011 |
Income taxes payable | 3,007 | 1,447 |
Deferred revenues and other credits | 15,569 | 13,007 |
Total current liabilities | 258,416 | 211,756 |
Operating lease liability - non current | 330,439 | 354,598 |
Long-term debt and finance lease obligations (includes VIE balances of $367,925 and $411,551 respectively) | 522,149 | 608,635 |
Deferred tax liability | 7,351 | 0 |
Other long-term liabilities | 21,292 | 22,940 |
Total liabilities | 1,139,647 | 1,197,929 |
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; 33,015,053 and 32,711,623 shares issued, respectively) | 330 | 327 |
Treasury stock (at cost; 6,088,920 shares and 3,485,441 shares, respectively) | (125,145) | (66,290) |
Additional paid-in capital | 140,419 | 132,108 |
Retained earnings | 599,215 | 491,010 |
Total stockholders’ equity | 614,819 | 557,155 |
Total liabilities and stockholders’ equity | $ 1,754,466 | $ 1,755,084 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Restricted cash | $ 31,930 | $ 50,557 |
Customer accounts receivable, net of allowance | 455,787 | 478,734 |
Long-term customer accounts receivable, net | 432,431 | $ 430,749 |
Long-term debt | $ 370,796 | |
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) | 33,015,053 | 32,711,623 |
Common stock, shares outstanding (in shares) | 33,015,053 | 32,711,623 |
Treasury stock (in shares) | 6,088,920 | 3,485,441 |
VIE | ||
Customer accounts receivable, net of allowance | $ 212,259 | $ 259,811 |
Long-term customer accounts receivable, net | 167,905 | 184,304 |
Long-term debt | $ 367,925 | $ 411,551 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenues: | |||
Total net sales | $ 1,305,389 | $ 1,064,311 | $ 1,163,235 |
Finance charges and other revenues | 284,642 | 321,714 | 380,451 |
Total revenues | 1,590,031 | 1,386,025 | 1,543,686 |
Costs and expenses: | |||
Cost of goods sold | 825,987 | 668,315 | 697,784 |
Selling, general and administrative expense | 544,490 | 478,767 | 503,024 |
Provision for bad debts | 48,184 | 202,003 | 205,217 |
Charges and credits | 2,677 | 6,326 | 3,142 |
Total costs and expenses | 1,421,338 | 1,355,411 | 1,409,167 |
Operating income | 168,693 | 30,614 | 134,519 |
Interest expense | 25,758 | 50,381 | 59,107 |
Loss (gain) on extinguishment of debt | 1,218 | (440) | 1,094 |
Income (loss) before income taxes | 141,717 | (19,327) | 74,318 |
Provision (benefit) for income taxes | 33,512 | (16,190) | 18,314 |
Net income (loss) | $ 108,205 | $ (3,137) | $ 56,004 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ 3.70 | $ (0.11) | $ 1.85 |
Diluted (in dollars per share) | $ 3.61 | $ (0.11) | $ 1.82 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 29,267,691 | 29,060,512 | 30,275,662 |
Diluted (in shares) | 30,001,490 | 29,060,512 | 30,814,775 |
Product sales | |||
Revenues: | |||
Total net sales | $ 1,205,545 | $ 973,031 | $ 1,042,424 |
Repair service agreement commissions | |||
Revenues: | |||
Total net sales | 89,101 | 78,838 | 106,997 |
Service revenues | |||
Revenues: | |||
Total net sales | $ 10,743 | $ 12,442 | $ 13,814 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Balance (in shares) at Jan. 31, 2019 | 31,788,162 | 0 | |||
Balance at Jan. 31, 2019 | $ 619,975 | $ 318 | $ 111,185 | $ 508,472 | $ 0 |
Balance (ASU 2016-02) at Jan. 31, 2019 | 6,160 | 6,160 | |||
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 | |||
Common stock repurchase (in shares) | (3,485,441) | ||||
Common stock repurchase | (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 | 570,636 | $ (66,290) |
Balance (ASU 2016-13) at Jan. 31, 2020 | $ (76,489) | (76,489) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | ||||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 445,895 | ||||
Exercise of options and vesting of restricted stock, net of withholding tax | $ (1,682) | $ 5 | (1,687) | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 140,672 | 140,673 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 698 | $ 1 | 697 | ||
Stock-based compensation | 10,585 | 10,585 | |||
Net income (loss) | $ (3,137) | (3,137) | |||
Balance (in shares) at Jan. 31, 2021 | 32,711,623 | 32,711,623 | (3,485,441) | ||
Balance at Jan. 31, 2021 | $ 557,155 | $ 327 | 132,108 | 491,010 | $ (66,290) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of options and vesting of restricted stock, net of tax (in shares) | 252,168 | ||||
Exercise of options and vesting of restricted stock, net of withholding tax | $ (1,410) | $ 2 | (1,412) | ||
Issuance of common stock under Employee Stock Purchase Plan (in shares) | 51,262 | 51,262 | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 809 | $ 1 | 808 | ||
Stock-based compensation | 8,915 | 8,915 | |||
Common stock repurchase (in shares) | (2,603,479) | ||||
Common stock repurchase | (58,855) | $ (58,855) | |||
Net income (loss) | $ 108,205 | 108,205 | |||
Balance (in shares) at Jan. 31, 2022 | 33,015,053 | 33,015,053 | (6,088,920) | ||
Balance at Jan. 31, 2022 | $ 614,819 | $ 330 | $ 140,419 | $ 599,215 | $ (125,145) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 108,205 | $ (3,137) | $ 56,004 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 45,450 | 41,068 | 36,841 |
Change in right-of-use asset | 35,186 | 29,956 | 27,577 |
Amortization of debt issuance costs | 5,485 | 8,527 | 9,828 |
Provision for bad debts and uncollectible interest | 84,286 | 265,929 | 269,295 |
Stock-based compensation expense | 8,915 | 9,330 | 12,550 |
Charges, net of credits | 2,677 | 6,326 | 3,142 |
Deferred income taxes | 16,799 | 31,323 | 7,488 |
Loss (gain) on early termination of debt | 1,218 | (440) | 0 |
Loss from disposal of property and equipment | 258 | 497 | 90 |
Tenant improvement allowances received from landlords | 14,143 | 21,224 | 25,914 |
Change in operating assets and liabilities: | |||
Customer accounts receivable | (62,543) | 63,871 | (266,997) |
Other accounts receivables | (1,818) | 6,595 | (5,346) |
Inventories | (50,363) | 23,293 | 278 |
Other assets | 1,081 | 393 | (6,983) |
Accounts payable | 5,338 | 17,507 | (23,041) |
Accrued expenses | 19,325 | 15,905 | (21,689) |
Increase (Decrease) in Operating Lease Liabilities | (53,435) | (40,384) | (35,816) |
Income taxes | (4,687) | (35,270) | (9,930) |
Deferred revenues and other credits | 882 | (398) | 861 |
Net cash provided by operating activities | 176,402 | 462,115 | 80,066 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (44,859) | (55,927) | (57,546) |
Proceeds from asset dispositions | 0 | 0 | 724 |
Net cash used in investing activities | (44,859) | (55,927) | (56,822) |
Cash flows from financing activities: | |||
Proceeds from issuance of asset-backed notes | 440,710 | 240,100 | 867,750 |
Payments on asset-backed notes | (483,904) | (599,144) | (505,442) |
Borrowings under revolving credit facility | 1,530,376 | 1,355,362 | 1,625,440 |
Payments on revolving credit facility | (1,433,376) | (1,332,462) | (1,865,069) |
Payments on warehouse facility | 0 | 0 | (53,635) |
Payment for share repurchases | (55,384) | 0 | (66,290) |
Payment of debt issuance costs and amendment fees | (7,658) | (4,753) | (7,876) |
Proceeds from stock issued under employee stock purchase plan | 809 | 698 | 988 |
Tax payments associated with equity-based compensation transactions | (1,410) | (1,682) | (2,216) |
Payment for extinguishment of debt | (141,279) | (84,324) | 0 |
Other | (1,050) | (578) | (976) |
Net cash used in financing activities | (152,166) | (426,783) | (7,326) |
Net change in cash, cash equivalents and restricted cash | (20,623) | (20,595) | 15,918 |
Cash, cash equivalents and restricted cash, beginning of period | 60,260 | 80,855 | 64,937 |
Cash, cash equivalents and restricted cash, end of period | 39,637 | 60,260 | 80,855 |
Non-cash investing and financing activities: | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | 34,847 | 72,741 | 75,296 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 1,160 | 1,653 | 1,110 |
Property and equipment purchases not yet paid | 9,059 | 7,890 | 9,717 |
Supplemental cash flow data: | |||
Cash interest paid | 18,252 | 41,059 | 50,491 |
Cash income taxes paid (refunded), net | $ 21,525 | $ (11,586) | $ 17,169 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2022 | |
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 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 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, 2022 and 2021, cash and cash equivalents included cash and credit card deposits in transit. Credit card deposits in transit included in cash and cash equivalents were $5.2 million and $7.9 million as of January 31, 2022 and 2021, respectively. Restricted Cash. The restricted cash balance as of January 31, 2022 and 2021 includes $25.7 million and $41.6 million, respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $4.2 million and $7.0 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. Expected lifetime losses on customer accounts receivable are recognized upon origination through an allowance for credit losses account that is deducted from the customer account receivable balance and presented net thereof. 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. 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”). On March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law to address the economic impact of the COVID-19 pandemic. Under the CARES Act, modifications deemed to be COVID-19 related are not considered a TDR if the loan was current (not more than 30 days past due as of March 31, 2020) and the deferral was executed between April 1, 2020 and the earlier of 60 days after the termination of the COVID-19 national emergency or December 31, 2020. In response to the CARES Act, the Company implemented short-term deferral programs for our customers. The carrying value of the customer receivables on accounts which were current prior to receiving a COVID-19 related deferment was $18.9 million and $65.2 million as of January 31, 2022 and 2021. 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. We reserve for interest that is more than 60 days past due. 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, 2022 and 2021, there were $8.6 million and $8.9 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, 2022 and 2021, the carrying value of customer accounts receivable in non-accrual status was $5.9 million and $8.5 million, respectively. At January 31, 2022 and 2021, the carrying value of customer accounts receivable that were past due 90 days or more and still accruing interest totaled $84.1 million and $111.5 million, respectively. At January 31, 2022 and January 31, 2021, the carrying value of customer accounts receivable in a bankruptcy status that were less than 60 days past due of $5.5 million and $5.2 million, respectively, were included within the customer receivables balance carried in non-accrual status. Allowance on Doubtful Accounts. The allowance for credit losses is measured on a collective (pool) basis where similar risk characteristics exist. Upon adoption of ASC 326, the Company elected to maintain the pools of customer accounts receivable that were previously accounted for under ASC 310 (Non-TDR Non-Re-aged, Non-TDR Re-aged, and TDR). These pools are further segmented based on shared risk attributes, which include the borrower’s FICO score, product class, length of customer relationship and delinquency status. The allowance for credit losses is determined for each pool and added to the pool’s carrying amount to establish a new amortized cost basis. Changes to the allowance for credit losses after adoption are recorded through provision expense. We have elected to use a risk-based, pool-level segmentation framework to calculate the expected loss rate. This framework is based on our historical gross charge-off history. In addition to adjusted historical gross charge-off rates, estimates of post-charge-off recoveries, including cash payments from customers, sales tax recoveries from taxing jurisdictions, and payments received under credit insurance and repair service agreement (“RSA”) policies are also considered. We also consider forward-looking economic forecasts based on a statistical analysis of economic factors (specifically, forecast of unemployment rates over the reasonable and supportable forecasting period). To the extent that situations and trends arise which are not captured in our model, management will layer on additional qualitative adjustments. The Company uses a 24-month reasonable and supportable forecast period for the Customer Accounts Receivable portfolio. We estimate losses beyond the 24-month forecast period based on historic loss rates experienced over the life of our historic loan portfolio by loan pool type. We revisit our measurement methodology and assumption annually, or more frequently if circumstances warrant. 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, 2022, 2021 and 2020, we recorded $118.1 million, $122.7 million and $156.6 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. No software costs were written-off in the years ended January 31, 2022 and 2021. 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. See Note 4, Charges and Credits, for further details regarding fiscal year 2020 write-offs. Impairment of Long-Lived Assets. Long-lived assets are evaluated for impairment, primarily at the asset group level. The asset group is defined as stores and cross-docks within a distribution center’s service area. We monitor asset group 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 an asset group'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, 2022 and 2021 there were no impairments. Leases. We determine if an arrangement is a lease at inception. Operating lease right-of-use 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 the commencement date in determining the present value of lease payments. If the estimate of our incremental borrowing rate was changed, our operating lease assets and liabilities could differ materially. We record lease incentives 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. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Lease expense is recognized on a straight-line basis over the lease term. We have made a policy election for all classifications of leases to combine lease and non-lease components and to account for them as a single lease component. 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 $5.1 million and $3.5 million as of January 31, 2022 and 2021, respectively. Revenue Recognition. The Company accounts for revenue under ASC 606 and 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. 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 repair service agreements (“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 consumer. 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 program. 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. 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, 2022, we recognized $4.7 million of revenue for customer deposits deferred as of the beginning of the period compared to $1.2 million recognized during the twelve months ended January 31, 2021. During the twelve months ended January 31, 2022, we recognized $3.2 million of revenue for RSA administrative fees deferred as of the beginning of the period compared to $4.0 million recognized during the twelve months ended January 31, 2021. 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 2022, 2021 and 2020, advertising expense was $90.4 million, $72.5 million and $84.8 million, respectively. Stock-based Compensation. Stock-based compensation expense is recorded for share-based compensation awards, net of actual forfeitures, over the requisite service period using the straight-line method. 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 any market conditions. 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, 2022 2021 2020 Weighted-average common shares outstanding - Basic 29,267,691 29,060,512 30,275,662 Dilutive effect of stock options, RSUs and PSUs 733,799 — 539,113 Weighted-average common shares outstanding - Diluted 30,001,490 29,060,512 30,814,775 For the years ended January 31, 2022, 2021 and 2020, the weighted-average number of stock options, RSUs, and PSUs not included in the calculation due to their anti-dilutive effect, was 704,582, 1,097,996 and 898,449, 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 short nature 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, 2022, the fair value of the asset-backed notes was $369.6 million, compared to the carrying value of $370.8 million, which was determined using Level 2 inputs based on inactive trading activity. Recent Accounting Pronouncements Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASU 2016-13 replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. Under the new guidance entities must reserve an allowance for expected credit losses over the life of the loan. The measurement of expected credit losses is applicable to financial assets measured at amortized cost. The allowance for credit losses is a valuation account that is deducted from the customer account receivable’s amortized cost basis to present the net amount expected to be collected. Customer receivables are charged off against the allowance when management deems an account to be uncollectible. 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 are included in the allowance for credit losses. Effective February 1, 2020, the Company adopted ASU 2016-13 and ASU 2019-04 using the modified retrospective approach. The Company has reviewed its entire portfolio of assets recognized on the balance sheet as of January 31, 2020 and identified Customer Accounts Receivables as the materially impacted asset in-scope of ASC 326. The risk of credit losses from the remaining portfolio of assets was concluded to be immaterial. Upon adoption of ASC 326 the Company recorded a net decrease to retained earnings of $76.5 million as of February 1, 2020. Results for reporting periods prior to February 1, 2020 are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under previously applicable GAAP. The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 326 were as follows: Impact of Adoption of ASC 326 (in thousands) Balance at January 31, 2020 Adjustments due to ASC 326 Balance at February 1, 2020 Assets Customer accounts receivable $ 673,742 $ (49,700) $ 624,042 Long-term portion of customer accounts receivable 663,761 (48,962) 614,799 Deferred Income Taxes 18,599 22,173 40,772 Stockholders’ Equity Retained Earnings $ 570,636 $ (76,489) $ 494,147 Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , an update intended to simplify various aspects related to accounting for income taxes. This guidance removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consi |
Customer Accounts Receivable
Customer Accounts Receivable | 12 Months Ended |
Jan. 31, 2022 | |
Receivables [Abstract] | |
Customer Account Receivable | Customer Accounts Receivable Customer accounts receivable consisted of the following: (in thousands) January 31, January 31, Customer accounts receivable (1) $ 1,130,395 $ 1,233,717 Deferred fees and origination costs, net (13,503) (14,212) Allowance for no-interest option credit programs (19,654) (11,985) Allowance for uncollectible interest (15,124) (21,427) Carrying value of customer accounts receivable 1,082,114 1,186,093 Allowance for credit losses (2) (193,896) (276,610) Carrying value of customer accounts receivable, net of allowance for bad debts 888,218 909,483 Short-term portion of customer accounts receivable, net (455,787) (478,734) Long-term customer accounts receivable, net $ 432,431 $ 430,749 Carrying Value (in thousands) January 31, January 31, Customer accounts receivable 60+ days past due (3) $ 112,858 $ 146,820 Re-aged customer accounts receivable (4) 181,996 306,845 Restructured customer accounts receivable (5) 99,557 178,374 (1) As of January 31, 2022 and 2021, the customer accounts receivable balance included $22.3 million and $31.1 million, respectively, in interest receivable. Net of the allowance for uncollectible interest, interest receivable outstanding as of January 31, 2022 and 2021 was $7.2 million and $9.7 million, respectively. (2) Our current methodology to estimate expected credit losses utilized macroeconomic forecasts as of January 31, 2022 and 2021, which incorporated the continued estimated impact of the global COVID-19 pandemic on the U.S. economy. Our forecast utilized economic projections from a major rating service reflecting a decrease in unemployment rates. (3) As of January 31, 2022 and 2021, the carrying value of customer accounts receivable past due one day or greater was $299.0 million and $340.8 million, respectively. These amounts include the 60+ days past due balances shown above. (4) The re-aged carrying value as of January 31, 2022 and 2021 includes $48.6 million and $88.0 million, respectively, in carrying value that are both 60+ days past due and re-aged. (5) The restructured carrying value as of January 31, 2022 and 2021 includes $29.0 million and $57.1 million, respectively, in carrying value that are both 60+ days past due and restructured. The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows: (in thousands) January 31, 2022 January 31, 2021 Customer accounts receivable - current $ 564,825 $ 643,903 Allowance for credit losses for customer accounts receivable - current (109,038) (165,169) Customer accounts receivable, net of allowances 455,787 478,734 Customer accounts receivable - non current 532,413 563,617 Allowance for credit losses for customer accounts receivable - non current (99,982) (132,868) Long-term portion of customer accounts receivable, net of allowances 432,431 430,749 Total customer accounts receivable, net $ 888,218 $ 909,483 The following presents the activity in our allowance for credit losses and uncollectible interest for customer accounts receivable: January 31, 2022 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 219,739 $ 78,298 $ 298,037 Provision (1) 52,872 30,936 83,808 Principal charge-offs (2) (105,889) (64,239) (170,128) Interest charge-offs (28,972) (17,576) (46,548) Recoveries (2) 27,294 16,557 43,851 Allowance at end of period $ 165,044 $ 43,976 $ 209,020 Average total customer portfolio balance $ 995,373 $ 140,618 $ 1,135,991 January 31, 2021 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 145,680 $ 88,124 $ 233,804 Impact of adoption ASC 326 95,136 3,526 98,662 Provision (1) 185,210 80,276 265,486 Principal charge-offs (2) (178,777) (81,142) (259,919) Interest charge-offs (50,060) (22,721) (72,781) Recoveries (2) 22,550 10,235 32,785 Allowance at end of period $ 219,739 $ 78,298 $ 298,037 Average total customer portfolio balance $ 1,184,174 $ 211,254 $ 1,395,428 January 31, 2020 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 147,123 $ 67,756 $ 214,879 Provision (3) 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 (1) Includes provision for uncollectible interest, which is included in finance charges and other revenues, and changes in expected future recoveries. (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. (3) Includes provision for uncollectible interest, which is included in finance charges and other revenues. We manage our Customer Accounts Receivable portfolio using delinquency as a key credit quality indicator. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by calendar year of origination as of January 31, 2022: (dollars in thousands) Delinquency Bucket 2022 2021 2020 2019 Prior Total % of Total Current $49,086 $499,028 $163,576 $63,716 $7,693 $783,099 72.3% 1-30 — 78,304 39,683 23,019 5,630 146,636 13.6% 31-60 — 19,498 10,509 7,367 2,147 39,521 3.7% 61-90 — 14,261 7,562 5,243 1,544 28,610 2.6% 91+ — 35,830 24,678 18,038 5,702 84,248 7.8% Total $49,086 $646,921 $246,008 $117,383 $22,716 $1,082,114 100.0% |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 31, 2022 | |
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 2022 2021 Land — $ 1,644 $ 1,644 Buildings 30 years 4,121 4,115 Leasehold improvements 5 to 15 years 331,776 313,926 Equipment and fixtures 3 to 5 years 104,623 97,407 Finance leases 3 to 20 years 9,480 9,027 Construction in progress — 31,764 14,702 483,408 440,821 Less accumulated depreciation (290,645) (249,859) $ 192,763 $ 190,962 Depreciation expense was approximately $45.5 million, $41.1 million and $36.8 million for the years ended January 31, 2022, 2021 and 2020, respectively. Construction in progress is comprised primarily of the construction of leasehold improvements |
Charges and Credits
Charges and Credits | 12 Months Ended |
Jan. 31, 2022 | |
Charges and Credits [Abstract] | |
Charges and Credits | Charges and Credits Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2022 2021 2020 Store and facility closure and relocation costs $ — $ — $ 1,933 Legal and professional fees, securities-related litigation, a legal judgment and other legal matters — 3,589 — Employee severance — 2,737 — Excess import freight costs 2,677 — — Write-off of capitalized software costs — — 1,209 $ 2,677 $ 6,326 $ 3,142 |
Finance Charges and Other Reven
Finance Charges and Other Revenues | 12 Months Ended |
Jan. 31, 2022 | |
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) 2022 2021 2020 Interest income and fees $ 259,422 $ 303,209 $ 341,224 Insurance income 24,270 17,689 38,417 Other revenues 950 816 810 Total finance charges and other revenues $ 284,642 $ 321,714 $ 380,451 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. |
Debt and Financing Lease Obliga
Debt and Financing Lease Obligations | 12 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Lease Obligations | Debt and Financing Lease Obligations Debt and financing lease obligations consisted of the following: January 31, (in thousands) 2022 2021 Revolving Credit Facility $ 149,000 $ 52,000 Senior Notes — 141,172 2019-A VIE Asset-backed Class A Notes — 19,521 2019-A VIE Asset-backed Class B Notes — 25,069 2019-A VIE Asset-backed Class C Notes — 24,202 2019-B VIE Asset-backed Class A Notes — 17,860 2019-B VIE Asset-backed Class B Notes — 85,540 2019-B VIE Asset-backed Class C Notes — 83,270 2020-A VIE Asset-backed Class A Notes 9,184 93,326 2020-A VIE Asset-backed Class B Notes 18,342 65,200 2020-A VIE Asset-backed Class C Notes 17,695 — 2021-A VIE Asset-backed Class A Notes 195,595 — 2021-A VIE Asset-backed Class B Notes 66,090 — 2021-A VIE Asset-backed Class C Notes 63,890 — Financing lease obligations 6,115 6,072 Total debt and financing lease obligations 525,911 613,232 Less: Discount on debt — (524) Deferred debt issuance costs (2,873) (3,139) Current finance lease obligations (889) (934) Long-term debt and financing lease obligations $ 522,149 $ 608,635 Future maturities of debt, excluding financing lease obligations, as of January 31, 2022 are as follows: (in thousands) Year Ended January 31, 2023 $ — 2024 — 2025 — 2026 194,221 2027 325,575 Total $ 519,796 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. On April 15, 2021 we completed the redemption of all of our outstanding Senior Notes in an aggregate principal amount of $141.2 million. 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, 2022 consisted of the following: (dollars in thousands) Asset-Backed Notes Original Principal Amount Original Net Proceeds (1) Current Principal Amount Issuance Date Maturity Date Contractual Interest Rate Effective Interest Rate (2) 2020-A Class A Notes $ 174,900 $ 173,716 $ 9,184 10/16/2020 6/16/2025 1.71% 4.47% 2020-A Class B Notes 65,200 64,754 18,342 10/16/2020 6/16/2025 4.27% 5.51% 2020-A Class C Notes 62,900 62,535 17,695 2/24/2021 6/16/2025 4.20% 5.72% 2021-A Class A Notes 247,830 246,152 195,595 11/23/2021 5/15/2026 1.05% 2.43% 2021-A Class B Notes 66,090 65,635 66,090 11/23/2021 5/15/2026 2.87% 3.36% 2021-A Class C Notes 63,890 63,450 63,890 11/23/2021 5/15/2026 4.59% 5.07% Total $ 680,810 $ 676,242 $ 370,796 (1) After giving effect to debt issuance costs. (2) For the year ended January 31, 2022, and inclusive of the impact of changes in timing of actual and expected cash flows. On February 24, 2021, the Company completed the sale of $62.9 million aggregate principal amount of 4.20% Asset Backed Notes, Class C, Series 2020-A, which were previously issued and held by the Company. The asset-backed notes are secured by the transferred customer accounts receivables and restricted cash held by a consolidated VIE, which resulted in net proceeds to us of $62.5 million, net of debt issuance costs. Net proceeds from the sale were used to repay amounts outstanding under the Company’s Revolving Credit Facility. On May 12, 2021, the Company completed the redemption of the 2019-A Asset Backed Notes at an aggregate redemption price of $41.1 million (which was equal to the entire outstanding principal balance plus accrued interest). On November 23, 2021, the Company completed the issuance and sale of $377.8 million aggregate principal amount of asset-backed notes secured by the transferred customer accounts receivables and restricted cash held by a consolidated VIE, which resulted in net proceeds to us of $375.2 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 May 15, 2026 and consist of $247.8 million of 1.05% Asset Backed Fixed Rate Notes, Class A, Series 2021-A, $66.1 million of 2.87% Asset Backed Fixed Rate Notes, Class B, Series 2021-A, and $63.9 million of 4.59% Asset Backed Fixed Rate Notes, Class C, Series 2021-A Asset Backed Fixed Rate Notes. On December 30, 2021 the Company completed the redemption of the 2019-B Asset Backed Notes at an aggregate redemption price of $52.4 million (which was equal to the entire outstanding principal balance plus accrued interest). Revolving Credit Facility. On March 29, 2021, Conn’s, Inc. and certain of its subsidiaries (the “Borrowers”) entered into the Fifth Amended and Restated Loan and Security Agreement (the “Fifth Amended and Restated Loan Agreement”), 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 March 29, 2025. The Fifth Amended and Restated Loan Agreement, among other things, permits borrowings under the Letter of Credit Subline (as defined in the Fifth Amended and Restated Loan Agreement) that exceed the cap of $40 million to $100 million, solely at the discretion of the lenders for such amounts in excess of $40 million. 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, 2022, we had immediately available borrowing capacity of $352.2 million under our Revolving Credit Facility, net of standby letters of credit issued of $22.5 million. Loans under the Revolving Credit Facility bear interest, at our option, at a rate of LIBOR plus a 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 a rate per annum equal to 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 4.0% for the year ended January 31, 2022. 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, 2022, we were restricted from making distributions in excess of $225.9 million as a result of the Revolving Credit Facility distribution and payment 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, 2022. A summary of the significant financial covenants that govern our Revolving Credit Facility compared to our actual compliance status at January 31, 2022 is presented below: Actual Required Interest Coverage Ratio for the quarter must equal or exceed minimum 8.35:1.00 1.00:1.00 Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum 9.29:1.00 1.50:1.00 Leverage Ratio must not exceed maximum 1.38:1.00 4.50:1.00 ABS Excluded Leverage Ratio must not exceed maximum 0.83:1.00 2.50:1.00 Capital Expenditures, net, must not exceed maximum $30.7 million $100.0 million |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2022 2021 Deferred tax assets: Deferred revenue $ 549 $ 788 Employment tax 831 1,661 Indirect tax reserve 3,063 2,927 Inventories 2,656 1,866 Lease liability 72,252 89,411 Stock-based compensation 3,235 2,121 Net operating loss carryforwards 1,489 25,131 Other 2,364 2,192 Total deferred tax assets 86,439 126,097 Deferred tax liabilities: Allowance for doubtful accounts (9,808) (9,829) Right-of-use asset (57,583) (59,725) Vendor prepayments (1,320) (1,165) Sales tax receivable (4,664) (5,085) Property and equipment (20,401) (40,454) Other (14) (391) Total deferred tax liabilities (93,790) (116,649) Net deferred tax (liability) asset $ (7,351) $ 9,448 As of January 31, 2022, the Company had a tax-effected state net operating loss carryforward of $1.5 million. Our state net operating loss carryforwards begin to expire starting with fiscal year 2030. 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, 2022, 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 (benefit) for income taxes consisted of the following: Year Ended January 31, (in thousands) 2022 2021 2020 Current: Federal $ 13,428 $ (47,829) $ 9,215 State 3,285 316 1,611 Total current 16,713 (47,513) 10,826 Deferred: Federal 14,726 31,083 7,590 State 2,073 240 (102) Total deferred 16,799 31,323 7,488 Provision (benefit) for income taxes $ 33,512 $ (16,190) $ 18,314 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) 2022 2021 2020 Income tax provision (benefit) at U.S. federal statutory rate $ 29,761 $ (4,059) $ 15,607 State income taxes, net of federal benefit 3,782 843 2,011 Tax Act and other deferred tax adjustments — (15,009) (910) Employee benefits 419 1,350 1,873 Other (450) 685 (267) Provision (benefit) for income taxes $ 33,512 $ (16,190) $ 18,314 A benefit of $14.9 million was recognized as of January 31, 2021 as a result of net operating loss provisions within the CARES Act (the “Tax Act”) that provide for a five-year carryback of losses. Federal tax returns for fiscal years subsequent to January 31, 2018, remain subject to examination. Generally, state tax returns for fiscal years subsequent to January 31, 2018 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) 2022 2021 2020 Balance at February 1 $ (9,853) $ (11,384) $ (11,625) Decreases related to prior year tax positions 982 1,531 241 Increase related to current year tax positions (452) — — Balance at January 31 $ (9,323) $ (9,853) $ (11,384) As of January 31, 2022, 2021 and 2020 there are $4.6 million, $5.3 million, and $3.5 million, respectively of unrecognized tax benefits that, if recognized, would favorably affect the Company’s annual effective tax rate. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
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 years 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 years 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 2022 2021 Assets Operating lease assets Operating lease right-of-use assets $ 256,267 $ 265,798 Finance lease assets Property and equipment, net 5,851 5,813 Total leased assets $ 262,118 $ 271,611 Liabilities Operating (1) Operating lease liability - current $ 59,710 $ 53,958 Finance Current finance lease obligations 889 934 Operating Operating lease liability - non current 330,439 354,598 Finance Long-term debt and finance lease obligations 5,226 5,138 Total lease liabilities $ 396,264 $ 414,628 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2022 and 2021, we had $5.2 million and $9.9 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2022 2021 Operating lease costs (1) Selling, general and administrative expense $ 65,841 $ 63,970 Total operating lease cost $ 65,841 $ 63,970 (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 . No impairment was recognized for the year ended January 31, 2022 and 2021. For the year 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) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 83,675 $ 73,983 Weighted-average remaining lease term (in years) Finance leases 8.7 9.5 Operating leases 6.7 7.2 Weighted-average discount rate Finance leases 5.0 % 5.1 % Operating leases 7.3 % 7.7 % For the years ended January 31, 2022, 2021 and 2020, total rent expense was $65.8 million, $65.1 million and $58.1 million, respectively. The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2022: (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2023 $ 86,487 $ 1,197 $ 87,684 2024 83,478 1,267 84,745 2025 73,281 1,103 74,384 2026 61,635 809 62,444 2027 51,590 560 52,150 Thereafter 139,348 2,940 142,288 Total undiscounted cash flows 495,819 7,876 503,695 Less: Interest 105,670 1,761 107,431 Total lease liabilities $ 390,149 $ 6,115 $ 396,264 |
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 years 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 years 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 2022 2021 Assets Operating lease assets Operating lease right-of-use assets $ 256,267 $ 265,798 Finance lease assets Property and equipment, net 5,851 5,813 Total leased assets $ 262,118 $ 271,611 Liabilities Operating (1) Operating lease liability - current $ 59,710 $ 53,958 Finance Current finance lease obligations 889 934 Operating Operating lease liability - non current 330,439 354,598 Finance Long-term debt and finance lease obligations 5,226 5,138 Total lease liabilities $ 396,264 $ 414,628 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2022 and 2021, we had $5.2 million and $9.9 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2022 2021 Operating lease costs (1) Selling, general and administrative expense $ 65,841 $ 63,970 Total operating lease cost $ 65,841 $ 63,970 (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 . No impairment was recognized for the year ended January 31, 2022 and 2021. For the year 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) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 83,675 $ 73,983 Weighted-average remaining lease term (in years) Finance leases 8.7 9.5 Operating leases 6.7 7.2 Weighted-average discount rate Finance leases 5.0 % 5.1 % Operating leases 7.3 % 7.7 % For the years ended January 31, 2022, 2021 and 2020, total rent expense was $65.8 million, $65.1 million and $58.1 million, respectively. The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2022: (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2023 $ 86,487 $ 1,197 $ 87,684 2024 83,478 1,267 84,745 2025 73,281 1,103 74,384 2026 61,635 809 62,444 2027 51,590 560 52,150 Thereafter 139,348 2,940 142,288 Total undiscounted cash flows 495,819 7,876 503,695 Less: Interest 105,670 1,761 107,431 Total lease liabilities $ 390,149 $ 6,115 $ 396,264 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On May 28, 2020, our stockholders approved the Conn’s, Inc. 2020 Omnibus Incentive Plan (“2020 Plan”). Upon the effectiveness of the 2020 Plan, no further awards were, or may in the future, be granted under any of our prior plans, which include the 2016 Omnibus Incentive Plan (“2016 Plan”), 2011 Non-Employee Director Restricted Stock Plan (“2011 Director Plan”) and the 2003 Non-Employee Director Stock Option Plan (“2003 Director Plan”). The 2020 plan provides for the issuance of 1,800,000 shares of Company common stock plus such number of shares as were, and may become, available under our prior plans. As such, shares subject to an award under the 2020 Plan, the 2016 Plan, the 2011 Plan, the 2011 Director Plan, the 2003 Director Plan or our Amended and Restated 2003 Incentive Stock Option Plan (“2003 Plan”) that lapse, expire, are forfeited or terminated, or are settled in cash will again become available for future grant under the 2020 Plan. During fiscal year 2022, a total of 88,053 shares were transferred to the 2020 Plan which all derived from the 2016 Omnibus Incentive Plan. During fiscal year 2021, a total of 937,514 shares were transferred to the 2020 Plan from the prior plans: 746,299 shares from the 2016 Omnibus Incentive Plan, 2,224 shares from the 2011 Omnibus Incentive Plan, and 48,991 shares from the 2011 Non-Employee Director Restricted Stock Plan, 140,000 shares from the 2003 Non-Employee Director Stock Option Plan. Our 2020 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 three years or 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 2020 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. As of January 31, 2022, shares authorized for future issuance were: 1,688,373 under the 2020 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) 2022 2021 2020 Stock options $ 1,608 $ 3,908 $ 3,978 RSUs and PSUs 7,038 5,058 8,316 Employee stock purchase plan 269 364 256 Accelerated RSU expense charged to severance — 1,255 — $ 8,915 $ 10,585 $ 12,550 During the years ended January 31, 2022, 2021, and 2020, we recognized tax benefits related to stock-based compensation of $1.8 million, $2.3 million and $1.4 million, respectively. As of January 31, 2022, the total unrecognized compensation cost related to all unvested stock-based compensation awards was $15.2 million and is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of RSUs, PSUs and stock options vested during fiscal years 2022, 2021 and 2020 was $14.0 million, $5.1 million and $8.4 million, respectively, based on the market price at the vesting date. Stock Options. The following table summarizes the activity for outstanding stock options: Shares Weighted- Weighted- Outstanding, January 31, 2021 720,166 $ 30.49 Granted — $ — Exercised — $ — Forfeited and expired — $ — Outstanding, January 31, 2022 720,166 $ 30.49 6.0 Vested and expected to vest, January 31, 2022 720,166 $ 30.49 6.0 Exercisable, January 31, 2022 410,083 $ 29.09 5.9 No stock options were exercised during the years ended January 31, 2022 and January 31, 2021. During the year ended January 31, 2020, the total intrinsic value of stock options exercised was $0.4 million. The aggregate intrinsic value of stock options outstanding, vested and expected to vest and exercisable at January 31, 2022 was approximately $0.6 million. The total fair value of common stock options vested during fiscal years 2022, 2021 and 2020 was $7.5 million, $0.3 million and $0.3 million, respectively, based on the market price at the vesting date. Restricted Stock Units. The restricted stock unit program consists of a combination of PSUs and RSUs. RSUs vest on a straight-line basis over their term, which is generally three years to four years. As of January 31, 2022 there are two PSU awards outstanding. Under both PSU awards, the number of PSUs issued is dependent upon attainment of an annualized Total Shareholder Return (“TSR”) target for the period identified in the award, which is three For grants of PSUs, the fair value is the market value of our stock at the date of issuance adjusted for the market condition using a Monte Carlo model. No dividend yield was included in the weighted average assumptions for the PSUs granted during fiscal years 2022 or 2021. The weighted average fair value per grant issued is $25.23 and $8.36 for fiscal years 2022 and 2021, respectively. The weighted-average assumptions used in the Monte Carlo valuations are as follows: Year Ended January 31, 2022 2021 Expected stock price volatility 83.0%-87.0% 60.0 % Risk-free interest rate 0.17%-0.67% 1.42 % Expected life (in years) 3 3 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, 2021 749,894 $ 13.53 269,580 $ 9.61 1,019,474 Granted 587,495 $ 18.91 268,037 $ 25.23 855,532 Vested and converted to common stock (333,429) $ 13.65 — $ — (333,429) Forfeited (96,619) $ 14.34 (48,037) $ 13.40 (144,656) Balance, January 31, 2022 907,341 $ 16.88 489,580 $ 17.79 1,396,921 The total fair value of restricted and performance shares vested during fiscal years 2022, 2021 and 2020 was $6.4 million, $4.8 million, and $8.1 million, respectively, based on the market price at the vesting date. The total fair value of restricted and performance shares granted during fiscal years 2022, 2021 and 2020 was $17.9 million, $8.0 million and $2.9 million, respectively. |
Significant Vendors
Significant Vendors | 12 Months Ended |
Jan. 31, 2022 | |
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, 2022 2021 2020 Vendor A 31.5 % 28.9 % 33.6 % Vendor B 21.1 15.4 16.3 Vendor C 11.0 14.0 11.0 Vendor D 5.0 7.8 9.6 Vendor E 2.5 6.8 9.5 Vendor F 2.2 3.1 5.7 73.3 % 76.0 % 85.7 % 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, 2022 | |
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 not made such supplemental contributions in the past three years. Due to the COVID-19 pandemic, matching contributions were suspended in fiscal year 2021. Matching contributions were resumed during fiscal year 2022. The matching contributions made by us totaled $2.2 million, $0.0 million and $1.9 million during the years ended January 31, 2022, 2021 and 2020, respectively. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2022 | |
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 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. On July 26, 2019, the magistrate judge issued a report recommending that defendants’ motion to dismiss the complaint be granted in part and denied in part. On September 25, 2019, the district court adopted the magistrate judge’s report, which permitted MicroCapital to file an amended complaint, which MicroCapital filed on October 30, 2019. Defendants filed their answer to the amended complaint on November 27, 2019. The parties reached a settlement agreement in this matter on October 28, 2021, that resolves the claims against the defendants in their entirety, and the case was dismissed with prejudice on November 18, 2021. Neither the Company nor any individual defendant admitted any wrongdoing. Derivative Litigation. On December 1, 2014, an alleged shareholder, purportedly on behalf of the Company, filed a shareholder derivative lawsuit in federal court against us and certain of our current and former directors and former executive officers captioned 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 (S.D. Tex.). 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 Conn’s. 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 (S.D. Tex.), was filed, asserting substantially similar claims against the same defendants. It was consolidated with the Hack litigation (collectively, the Federal Derivative Actions). The parties have reached a settlement in principle to fully resolve the Federal Derivative Actions. The settlement was subject to court approval. An initial settlement hearing was held before Judge Ellison on February 17, 2022, after which the Court requested additional briefing. Plaintiffs, Defendants, and State Court Plaintiff and Objector Richard Dohn filed additional briefing and a second settlement hearing was held before Judge Ellison on March 15, 2022. Judge Ellison approved the settlement and entered a Final Order and Judgement dismissing the derivative action with prejudice on March 15, 2022. Neither the Company nor any individual defendant admits any wrongdoing through the settlement agreement. In addition to the Federal Derivative Actions, a derivative action was filed in Texas state court on January 27, 2015, captioned 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 Federal Derivative Actions against the same defendants. This case is stayed until at least April 29, 2022. Counsel for Dohn attended the February 17, 2022 and March 15, 2022 settlement hearings in the Federal Derivative Actions and objected to the proposed settlement. Prior to filing his lawsuit, another 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 second state court 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 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 (former director), 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 Federal Derivative Actions. The complaint does not specify the amount of damages sought. Since April 2018, this case has been abated pending the resolution of related cases. In July 2021, the parties requested that the court extend the abatement pending further developments in the Federal Derivative Actions. The case currently remains abated. 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 two state court derivative actions intend to vigorously defend against these claims. It is not possible at this time to predict the timing or outcome of any unsettled litigation, and we cannot reasonably estimate the possible loss or range of possible loss from such 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, 2022 | |
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 $ 29,872 $ 48,622 Customer accounts receivable: Customer accounts receivable 463,411 509,574 Restructured accounts 29,621 105,395 Allowance for uncollectible accounts (97,560) (159,849) Allowance for no-interest option credit programs (10,275) (5,502) Deferred fees and origination costs (5,033) (5,503) Total customer accounts receivable, net 380,164 444,115 Total assets $ 410,036 $ 492,737 Liabilities: Accrued expenses $ 2,638 $ 3,707 Other liabilities 3,930 4,459 Due to Conn’s, Inc., net 12,755 5,661 Long-term debt: 2019-A Class A Notes — 19,521 2019-A Class B Notes — 25,069 2019-A Class C Notes — 24,202 2019-B Class A Notes — 17,860 2019-B Class B Notes — 85,540 2019-B Class C Notes — 83,270 2020-A Class A Notes 9,184 93,326 2020-A Class B Notes 18,342 65,200 2020-A Class C Notes 17,695 — 2021-A Class A Notes 195,595 — 2021-A Class B Notes 66,090 — 2021-A Class C Notes 63,890 — 370,796 413,988 Less deferred debt issuance costs (2,871) (2,437) Total debt 367,925 411,551 Total liabilities $ 387,248 $ 425,378 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, 2022 | |
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 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 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, 2022, we operated retail stores in 15 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, 2022 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 411,167 $ — $ 411,167 Home appliance 500,051 — 500,051 Consumer electronics 191,234 — 191,234 Computers 66,707 — 66,707 Other 36,386 — 36,386 Product sales 1,205,545 — 1,205,545 Repair service agreement commissions 89,101 — 89,101 Service revenues 10,743 — 10,743 Total net sales 1,305,389 — 1,305,389 Finance charges and other revenues 949 283,693 284,642 Total revenues 1,306,338 283,693 1,590,031 Costs and expenses: Cost of goods sold 825,987 — 825,987 Selling, general and administrative expense (1) 399,393 145,097 544,490 Provision for bad debts 479 47,705 48,184 Charges and credits 2,677 — 2,677 Total costs and expenses 1,228,536 192,802 1,421,338 Operating income 77,802 90,891 168,693 Interest expense — 25,758 25,758 Loss (gain) on extinguishment of debt — 1,218 1,218 Income before income taxes $ 77,802 $ 63,915 $ 141,717 Additional Disclosures: Property and equipment additions $ 44,618 $ 1,392 $ 46,010 Depreciation expense $ 43,728 $ 1,721 $ 45,449 January 31, 2022 (in thousands) Retail Credit Total Total assets $ 671,920 $ 1,082,546 $ 1,754,466 Year Ended January 31, 2021 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 322,770 $ — $ 322,770 Home appliance 390,964 — 390,964 Consumer electronics 172,932 — 172,932 Computers 65,405 — 65,405 Other 20,960 — 20,960 Product sales 973,031 — 973,031 Repair service agreement commissions 78,838 — 78,838 Service revenues 12,442 — 12,442 Total net sales 1,064,311 — 1,064,311 Finance charges and other revenues 816 320,898 321,714 Total revenues 1,065,127 320,898 1,386,025 Costs and expenses: Cost of goods sold 668,315 — 668,315 Selling, general and administrative expense (1) 335,954 142,813 478,767 Provision for bad debts 443 201,560 202,003 Charges and credits 4,092 2,234 6,326 Total costs and expenses 1,008,804 346,607 1,355,411 Operating income (loss) 56,323 (25,709) 30,614 Interest expense — 50,381 50,381 Loss (gain) on extinguishment of debt — (440) (440) Income (loss) before income taxes $ 56,323 $ (75,650) $ (19,327) Additional Disclosures: Property and equipment additions $ 55,172 $ 824 $ 55,996 Depreciation expense $ 39,968 $ 1,100 $ 41,068 January 31, 2021 (in thousands) Retail Credit Total Total assets $ 655,666 $ 1,099,418 $ 1,755,084 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 Computers 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 (gain) 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 (1) For the years ended January 31, 2022, 2021 and 2020, the amount of overhead allocated to each segment reflected in SG&A was $40.6 million, $32.0 million and $30.0 million, respectively. For the years ended January 31, 2022, 2021 and 2020, the amount of reimbursement made to the retail segment by the credit segment was $28.3 million, $34.8 million and $39.1 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Share Repurchases. On December 15, 2021, our board of directors approved a stock repurchase program pursuant to which the Company is authorized to repurchase up to $150.0 million of our outstanding common stock. The stock repurchase program expires on December 14, 2022. For the year ended January 31, 2022, we repurchased 2,603,479 shares of our common stock at an average weighted cost per share of $22.61 for an aggregate amount of $58.9 million. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Share Repurchases. For the period February 1, 2022 through March 25, 2022, we repurchased an additional 3,316,000 shares of our common stock for $68.2 million at an average price of $20.57. The total shares repurchased through March 25, 2022 under the plan in aggregate is 5,919,479 shares for $127.1 million at an average price of $21.47 per share. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2022 | |
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 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 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. |
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. Refer to Note 6, Debt and Financing Lease Obligations , and Note 13, Variable Interest Entities , for additional information. |
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, 2022 and 2021, cash and cash equivalents included cash and credit card deposits in transit. Credit card deposits in transit included in cash and cash equivalents were $5.2 million and $7.9 million as of January 31, 2022 and 2021, respectively. |
Restricted cash | Restricted Cash. The restricted cash balance as of January 31, 2022 and 2021 includes $25.7 million and $41.6 million, respectively, of cash we collected as servicer on the securitized receivables that was subsequently remitted to the VIEs and $4.2 million and $7.0 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. Expected lifetime losses on customer accounts receivable are recognized upon origination through an allowance for credit losses account that is deducted from the customer account receivable balance and presented net thereof. 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. 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”). On March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law to address the economic impact of the COVID-19 pandemic. Under the CARES Act, modifications deemed to be COVID-19 related are not considered a TDR if the loan was current (not more than 30 days past due as of March 31, 2020) and the deferral was executed between April 1, 2020 and the earlier of 60 days after the termination of the COVID-19 national emergency or December 31, 2020. In response to the CARES Act, the Company implemented short-term deferral programs for our customers. The carrying value of the customer receivables on accounts which were current prior to receiving a COVID-19 related deferment was $18.9 million and $65.2 million as of January 31, 2022 and 2021. |
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. We reserve for interest that is more than 60 days past due. 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, 2022 and 2021, there were $8.6 million and $8.9 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, 2022 and 2021, the carrying value of customer accounts receivable in non-accrual status was $5.9 million and $8.5 million, respectively. At January 31, 2022 and 2021, the carrying value of customer accounts receivable that were past due 90 days or more and still accruing interest totaled $84.1 million and $111.5 million, respectively. At January 31, 2022 and January 31, 2021, the carrying value of customer accounts receivable in a bankruptcy status that were less than 60 days past due of $5.5 million and $5.2 million, respectively, were included within the customer receivables balance carried in non-accrual status. |
Allowance on Doubtful Accounts | Allowance on Doubtful Accounts. The allowance for credit losses is measured on a collective (pool) basis where similar risk characteristics exist. Upon adoption of ASC 326, the Company elected to maintain the pools of customer accounts receivable that were previously accounted for under ASC 310 (Non-TDR Non-Re-aged, Non-TDR Re-aged, and TDR). These pools are further segmented based on shared risk attributes, which include the borrower’s FICO score, product class, length of customer relationship and delinquency status. The allowance for credit losses is determined for each pool and added to the pool’s carrying amount to establish a new amortized cost basis. Changes to the allowance for credit losses after adoption are recorded through provision expense. We have elected to use a risk-based, pool-level segmentation framework to calculate the expected loss rate. This framework is based on our historical gross charge-off history. In addition to adjusted historical gross charge-off rates, estimates of post-charge-off recoveries, including cash payments from customers, sales tax recoveries from taxing jurisdictions, and payments received under credit insurance and repair service agreement (“RSA”) policies are also considered. We also consider forward-looking economic forecasts based on a statistical analysis of economic factors (specifically, forecast of unemployment rates over the reasonable and supportable forecasting period). To the extent that situations and trends arise which are not captured in our model, management will layer on additional qualitative adjustments. The Company uses a 24-month reasonable and supportable forecast period for the Customer Accounts Receivable portfolio. We estimate losses beyond the 24-month forecast period based on historic loss rates experienced over the life of our historic loan portfolio by loan pool type. We revisit our measurement methodology and assumption annually, or more frequently if circumstances warrant. |
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, Revenue Recognition and Deferred Revenue | 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, 2022, 2021 and 2020, we recorded $118.1 million, $122.7 million and $156.6 million, respectively, as reductions in cost of goods sold from vendor allowances. Revenue Recognition. The Company accounts for revenue under ASC 606 and 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. 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 repair service agreements (“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 consumer. 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 program. 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. 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, 2022, we recognized $4.7 million of revenue for customer deposits deferred as of the beginning of the period compared to $1.2 million recognized during the twelve months ended January 31, 2021. During the twelve months ended January 31, 2022, we recognized $3.2 million of revenue for RSA administrative fees deferred as of the beginning of the period compared to $4.0 million recognized during the twelve months ended January 31, 2021. |
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. No software costs were written-off in the years ended January 31, 2022 and 2021. 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. See Note 4, Charges and Credits, for further details regarding fiscal year 2020 write-offs. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. Long-lived assets are evaluated for impairment, primarily at the asset group level. The asset group is defined as stores and cross-docks within a distribution center’s service area. We monitor asset group 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 an asset group'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, 2022 and 2021 there were no impairments. |
Leases | Leases. We determine if an arrangement is a lease at inception. Operating lease right-of-use 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 the commencement date in determining the present value of lease payments. If the estimate of our incremental borrowing rate was changed, our operating lease assets and liabilities could differ materially. We record lease incentives 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. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise the option. Lease expense is recognized on a straight-line basis over the lease term. We have made a policy election for all classifications of leases to combine lease and non-lease components and to account for them as a single lease component. |
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 $5.1 million and $3.5 million as of January 31, 2022 and 2021, respectively. |
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 2022, 2021 and 2020, advertising expense was $90.4 million, $72.5 million and $84.8 million, respectively. |
Stock-Based Compensation | Stock-based Compensation. Stock-based compensation expense is recorded for share-based compensation awards, net of actual forfeitures, over the requisite service period using the straight-line method. 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 any market conditions. |
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. |
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, 2022 2021 2020 Weighted-average common shares outstanding - Basic 29,267,691 29,060,512 30,275,662 Dilutive effect of stock options, RSUs and PSUs 733,799 — 539,113 Weighted-average common shares outstanding - Diluted 30,001,490 29,060,512 30,814,775 |
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 nature 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, 2022, the fair value of the asset-backed notes was $369.6 million, compared to the carrying value of $370.8 million, which was determined using Level 2 inputs based on inactive trading activity. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”). ASU 2016-13 replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. Under the new guidance entities must reserve an allowance for expected credit losses over the life of the loan. The measurement of expected credit losses is applicable to financial assets measured at amortized cost. The allowance for credit losses is a valuation account that is deducted from the customer account receivable’s amortized cost basis to present the net amount expected to be collected. Customer receivables are charged off against the allowance when management deems an account to be uncollectible. 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 are included in the allowance for credit losses. Effective February 1, 2020, the Company adopted ASU 2016-13 and ASU 2019-04 using the modified retrospective approach. The Company has reviewed its entire portfolio of assets recognized on the balance sheet as of January 31, 2020 and identified Customer Accounts Receivables as the materially impacted asset in-scope of ASC 326. The risk of credit losses from the remaining portfolio of assets was concluded to be immaterial. Upon adoption of ASC 326 the Company recorded a net decrease to retained earnings of $76.5 million as of February 1, 2020. Results for reporting periods prior to February 1, 2020 are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under previously applicable GAAP. The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 326 were as follows: Impact of Adoption of ASC 326 (in thousands) Balance at January 31, 2020 Adjustments due to ASC 326 Balance at February 1, 2020 Assets Customer accounts receivable $ 673,742 $ (49,700) $ 624,042 Long-term portion of customer accounts receivable 663,761 (48,962) 614,799 Deferred Income Taxes 18,599 22,173 40,772 Stockholders’ Equity Retained Earnings $ 570,636 $ (76,489) $ 494,147 Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , an update intended to simplify various aspects related to accounting for income taxes. This guidance removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This accounting standards update became effective for us in the first quarter of fiscal year 2022. The adoption did not have a material impact on our consolidated financial statements. Changes due to Securities and Exchange Commission Modernization Regulation S-K Items 101, 103, and 105 On August 26, 2020, the Securities and Exchange Commission ("SEC") adopted amendments to modernize the description of business, legal proceedings and risk factor disclosures that registrants are required to make pursuant to Regulation S-K. These amendments are intended to eliminate duplicative disclosures and modernize and enhance Management's Discussion & Analysis of Financial Condition and Results of Operations disclosures. Previously, more explicit disclosures were required whereas now management is able to take a principles-based approach in disclosing certain material information. The amendments became effective February 10, 2021. Recent Accounting Pronouncements Yet To Be Adopted. Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , an update that provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), Scope, to clarify the scope of the guidance and reduce potential diversity in practice. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. These accounting standard updates were effective upon issuance, with adoption permitted through December 31, 2022. We expect to adopt ASC 2020-04 and ASC 2021-01 upon transition from LIBOR, prior to December 31, 2022. We do not expect the adoption to have a material impact on our consolidated financial statements. No other new accounting pronouncements issued or effective as of January 31, 2022 have had or are expected to have a material impact on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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, 2022 2021 2020 Weighted-average common shares outstanding - Basic 29,267,691 29,060,512 30,275,662 Dilutive effect of stock options, RSUs and PSUs 733,799 — 539,113 Weighted-average common shares outstanding - Diluted 30,001,490 29,060,512 30,814,775 |
Cumulative effect of the changes for adoption of accounting standard | The cumulative effect of the changes made to the Company’s Consolidated Balance Sheet as a result of the adoption of ASC 326 were as follows: Impact of Adoption of ASC 326 (in thousands) Balance at January 31, 2020 Adjustments due to ASC 326 Balance at February 1, 2020 Assets Customer accounts receivable $ 673,742 $ (49,700) $ 624,042 Long-term portion of customer accounts receivable 663,761 (48,962) 614,799 Deferred Income Taxes 18,599 22,173 40,772 Stockholders’ Equity Retained Earnings $ 570,636 $ (76,489) $ 494,147 |
Customer Accounts Receivable (T
Customer Accounts Receivable (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Receivables [Abstract] | |
Schedule of customer accounts receivable | Customer accounts receivable consisted of the following: (in thousands) January 31, January 31, Customer accounts receivable (1) $ 1,130,395 $ 1,233,717 Deferred fees and origination costs, net (13,503) (14,212) Allowance for no-interest option credit programs (19,654) (11,985) Allowance for uncollectible interest (15,124) (21,427) Carrying value of customer accounts receivable 1,082,114 1,186,093 Allowance for credit losses (2) (193,896) (276,610) Carrying value of customer accounts receivable, net of allowance for bad debts 888,218 909,483 Short-term portion of customer accounts receivable, net (455,787) (478,734) Long-term customer accounts receivable, net $ 432,431 $ 430,749 Carrying Value (in thousands) January 31, January 31, Customer accounts receivable 60+ days past due (3) $ 112,858 $ 146,820 Re-aged customer accounts receivable (4) 181,996 306,845 Restructured customer accounts receivable (5) 99,557 178,374 (1) As of January 31, 2022 and 2021, the customer accounts receivable balance included $22.3 million and $31.1 million, respectively, in interest receivable. Net of the allowance for uncollectible interest, interest receivable outstanding as of January 31, 2022 and 2021 was $7.2 million and $9.7 million, respectively. (2) Our current methodology to estimate expected credit losses utilized macroeconomic forecasts as of January 31, 2022 and 2021, which incorporated the continued estimated impact of the global COVID-19 pandemic on the U.S. economy. Our forecast utilized economic projections from a major rating service reflecting a decrease in unemployment rates. (3) As of January 31, 2022 and 2021, the carrying value of customer accounts receivable past due one day or greater was $299.0 million and $340.8 million, respectively. These amounts include the 60+ days past due balances shown above. (4) The re-aged carrying value as of January 31, 2022 and 2021 includes $48.6 million and $88.0 million, respectively, in carrying value that are both 60+ days past due and re-aged. (5) The restructured carrying value as of January 31, 2022 and 2021 includes $29.0 million and $57.1 million, respectively, in carrying value that are both 60+ days past due and restructured. |
Accounts Receivable, Allowance for Credit Loss | The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows: (in thousands) January 31, 2022 January 31, 2021 Customer accounts receivable - current $ 564,825 $ 643,903 Allowance for credit losses for customer accounts receivable - current (109,038) (165,169) Customer accounts receivable, net of allowances 455,787 478,734 Customer accounts receivable - non current 532,413 563,617 Allowance for credit losses for customer accounts receivable - non current (99,982) (132,868) Long-term portion of customer accounts receivable, net of allowances 432,431 430,749 Total customer accounts receivable, net $ 888,218 $ 909,483 |
Financing Receivable, Current, Allowance for Credit Loss | The following presents the activity in our allowance for credit losses and uncollectible interest for customer accounts receivable: January 31, 2022 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 219,739 $ 78,298 $ 298,037 Provision (1) 52,872 30,936 83,808 Principal charge-offs (2) (105,889) (64,239) (170,128) Interest charge-offs (28,972) (17,576) (46,548) Recoveries (2) 27,294 16,557 43,851 Allowance at end of period $ 165,044 $ 43,976 $ 209,020 Average total customer portfolio balance $ 995,373 $ 140,618 $ 1,135,991 January 31, 2021 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 145,680 $ 88,124 $ 233,804 Impact of adoption ASC 326 95,136 3,526 98,662 Provision (1) 185,210 80,276 265,486 Principal charge-offs (2) (178,777) (81,142) (259,919) Interest charge-offs (50,060) (22,721) (72,781) Recoveries (2) 22,550 10,235 32,785 Allowance at end of period $ 219,739 $ 78,298 $ 298,037 Average total customer portfolio balance $ 1,184,174 $ 211,254 $ 1,395,428 January 31, 2020 (in thousands) Customer Accounts Receivable Restructured Accounts Total Allowance at beginning of period $ 147,123 $ 67,756 $ 214,879 Provision (3) 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 (1) Includes provision for uncollectible interest, which is included in finance charges and other revenues, and changes in expected future recoveries. (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. (3) Includes provision for uncollectible interest, which is included in finance charges and other revenues. |
Financing Receivable, Past Due | The following table presents the delinquency distribution of the carrying value of customer accounts receivable by calendar year of origination as of January 31, 2022: (dollars in thousands) Delinquency Bucket 2022 2021 2020 2019 Prior Total % of Total Current $49,086 $499,028 $163,576 $63,716 $7,693 $783,099 72.3% 1-30 — 78,304 39,683 23,019 5,630 146,636 13.6% 31-60 — 19,498 10,509 7,367 2,147 39,521 3.7% 61-90 — 14,261 7,562 5,243 1,544 28,610 2.6% 91+ — 35,830 24,678 18,038 5,702 84,248 7.8% Total $49,086 $646,921 $246,008 $117,383 $22,716 $1,082,114 100.0% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated January 31, (dollars in thousands) Useful Lives 2022 2021 Land — $ 1,644 $ 1,644 Buildings 30 years 4,121 4,115 Leasehold improvements 5 to 15 years 331,776 313,926 Equipment and fixtures 3 to 5 years 104,623 97,407 Finance leases 3 to 20 years 9,480 9,027 Construction in progress — 31,764 14,702 483,408 440,821 Less accumulated depreciation (290,645) (249,859) $ 192,763 $ 190,962 |
Charges and Credits (Tables)
Charges and Credits (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Charges and Credits [Abstract] | |
Schedule of Charges and Credits | Charges and credits consisted of the following: Year Ended January 31, (in thousands) 2022 2021 2020 Store and facility closure and relocation costs $ — $ — $ 1,933 Legal and professional fees, securities-related litigation, a legal judgment and other legal matters — 3,589 — Employee severance — 2,737 — Excess import freight costs 2,677 — — Write-off of capitalized software costs — — 1,209 $ 2,677 $ 6,326 $ 3,142 |
Finance Charges and Other Rev_2
Finance Charges and Other Revenues (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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) 2022 2021 2020 Interest income and fees $ 259,422 $ 303,209 $ 341,224 Insurance income 24,270 17,689 38,417 Other revenues 950 816 810 Total finance charges and other revenues $ 284,642 $ 321,714 $ 380,451 |
Debt and Financing Lease Obli_2
Debt and Financing Lease Obligations (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long term debt | Debt and financing lease obligations consisted of the following: January 31, (in thousands) 2022 2021 Revolving Credit Facility $ 149,000 $ 52,000 Senior Notes — 141,172 2019-A VIE Asset-backed Class A Notes — 19,521 2019-A VIE Asset-backed Class B Notes — 25,069 2019-A VIE Asset-backed Class C Notes — 24,202 2019-B VIE Asset-backed Class A Notes — 17,860 2019-B VIE Asset-backed Class B Notes — 85,540 2019-B VIE Asset-backed Class C Notes — 83,270 2020-A VIE Asset-backed Class A Notes 9,184 93,326 2020-A VIE Asset-backed Class B Notes 18,342 65,200 2020-A VIE Asset-backed Class C Notes 17,695 — 2021-A VIE Asset-backed Class A Notes 195,595 — 2021-A VIE Asset-backed Class B Notes 66,090 — 2021-A VIE Asset-backed Class C Notes 63,890 — Financing lease obligations 6,115 6,072 Total debt and financing lease obligations 525,911 613,232 Less: Discount on debt — (524) Deferred debt issuance costs (2,873) (3,139) Current finance lease obligations (889) (934) Long-term debt and financing lease obligations $ 522,149 $ 608,635 |
Aggregate maturities of long-term debt | Future maturities of debt, excluding financing lease obligations, as of January 31, 2022 are as follows: (in thousands) Year Ended January 31, 2023 $ — 2024 — 2025 — 2026 194,221 2027 325,575 Total $ 519,796 |
Schedule of asset-backed notes | The asset-backed notes outstanding as of January 31, 2022 consisted of the following: (dollars in thousands) Asset-Backed Notes Original Principal Amount Original Net Proceeds (1) Current Principal Amount Issuance Date Maturity Date Contractual Interest Rate Effective Interest Rate (2) 2020-A Class A Notes $ 174,900 $ 173,716 $ 9,184 10/16/2020 6/16/2025 1.71% 4.47% 2020-A Class B Notes 65,200 64,754 18,342 10/16/2020 6/16/2025 4.27% 5.51% 2020-A Class C Notes 62,900 62,535 17,695 2/24/2021 6/16/2025 4.20% 5.72% 2021-A Class A Notes 247,830 246,152 195,595 11/23/2021 5/15/2026 1.05% 2.43% 2021-A Class B Notes 66,090 65,635 66,090 11/23/2021 5/15/2026 2.87% 3.36% 2021-A Class C Notes 63,890 63,450 63,890 11/23/2021 5/15/2026 4.59% 5.07% Total $ 680,810 $ 676,242 $ 370,796 (1) After giving effect to debt issuance costs. |
Schedule of debt covenants | Actual Required Interest Coverage Ratio for the quarter must equal or exceed minimum 8.35:1.00 1.00:1.00 Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum 9.29:1.00 1.50:1.00 Leverage Ratio must not exceed maximum 1.38:1.00 4.50:1.00 ABS Excluded Leverage Ratio must not exceed maximum 0.83:1.00 2.50:1.00 Capital Expenditures, net, must not exceed maximum $30.7 million $100.0 million |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following: January 31, (in thousands) 2022 2021 Deferred tax assets: Deferred revenue $ 549 $ 788 Employment tax 831 1,661 Indirect tax reserve 3,063 2,927 Inventories 2,656 1,866 Lease liability 72,252 89,411 Stock-based compensation 3,235 2,121 Net operating loss carryforwards 1,489 25,131 Other 2,364 2,192 Total deferred tax assets 86,439 126,097 Deferred tax liabilities: Allowance for doubtful accounts (9,808) (9,829) Right-of-use asset (57,583) (59,725) Vendor prepayments (1,320) (1,165) Sales tax receivable (4,664) (5,085) Property and equipment (20,401) (40,454) Other (14) (391) Total deferred tax liabilities (93,790) (116,649) Net deferred tax (liability) asset $ (7,351) $ 9,448 |
Components of provision (benefit) for income taxes | Provision (benefit) for income taxes consisted of the following: Year Ended January 31, (in thousands) 2022 2021 2020 Current: Federal $ 13,428 $ (47,829) $ 9,215 State 3,285 316 1,611 Total current 16,713 (47,513) 10,826 Deferred: Federal 14,726 31,083 7,590 State 2,073 240 (102) Total deferred 16,799 31,323 7,488 Provision (benefit) for income taxes $ 33,512 $ (16,190) $ 18,314 |
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) 2022 2021 2020 Income tax provision (benefit) at U.S. federal statutory rate $ 29,761 $ (4,059) $ 15,607 State income taxes, net of federal benefit 3,782 843 2,011 Tax Act and other deferred tax adjustments — (15,009) (910) Employee benefits 419 1,350 1,873 Other (450) 685 (267) Provision (benefit) for income taxes $ 33,512 $ (16,190) $ 18,314 |
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) 2022 2021 2020 Balance at February 1 $ (9,853) $ (11,384) $ (11,625) Decreases related to prior year tax positions 982 1,531 241 Increase related to current year tax positions (452) — — Balance at January 31 $ (9,323) $ (9,853) $ (11,384) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Cost | Supplemental lease information is summarized below: January 31, (in thousands) Balance sheet classification 2022 2021 Assets Operating lease assets Operating lease right-of-use assets $ 256,267 $ 265,798 Finance lease assets Property and equipment, net 5,851 5,813 Total leased assets $ 262,118 $ 271,611 Liabilities Operating (1) Operating lease liability - current $ 59,710 $ 53,958 Finance Current finance lease obligations 889 934 Operating Operating lease liability - non current 330,439 354,598 Finance Long-term debt and finance lease obligations 5,226 5,138 Total lease liabilities $ 396,264 $ 414,628 (1) Represents the gross operating lease liability before tenant improvement allowances. As of January 31, 2022 and 2021, we had $5.2 million and $9.9 million of tenant improvement allowances to be remitted by the landlord. Lease Cost Year Ended January 31, (in thousands) Income statement classification 2022 2021 Operating lease costs (1) Selling, general and administrative expense $ 65,841 $ 63,970 Total operating lease cost $ 65,841 $ 63,970 (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) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 83,675 $ 73,983 Weighted-average remaining lease term (in years) Finance leases 8.7 9.5 Operating leases 6.7 7.2 Weighted-average discount rate Finance leases 5.0 % 5.1 % Operating leases 7.3 % 7.7 % |
Schedule of future minimum base rental payments | The following table presents a summary of our minimum contractual commitments and obligations as of January 31, 2022: (in thousands) Operating Leases Finance Leases Total Year ending January 31, 2023 $ 86,487 $ 1,197 $ 87,684 2024 83,478 1,267 84,745 2025 73,281 1,103 74,384 2026 61,635 809 62,444 2027 51,590 560 52,150 Thereafter 139,348 2,940 142,288 Total undiscounted cash flows 495,819 7,876 503,695 Less: Interest 105,670 1,761 107,431 Total lease liabilities $ 390,149 $ 6,115 $ 396,264 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Share-based Payment Arrangement [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) 2022 2021 2020 Stock options $ 1,608 $ 3,908 $ 3,978 RSUs and PSUs 7,038 5,058 8,316 Employee stock purchase plan 269 364 256 Accelerated RSU expense charged to severance — 1,255 — $ 8,915 $ 10,585 $ 12,550 |
Summary of incentive stock option plan activity | The following table summarizes the activity for outstanding stock options: Shares Weighted- Weighted- Outstanding, January 31, 2021 720,166 $ 30.49 Granted — $ — Exercised — $ — Forfeited and expired — $ — Outstanding, January 31, 2022 720,166 $ 30.49 6.0 Vested and expected to vest, January 31, 2022 720,166 $ 30.49 6.0 Exercisable, January 31, 2022 410,083 $ 29.09 5.9 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average assumptions used in the Monte Carlo valuations are as follows: Year Ended January 31, 2022 2021 Expected stock price volatility 83.0%-87.0% 60.0 % Risk-free interest rate 0.17%-0.67% 1.42 % Expected life (in years) 3 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, 2021 749,894 $ 13.53 269,580 $ 9.61 1,019,474 Granted 587,495 $ 18.91 268,037 $ 25.23 855,532 Vested and converted to common stock (333,429) $ 13.65 — $ — (333,429) Forfeited (96,619) $ 14.34 (48,037) $ 13.40 (144,656) Balance, January 31, 2022 907,341 $ 16.88 489,580 $ 17.79 1,396,921 |
Significant Vendors (Tables)
Significant Vendors (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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, 2022 2021 2020 Vendor A 31.5 % 28.9 % 33.6 % Vendor B 21.1 15.4 16.3 Vendor C 11.0 14.0 11.0 Vendor D 5.0 7.8 9.6 Vendor E 2.5 6.8 9.5 Vendor F 2.2 3.1 5.7 73.3 % 76.0 % 85.7 % |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
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 $ 29,872 $ 48,622 Customer accounts receivable: Customer accounts receivable 463,411 509,574 Restructured accounts 29,621 105,395 Allowance for uncollectible accounts (97,560) (159,849) Allowance for no-interest option credit programs (10,275) (5,502) Deferred fees and origination costs (5,033) (5,503) Total customer accounts receivable, net 380,164 444,115 Total assets $ 410,036 $ 492,737 Liabilities: Accrued expenses $ 2,638 $ 3,707 Other liabilities 3,930 4,459 Due to Conn’s, Inc., net 12,755 5,661 Long-term debt: 2019-A Class A Notes — 19,521 2019-A Class B Notes — 25,069 2019-A Class C Notes — 24,202 2019-B Class A Notes — 17,860 2019-B Class B Notes — 85,540 2019-B Class C Notes — 83,270 2020-A Class A Notes 9,184 93,326 2020-A Class B Notes 18,342 65,200 2020-A Class C Notes 17,695 — 2021-A Class A Notes 195,595 — 2021-A Class B Notes 66,090 — 2021-A Class C Notes 63,890 — 370,796 413,988 Less deferred debt issuance costs (2,871) (2,437) Total debt 367,925 411,551 Total liabilities $ 387,248 $ 425,378 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jan. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial information by segment | Financial information by segment is presented in the following tables: Year Ended January 31, 2022 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 411,167 $ — $ 411,167 Home appliance 500,051 — 500,051 Consumer electronics 191,234 — 191,234 Computers 66,707 — 66,707 Other 36,386 — 36,386 Product sales 1,205,545 — 1,205,545 Repair service agreement commissions 89,101 — 89,101 Service revenues 10,743 — 10,743 Total net sales 1,305,389 — 1,305,389 Finance charges and other revenues 949 283,693 284,642 Total revenues 1,306,338 283,693 1,590,031 Costs and expenses: Cost of goods sold 825,987 — 825,987 Selling, general and administrative expense (1) 399,393 145,097 544,490 Provision for bad debts 479 47,705 48,184 Charges and credits 2,677 — 2,677 Total costs and expenses 1,228,536 192,802 1,421,338 Operating income 77,802 90,891 168,693 Interest expense — 25,758 25,758 Loss (gain) on extinguishment of debt — 1,218 1,218 Income before income taxes $ 77,802 $ 63,915 $ 141,717 Additional Disclosures: Property and equipment additions $ 44,618 $ 1,392 $ 46,010 Depreciation expense $ 43,728 $ 1,721 $ 45,449 January 31, 2022 (in thousands) Retail Credit Total Total assets $ 671,920 $ 1,082,546 $ 1,754,466 Year Ended January 31, 2021 (in thousands) Retail Credit Total Revenues: Furniture and mattress $ 322,770 $ — $ 322,770 Home appliance 390,964 — 390,964 Consumer electronics 172,932 — 172,932 Computers 65,405 — 65,405 Other 20,960 — 20,960 Product sales 973,031 — 973,031 Repair service agreement commissions 78,838 — 78,838 Service revenues 12,442 — 12,442 Total net sales 1,064,311 — 1,064,311 Finance charges and other revenues 816 320,898 321,714 Total revenues 1,065,127 320,898 1,386,025 Costs and expenses: Cost of goods sold 668,315 — 668,315 Selling, general and administrative expense (1) 335,954 142,813 478,767 Provision for bad debts 443 201,560 202,003 Charges and credits 4,092 2,234 6,326 Total costs and expenses 1,008,804 346,607 1,355,411 Operating income (loss) 56,323 (25,709) 30,614 Interest expense — 50,381 50,381 Loss (gain) on extinguishment of debt — (440) (440) Income (loss) before income taxes $ 56,323 $ (75,650) $ (19,327) Additional Disclosures: Property and equipment additions $ 55,172 $ 824 $ 55,996 Depreciation expense $ 39,968 $ 1,100 $ 41,068 January 31, 2021 (in thousands) Retail Credit Total Total assets $ 655,666 $ 1,099,418 $ 1,755,084 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 Computers 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 (gain) 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 (1) For the years ended January 31, 2022, 2021 and 2020, the amount of overhead allocated to each segment reflected in SG&A was $40.6 million, $32.0 million and $30.0 million, respectively. For the years ended January 31, 2022, 2021 and 2020, the amount of reimbursement made to the retail segment by the credit segment was $28.3 million, $34.8 million and $39.1 million, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Business (Details) | 12 Months Ended |
Jan. 31, 2022segment | |
Accounting Policies [Abstract] | |
Operating segments | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Jan. 31, 2021 |
Accounting Policies [Abstract] | ||
Credit card deposits in-transit | $ 5.2 | $ 7.9 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) - Securitized Receivables Servicer - USD ($) $ in Millions | Jan. 31, 2022 | Jan. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 25.7 | $ 41.6 |
VIE | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 4.2 | $ 7 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Customer Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Accounting Policies [Abstract] | ||
Delinquent accounts charged-off (more than) | 209 days | |
Customer receivables which were current prior to receiving a COVID-19 related deferment | $ 18.9 | $ 65.2 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Interest Income on Customer Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
No-interest option program period | 12 months | |
Receivables in non-accrual status | $ 5,900 | $ 8,500 |
Receivables past due | 84,100 | 111,500 |
Total customer accounts receivable, net | 888,218 | 909,483 |
Past Due less than 60 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total customer accounts receivable, net | 5,500 | 5,200 |
Customer Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other liabilities | $ 8,600 | $ 8,900 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Vendor Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | |||
Vendor rebates | $ 118.1 | $ 122.7 | $ 156.6 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Internal-Use Software Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | |||
Internal-use software amortization period | 10 years | ||
Write-off of capitalized software costs | $ 0 | $ 0 | $ 1,209 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Internal-Use Software Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | |||
Impairment charges recorded | $ 0 | $ 0 | $ 3.2 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Debt Issuance Costs (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ 2,873 | $ 3,139 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ 5,100 | $ 3,500 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Revenue Recognition and Deferred Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
RSA administrative fees | ||
Deferred Revenue Arrangement [Line Items] | ||
Vendor concentration (in hundredths) | 5.00% | |
Deferred revenue recognized | $ 3.2 | $ 4 |
Customer deposits | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue recognized | $ 4.7 | $ 1.2 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | |||
Advertising expense included in selling, general and administrative expense | $ 90.4 | $ 72.5 | $ 84.8 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Earnings per Share (Details) - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | |||
Weighted average common shares outstanding - Basic (in shares) | 29,267,691 | 29,060,512 | 30,275,662 |
Dilutive effect of stock options, RSUs and PSUs (in shares) | 733,799 | 0 | 539,113 |
Weighted average common shares outstanding - Diluted (in shares) | 30,001,490 | 29,060,512 | 30,814,775 |
Weighted average number of options not included in the calculation of the dilutive effect of stock options and restricted stock units (in shares) | 704,582 | 1,097,996 | 898,449 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
Long-term debt | $ 370,796 |
Secured debt | |
Debt Instrument [Line Items] | |
Long-term debt | 370,800 |
Secured debt | |
Debt Instrument [Line Items] | |
Fair value of debt | $ 369,600 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Recent Accounting Pronouncements Adopted (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Customer accounts receivable, net of allowances | $ 455,787 | $ 478,734 | $ 624,042 | $ 673,742 |
Long-term customer accounts receivable, net | 432,431 | 430,749 | 614,799 | 663,761 |
Deferred Income Taxes | 0 | 9,448 | 40,772 | 18,599 |
Retained earnings | $ 599,215 | $ 491,010 | 494,147 | $ 570,636 |
ASU 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Customer accounts receivable, net of allowances | (49,700) | |||
Long-term customer accounts receivable, net | (48,962) | |||
Deferred Income Taxes | 22,173 | |||
Retained earnings | $ (76,489) |
Customer Accounts Receivable -
Customer Accounts Receivable - Schedule of Customer Accounts Receivable (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 |
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Customer accounts receivable | $ 1,130,395 | $ 1,233,717 | ||
Deferred fees and origination costs, net | (13,503) | (14,212) | ||
Allowance for no-interest option credit programs | (19,654) | (11,985) | ||
Allowance for uncollectible interest | (15,124) | (21,427) | ||
Carrying value of customer accounts receivable | 1,082,114 | 1,186,093 | ||
Allowance for credit losses | (193,896) | (276,610) | ||
Carrying value of customer accounts receivable, net of allowance for bad debts | 888,218 | 909,483 | ||
Short-term portion of customer accounts receivable, net | (455,787) | (478,734) | $ (624,042) | $ (673,742) |
Long-term customer accounts receivable, net | 432,431 | 430,749 | $ 614,799 | $ 663,761 |
Customer accounts receivable 60 plus days past due | 112,858 | 146,820 | ||
Re-aged customer accounts receivable | 181,996 | 306,845 | ||
Restructured customer accounts receivable | 99,557 | 178,374 | ||
Interest Receivable | 22,300 | 31,100 | ||
Interest receivable outstanding net of allowance for uncollectible interest | 7,200 | 9,700 | ||
Total amount of customer receivables past due one day or greater | 888,218 | 909,483 | ||
Amounts included within past due and reaged accounts | 48,600 | 88,000 | ||
Amounts included within past due and restructured accounts | 29,000 | 57,100 | ||
2022 | 49,086 | |||
2021 | 646,921 | |||
2020 | 246,008 | |||
2019 | 117,383 | |||
Prior | $ 22,716 | |||
% of Total | 100.00% | |||
Current | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable | $ 783,099 | |||
2022 | 49,086 | |||
2021 | 499,028 | |||
2020 | 163,576 | |||
2019 | 63,716 | |||
Prior | $ 7,693 | |||
% of Total | 72.30% | |||
Past Due | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable, net of allowance for bad debts | $ 299,000 | 340,800 | ||
Total amount of customer receivables past due one day or greater | 299,000 | $ 340,800 | ||
1-30 | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable | 146,636 | |||
2022 | 0 | |||
2021 | 78,304 | |||
2020 | 39,683 | |||
2019 | 23,019 | |||
Prior | $ 5,630 | |||
% of Total | 13.60% | |||
31-60 | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable | $ 39,521 | |||
2022 | 0 | |||
2021 | 19,498 | |||
2020 | 10,509 | |||
2019 | 7,367 | |||
Prior | $ 2,147 | |||
% of Total | 3.70% | |||
61-90 | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable | $ 28,610 | |||
2022 | 0 | |||
2021 | 14,261 | |||
2020 | 7,562 | |||
2019 | 5,243 | |||
Prior | $ 1,544 | |||
% of Total | 2.60% | |||
91+ | ||||
Accounts Receivable, Noncurrent, Past Due [Line Items] | ||||
Carrying value of customer accounts receivable | $ 84,248 | |||
2022 | 0 | |||
2021 | 35,830 | |||
2020 | 24,678 | |||
2019 | 18,038 | |||
Prior | $ 5,702 | |||
% of Total | 7.80% |
Customer Accounts Receivable _2
Customer Accounts Receivable - Account Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Feb. 01, 2020 | Jan. 31, 2020 |
Receivables [Abstract] | ||||
Customer accounts receivable - current | $ 564,825 | $ 643,903 | ||
Allowance for credit losses for customer accounts receivable - current | (109,038) | (165,169) | ||
Customer accounts receivable, net of allowances | 455,787 | 478,734 | $ 624,042 | $ 673,742 |
Customer accounts receivable - non current | 532,413 | 563,617 | ||
Allowance for credit losses for customer accounts receivable - non current | (99,982) | (132,868) | ||
Long-term portion of customer accounts receivable, net of allowances | 432,431 | 430,749 | $ 614,799 | $ 663,761 |
Total customer accounts receivable, net | $ 888,218 | $ 909,483 |
Customer Accounts Receivable _3
Customer Accounts Receivable - Allowance for Doubtful Accounts and Uncollectible Interest for Customer Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | $ 298,037 | $ 233,804 | $ 214,879 |
Provision | 83,808 | 265,486 | 268,606 |
Principal charge-offs | (170,128) | (259,919) | (221,847) |
Interest charge-offs | (46,548) | (72,781) | (52,887) |
Recoveries | 43,851 | 32,785 | 25,053 |
Allowance at end of period | 209,020 | 298,037 | 233,804 |
Average total customer portfolio balance | 1,135,991 | 1,395,428 | 1,567,878 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 98,662 | ||
Allowance at end of period | 98,662 | ||
Customer Accounts Receivable | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 219,739 | 145,680 | 147,123 |
Provision | 52,872 | 185,210 | 177,250 |
Principal charge-offs | (105,889) | (178,777) | (158,773) |
Interest charge-offs | (28,972) | (50,060) | (37,850) |
Recoveries | 27,294 | 22,550 | 17,930 |
Allowance at end of period | 165,044 | 219,739 | 145,680 |
Average total customer portfolio balance | 995,373 | 1,184,174 | 1,367,260 |
Customer Accounts Receivable | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 95,136 | ||
Allowance at end of period | 95,136 | ||
Restructured Accounts | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | 78,298 | 88,124 | 67,756 |
Provision | 30,936 | 80,276 | 91,356 |
Principal charge-offs | (64,239) | (81,142) | (63,074) |
Interest charge-offs | (17,576) | (22,721) | (15,037) |
Recoveries | 16,557 | 10,235 | 7,123 |
Allowance at end of period | 43,976 | 78,298 | 88,124 |
Average total customer portfolio balance | $ 140,618 | 211,254 | 200,618 |
Restructured Accounts | ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance at beginning of period | $ 3,526 | ||
Allowance at end of period | $ 3,526 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Finance leases | $ 9,480 | $ 9,027 |
Property and equipment gross | 483,408 | 440,821 |
Less accumulated depreciation | (290,645) | (249,859) |
Total property and equipment, net | $ 192,763 | 190,962 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated life | 20 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 1,644 | 1,644 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 4,121 | 4,115 |
Estimated life | 30 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 331,776 | 313,926 |
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 | $ 104,623 | 97,407 |
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 | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment gross | $ 31,764 | $ 14,702 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 45,450 | $ 41,068 | $ 36,841 |
Charges and Credits (Details)
Charges and Credits (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($)distribution_centerfacility | |
Restructuring Cost and Reserve [Line Items] | |||
Store and facility closure and relocation costs | $ 0 | $ 0 | $ 1,933 |
Legal and professional fees, securities-related litigation, a legal judgment and other legal matters | 0 | 3,589 | 0 |
Employee severance | 0 | 2,737 | 0 |
Excess import freight costs | 2,677 | 0 | 0 |
Write-off of capitalized software costs | 0 | 0 | 1,209 |
Charges and credits | $ 2,677 | 6,326 | 3,142 |
Sublease income | $ 700 | ||
Number of distribution centers relocated into one | distribution_center | 3 | ||
Number of facilities into which distribution centers were relocated | facility | 1 | ||
Gain from the sale of a cross-dock | $ 600 | ||
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Impairment of leasehold | $ 3,600 | $ 3,200 |
Finance Charges and Other Rev_3
Finance Charges and Other Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Financing Receivable, Modifications [Line Items] | |||
Interest income and fees | $ 259,422 | $ 303,209 | $ 341,224 |
Insurance income | 24,270 | 17,689 | 38,417 |
Other revenues | 950 | 816 | 810 |
Total finance charges and other revenues | 284,642 | 321,714 | 380,451 |
Provisions for uncollectible interest | 36,100 | 63,900 | 64,100 |
TDR accounts | |||
Financing Receivable, Modifications [Line Items] | |||
Interest income and fees | $ 24,900 | $ 37,500 | $ 35,300 |
Debt and Financing Lease Obli_3
Debt and Financing Lease Obligations - Schedule of Debt and Financing Lease Obligations (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||
Current Principal Amount | $ 519,796 | |
Financing lease obligations | 6,115 | $ 6,072 |
Total debt and financing lease obligations | 525,911 | 613,232 |
Discount on debt | 0 | (524) |
Deferred debt issuance costs | (2,873) | (3,139) |
Current finance lease obligations | (889) | (934) |
Long-term debt and financing lease obligations | 522,149 | 608,635 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 141,172 |
Secured debt | 2019-A VIE Asset-backed Class A Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 19,521 |
Secured debt | 2019-A Class B Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 25,069 |
Secured debt | 2019-A Class C Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 24,202 |
Secured debt | 2019-B Class A Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 17,860 |
Secured debt | 2019-B Class B Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 85,540 |
Secured debt | 2019-B Class C Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 0 | 83,270 |
Secured debt | 2020-A Class A Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 9,184 | 93,326 |
Secured debt | 2020-A Class B Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 18,342 | 65,200 |
Secured debt | 2020-A Class C Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 17,695 | 0 |
Secured debt | 2021-A Class A Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 195,595 | 0 |
Secured debt | 2021-A Class B Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 66,090 | 0 |
Secured debt | 2021-A Class C Notes | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | 63,890 | 0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Deferred debt issuance costs | (5,100) | (3,500) |
Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Current Principal Amount | $ 149,000 | $ 52,000 |
Debt and Financing Lease Obli_4
Debt and Financing Lease Obligations - Maturities of Long-term Debt (Details) $ in Thousands | Jan. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 194,221 |
2027 | 325,575 |
Total | $ 519,796 |
Debt and Financing Lease Obli_5
Debt and Financing Lease Obligations - Senior Notes (Details) - USD ($) | Jan. 31, 2022 | Apr. 15, 2021 | Jul. 01, 2014 |
Debt Instrument [Line Items] | |||
Original principal amount | $ 680,810,000 | $ 141,200,000 | |
Senior Notes | Senior unsecured notes due July 2022 | |||
Debt Instrument [Line Items] | |||
Original principal amount | $ 250,000,000 | ||
Contractual interest rate | 7.25% |
Debt and Financing Lease Obli_6
Debt and Financing Lease Obligations - Asset-backed Notes (Details) - USD ($) $ in Thousands | Nov. 23, 2021 | Feb. 24, 2021 | Oct. 16, 2020 | Jan. 31, 2022 | Dec. 30, 2021 | May 12, 2021 | Apr. 15, 2021 |
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 680,810 | $ 141,200 | |||||
Original Net Proceeds | 676,242 | ||||||
Current Principal Amount | 370,796 | ||||||
Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Current Principal Amount | 370,800 | ||||||
2020-A Class A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 174,900 | ||||||
Original Net Proceeds | $ 173,716 | ||||||
Contractual Interest Rate | 1.71% | ||||||
Effective Interest Rate | 4.47% | ||||||
2020-A Class B Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 65,200 | ||||||
Original Net Proceeds | $ 64,754 | ||||||
Contractual Interest Rate | 4.27% | ||||||
Effective Interest Rate | 5.51% | ||||||
2020-A Class C Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 63,900 | $ 62,900 | $ 62,900 | ||||
Original Net Proceeds | $ 62,535 | ||||||
Current Principal Amount | $ 17,695 | ||||||
Contractual Interest Rate | 4.59% | 4.20% | 4.20% | ||||
Effective Interest Rate | 5.72% | ||||||
2021-A Class A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 247,800 | $ 247,830 | |||||
Original Net Proceeds | $ 246,152 | ||||||
Current Principal Amount | $ 195,595 | ||||||
Contractual Interest Rate | 1.05% | 1.05% | |||||
Effective Interest Rate | 2.43% | ||||||
2021-A Class B Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 66,100 | $ 66,090 | |||||
Original Net Proceeds | $ 65,635 | ||||||
Current Principal Amount | $ 66,090 | ||||||
Contractual Interest Rate | 2.87% | 2.87% | |||||
Effective Interest Rate | 3.36% | ||||||
2021-A Class C Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | $ 63,890 | ||||||
Original Net Proceeds | $ 63,450 | ||||||
Current Principal Amount | $ 63,890 | ||||||
Contractual Interest Rate | 4.59% | ||||||
Effective Interest Rate | 5.07% | ||||||
2019-A VIE Notes | Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, repurchase amount | $ 41,100 | ||||||
2020-A VIE Class A, B, C Notes | |||||||
Debt Instrument [Line Items] | |||||||
Original Principal Amount | 377,800 | ||||||
Original Net Proceeds | $ 375,200 | ||||||
2019-B VIE Notes | Secured debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, repurchase amount | $ 52,400 | ||||||
Asset-backed receivables | |||||||
Debt Instrument [Line Items] | |||||||
Monthly fee received (annualized) (as percent) | 4.75% |
Debt and Financing Lease Obli_7
Debt and Financing Lease Obligations - Revolving Credit Facility (Details) $ in Millions | Mar. 29, 2021USD ($) | Jan. 31, 2022USD ($)quarter |
Debt Instrument [Line Items] | ||
Debt instrument, covenant, threshold consecutive quarter | quarter | 4 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Remaining borrowing capacity | $ 352.2 | |
Outstanding letters of credit | $ 22.5 | |
Revolving Credit Facility | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 650 | |
Weighted average interest rate | 4.00% | |
Restrictions on payment of dividends, amount free from restriction | $ 225.9 | |
Revolving Credit Facility | LIBOR | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 1.00% | |
Interest-free period | 30 days | |
Revolving Credit Facility | Federal funds rate | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 0.50% | |
Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 40 | |
Revolving Credit Facility | Minimum | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unused capacity fee percentage | 0.25% | |
Revolving Credit Facility | Minimum | LIBOR | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 2.50% | |
Revolving Credit Facility | Minimum | Base rate | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 1.50% | |
Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 100 | |
Revolving Credit Facility | Maximum | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unused capacity fee percentage | 0.50% | |
Revolving Credit Facility | Maximum | LIBOR | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 3.25% | |
Revolving Credit Facility | Maximum | Base rate | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Variable basis spread | 2.25% |
Debt and Financing Lease Obli_8
Debt and Financing Lease Obligations - Debt Covenants (Details) $ in Millions | 12 Months Ended |
Jan. 31, 2022USD ($) | |
Actual | |
Interest Coverage Ratio for the quarter must equal or exceed minimum | 8.35 |
Interest Coverage Ratio for the trailing two quarters must equal or exceed minimum | 9.29 |
Leverage Ratio must not exceed maximum | 1.38 |
ABS Excluded Leverage Ratio must not exceed maximum | 0.83 |
Capital Expenditures, net, must not exceed maximum | $ 30.7 |
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 | 4.50 |
ABS Excluded Leverage Ratio must not exceed maximum | 2.50 |
Capital Expenditures, net, must not exceed maximum | $ 100 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Deferred tax assets: | ||
Deferred revenue | $ 549 | $ 788 |
Employment tax | 831 | 1,661 |
Indirect tax reserve | 3,063 | 2,927 |
Inventories | 2,656 | 1,866 |
Lease liability | 72,252 | 89,411 |
Stock-based compensation | 3,235 | 2,121 |
Net operating loss carryforwards | 1,489 | 25,131 |
Other | 2,364 | 2,192 |
Total deferred tax assets | 86,439 | 126,097 |
Deferred tax liabilities: | ||
Allowance for doubtful accounts | (9,808) | (9,829) |
Right-of-use asset | (57,583) | (59,725) |
Vendor prepayments | (1,320) | (1,165) |
Sales tax receivable | (4,664) | (5,085) |
Property and equipment | (20,401) | (40,454) |
Other | (14) | (391) |
Total deferred tax liabilities | (93,790) | (116,649) |
Net deferred tax (liability) asset | 9,448 | |
Net deferred tax (liability) asset | $ (7,351) | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax benefit as a result of the CARES Act | $ 14.9 | ||
Unrecognized tax benefits that if recognized would affect the annual effective tax rate | $ 4.6 | 5.3 | $ 3.5 |
Interest and penalties | 0.6 | $ 1 | $ 0.7 |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 1.5 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Current: | |||
Federal | $ 13,428 | $ (47,829) | $ 9,215 |
State | 3,285 | 316 | 1,611 |
Total current | 16,713 | (47,513) | 10,826 |
Deferred: | |||
Federal | 14,726 | 31,083 | 7,590 |
State | 2,073 | 240 | (102) |
Total deferred | 16,799 | 31,323 | 7,488 |
Provision (benefit) for income taxes | $ 33,512 | $ (16,190) | $ 18,314 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Provision at Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) at U.S. federal statutory rate | $ 29,761 | $ (4,059) | $ 15,607 |
State income taxes, net of federal benefit | 3,782 | 843 | 2,011 |
Tax Act and other deferred tax adjustments | 0 | (15,009) | (910) |
Employee benefits | 419 | 1,350 | 1,873 |
Other | (450) | 685 | (267) |
Provision (benefit) for income taxes | $ 33,512 | $ (16,190) | $ 18,314 |
Income Taxes - Changes in Balan
Income Taxes - Changes in Balance of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at February 1 | $ (9,853) | $ (11,384) | $ (11,625) |
Decreases related to prior year tax positions | 982 | 1,531 | 241 |
Increase related to current year tax positions | (452) | 0 | 0 |
Balance at January 31 | $ (9,323) | $ (9,853) | $ (11,384) |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($)distribution_centerfacility | |
Operating Leased Assets [Line Items] | |||
Operating lease, impairment loss | $ 0 | $ 0 | $ 1.9 |
Number of distribution centers relocated into one | distribution_center | 3 | ||
Number of facilities into which distribution centers were relocated | facility | 1 | ||
Total rent expense | $ 65.8 | $ 65.1 | $ 58.1 |
Minimum | Land, Buildings and Improvements | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, term of contract | 5 years | ||
Minimum | Equipment | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, term of contract | 3 years | ||
Maximum | Land, Buildings and Improvements | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, term of contract | 15 years | ||
Maximum | Equipment | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, term of contract | 5 years |
Leases - Schedule Of Lease Cost
Leases - Schedule Of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 256,267 | $ 265,798 |
Finance lease assets - Property and equipment, net | 5,851 | 5,813 |
Total leased assets | $ 262,118 | $ 271,611 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating lease liability - current | $ 59,710 | $ 53,958 |
Current finance lease obligations | 889 | 934 |
Operating lease liability - non current | 330,439 | 354,598 |
Long-term debt and finance lease obligations | 5,226 | 5,138 |
Total lease liabilities | $ 396,264 | $ 414,628 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt and finance lease obligations (includes VIE balances of $367,925 and $411,551 respectively) | Long-term debt and finance lease obligations (includes VIE balances of $367,925 and $411,551 respectively) |
Tenant improvement allowance | $ 5,200 | $ 9,900 |
Operating lease costs | 65,841 | 63,970 |
Total operating lease cost | 65,841 | 63,970 |
Operating cash flows for operating leases | $ 83,675 | $ 73,983 |
Finance lease, weighted average remaining lease term | 8 years 8 months 12 days | 9 years 6 months |
Operating lease, weighted average remaining lease term | 6 years 8 months 12 days | 7 years 2 months 12 days |
Finance lease, weighted average discount rate, percent | 5.00% | 5.10% |
Operating lease, weighted average discount rate, percent | 7.30% | 7.70% |
Leases - Schedule Of Future Min
Leases - Schedule Of Future Minimum Base Rental Payments (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 |
Operating Leases | ||
2023 | $ 86,487 | |
2024 | 83,478 | |
2025 | 73,281 | |
2026 | 61,635 | |
2027 | 51,590 | |
Thereafter | 139,348 | |
Total undiscounted cash flows | 495,819 | |
Finance Leases | ||
2022 | 1,197 | |
2023 | 1,267 | |
2024 | 1,103 | |
2025 | 809 | |
2026 | 560 | |
Thereafter | 2,940 | |
Total undiscounted cash flows | 7,876 | |
2023 | 87,684 | |
2024 | 84,745 | |
2025 | 74,384 | |
2026 | 62,444 | |
2027 | 52,150 | |
Thereafter | 142,288 | |
Total undiscounted cash flows | 503,695 | |
Lessee, operating lease, liability, undiscounted excess amount | 105,670 | |
Lessee, finance Leases, liability, undiscounted excess amount | 1,761 | |
Lessee, lease, liability, payments, undiscounted excess amount | 107,431 | |
Operating Lease, Liability | 390,149 | |
Finance lease, liability | 6,115 | $ 6,072 |
Lease, liability, lease database | $ 396,264 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation - Additional Information (Details) - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | May 28, 2020 | |
Stock options and restricted stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and restricted stock units vesting period | 3 years | ||
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 | ||
2020 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for future issuance (in shares) | 1,800,000 | ||
Additional shares authorized (in shares) | 88,053 | 937,514 | |
Number of years until a grant expires | 10 years | ||
2016 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period, shares, restricted stock award, forfeited | 746,299 | ||
2011 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period, shares, restricted stock award, forfeited | 2,224 | ||
2011 Non-Employee Director Restricted Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period, shares, restricted stock award, forfeited | 48,991 | ||
2003 Non-Employee Director Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock issued during period, shares, restricted stock award, forfeited | 140,000 | ||
2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for future issuance (in shares) | 1,688,373 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | $ 8,915 | $ 9,330 | $ 12,550 |
Stock-based compensation expense | 8,915 | 10,585 | 12,550 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 269 | 364 | 256 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 1,608 | 3,908 | 3,978 |
RSUs and PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation cost for share-based compensation | 7,038 | 5,058 | 8,316 |
Accelerated RSU expense charged to severance | 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 | $ 1,255 | $ 0 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Recognized tax benefits related to compensation cost | $ 1,800 | $ 2,300 | $ 1,400 |
Stock-based compensation expense | $ 8,915 | 9,330 | 12,550 |
Recognition period for unrecognized compensation cost related to all non-vested stock compensation awards | 2 years 2 months 12 days | ||
Fair value of RSUs, PSUs and stock options vested during period | $ 14,000 | $ 5,100 | $ 8,400 |
Nonvested | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 15,200 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Incentive Stock Option Plan activity (Details) - Incentive Stock Option Plan - Stock options - $ / shares | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Shares Under Option | ||
Outstanding, beginning of period (in shares) | 720,166 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | |
Outstanding, end of period (in shares) | 720,166 | 720,166 |
Vested and expected to vest, end of period (in shares) | 720,166 | |
Exercisable, end of period (in shares) | 410,083 | |
Weighted- Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 30.49 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Outstanding, end of period (in dollars per share) | 30.49 | $ 30.49 |
Vested and expected to vest, end of period (in dollar per shares) | 30.49 | |
Exercisable, end of period (in dollars per share) | $ 29.09 | |
Weighted- Average Remaining Contractual Life | ||
Outstanding, end of period | 6 years | |
Vested and expected to vest, end of period | 6 years | |
Exercisable, end of period | 5 years 10 months 24 days |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Options - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised | $ 0.4 | ||
Aggregate intrinsic value of stock options vested and expected to vest and exercisable | $ 0.6 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock options vested | $ 7.5 | $ 0.3 | $ 0.3 |
Stock options | Incentive Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 31, 2022USD ($)award$ / shares | Jan. 31, 2021USD ($)$ / shares | Jan. 31, 2020USD ($) | |
Accelerated RSU expense charged to severance | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares vested | $ | $ 6.4 | $ 4.8 | $ 8.1 |
Fair value of shares granted | $ | $ 17.9 | $ 8 | $ 2.9 |
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options and restricted stock units vesting period | 3 years | ||
Number of awards outstanding | award | 2 | ||
Target shareholder return attainment period | 3 years | ||
Performance-Based RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares to be vested (as percent) | 150.00% | ||
Performance-Based Restricted Stock Units (RSUs) Award Two | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of shares to be vested (as percent) | 200.00% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in dollars per share) | $ 25.23 | $ 8.36 | |
2020 Omnibus Incentive Plan | Time-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in dollars per share) | $ 18.91 | ||
2020 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 | ||
2020 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 | 4 years | ||
2020 Omnibus Incentive Plan | Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in dollars per share) | $ 25.23 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 60.00% | |
Risk-free interest rate | 1.42% | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 3 years | 3 years |
Stock options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 83.00% | |
Risk-free interest rate | 0.17% | |
Stock options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 87.00% | |
Risk-free interest rate | 0.67% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity of RSUs (Details) - 2020 Omnibus Incentive Plan | 12 Months Ended |
Jan. 31, 2022$ / sharesshares | |
Accelerated RSU expense charged to severance | |
Number of Units | |
Outstanding, beginning of period (in shares) | 1,019,474 |
Restricted stock units granted (in shares) | 855,532 |
Vested and converted to common stock (in shares) | (333,429) |
Restricted stock units forfeited (in shares) | (144,656) |
Outstanding, end of year (in shares) | 1,396,921 |
Time-Based RSUs | |
Number of Units | |
Outstanding, beginning of period (in shares) | 749,894 |
Restricted stock units granted (in shares) | 587,495 |
Vested and converted to common stock (in shares) | (333,429) |
Restricted stock units forfeited (in shares) | (96,619) |
Outstanding, end of year (in shares) | 907,341 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning of year (in dollars per share) | $ / shares | $ 13.53 |
Options granted (in dollars per share) | $ / shares | 18.91 |
Options vested (in dollars per share) | $ / shares | 13.65 |
Forfeited (in dollars per share) | $ / shares | 14.34 |
Nonvested, end of year (in dollars per share) | $ / shares | $ 16.88 |
Performance-Based RSUs | |
Number of Units | |
Outstanding, beginning of period (in shares) | 269,580 |
Restricted stock units granted (in shares) | 268,037 |
Vested and converted to common stock (in shares) | 0 |
Restricted stock units forfeited (in shares) | (48,037) |
Outstanding, end of year (in shares) | 489,580 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning of year (in dollars per share) | $ / shares | $ 9.61 |
Options granted (in dollars per share) | $ / shares | 25.23 |
Options vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 13.40 |
Nonvested, end of year (in dollars per share) | $ / shares | $ 17.79 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - shares | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 51,262 | 140,672 | 53,459 |
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) | 526,329 |
Significant Vendors (Details)
Significant Vendors (Details) - vendor | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Significant Vendors [Abstract] | |||
Number of vendors the company purchased merchandise from | 6 | ||
Vendors | Vendor A | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 31.50% | 28.90% | 33.60% |
Vendors | Vendor B | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 21.10% | 15.40% | 16.30% |
Vendors | Vendor C | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 11.00% | 14.00% | 11.00% |
Vendors | Vendor D | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 5.00% | 7.80% | 9.60% |
Vendors | Vendor E | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 2.50% | 6.80% | 9.50% |
Vendors | Vendor F | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 2.20% | 3.10% | 5.70% |
Vendors | Significant Vendors | Vendors | |||
Concentration Risk [Line Items] | |||
Vendor concentration (in hundredths) | 73.30% | 76.00% | 85.70% |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
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 | $ 2,200,000 | $ 0 | $ 1,900,000 |
Contingencies (Details)
Contingencies (Details) - Derivative Action Lawsuits | 12 Months Ended |
Jan. 31, 2022state_courtplaintiff | |
Loss Contingencies [Line Items] | |
Number of plaintiffs | plaintiff | 0 |
Number of state court derivative action | state_court | 2 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2022 | |
Asset-backed receivables | |
Variable Interest Entity [Line Items] | |
Monthly fee received (annualized) (as percent) | 4.75% |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities (Details) - USD ($) $ in Thousands | Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 |
Customer accounts receivable: | ||||
Restructured accounts | $ 99,557 | $ 178,374 | ||
Allowance for uncollectible accounts | (209,020) | (298,037) | $ (233,804) | $ (214,879) |
Deferred fees and origination costs | (13,503) | (14,212) | ||
Carrying value of customer accounts receivable, net of allowance for bad debts | 888,218 | 909,483 | ||
Total assets | 1,754,466 | 1,755,084 | $ 2,168,769 | |
Liabilities: | ||||
Accrued expenses | 73,035 | 58,046 | ||
Long-term debt: | 519,796 | |||
Less deferred debt issuance costs | (2,873) | (3,139) | ||
Total debt | 370,796 | |||
Total liabilities | 1,139,647 | 1,197,929 | ||
2020-A Class C Notes | ||||
Liabilities: | ||||
Total debt | 17,695 | |||
Secured debt | ||||
Liabilities: | ||||
Total debt | 370,800 | |||
Secured debt | 2019-A VIE Asset-backed Class A Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 19,521 | ||
Secured debt | 2019-A Class B Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 25,069 | ||
Secured debt | 2019-A Class C Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 24,202 | ||
Secured debt | 2019-B Class A Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 17,860 | ||
Secured debt | 2019-B Class B Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 85,540 | ||
Secured debt | 2019-B Class C Notes | ||||
Liabilities: | ||||
Long-term debt: | 0 | 83,270 | ||
Secured debt | 2020-A Class A Notes | ||||
Liabilities: | ||||
Long-term debt: | 9,184 | 93,326 | ||
Secured debt | 2020-A Class B Notes | ||||
Liabilities: | ||||
Long-term debt: | 18,342 | 65,200 | ||
Secured debt | 2020-A Class C Notes | ||||
Liabilities: | ||||
Long-term debt: | 17,695 | 0 | ||
Secured debt | 2021-A Class A Notes | ||||
Liabilities: | ||||
Long-term debt: | 195,595 | 0 | ||
Secured debt | 2021-A Class B Notes | ||||
Liabilities: | ||||
Long-term debt: | 66,090 | 0 | ||
Secured debt | 2021-A Class C Notes | ||||
Liabilities: | ||||
Long-term debt: | 63,890 | 0 | ||
VIE | ||||
Assets: | ||||
Restricted cash | 29,872 | 48,622 | ||
Customer accounts receivable: | ||||
Customer accounts receivable | 463,411 | 509,574 | ||
Restructured accounts | 29,621 | 105,395 | ||
Allowance for uncollectible accounts | (97,560) | (159,849) | ||
Allowance for no-interest option credit programs | (10,275) | (5,502) | ||
Deferred fees and origination costs | (5,033) | (5,503) | ||
Carrying value of customer accounts receivable, net of allowance for bad debts | 380,164 | 444,115 | ||
Total assets | 410,036 | 492,737 | ||
Liabilities: | ||||
Accrued expenses | 2,638 | 3,707 | ||
Other liabilities | 3,930 | 4,459 | ||
Due to Conn’s, Inc., net | 12,755 | 5,661 | ||
Long-term debt: | 370,796 | 413,988 | ||
Less deferred debt issuance costs | (2,871) | (2,437) | ||
Total debt | 367,925 | 411,551 | ||
Total liabilities | $ 387,248 | $ 425,378 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Jan. 31, 2022statesegmentstore | |
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 | 15 |
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 | 12 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2020 | |
Revenues: | |||
Total net sales | $ 1,305,389 | $ 1,064,311 | $ 1,163,235 |
Finance charges and other revenues | 284,642 | 321,714 | 380,451 |
Total revenues | 1,590,031 | 1,386,025 | 1,543,686 |
Costs and expenses: | |||
Cost of goods sold | 825,987 | 668,315 | 697,784 |
Selling, general and administrative expense | 544,490 | 478,767 | 503,024 |
Provision for bad debts | 48,184 | 202,003 | 205,217 |
Charges and credits | 2,677 | 6,326 | 3,142 |
Total costs and expenses | 1,421,338 | 1,355,411 | 1,409,167 |
Operating income | 168,693 | 30,614 | 134,519 |
Interest expense | 25,758 | 50,381 | 59,107 |
Loss (gain) on extinguishment of debt | 1,218 | (440) | 1,094 |
Income (loss) before income taxes | 141,717 | (19,327) | 74,318 |
Property and equipment additions | 46,010 | 55,996 | 62,444 |
Depreciation expense | 45,449 | 41,068 | 36,841 |
Total assets | 1,754,466 | 1,755,084 | 2,168,769 |
Allocation of overhead by operating segments | 40,600 | 32,000 | 30,000 |
Reimbursement | |||
Revenues: | |||
Total revenues | 28,300 | 34,800 | 39,100 |
Retail | |||
Revenues: | |||
Total net sales | 1,305,389 | 1,064,311 | 1,163,235 |
Finance charges and other revenues | 949 | 816 | 810 |
Total revenues | 1,306,338 | 1,065,127 | 1,164,045 |
Costs and expenses: | |||
Cost of goods sold | 825,987 | 668,315 | 697,784 |
Selling, general and administrative expense | 399,393 | 335,954 | 346,108 |
Provision for bad debts | 479 | 443 | 905 |
Charges and credits | 2,677 | 4,092 | 1,933 |
Total costs and expenses | 1,228,536 | 1,008,804 | 1,046,730 |
Operating income | 77,802 | 56,323 | 117,315 |
Interest expense | 0 | 0 | 0 |
Loss (gain) on extinguishment of debt | 0 | 0 | 0 |
Income (loss) before income taxes | 77,802 | 56,323 | 117,315 |
Property and equipment additions | 44,618 | 55,172 | 62,244 |
Depreciation expense | 43,728 | 39,968 | 35,783 |
Total assets | 671,920 | 655,666 | 641,812 |
Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Finance charges and other revenues | 283,693 | 320,898 | 379,641 |
Total revenues | 283,693 | 320,898 | 379,641 |
Costs and expenses: | |||
Cost of goods sold | 0 | 0 | 0 |
Selling, general and administrative expense | 145,097 | 142,813 | 156,916 |
Provision for bad debts | 47,705 | 201,560 | 204,312 |
Charges and credits | 0 | 2,234 | 1,209 |
Total costs and expenses | 192,802 | 346,607 | 362,437 |
Operating income | 90,891 | (25,709) | 17,204 |
Interest expense | 25,758 | 50,381 | 59,107 |
Loss (gain) on extinguishment of debt | 1,218 | (440) | 1,094 |
Income (loss) before income taxes | 63,915 | (75,650) | (42,997) |
Property and equipment additions | 1,392 | 824 | 200 |
Depreciation expense | 1,721 | 1,100 | 1,058 |
Total assets | 1,082,546 | 1,099,418 | 1,526,957 |
Furniture and mattress | |||
Revenues: | |||
Total net sales | 411,167 | 322,770 | 370,931 |
Furniture and mattress | Retail | |||
Revenues: | |||
Total net sales | 411,167 | 322,770 | 370,931 |
Furniture and mattress | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Home appliance | |||
Revenues: | |||
Total net sales | 500,051 | 390,964 | 360,441 |
Home appliance | Retail | |||
Revenues: | |||
Total net sales | 500,051 | 390,964 | 360,441 |
Home appliance | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Consumer electronics | |||
Revenues: | |||
Total net sales | 191,234 | 172,932 | 221,449 |
Consumer electronics | Retail | |||
Revenues: | |||
Total net sales | 191,234 | 172,932 | 221,449 |
Consumer electronics | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Computers | |||
Revenues: | |||
Total net sales | 66,707 | 65,405 | 73,074 |
Computers | Retail | |||
Revenues: | |||
Total net sales | 66,707 | 65,405 | 73,074 |
Computers | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Other | |||
Revenues: | |||
Total net sales | 36,386 | 20,960 | 16,529 |
Other | Retail | |||
Revenues: | |||
Total net sales | 36,386 | 20,960 | 16,529 |
Other | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Product sales | |||
Revenues: | |||
Total net sales | 1,205,545 | 973,031 | 1,042,424 |
Product sales | Retail | |||
Revenues: | |||
Total net sales | 1,205,545 | 973,031 | 1,042,424 |
Product sales | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Repair service agreement commissions | |||
Revenues: | |||
Total net sales | 89,101 | 78,838 | 106,997 |
Repair service agreement commissions | Retail | |||
Revenues: | |||
Total net sales | 89,101 | 78,838 | 106,997 |
Repair service agreement commissions | Credit | |||
Revenues: | |||
Total net sales | 0 | 0 | 0 |
Service revenues | |||
Revenues: | |||
Total net sales | 10,743 | 12,442 | 13,814 |
Service revenues | Retail | |||
Revenues: | |||
Total net sales | 10,743 | 12,442 | 13,814 |
Service revenues | Credit | |||
Revenues: | |||
Total net sales | $ 0 | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2022 | Dec. 15, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Stock repurchase program, authorized amount | $ 150,000,000 | |
Treasury stock, shares, acquired (in shares) | 2,603,479 | |
Treasury stock acquired, average cost per share (in dollar per share) | $ 22.61 | |
Treasury stock, value, acquired, cost method | $ 58,900,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 25, 2022 | Mar. 25, 2022 | Jan. 31, 2022 | |
Subsequent Event [Line Items] | |||
Treasury stock, shares, acquired (in shares) | 2,603,479 | ||
Treasury stock, value, acquired, cost method | $ 58.9 | ||
Treasury stock acquired, average cost per share (in dollar per share) | $ 22.61 | ||
Subsequent event | |||
Subsequent Event [Line Items] | |||
Treasury stock, shares, acquired (in shares) | 3,316,000 | 5,919,479 | |
Treasury stock, value, acquired, cost method | $ 68.2 | $ 127.1 | |
Treasury stock acquired, average cost per share (in dollar per share) | $ 20.57 | $ 21.47 |
Uncategorized Items - conn-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |