Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Jul. 26, 2014 | Sep. 17, 2014 | Jan. 25, 2014 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 26-Jul-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Trading Symbol | 'asna | ' | ' |
Entity Registrant Name | 'Ascena Retail Group, Inc. | ' | ' |
Entity Central Index Key | '0001498301 | ' | ' |
Current Fiscal Year End Date | '--07-26 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 161,972,916 | ' |
Entity Public Float | ' | ' | $3.20 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jul. 26, 2014 | Jul. 27, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $156.90 | $186.40 | ||
Short-term investments | 30.4 | 3 | ||
Inventories | 553.2 | 540.9 | ||
Assets related to discontinued operations | 0 | 38.8 | ||
Deferred tax assets | 46.7 | 53 | ||
Prepaid expenses and other current assets | 136.4 | 120.7 | ||
Total current assets | 923.6 | 942.8 | ||
Property and equipment, net | 1,110.60 | 824.8 | ||
Goodwill | 581.4 | 581.4 | ||
Other intangible assets, net | 435.4 | 451.1 | ||
Other assets | 72.8 | 71.6 | ||
Total assets | 3,123.80 | 2,871.70 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 253.2 | 259.2 | ||
Accrued expenses and other current liabilities | 308.9 | 285.3 | ||
Deferred income | 63.5 | 61.2 | ||
Liabilities related to discontinued operations | 0 | 21.5 | ||
Income taxes payable | 6.3 | 8.7 | ||
Current portion of long-term debt | 0 | 0.6 | ||
Total current liabilities | 631.9 | 636.5 | ||
Long-term debt | 172 | 135 | ||
Lease-related liabilities | 248.5 | 242.9 | ||
Deferred income taxes | 147.7 | 131.7 | ||
Other non-current liabilities | 186 | 169.2 | ||
Commitments and contingencies (Note 17) | ' | ' | ||
Total liabilities | 1,386.10 | 1,315.30 | ||
Equity: | ' | ' | ||
Common stock, par value $0.01 per share; 161.8 and 159.5 million shares issued and outstanding | 1.6 | 1.6 | ||
Additional paid-in capital | 642.2 | 592.8 | ||
Retained earnings | 1,096.10 | 963.2 | ||
Accumulated other comprehensive loss | -2.2 | [1] | -1.2 | [1] |
Total equity | 1,737.70 | 1,556.40 | ||
Total liabilities and equity | $3,123.80 | $2,871.70 | ||
[1] | Accumulated other comprehensive income (loss) (“AOCIâ€) consists substantially of foreign currency translation adjustments and net unrealized gains on available-for-sale securities. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, issued | 161.8 | 159.5 |
Common stock, outstanding | 161.8 | 159.5 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Net sales | $4,790.60 | $4,714.90 | $3,353.30 | |||
Cost of goods sold | -2,130.60 | -2,137.70 | -1,505.80 | |||
Gross margin | 2,660 | 2,577.20 | 1,847.50 | |||
Other costs and expenses: | ' | ' | ' | |||
Buying, distribution and occupancy costs | -832.3 | -770.5 | -523.3 | |||
Selling, general and administrative expenses | -1,376.30 | -1,330.80 | -898.8 | |||
Acquisition-related, integration and restructuring costs | -34 | -34.6 | -25.4 | |||
Impairment of intangible assets | -13 | 0 | 0 | |||
Depreciation and amortization expense | -193.6 | -176 | -107.4 | |||
Total other costs and expenses | -2,449.20 | -2,311.90 | -1,554.90 | |||
Operating income | 210.8 | 265.3 | 292.6 | |||
Interest expense | -6.5 | -13.8 | -4.3 | |||
Interest and other (expense) income, net | -0.8 | 0.4 | 4.7 | |||
Acquisition-related, transaction costs | 0 | 0 | -14 | |||
Loss on extinguishment of debt | 0 | -9.3 | 0 | |||
Income from continuing operations before provision for income taxes | 203.5 | 242.6 | 279 | |||
Provision for income taxes from continuing operations | -65.3 | -87.4 | -107.2 | |||
Income from continuing operations | 138.2 | 155.2 | 171.8 | |||
Loss from discontinued operations, net of taxes | -4.8 | [1] | -3.9 | [1] | -9.6 | [1] |
Net income | $133.40 | $151.30 | $162.20 | |||
Net income per common share - basic: | ' | ' | ' | |||
Continuing operations | $0.86 | $0.99 | $1.12 | |||
Discontinued operations | ($0.03) | ($0.03) | ($0.06) | |||
Total net income per basic common share | $0.83 | $0.96 | $1.06 | |||
Net income per common share – diluted: | ' | ' | ' | |||
Continuing operations | $0.84 | $0.95 | $1.08 | |||
Discontinued operations | ($0.03) | ($0.02) | ($0.06) | |||
Total net income per diluted common share | $0.81 | $0.93 | $1.02 | |||
Weighted average common shares outstanding: | ' | ' | ' | |||
Basic | 160.6 | 157.3 | 153.5 | |||
Diluted | 165.1 | 163.3 | 159.4 | |||
[1] | Loss from discontinued operations is presented net of a $3.3 million, $3.3 million and $5.1 million income tax benefit for the years ended July 26, 2014, July 27, 2013 and July 28, 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Loss from discontinued operations, income tax benefit | $3.30 | $3.30 | $5.10 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | |||
Net income | $133.40 | $151.30 | $162.20 | |||
Other comprehensive (loss) income, net of tax: | ' | ' | ' | |||
Net change in unrealized gains on available-for-sale investments | 0 | [1] | 1.2 | [1] | 2.6 | [1] |
Reclassification adjustment for gains included in net income | 0 | [1] | 0 | [1] | -1.3 | [1] |
Total | 0 | [1] | 1.2 | [1] | 1.3 | [1] |
Foreign currency translation adjustment | -1 | -1.1 | -0.2 | |||
Total other comprehensive (loss) income | -1 | 0.1 | 1.1 | |||
Total comprehensive income | $132.40 | $151.40 | $163.30 | |||
[1] | No tax benefits have been provided in any period primarily due to the Company's indefinite reinvestment assertion for foreign earnings and the uncertainty of realization of cumulative capital loss tax benefits. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Tax benefits related to unrealized gains on available-for-sale investments | $0 | $0 | $0 |
Tax benefits related to foreign currency translation adjustments | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $133.40 | $151.30 | $162.20 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization expense | 193.6 | 176 | 107.4 |
Deferred income tax benefit | -17.8 | -7.9 | -5.3 |
Deferred rent and other occupancy costs | -38.2 | -36.2 | -24.6 |
Loss on extinguishment of debt | 0 | 9.3 | 0 |
Loss on sale of assets | 0 | 0 | -8.2 |
Non-cash stock-based compensation expense | 30.6 | 29.5 | 28.4 |
Non-cash impairment of tangible assets | 4.2 | 4.6 | 2.2 |
Non-cash impairment of intangible assets | 13 | 0 | 0 |
Non-cash interest expense | 1.3 | 1.7 | 0.9 |
Other non-cash income | -2.7 | -5.7 | -11 |
Excess tax benefits from stock-based compensation | -4.2 | -14.1 | -11.7 |
Changes in operating assets and liabilities: | ' | ' | ' |
Inventories | -12.3 | -10.1 | 26.5 |
Accounts payable, accrued liabilities and income tax liabilities | 32.8 | 67.6 | -18.3 |
Deferred income liabilities | 10 | 25.4 | 2.9 |
Lease-related liabilities | 46.2 | 39.5 | 27.9 |
Other balance sheet changes | 5 | 11.5 | 44.4 |
Changes in net assets related to discontinued operations | -20.2 | 7.6 | 37.8 |
Net cash provided by operating activities | 374.7 | 450 | 361.5 |
Cash flows from investing activities: | ' | ' | ' |
Purchase price paid in acquisitions, net of cash acquired | 0 | 0 | -683.9 |
Capital expenditures | -477.5 | -290.9 | -150.4 |
Proceeds from the sale of assets | 42.2 | 15.9 | 38.2 |
Purchases of investments | -27.5 | -2.8 | -99.8 |
Proceeds from sales and maturities of investments | 0.1 | 5.6 | 293.6 |
Net cash used in investing activities | -462.7 | -272.2 | -602.3 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from borrowings | 1,249.20 | 446.7 | 322 |
Repayments of debt | -1,212.80 | -641.4 | -144.2 |
Payment of deferred financing costs | 0 | -3.8 | -7.4 |
Repurchases of common stock | 0 | 0 | -37.2 |
Proceeds from stock options exercised and employee stock purchases | 17.9 | 28.7 | 16.7 |
Excess tax benefits from stock-based compensation | 4.2 | 14.1 | 11.7 |
Net cash provided by (used in) financing activities | 58.5 | -155.7 | 161.6 |
Net (decrease) increase in cash and cash equivalents | -29.5 | 22.1 | -79.2 |
Cash and cash equivalents at beginning of period | 186.4 | 164.3 | 243.5 |
Cash and cash equivalents at end of period | $156.90 | $186.40 | $164.30 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Accumulated other comprehensive income (Loss) | ($2.20) | [1] | ($1.20) | [1] | ($1.30) | [1] |
Retained earnings | 1,096.10 | 963.2 | 811.9 | |||
Additional paid-in capital | 642.2 | 592.8 | 528.8 | |||
Common Stock, Value, Issued | 1.6 | 1.6 | 1.5 | |||
Beginning Balance (in shares) | 159.5 | 154.8 | 154.8 | |||
Balance at beginning of period | 1,556.40 | 1,340.90 | 1,158 | |||
Net income | 133.4 | 151.3 | 162.2 | |||
Total other comprehensive income (loss) | -1 | 0.1 | 1.1 | |||
Shares issued and equity grants made pursuant to stock-based compensation plans | 49.4 | [2] | 71 | 56.7 | [2] | |
Repurchases and retirements of common stock | ' | ' | -37.1 | [3] | ||
Cash-settled LTIP conversion | ' | -6.9 | [4] | ' | ||
Other | -0.5 | ' | ' | |||
Balance at end of period | 1,737.70 | 1,556.40 | 1,340.90 | |||
Ending Balance (in shares) | 161.8 | 159.5 | 154.8 | |||
Common Stock | ' | ' | ' | |||
Shares issued and equity grants made pursuant to stock-based compensation plans (in shares) | 2.3 | [2] | 4.7 | [2] | 2.7 | [2] |
Shares issued and equity grants made pursuant to stock-based compensation plans | 0 | [2] | 0.1 | [2] | 0 | [2] |
Repurchases and retirements of common stock (in shares) | ' | ' | -2.7 | [3] | ||
Repurchases and retirements of common stock | ' | ' | 0 | [3] | ||
Additional Paid-in Capital | ' | ' | ' | |||
Shares issued and equity grants made pursuant to stock-based compensation plans | 49.4 | [2] | 70.9 | [2] | 56.7 | [2] |
Repurchases and retirements of common stock | ' | ' | 0 | [3] | ||
Cash-settled LTIP conversion | ' | -6.9 | [4] | ' | ||
Retained Earnings | ' | ' | ' | |||
Net income | ' | 151.3 | 162.2 | |||
Repurchases and retirements of common stock | ' | ' | -37.1 | [3] | ||
Other | -0.5 | ' | ' | |||
AOCI | ' | ' | ' | |||
Total other comprehensive income (loss) | ($1) | [1] | $0.10 | [1] | $1.10 | [1] |
[1] | Accumulated other comprehensive income (loss) (“AOCIâ€) consists substantially of foreign currency translation adjustments and net unrealized gains on available-for-sale securities. | |||||
[2] | Includes income tax benefits relating to stock-based compensation arrangements of approximately $4.2 million in Fiscal 2014, $14.1 million in Fiscal 2013, and $7.3 million in Fiscal 2012. | |||||
[3] | Shares of common stock repurchased historically have been retired, resulting in a net decrease to retained earnings. | |||||
[4] | Approximately 0.6 million performance and market-based shares were canceled and replaced with a corresponding amount of new awards that will be settled in cash with the underlying value reclassified to liabilities. |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Oct. 27, 2012 |
Cash Settled LTIP Awards | ||||
Income tax benefit related to stock-based compensation and other arrangements | $4.20 | $14.10 | $7.30 | ' |
Awards canceled in exchange for grants of new awards | ' | ' | ' | 0.6 |
Description_of_Business
Description of Business | 12 Months Ended |
Jul. 26, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Ascena Retail Group, Inc., a Delaware corporation (“Ascena” or the “Company”), is a leading national specialty retailer of apparel for women and tween girls and boys. On June 14, 2012, the Company acquired Charming Shoppes, Inc. (“Charming Shoppes”) and its related family of retail brands (the "Charming Shoppes Acquisition"). Accordingly, the Company operates, through its 100% owned subsidiaries, the following principal retail brands: Justice, Lane Bryant, maurices, dressbarn and Catherines. The Company operates approximately 3,900 stores throughout the United States and Canada, with annual revenues of approximately $4.8 billion for the fiscal year ended July 26, 2014. Ascena and its subsidiaries are collectively referred to herein as the “Company,” “we,” “us,” “our” and “ourselves,” unless the context indicates otherwise. | |
The Company classifies its businesses into five segments following a brand-oriented approach: Justice, Lane Bryant, maurices, dressbarn, and Catherines. The Justice segment includes approximately 997 specialty retail and outlet stores (of which 189 sell dual-gender merchandise), ecommerce operations and certain licensed franchises in international territories. The Justice brand offers fashionable apparel to girls who are ages 7 to 14 in an environment designed to match the energetic lifestyle of tween girls, and fashionable apparel to boys who are ages 7 to 14 under the Brothers brand. The Lane Bryant segment includes approximately 771 specialty retail and outlet stores and ecommerce operations. The Lane Bryant brand offers fashionable and sophisticated plus-size apparel under multiple private labels to female customers in the 25 to 45 age range. The maurices segment includes approximately 922 specialty retail and outlet stores and ecommerce operations. The maurices brand offers up-to-date fashion designed to appeal to the 20 to 35 year-old female, including both a core and plus-size offering, with stores concentrated in small markets (approximately 25,000 to 150,000 people). The dressbarn segment includes approximately 820 specialty retail and outlet stores and ecommerce operations. The dressbarn brand primarily attracts female consumers in the mid-30’s to mid-50’s age range and offers moderate-to-better quality career, special occasion and casual fashion to the working woman. The Catherines segment includes approximately 386 specialty retail stores and ecommerce operations. The Catherines brand offers classic apparel and accessories for wear-to-work and casual lifestyles in a full range of plus sizes, generally catering to the female customer 45 years and older. |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | |||
Jul. 26, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
Basis of Consolidation | ||||
The consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), and present the financial position, results of operations, comprehensive income and cash flows of the Company and all entities in which the Company has a controlling voting interest. The consolidated financial statements also include the accounts of any variable interest entities in which the Company is considered to be the primary beneficiary and such entities are required to be consolidated in accordance with US GAAP. There were no variable interest entities for any of the periods presented herein. | ||||
All significant intercompany balances and transactions have been eliminated in consolidation. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | ||||
Significant estimates inherent in the preparation of the consolidated financial statements include: the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation and related expected forfeiture rates; insurance reserves; and accounting for business combinations. | ||||
Fiscal Year | ||||
The company utilizes a 52-53 week fiscal year ending on the last Saturday in July. As such, fiscal year 2014 ended on July 26, 2014 and reflected a 52-week period (“Fiscal 2014"); fiscal year 2013 ended on July 27, 2013 and reflected a 52-week period (“Fiscal 2013"); fiscal year 2012 ended on July 28, 2012 and reflected a 52-week period (“Fiscal 2012”). | ||||
Prior to Fiscal 2014, the financial position and results of operations of the sourcing operations of Charming Shoppes located in Hong Kong (“Charming Sourcing”) were reported in these consolidated financial statements on a one-month lag. Accordingly, the Company’s operating results for Fiscal 2013 include the operating results of Charming Sourcing from July 1, 2012 through June 30, 2013. The Company’s operating results for Fiscal 2012 include the operating results of Charming Sourcing for only a two-week, post-acquisition period ended June 30, 2012. | ||||
Effective with the beginning of Fiscal 2014, the fiscal year-end of Charming Sourcing was changed to conform to the Company’s fiscal year-end. The change was recorded as an adjustment to the Company’s opening balance of retained earnings as of the beginning of Fiscal 2014. The net effect of such adjustment, and the prior reporting lag, was not material to the consolidated financial statements of the Company. | ||||
Discontinued Operations | ||||
In connection with the June 2012 Charming Shoppes Acquisition, certain acquired businesses have been classified as a component of discontinued operations within the consolidated financial statements. | ||||
In particular, the Company announced, contemporaneously with the closing of the Charming Shoppes Acquisition, its intent to cease operating the acquired Fashion Bug business. The Fashion Bug business, consisting of approximately 600 retail stores, ceased operations in February 2013. The liquidation of the related net assets concluded during the fourth quarter of Fiscal 2013 and resulted in an immaterial adjustment to goodwill. Also in Fiscal 2013, the Fashion Bug distribution center was sold for net proceeds of approximately $16 million. | ||||
In addition, the Company also announced, contemporaneously with the closing of the Charming Shoppes Acquisition, its intent to sell the acquired Figi’s business. In August 2013, the Company entered into an agreement to sell the principal net assets of the Figi’s business (the “Figi’s Sale”) and recorded an $8.0 million pretax charge during the fourth quarter of Fiscal 2013 to reduce the carrying value of the Figi’s net assets to an amount approximating the net sales proceeds. The Figi’s Sale closed during the first quarter of Fiscal 2014. Additional pretax charges of $4.6 million for Fiscal 2014 reflect transaction costs and the adjustment of certain liabilities which existed at the date it was sold. These charges have been classified as components of discontinued operations in the accompanying consolidated statements of operations. | ||||
The Fashion Bug and Figi’s businesses have been classified as discontinued operations within the accompanying consolidated financial statements. As such, assets and liabilities relating to discontinued operations have been segregated and separately disclosed in the accompanying consolidated balance sheet as of July 27, 2013. Operating results for those businesses, including $7.4 million of revenues for the first quarter of Fiscal 2014 (only consisting of revenues from the Figi’s business), $407.6 million of revenue for Fiscal 2013, and $66.4 million of revenues for the post-acquisition period in Fiscal 2012, have also been segregated and reported separately in the accompanying consolidated statements of operations. | ||||
The major components of assets and liabilities related to discontinued operations are summarized below: | ||||
July 27, | ||||
2013 | ||||
(millions) | ||||
Accounts and other receivables | $ | 6.7 | ||
Inventories | 14.3 | |||
Property and equipment, net | 9.7 | |||
Other intangible assets, net | 5 | |||
Other assets | 3.1 | |||
Total assets related to discontinued operations | $ | 38.8 | ||
Accounts payable and accrued expenses | $ | 20.8 | ||
Lease-related liabilities | 0.7 | |||
Total liabilities related to discontinued operations | $ | 21.5 | ||
Reclassifications | ||||
Historically, the Company included freight costs to move merchandise from its distribution centers to its retail stores within Buying, distribution and occupancy costs. As these costs were appropriately treated as a component of inventory, such costs should have been expensed to Cost of goods sold as the inventories were sold. In the fourth quarter of Fiscal 2014, the Company restated its prior period information by reclassifying these freight costs of $47.4 million in Fiscal 2013 and $23.3 million in Fiscal 2012 from Buying, distribution and occupancy costs to Cost of goods sold. There were no changes to historical operating income or historical net income for any period as a result of this change. | ||||
In addition, given the significant increase in ecommerce revenues and related shipping costs, the Company concluded that freight costs to bring ecommerce merchandise to its final destination should be classified consistently with brick-and-mortar freight charges. This presentation aligns with how the Company now evaluates the effect of the increased ecommerce business on its results from operations. As a result, in the fourth quarter of Fiscal 2014, the Company changed its financial statement presentation of these shipping costs for all periods presented. Costs of $23.5 million in Fiscal 2013 and $7.8 million in Fiscal 2012, which previously were recorded in Buying, distribution and occupancy costs, are now included in Costs of goods sold. There were no changes to historical operating income or historical net income for any period as a result of this change. | ||||
Certain other immaterial reclassifications have been made to the prior period financial information in order to conform to the current period's presentation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||
Jul. 26, 2014 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Summary of Significant Accounting Policies | ' | |||||||||
Summary of Significant Accounting Policies | ||||||||||
Revenue Recognition | ||||||||||
Revenue is recognized across all segments of the business when there is persuasive evidence of an arrangement, delivery has occurred, price has been fixed or is determinable and collectability is reasonably assured. | ||||||||||
Retail store revenue is recognized net of estimated returns at the time of sale to consumers. Ecommerce revenue from sales of products ordered through the Company’s retail internet sites and revenue from direct-mail orders through Justice’s catazine are recognized upon delivery and receipt of the shipment by our customers. Such revenue also is reduced by an estimate of returns. | ||||||||||
Reserves for estimated product returns are recorded based on historical return trends and are adjusted for known events, as applicable. Product returns have historically been immaterial. Reserves for estimated product returns were $7.7 million and $7.8 million as of the end of Fiscal 2014 and Fiscal 2013, respectively. | ||||||||||
Gift cards, gift certificates and merchandise credits (collectively, “gift cards”) issued by the Company are recorded as a deferred income liability until they are redeemed, at which point revenue is recognized. Gift cards do not have expiration dates. The Company recognizes income for unredeemed gift cards when the likelihood of a gift card being redeemed by a customer is remote and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. Gift card breakage is included in Net sales in the accompanying consolidated statements of operations, and historically has not been material. | ||||||||||
In addition to retail-store and ecommerce sales, the Justice segment recognizes revenue from licensing arrangements with franchised stores, advertising and other “tween-right” marketing arrangements with partner companies, as well as merchandise shipments to other third-party retailers. Revenue associated with merchandise shipments is recognized at the time title passes and risk of loss is transferred to customers, which generally occurs at the date of shipment. Royalty payments received under license agreements for the use of the Justice trade name and amounts received in connection with advertising and marketing arrangements with partner companies are recognized when earned in accordance with the terms of the underlying agreements. | ||||||||||
The Company accounts for sales and other related taxes on a net basis, thereby excluding such taxes from revenue. | ||||||||||
Cost of Goods Sold | ||||||||||
Cost of goods sold (“COGS”) consists of all costs of merchandise (net of purchase discounts and vendor allowances), merchandise acquisition costs (primarily commissions and import fees) and freight to our distribution centers and stores. These costs are determined to be directly or indirectly incurred in bringing an article to its existing condition and location. Additionally, the direct costs associated with shipping goods to customers and changes in reserve levels for inventory realizability and shrinkage are recorded as a component of Cost of goods sold. | ||||||||||
Our cost of goods sold and gross margin may not be comparable to those of other entities. Some entities, like us, exclude costs related to their distribution network, buying function, store occupancy costs and depreciation and amortization expenses from cost of goods sold and include them in other costs and expenses, whereas other entities include these costs in their cost of goods sold. | ||||||||||
Buying, Distribution and Occupancy Costs | ||||||||||
Buying, distribution and occupancy costs consist of store occupancy and utility costs (excluding depreciation), handling costs (as defined below) and all costs associated with the buying and distribution functions. | ||||||||||
Selling, General and Administrative Expenses | ||||||||||
Selling, general and administrative expenses (“SG&A expenses”) consist of compensation and benefit-related costs for sales and store operations personnel, administrative personnel and other employees not associated with the functions described above under Buying, distribution and occupancy costs. SG&A expenses also include advertising and marketing costs, information technology and communication costs, supplies for our stores and administrative facilities, insurance costs, legal costs and costs related to other administrative services. | ||||||||||
Shipping and Handling | ||||||||||
Shipping and handling fees billed to customers are recorded as revenue. The direct costs associated with shipping goods to customers are recorded as a component of Cost of goods sold. Costs associated with preparing the merchandise for shipping, such as picking, packing, warehousing, and order charges ("handling costs") are recorded as a component of Buying, distribution and occupancy costs. Handling costs were approximately $38.0 million in Fiscal 2014, $33.4 million in Fiscal 2013 and $15.8 million in Fiscal 2012. | ||||||||||
Marketing and Advertising Costs | ||||||||||
Marketing and advertising costs are included in SG&A expenses. Marketing and advertising costs are expensed when the advertisement is first exhibited. Marketing and advertising expenses were $160.1 million for Fiscal 2014, $169.1 million for Fiscal 2013 and $81.5 million for Fiscal 2012. Deferred marketing and advertising costs, which principally relate to advertisements that have not yet been exhibited or services that have not yet been received, were not material at the end of either Fiscal 2014 or Fiscal 2013. | ||||||||||
Foreign Currency Translation and Transactions | ||||||||||
The operating results and financial position of foreign operations are primarily consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. The resulting translation gains or losses are included in the consolidated statements of comprehensive income, and in the consolidated statements of equity, as a component of accumulated other comprehensive income (“AOCI”), and are not material for any period presented. Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature also are included within AOCI. | ||||||||||
The Company recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency. Foreign currency transaction gains and losses also result from intercompany loans made to foreign subsidiaries that are not of a long-term investment nature and include amounts realized on the settlement of certain intercompany loans with foreign subsidiaries. Net losses from foreign currency transactions amounted to $1.6 million in Fiscal 2014. Such amount is recognized in earnings and are included as part of Interest and other (expense) income, net in the accompanying consolidated statements of operations. The amounts of net foreign currency transaction losses for Fiscal 2013 and Fiscal 2012 were de minimis. | ||||||||||
Comprehensive Income (Loss) | ||||||||||
Comprehensive income (loss), which is reported separately in the consolidated statements of comprehensive income, consists of net income (loss) and other gains and losses affecting equity that, under US GAAP, are excluded from net income (loss). The components of other comprehensive income for the Company primarily consist of unrealized gains and losses on available-for-sale investments and foreign currency translation adjustments. | ||||||||||
Net Income Per Common Share | ||||||||||
Basic net income per common share is computed by dividing the net income applicable to common shares after preferred dividend requirements, if any, by the weighted-average number of common shares outstanding during the period. Diluted net income per common share adjusts basic net income per common share for the effects of outstanding stock options, restricted stock, restricted stock units and any other potentially dilutive financial instruments, only in the periods in which such effect is dilutive under the treasury stock method. | ||||||||||
The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to those shares used in calculating diluted net income per common share as follows: | ||||||||||
Fiscal Years Ended | ||||||||||
July 26, | July 27, | July 28, | ||||||||
2014 | 2013 | 2012 | ||||||||
(millions) | ||||||||||
Basic | 160.6 | 157.3 | 153.5 | |||||||
Dilutive effect of stock options, restricted stock and restricted stock units | 4.5 | 6 | 5.9 | |||||||
Diluted shares | 165.1 | 163.3 | 159.4 | |||||||
Options to purchase shares of common stock at an exercise price greater than the average market price of the common stock during the reporting period are anti-dilutive, and therefore not included in the computation of diluted net income per common share. In addition, the Company has outstanding restricted stock units that are issuable only upon the achievement of certain service and/or performance or market-based goals. Such performance or market-based restricted stock units are included in the computation of diluted shares only to the extent the underlying performance or market conditions (a) are satisfied prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. As of the end of Fiscal 2014, Fiscal 2013 and Fiscal 2012 there was an aggregate of approximately 5.6 million, 3.0 million and 1.3 million, respectively, of additional shares issuable upon the exercise of anti-dilutive options and/or the contingent vesting of performance-based and market-based restricted stock units that were excluded from the diluted share calculations. | ||||||||||
Stock-Based Compensation | ||||||||||
The Company expenses stock-based compensation to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The Company uses the Black-Scholes valuation method to determine the grant date fair value of its option-based compensation. Shares of restricted stock and restricted stock units are issued with either service-based or performance-based conditions, and some even have market-based conditions (collectively, “Restricted Equity Awards”). Compensation expense for both service-based and performance-based Restricted Equity Awards is recognized over the vesting period based on the grant-date fair values of the awards that are expected to vest based upon the service and performance-based conditions. However, compensation expense for market-based Restricted Equity Awards is recognized over the vesting period regardless of whether the market conditions are expected to be achieved. Compensation expense for Cash-Settled Long-Term Incentive Plan Awards (the “Cash-Settled LTIP Awards”) is recognized over the related vesting period based on the expected performance of the plan and changes in the Company’s stock price over time. | ||||||||||
See Note 19 for further discussion of the Company's stock-based compensation plans. | ||||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents include all highly liquid investments with original maturities of 90 days or less, including investments in debt securities. Investments in debt securities are diversified among high-credit quality securities in accordance with the Company’s risk management policies, and primarily include commercial paper and money market funds. These amounts are stated at cost, which approximates market value. | ||||||||||
The Company also considers receivables from financial institutions related to credit card purchases to be cash equivalents due to the high credit quality and short time frame for settlement of the outstanding amounts. | ||||||||||
Investments | ||||||||||
Short-term investments consist of investments which the Company expects to convert into cash within one year. Non-current investments consist of those investments which the Company does not expect to convert into cash within one year. | ||||||||||
Available-for-Sale, Held-to-Maturity and Trading Investments | ||||||||||
Investments in companies in which the Company does not have a controlling interest, or is unable to exert significant influence, are accounted for as either held-to-maturity, available-for-sale investments or trading investments. | ||||||||||
The Company classifies its investments in securities at the time of purchase into one of three categories: held-to-maturity, available-for-sale or trading. The Company re-evaluates such classifications on a quarterly basis. Held-to-maturity investments would normally consist of debt securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost, as adjusted for the amortization of premiums and discounts. Available-for-sale investments have historically consisted primarily of municipal bonds, which are recorded at fair value. Unrealized gains and losses on available-for-sale investments are classified as a component of AOCI in the accompanying consolidated balance sheets, and realized gains or losses are recognized by the specific identification method and are classified as a component of Interest and other (expense) income, net, in the accompanying consolidated statements of operations. Trading securities would normally consist of securities that are acquired by the Company with the intent of selling in the near term. Trading securities are carried at fair value, with changes in unrealized holding gains and losses included in income and classified within Interest and other (expense) income, net, in the accompanying consolidated statements of operations. The Company normally does not hold any trading securities. | ||||||||||
Cash inflows and outflows related to the sales and purchases of investments are classified as investing activities in the Company’s consolidated statements of cash flows. | ||||||||||
Impairment Assessment | ||||||||||
The Company evaluates investments held in unrealized loss positions for other-than-temporary impairment on a quarterly basis. Such evaluation involves a variety of considerations, including assessments of risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers. Factors considered by the Company include (i) the length of time and the extent to which the fair value has been below cost, (ii) the financial condition, credit worthiness and near-term prospects of the issuer, (iii) the length of time to maturity, (iv) future economic conditions and market forecasts, (v) the Company's intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value and (vi) an assessment of whether it is more-likely-than-not that the Company will be required to sell its investment before recovery of market value. | ||||||||||
See Note 7 for further information relating to the Company's investments. | ||||||||||
Concentration of Credit Risk | ||||||||||
The Company maintains cash deposits and cash equivalents with well-known and stable financial institutions; however, there were significant amounts of cash and cash equivalents at these financial institutions in excess of federally insured limits at July 26, 2014. While this represents a concentration of credit risk, there have been no losses recorded on deposits of cash and cash equivalents to date. | ||||||||||
Inventories | ||||||||||
Inventory is valued using the retail method of accounting and is stated at the lower of cost, on a First In, First Out (“FIFO”) basis, or market. Under the retail inventory method, the valuation of inventory at cost and resulting gross margin are calculated by applying a calculated cost to retail ratio to the retail value of inventory. The retail inventory method is an averaging method that has been widely used in the retail industry due to its practicality. Inherent in the retail method are certain significant management judgments and estimates including, among others, initial merchandise markup, markdowns and shrinkage, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. | ||||||||||
The Company continuously reviews its inventory levels to identify slow-moving merchandise and markdowns necessary to clear slow-moving merchandise, which reduces the cost of inventories to its estimated net realizable value. Consideration is given to a number of quantitative and qualitative factors, including current pricing levels and the anticipated need for subsequent markdowns, aging of inventories, historical sales trends, and the impact of market trends and economic conditions. Estimates of markdown requirements may differ from actual results due to changes in quantity, quality and mix of products in inventory, as well as changes in consumer preferences, market and economic conditions. The Company’s historical estimates of these costs and its markdown provisions have not differed materially from actual results. | ||||||||||
Reserves for inventory shrinkage, representing the risk of physical loss of inventory, are estimated based on historical experience and are adjusted based upon physical inventory counts. | ||||||||||
Property and Equipment, Net | ||||||||||
Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful lives: | ||||||||||
Buildings and improvements | 10-40 years | |||||||||
Distribution center equipment and machinery | 3-20 years | |||||||||
Leasehold improvements | Shorter of the useful life or expected term of the lease | |||||||||
Furniture, fixtures, and equipment | 2-10 years | |||||||||
Information technology | 3-10 years | |||||||||
Certain costs associated with computer software developed or obtained for internal use are capitalized, including internal costs. The Company capitalizes certain costs for employees that are directly associated with internal use computer software projects once specific criteria are met. Costs are expensed for preliminary stage activities, training, maintenance and all other post-implementation stage activities as they are incurred. | ||||||||||
Property and equipment, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating long-lived assets for recoverability, including finite-lived intangibles as described below, the Company uses its best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value, considering external market participant assumptions. Assets to be disposed of and for which there is a committed plan of disposal are reported at the lower of carrying value or fair value less costs to sell. | ||||||||||
Goodwill and Other Intangible Assets, Net | ||||||||||
At acquisition, the Company estimates and records the fair value of purchased intangible assets, which primarily consist of proprietary software, franchise rights, and certain trade names. The fair value of these intangible assets is estimated based on management's assessment, considering independent third-party appraisals, when necessary. The excess of the purchase consideration over the fair value of net assets acquired is recorded as goodwill. See Note 10 for additional discussion of the Company’s goodwill and other intangible assets. | ||||||||||
Goodwill and certain other intangible assets deemed to have indefinite useful lives, including trade names and certain franchise rights, are not amortized. Rather, goodwill and such indefinite-lived intangible assets are assessed for impairment at least annually based on comparisons of their respective fair values to their carrying values. The Company performs its annual impairment assessment of goodwill and indefinite lived intangible assets during the fourth quarter of each fiscal year. Finite-lived intangible assets are amortized over their respective estimated useful lives and, along with other long-lived assets (as discussed below), are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. Refer to the Company's accounting policy for long-lived asset impairment as described earlier under the caption "Property and Equipment, Net." | ||||||||||
Goodwill impairment is determined using a two-step process. The first step of the goodwill impairment test is to identify potential impairment by comparing the fair value of a reporting unit with its net book value (or carrying amount), including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and performance of the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. | ||||||||||
Determining the fair value of a reporting unit under the first step of the goodwill impairment test and determining the fair value of individual assets and liabilities of a reporting unit (including unrecognized intangible assets) under the second step of the goodwill impairment test is judgmental in nature and often involves the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the magnitude of any such charge. To assist management in the process of determining goodwill impairment, the Company reviews and considers appraisals from independent valuation firms. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows (including timing), discount rates reflecting the risks inherent in future cash flows, perpetual growth rates and determination of appropriate market comparables. | ||||||||||
The impairment test for other indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying value. The fair value of indefinite-lived intangible assets is primarily determined using the relief from royalty approach. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to the excess. In addition, in evaluating finite-lived intangible assets for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. | ||||||||||
Insurance Reserves | ||||||||||
The Company uses a combination of insurance and self-insurance mechanisms to provide for the potential liabilities for workers’ compensation and employee healthcare benefits. Liabilities associated with these risks are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Such liabilities are capped through the use of stop loss contracts with insurance companies. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. As of July 26, 2014 and July 27, 2013, these reserves were $52.9 million and $52.3 million, respectively. The Company is subject to various claims and contingencies related to insurance and other matters arising out of the normal course of business. The Company is self-insured for expenses related to its employee medical and dental plans, and its workers’ compensation plan, up to certain thresholds. Claims filed, as well as claims incurred but not reported, are accrued based on management’s estimates, using information received from plan administrators, historical analysis and other relevant data. The Company’s stop-loss insurance coverage limit for individual claims under these policies is $350,000. The Company believes its accruals for claims and contingencies are adequate based on information currently available. However, it is possible that actual results could differ significantly from the recorded accruals for claims and contingencies. | ||||||||||
Income Taxes | ||||||||||
Income taxes are provided using the asset and liability method. Under this method, income taxes (i.e., deferred tax assets and liabilities, current taxes payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current year, and include the results of any differences between US GAAP and tax reporting. Deferred income taxes reflect the tax effect of certain net operating loss, capital loss and general business credit carry forwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statement and income tax purposes, as determined under enacted tax laws and rates. The Company accounts for the financial effect of changes in tax laws or rates in the period of enactment. | ||||||||||
In addition, valuation allowances are established when management determines that it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Tax valuation allowances are analyzed periodically and adjusted as events occur, or circumstances change, that warrant adjustments to those balances. | ||||||||||
In determining the income tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions. If the Company considers that a tax position is “more-likely-than-not” of being sustained upon audit, based solely on the technical merits of the position, it recognizes the tax benefit. The Company measures the tax benefit by determining the largest amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. These assessments can be complex and the Company often obtains assistance from external advisors. To the extent that the Company’s estimates change or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. If the initial assessment fails to result in the recognition of a tax benefit, the Company regularly monitors its position and subsequently recognizes the tax benefit if (i) there are changes in tax law or analogous case law that sufficiently raise the likelihood of prevailing on the technical merits of the position to “more-likely-than-not,” (ii) the statute of limitation expires, or (iii) there is a completion of an audit resulting in a settlement of that tax year with the appropriate agency. Uncertain tax positions are classified as current only when the Company expects to pay cash within the next twelve months. Interest and penalties, if any, are recorded within the provision for income taxes in the Company’s accompanying consolidated statements of operations and are classified on the accompanying consolidated balance sheets with the related liability for uncertain tax positions. | ||||||||||
See Note 15 for additional discussion of the Company’s income taxes. | ||||||||||
Leases | ||||||||||
The Company leases certain facilities and equipment, including its retail stores. Most of the Company's leases contain renewal options, rent escalation clauses and/or landlord incentives. Rent expense for non-cancelable operating leases with scheduled rent increases and/or landlord incentives is recognized on a straight-line basis over the lease term, beginning with the effective lease commencement date. The effective lease commencement date represents the date on which the Company takes possession of, or controls the physical use of, the leased property. The excess of straight-line rent expense over scheduled payment amounts and landlord incentives is recorded as a deferred rent liability and is classified on the consolidated balance sheets with the Lease-related liabilities. | ||||||||||
Certain leases provide for contingent rents, which are determined as a percentage of gross sales in excess of specified levels. A contingent rent liability is recognized together with the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. | ||||||||||
Financial Instruments | ||||||||||
The carrying value of the Company's financial instruments approximates fair value. Differences between the carrying value and fair value of the Company's financial instruments were not significant as of July 26, 2014 or July 27, 2013. The fair value of financial instruments generally is determined by reference to fair market values resulting from the trading of the instruments on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates derived through the use of present value or other valuation techniques. | ||||||||||
See Notes 7 and 8 for further discussion of the Company's financial instruments. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 12 Months Ended |
Jul. 26, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which supersedes the revenue recognition requirements in FASB Accounting Standards Codification ("ASC") Topic 605, "Revenue Recognition". The guidance requires that an entity recognize revenue in a way that depicts the transfer of promised goods or services to customers in the amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. The guidance will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the new standard and its impact on the Company's consolidated financial statements. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 12 Months Ended | |||
Jul. 26, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions and Dispositions | ' | |||
Acquisitions and Dispositions | ||||
The Charming Shoppes Acquisition | ||||
In June 2012, the Company acquired Charming Shoppes, which owned and operated multiple retail brands through over 1,800 retail stores and ecommerce operations including: Lane Bryant, Catherines, Fashion Bug and Figi’s, in an all cash transaction at $7.35 per share, for an aggregate purchase price of $882.1 million (excluding the assumption of debt and transaction costs). | ||||
The Company accounted for the Charming Shoppes Acquisition under the purchase method of accounting for business combinations. Accordingly, the cost to acquire such assets was allocated to the underlying net assets in proportion to their respective fair values. Any excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill. During Fiscal 2013, the Company made certain adjustments to goodwill to more fairly reflect the fair value of the underlying net assets acquired. Such adjustments, primarily for net assets related to discontinued operations and deferred tax assets and liabilities, resulted in an $11.8 million increase in miscellaneous net assets with a corresponding reduction to goodwill. | ||||
As adjusted during Fiscal 2013, the acquisition cost of $882.1 million was allocated to the acquired net assets based on their respective fair values, as follows: cash and cash equivalents of $203.5 million; inventories of $192.0 million; net assets related to discontinued operations of $79.2 million; other current and non-current assets of $97.6 million; deferred tax assets (net of deferred tax liabilities) of $18.2 million; property and equipment of $162.5 million; non-tax deductible goodwill of $347.1 million; intangible assets (consisting primarily of brands and trademarks) of $270.7 million; current liabilities of $199.5 million; long-term debt of $146.2 million; and other net liabilities of $143.0 million. | ||||
The values assigned to brand names and trademarks were derived using the relief-from-royalties method under the income valuation approach. This approach is used to estimate the cost savings that accrue for the owner of an intangible asset who would otherwise have to pay royalties or licensing fees on revenues earned through the use of the asset if they had not owned the rights to use the assets. The net after-tax royalty savings are calculated for each year in the remaining economic life of the intangible asset and discounted to present value. | ||||
The results of operations of Charming Shoppes have been consolidated in the Company’s results of operations commencing on June 14, 2012, the effective date of the Charming Shoppes Acquisition. Such post-acquisition results included in the Company’s accompanying consolidated statement of operations for Fiscal 2012 consist of the following: | ||||
Fiscal Year Ended | ||||
July 28, | ||||
2012 | ||||
(millions) | ||||
Net sales | $ | 156.1 | ||
Loss from continuing operations | (37.8 | ) | ||
Loss from discontinued operations, net of taxes | (9.6 | ) | ||
Net loss | (47.4 | ) | ||
The above results for Fiscal 2012 (i) exclude $14.0 million of acquisition-related, transaction costs, which were expensed as incurred by the Company and have been presented separately in the accompanying consolidated statement of operations for Fiscal 2012 and (ii) include a one-time, pretax charge of $14.0 million to settle certain pre-existing, equity awards held by employees of Charming Shoppes at the date of acquisition. | ||||
The following unaudited pro forma financial information is presented to supplement the historical financial information presented herein relating to the Charming Shoppes Acquisition and the related redemption of substantially all of the Charming Shoppes convertible notes, as more fully described in Note 14. This pro forma information has been prepared as if the Charming Shoppes Acquisition and related redemption of its convertible notes had occurred as of the beginning of Fiscal 2012. The pro forma financial information is not indicative of the operating results that would have been obtained had the transactions actually occurred as of that date, nor is it necessarily indicative of the Company’s future operating results. | ||||
Fiscal Year Ended | ||||
July 28, | ||||
2012 | ||||
(millions, except per share data) | ||||
Pro forma net sales | $ | 4,535.50 | ||
Pro forma income from continuing operations | $ | 145.7 | ||
Pro forma net income from continuing operations per common share: | ||||
Basic | $ | 0.95 | ||
Diluted | $ | 0.91 | ||
Inventories
Inventories | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories substantially consist of finished goods merchandise. Inventory by brand is set forth below: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Justice | $ | 198.6 | $ | 196.2 | |||||
Lane Bryant | 125.6 | 119.7 | |||||||
maurices | 105.5 | 92 | |||||||
dressbarn | 97.1 | 106.9 | |||||||
Catherines | 26.4 | 26.1 | |||||||
Total inventories | $ | 553.2 | $ | 540.9 | |||||
Investments
Investments | 12 Months Ended |
Jul. 26, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ' |
Investments | ' |
Investments | |
The Company classifies its investments in securities at the time of purchase as held-to-maturity, available-for-sale or trading, and re-evaluates such classifications on a quarterly basis. No material unrealized gains or losses on available-for-sale investments were recognized during any of the periods presented. | |
In connection with the funding requirements to consummate the Charming Shoppes Acquisition, the Company liquidated substantially all of its then existing investment portfolio during the fourth quarter of Fiscal 2012. Proceeds from the sale of the investment portfolio during the fourth quarter of Fiscal 2012 were approximately $240 million. The Company recognized a related realized gain of approximately $1 million in connection with the sales of such investments, which has been classified as a component of Interest and other (expense) income, net, in the accompanying consolidated financial statement of operations for Fiscal 2012. | |
As of July 26, 2014 and July 27, 2013, the Company’s had investments of $30.4 million and $3.0 million, respectively, which are classified within Short-term investments in the accompanying consolidated balance sheets because they have maturities of one-year or less. As of the end of each period, the Company’s investments were comprised of only available-for-sale securities and substantially included restricted cash, certificates of deposit and US government securities. The Company had no securities classified as held-to-maturity or trading. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |
Jul. 26, 2014 | ||
Fair Value Disclosures [Abstract] | ' | |
Fair Value Measurements | ' | |
Fair Value Measurements | ||
Fair Value Measurements of Financial Instruments | ||
Certain financial assets and liabilities are required to be carried at fair value. Fair value is 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. In determining fair value, the Company utilizes market data or assumptions that it believes market participants would use in pricing the asset or liability, which would maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, including assumptions about risk and the risks inherent in the inputs to the valuation technique. | ||
In evaluating the fair value measurement techniques for recording certain financial assets and liabilities, there is a three-level valuation hierarchy under which financial assets and liabilities are designated. The determination of the applicable level within the hierarchy of a particular financial asset or liability depends on the inputs used in valuation as of the measurement date. Valuations based on observable or market-based inputs for identical assets or liabilities (Level 1 measurement) are given the highest level of priority, whereas valuations based on unobservable or internally derived inputs (Level 3 measurement) are given the lowest level of priority. The three levels of the fair value hierarchy are defined as follows: | ||
Level 1 | Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 | Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. The prices for the financial instruments are determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. | |
Level 3 | Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques. | |
A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||
Cash, cash equivalents and restricted cash (Level 1 measurements) are recorded at carrying value, which approximates fair value. Available-for-sale investments in debt securities (Level 1 measurements) and certificates of deposit (Level 2 measurements) have historically been recorded at fair value. As the Company’s primary debt obligations, consisting primarily of revolving credit borrowings, are variable rate, there are no significant differences between the estimated fair value (Level 2 measurements) and carrying value of the Company’s debt obligations. | ||
The Company’s non-financial instruments, which primarily consist of goodwill, intangible assets, and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying value may not be recoverable (and at least annually for goodwill and other indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written-down to (and recorded at) fair value. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment, net, consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Property and Equipment: | |||||||||
Land | $ | 33.1 | $ | 29.4 | |||||
Buildings and improvements | 177.9 | 47.2 | |||||||
Leasehold improvements | 604 | 531.4 | |||||||
Furniture, fixtures and equipment | 545.7 | 401 | |||||||
Information technology | 237.3 | 213.1 | |||||||
Construction in progress | 156.8 | 165.3 | |||||||
1,754.80 | 1,387.40 | ||||||||
Less: accumulated depreciation | (644.2 | ) | (562.6 | ) | |||||
Property and equipment, net | $ | 1,110.60 | $ | 824.8 | |||||
The increase in property and equipment is primarily due to Fiscal 2014 expenditures for store-related capital improvements, investments in our technological and supply chain infrastructure and investments in corporate office space to support our growing operations. | |||||||||
Buildings | |||||||||
Corporate Office Space | |||||||||
In April 2012, the Company purchased a building in Mahwah, NJ. During the second quarter of Fiscal 2014, the Company completed the renovation and expansion of this building which now serves as the corporate office for the dressbarn brand. In addition, during the third quarter of Fiscal 2014, the Company finished a newly constructed building adjacent to the dressbarn building which now serves as the corporate office for Ascena. | |||||||||
Distribution Centers | |||||||||
During the third quarter of Fiscal 2014, the Company’s newly renovated distribution centers in Etna Township, Ohio and Greencastle, Indiana became operational. The expanded Etna distribution center will centralize all of the Company's brick-and-mortar store distribution into one location while the newly renovated Greencastle distribution center will centralize all of the Company's ecommerce distribution into one location. | |||||||||
Sale of New York Facility | |||||||||
In May 2012, the Company sold its 900,000 square-foot building and 16 acres of adjacent land in Suffern, NY, which contained Ascena and dressbarn’s corporate offices and the former warehouse space of dressbarn, for approximately $40.0 million. The transaction resulted in a pretax gain of approximately $6.9 million, which has been classified in SG&A expenses, within operating income, in the accompanying consolidated statement of operations for Fiscal 2012. | |||||||||
Tax Incentives | |||||||||
In connection with the capital projects discussed above, the Company received various state and local tax incentives which are described in more detail in Note 15. | |||||||||
Depreciation | |||||||||
The Company recognized depreciation expense of $190.9 million in Fiscal 2014, $173.4 million in Fiscal 2013 and $106.2 million in Fiscal 2012, which is classified within Depreciation and amortization expense in the accompanying consolidated statements of operations. Fiscal 2014 and 2013 include the full year impact of the Charming Shoppes Acquisition. Also, in Fiscal 2014 and 2013, as a result of the Company’s integration of its supply chain and technological infrastructure, the depreciable lives of certain existing assets were adjusted to reflect a shortened useful life for the assets that will be displaced as a result of these projects. Thus, Fiscal 2014 and 2013 include incremental depreciation expenses for these assets of approximately $8.6 million and $14.2 million, respectively. This additional expense reduced income from continuing operations by approximately $5.3 million and $8.9 million for Fiscal 2014 and Fiscal 2013, respectively, and diluted net income per common share from continuing operations by approximately $0.03 and $0.05 for Fiscal 2014 and Fiscal 2013, respectively. Substantially all of these displaced assets ceased depreciating during Fiscal 2014. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Jul. 26, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||||||
As discussed in Note 3, goodwill and certain other intangible assets deemed to have indefinite useful lives are not amortized. Rather, goodwill and such indefinite-lived intangible assets are subject to annual impairment testing. Finite-lived intangible assets are amortized over their respective estimated useful lives. The results of the Company's annual impairment of testing of goodwill and indefinite lived intangible assets are discussed in Note 11. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The following analysis details the changes in goodwill for each reportable segment during Fiscal 2014 and Fiscal 2013: | |||||||||||||||||||||||||
Justice | Lane Bryant | maurices | dressbarn | Catherines | Total | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||||
Balance at July 28, 2012 | $ | 103.6 | $ | 332.1 | $ | 130.7 | $ | — | $ | 26.8 | $ | 593.2 | |||||||||||||
Acquisition-related activity | — | (13.0 | ) | — | — | 1.2 | (11.8 | ) | |||||||||||||||||
Balance at July 27, 2013 | 103.6 | 319.1 | 130.7 | — | 28 | 581.4 | |||||||||||||||||||
Acquisition-related activity | — | — | — | — | — | — | |||||||||||||||||||
Balance at July 26, 2014 | $ | 103.6 | $ | 319.1 | $ | 130.7 | $ | — | $ | 28 | $ | 581.4 | |||||||||||||
Other Intangible Assets | |||||||||||||||||||||||||
Other intangible assets consist of the following: | |||||||||||||||||||||||||
July 26, 2014 | July 27, 2013 | ||||||||||||||||||||||||
Description | Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
Carrying | Amort. | Carrying | Amort. | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Intangible assets subject to amortization: | (millions) | ||||||||||||||||||||||||
Proprietary technology | $ | 6.5 | $ | (5.7 | ) | $ | 0.8 | $ | 6.5 | $ | (4.8 | ) | $ | 1.7 | |||||||||||
Customer relationships | 2.7 | (2.6 | ) | 0.1 | 2.7 | (2.4 | ) | 0.3 | |||||||||||||||||
Trade names | 5.3 | (3.8 | ) | 1.5 | 5.3 | (2.2 | ) | 3.1 | |||||||||||||||||
Total intangible assets subject to amortization | 14.5 | (12.1 | ) | 2.4 | 14.5 | (9.4 | ) | 5.1 | |||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Brands and trademarks (a) | 422.1 | — | 422.1 | 435.1 | — | 435.1 | |||||||||||||||||||
Franchise rights | 10.9 | — | 10.9 | 10.9 | — | 10.9 | |||||||||||||||||||
Total intangible assets not subject to amortization | 433 | — | 433 | 446 | — | 446 | |||||||||||||||||||
Total intangible assets | $ | 447.5 | $ | (12.1 | ) | $ | 435.4 | $ | 460.5 | $ | (9.4 | ) | $ | 451.1 | |||||||||||
(a) The decrease in Brands and trademarks is due to the Fiscal 2014 write-off of the Studio Y trade name, as more fully described in Note 11. | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
The Company recognized amortization expense on other intangible assets of $2.7 million in Fiscal 2014, $2.6 million in Fiscal 2013 and $1.2 million in Fiscal 2012, which is classified within Depreciation and amortization expense in the accompanying consolidated statements of operations. Based on the amount of intangible assets subject to amortization as of July 26, 2014, the entire carrying amount of $2.4 million will be fully amortized in Fiscal 2015. |
Impairments
Impairments | 12 Months Ended |
Jul. 26, 2014 | |
Asset Impairment Charges [Abstract] | ' |
Impairments | ' |
Impairments | |
Long-Lived Asset Impairments | |
Property and equipment, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating long-lived assets, including finite-lived intangible assets, for recoverability, the Company uses its best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. Impairment losses for retail store-related assets and finite-lived intangible assets are included as a component of SG&A expenses in the accompanying consolidated statements of operations for all periods and are discussed below. | |
Fiscal 2014 Impairments | |
During the fiscal year ended July 26, 2014, the Company recorded an aggregate of $4.2 million in non-cash impairment charges, including $0.3 million in its Justice segment, $0.9 million in its Lane Bryant segment, $1.1 million in its maurices segment and $1.9 million in its dressbarn segment. These charges reduced the net carrying value of certain long-lived assets to their estimated fair value, which was determined based on discounted expected cash flows. These impairment charges were primarily related to the lower-than-expected operating performance of certain retail stores. There were no impairment charges recorded at the Catherines segment. There were no finite-lived intangible asset impairment losses recorded in Fiscal 2014. | |
Fiscal 2013 Impairments | |
During the fiscal year ended July 27, 2013, the Company recorded an aggregate of $4.6 million in non-cash impairment charges, including $0.1 million in its Justice segment, $2.0 million in its Lane Bryant segment, $0.7 million in its maurices segment and $1.8 million in its dressbarn segment. These charges reduced the net carrying value of certain long-lived assets to their estimated fair value, which was determined based on discounted expected cash flows. These impairment charges were primarily related to the lower-than-expected operating performance of certain retail stores. There were no impairment charges recorded at the Catherines segment. There were no finite-lived intangible asset impairment losses recorded in Fiscal 2013. | |
Fiscal 2012 Impairments | |
During the fiscal year ended July 28, 2012, the Company recorded an aggregate of $2.2 million in non-cash impairment charges, including $0.2 million in its Justice segment, $1.0 million in its maurices segment and $1.0 million in its dressbarn segment. These charges reduced the net carrying value of certain long-lived assets to their estimated fair value, which was determined based on discounted expected cash flows. These impairment charges were primarily related to the lower-than-expected operating performance of certain retail stores. There were no impairment charges recorded at the Lane Bryant or Catherines segments. There were no finite-lived intangible asset impairment losses recorded in Fiscal 2012. | |
Goodwill and Other Indefinite-lived Intangible Assets Impairment Assessment | |
Goodwill and intangible assets with indefinite lives are not amortized but are subject to annual tests for impairment or more often, if events and circumstances indicate it may be impaired. | |
The Company performs its annual impairment assessment of goodwill and indefinite-lived intangible assets during the fourth quarter of each fiscal year. The impairment test for other indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to the excess. | |
During the fourth quarter of Fiscal 2014, in connection with our annual budget process for Fiscal 2015, management at maurices reached a decision to stop selling product under its Studio Y label based on an evaluation of its other product labels which are expected to generate higher returns. As a result, the Company recorded a non-cash impairment charge of $13.0 million in its maurices segment in Fiscal 2014 to write-off the entire carrying value of the Studio Y trade name as the net cash flows from the sell-off of remaining product reflected no fair value. These impairment losses have been disclosed separately on the face of the accompanying consolidated statements of operations. | |
Other than as previously discussed, there have been no goodwill or other indefinite-lived intangible assets impairment losses recorded for any of the periods presented. Additionally, there have been no cumulative goodwill losses to date. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
Prepaid Expenses and Other Current Assets | |||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Prepaid expenses | $ | 40.6 | $ | 39.4 | |||||
Accounts and other receivables | 90.8 | 80.9 | |||||||
Other current assets | 5 | 0.4 | |||||||
Total prepaid expenses and other current assets | $ | 136.4 | $ | 120.7 | |||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | ||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued Expenses and Other Current Liabilities | |||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Accrued salary, wages and related expenses | $ | 120.6 | $ | 115.1 | |||||
Accrued operating expenses | 164 | 146.7 | |||||||
Sales and other taxes payable | 15.7 | 16.7 | |||||||
Other | 8.6 | 6.8 | |||||||
Total accrued expenses and other current liabilities | $ | 308.9 | $ | 285.3 | |||||
Debt
Debt | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
Debt | |||||||||
Debt consists of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Revolving credit agreement | $ | 172 | $ | 135 | |||||
Charming Shoppes convertible notes | — | 0.6 | |||||||
172 | 135.6 | ||||||||
Less: current portion | — | (0.6 | ) | ||||||
Total long-term debt | $ | 172 | $ | 135 | |||||
Revolving Credit Agreement | |||||||||
In March 2013, the Company and certain of its domestic subsidiaries entered into an amended and restated revolving credit agreement (the “Revolving Credit Agreement”) with the lenders thereunder and JPMorgan Chase Bank, N.A. as administrative agent. | |||||||||
The Company's Revolving Credit Agreement provides a senior secured revolving credit facility up to $500 million, with an optional additional increase of up to $100 million. The Revolving Credit Agreement expires in June 2018. There are no mandatory reductions in borrowing availability throughout the term of the Revolving Credit Agreement. However, availability under the Revolving Credit Agreement fluctuates from month-to-month based on the Company’s underlying collateral position at the end of the period. Our collateral position is determined, at any given period, by the aggregate of the Company’s (i) inventory position (less reserves), (ii) market value of eligible real properties up to certain limits and (iii) eligible credit card receivables. | |||||||||
The Revolving Credit Agreement may be used for the issuance of letters of credit, to fund working capital requirements and capital expenditures, and for general corporate purposes. The Revolving Credit Agreement includes a $250 million letter of credit sublimit, of which $60 million can be used for standby letters of credit, and a $25 million swing loan sublimit. Borrowings under the Revolving Credit Agreement bear interest at a variable rate determined using a base rate equal to the greatest of (i) prime rate, (ii) federal funds rate plus 50 basis points, or (iii) LIBOR plus 100 basis points; plus an applicable margin ranging from 50 basis points to 200 basis points based on a combination of the type of borrowing (prime or LIBOR) and average borrowing availability during the previous fiscal quarter. | |||||||||
In addition to paying interest on any outstanding borrowings under the Revolving Credit Agreement, the Company is required to pay a commitment fee to the lenders under the Revolving Credit Agreement in respect of the unutilized commitments in an amount ranging between 25 basis points and 37.5 basis points per annum based on the Company’s average utilization during the previous fiscal quarter. | |||||||||
As of July 26, 2014, after taking into account the $172.0 million of revolving debt outstanding and the $18.0 million in outstanding letters of credit, the Company had $274.6 million of its variable availability under the Revolving Credit Agreement. | |||||||||
Restrictions under the Revolving Credit Agreement | |||||||||
The Revolving Credit Agreement is subject to restrictions, as summarized below. | |||||||||
The Company is subject to certain restrictions and financial covenants with respect to minimum availability limits under the Revolving Credit Agreement. Such limits are variable based on the outstanding borrowing commitment. Should Availability (as defined in the Revolving Credit Agreement) fall below the minimum level for three consecutive days, the Company would be in a Reduced Availability Period and would be subject to a fixed charge coverage ratio test. As of July 26, 2014, the Reduced Availability Period would be triggered if our availability were to drop below approximately $50.0 million for three consecutive days. As of July 26, 2014, the Company had $274.6 million in availability under the Revolving Credit Agreement and accordingly, the fixed charge coverage ratio test does not apply. | |||||||||
If the Company is in a Reduced Availability Period at the end of a fiscal quarter, the Company’s fixed charge coverage ratio must be at least 1.00 to 1.00. The ratio is calculated based on four consecutive fiscal quarter end dates ending with the current quarter. The fixed charge coverage ratio is defined as a ratio of consolidated earnings (as defined in the Revolving Credit Agreement), less capital expenditures, to consolidated fixed charges. | |||||||||
In addition to the above, the Revolving Credit Agreement contains customary negative covenants, subject to negotiated exceptions, on (i) liens and guarantees, (ii) investments, (iii) indebtedness, (iv) significant corporate changes including mergers and acquisitions, (v) dispositions, (vi) restricted payments, cash dividends and certain other restrictive agreements. The borrowing agreement also contains customary events of default, such as payment defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency, the occurrence of a defined change in control, or the failure to observe the negative covenants and other covenants related to the operation of the Company’s business. | |||||||||
The Company’s obligations under the Revolving Credit Agreement are guaranteed by certain of its domestic subsidiaries (the “Subsidiary Guarantors”). As collateral security under the borrowing agreement and the guarantees thereof, the Company and the Subsidiary Guarantors have granted to the administrative agent for the benefit of the lenders, a first priority lien on substantially all of their tangible and intangible assets, including, without limitation, certain domestic inventory and certain material real estate. | |||||||||
Our Revolving Credit Agreement allows us to pay dividends, provided that at the time of, and immediately after giving effect to the dividend, (i) there is no default or event of default, and (ii) Availability (as defined in the Revolving Credit Agreement) is not less than 20% of the aggregate Revolving Commitments (as defined in the Revolving Credit Agreement), subject to a minimum predetermined availability limit. Dividends are payable when declared by our Board of Directors. | |||||||||
The Company was in compliance with all financial covenants contained in the Revolving Credit Agreement as of July 26, 2014. | |||||||||
Term Loan | |||||||||
In connection with the funding of the Charming Shoppes Acquisition during the fourth quarter of Fiscal 2012, the Company incurred $300 million of borrowings under a six-year, variable rate term loan ("Term Loan") with an original maturity of June 14, 2018. | |||||||||
The Term Loan was fully repaid during Fiscal 2013, which resulted in an aggregate $8.5 million pretax loss on extinguishment of debt for Fiscal 2013. The loss resulted from a proportional reduction, and subsequent write-off, of the balances of the original issue discount and deferred financing costs, and has been disclosed as a component of the Loss on extinguishment of debt on the face of the accompanying consolidated statements of operations. | |||||||||
Charming Shoppes Convertible Notes | |||||||||
In connection with the Charming Shoppes Acquisition, the Company assumed $140.5 million aggregate principal amount of Charming Shoppes’s 1.125% Senior Convertible Notes due May 2014 (the “Charming Convertible Notes”). In Fiscal 2012, substantially all of the Charming Convertible Notes were redeemed for $139.6 million, consisting of $139.2 million of principal and $0.4 million of interest thereon. In Fiscal 2013 and Fiscal 2014, the entire remaining Charming Convertible Notes were redeemed in full. No gain or loss was recognized in connection with the redemptions of the Charming Convertible Notes which were funded through available cash on hand. | |||||||||
Mortgage Notes | |||||||||
In connection with the Charming Shoppes Acquisition in the fourth quarter of Fiscal 2012, the Company assumed a $7.8 million mortgage obligation (the “Greencastle Mortgage”) on an owned distribution center in Greencastle, Indiana. During the second quarter of Fiscal 2013, the Company prepaid the outstanding principal balance of the Greencastle Mortgage in full. The payment of $8.4 million resulted in a $0.8 million pretax loss on extinguishment of debt, relating to a make-whole premium to holders of the mortgage note, which has been disclosed as a component of the Loss on extinguishment of debt on the face of the accompanying consolidated statements of operations. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Taxes on Income | |||||||||||||
Domestic and foreign pretax income from continuing operations are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Domestic | $ | 144.7 | $ | 189.8 | $ | 237.9 | |||||||
Foreign | 58.8 | 52.8 | 41.1 | ||||||||||
Total income from continuing operations before provision for income taxes | $ | 203.5 | $ | 242.6 | $ | 279 | |||||||
Provisions (benefits) from continuing operations for current and deferred income taxes are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | (millions) | ||||||||||||
Federal (a) | $ | 15.2 | $ | 30.6 | $ | 66.6 | |||||||
State and local (a) | 13.5 | 5.7 | 16.4 | ||||||||||
Foreign | 12.3 | 10.6 | 7.9 | ||||||||||
41 | 46.9 | 90.9 | |||||||||||
Deferred: | |||||||||||||
Federal | 24.9 | 38.6 | 20.6 | ||||||||||
State and local | (0.2 | ) | 1.4 | (4.4 | ) | ||||||||
Foreign | (0.4 | ) | 0.5 | 0.1 | |||||||||
24.3 | 40.5 | 16.3 | |||||||||||
Total provision for income taxes from continuing operations | $ | 65.3 | $ | 87.4 | $ | 107.2 | |||||||
(a) | Excludes federal, state and local tax benefits of approximately $4.2 million in Fiscal 2014, $14.1 million in Fiscal 2013 and $7.3 million in Fiscal 2012 resulting from stock-based compensation arrangements. Such amounts were recorded within equity. | ||||||||||||
Tax Rate Reconciliation | |||||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided for continuing operations are as set forth below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Provision for income taxes from continuing operations at the U.S. federal statutory rate | $ | 71.2 | $ | 84.9 | $ | 97.7 | |||||||
Increase (decrease) due to: | |||||||||||||
State and local income taxes, net of federal benefit | 8.8 | 8.4 | 9 | ||||||||||
Net change relating to uncertain income tax benefits | (2.3 | ) | (6.4 | ) | (5.5 | ) | |||||||
Increase in indefinite reinvestment assertion for foreign earnings | (11.6 | ) | (0.9 | ) | (1.7 | ) | |||||||
Other – net | (0.8 | ) | 1.4 | 7.7 | |||||||||
Total provision for income taxes from continuing operations | $ | 65.3 | $ | 87.4 | $ | 107.2 | |||||||
The Company's effective tax rate is lower than the statutory rate principally as a result of an increase in the benefit resulting from a change in the Company's indefinite reinvestment assertion for foreign earnings in Fiscal 2014 as explained in more detail below, offset in part by state income tax costs attributable to the Company’s domestic retail and procurement businesses. | |||||||||||||
Deferred Taxes | |||||||||||||
Significant components of the Company's net deferred tax assets (liabilities) are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | (millions) | ||||||||||||
Inventory capitalization and inventory-related items | $ | 14.3 | $ | 13.4 | |||||||||
Tax credit and net operating loss carryforwards | 14.2 | 34.5 | |||||||||||
Accrued payroll & benefits | 59.9 | 59 | |||||||||||
Share-based compensation | 23.1 | 24.4 | |||||||||||
Straight-line rent | 50 | 56.4 | |||||||||||
Federal benefit of uncertain tax positions | 15.5 | 13.4 | |||||||||||
Other items | 18.8 | 26.9 | |||||||||||
Total deferred tax assets | 195.8 | 228 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 85.8 | 88.7 | |||||||||||
Amortization | 171.7 | 162.5 | |||||||||||
Foreign unremitted earnings | 20.7 | 23.9 | |||||||||||
Other items | 15.8 | 28.8 | |||||||||||
Total deferred tax liabilities | 294 | 303.9 | |||||||||||
Valuation allowance | (2.8 | ) | (2.8 | ) | |||||||||
Net deferred tax liabilities | $ | (101.0 | ) | $ | (78.7 | ) | |||||||
The Company provides U.S. income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside the U.S. In 2014, the Company changed its assertion regarding $45.8 million of current earnings and used those earnings to fund the Canadian expansion and Hong Kong building purchase reversing $11.6 million of U.S. deferred taxes previously provided, bringing the total of indefinitely reinvested earnings outside the U.S. to $66.3 million. Future capital requirements of the Company’s international business operations might cause management to continue to change its assertion in regard to some portion of the foreign earnings on which U.S. taxes have been provided, resulting in a reversal of additional federal deferred tax liabilities. | |||||||||||||
Effective with the closing of the Charming Shoppes Acquisition, Charming Shoppes’s federal consolidated group ceased to exist and the companies acquired as a result of the transaction joined the Company’s federal consolidated group. As part of the acquisition, the Company acquired the pre-existing federal and state net operating loss carryforwards, tax credits and charitable contribution carryovers of Charming Shoppes valued at $69.3 million. The Company utilized $22.2 million of these acquired net operating loss carryforwards, tax credits and unexpired charitable contributions carryovers in Fiscal 2014 and expects to utilize the remaining amounts in future periods, subject to annual section 382 and other statutory limitations. As of July 26, 2014, these are valued at $14.7 million. | |||||||||||||
At the end of Fiscal 2014, the Company had a $2.8 million valuation allowance against the aggregate carrying value of its deferred tax assets. Such valuation allowances provide for the uncertainty that a portion of the recognized deferred tax assets may not be realizable. There was no net change in the total valuation allowance in Fiscal 2014. | |||||||||||||
Net Operating Loss Carry Forwards | |||||||||||||
As of July 26, 2014, the Company has U.S. Federal net operating loss carryforwards of $14.7 million and state net operating loss carryforwards of $57.1 million that are available to offset future U.S. Federal and state taxable income. The majority of the U.S. Federal net operating losses have a twenty-year carryforward period, and expire between Fiscal 2028 and Fiscal 2031. The state net operating losses have carryforward periods of five to twenty years, with varying expiration dates and amounts as follows: $12.6 million in one to five years, $16.3 million in six to ten years, $19.3 million in eleven to fifteen years and $8.9 million in sixteen to twenty years. | |||||||||||||
Uncertain Income Tax Benefits | |||||||||||||
Reconciliation of Liabilities | |||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for each fiscal year is presented below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Unrecognized tax benefit beginning balance | $ | 31.2 | $ | 40.5 | $ | 17.4 | |||||||
Additions related to acquisitions | — | 2.8 | 35.7 | ||||||||||
Additions related to current period tax positions | 1.5 | 1.5 | 0.7 | ||||||||||
Additions related to tax positions in prior years | 4.3 | 2.2 | 0.7 | ||||||||||
Reductions related to prior period tax positions | — | (3.0 | ) | (7.0 | ) | ||||||||
Reductions related to settlements with taxing authorities | (1.5 | ) | (5.7 | ) | (2.1 | ) | |||||||
Reductions related to expiration of statute of limitations | (5.6 | ) | (7.1 | ) | (4.9 | ) | |||||||
Unrecognized tax benefit ending balance | $ | 29.9 | $ | 31.2 | $ | 40.5 | |||||||
The Company classifies interest and penalties related to unrecognized tax benefits as part of its provision for income taxes. A reconciliation of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for each fiscal year is presented below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Accrued interest and penalties beginning balance | $ | 16.5 | $ | 21.2 | $ | 5.1 | |||||||
Additions related to acquisitions | — | — | 18.7 | ||||||||||
Reductions charged to expense | (2.7 | ) | (4.7 | ) | (2.6 | ) | |||||||
Accrued interest and penalties ending balance | $ | 13.8 | $ | 16.5 | $ | 21.2 | |||||||
The Company’s liability for unrecognized tax benefits (including accrued interest and penalties), which is primarily included in Other non-current liabilities in the accompanying consolidated balance sheets, was $40.9 million as of July 26, 2014 and $44.9 million as of July 27, 2013. | |||||||||||||
Future Changes in Unrecognized Tax Benefits | |||||||||||||
The amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, the Company anticipates that the balance of the liability for unrecognized tax benefits will decrease by approximately $5.5 million during the next twelve months. However, changes in the occurrence, expected outcomes and timing of those events could cause the Company’s current estimate to change materially in the future. The Company’s portion of gross unrecognized tax benefits that would affect its effective tax rate, including interest and penalties, is $29.2 million. | |||||||||||||
The Company files tax returns in the U.S. federal and various state, local and foreign jurisdictions. With few exceptions, the Company is no longer subject to examinations by the relevant tax authorities for years prior to Fiscal 2006. | |||||||||||||
Tax Incentives | |||||||||||||
In connection with the Company’s relocation of its dressbarn and corporate offices to New Jersey, as well as the expansion of its distribution centers in Ohio and Indiana, that are more fully discussed in Note 9, the Company was approved for various state and local tax incentives. In order to receive these incentives, the Company will generally need to meet certain minimum employment or expenditure commitments, as well as comply with periodic reporting requirements. These incentives, estimated to total approximately $60 million, are expected to be recognized over a 10-15 year period commencing in Fiscal 2015. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 26, 2014 | |
Employee Benefits and Share-based Compensation [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
Retirement Savings Plan (401(k)) | |
The Company currently sponsors a defined contribution retirement savings plan (401(k)). This plan covers substantially all eligible U.S. employees. Participating employees may contribute a percentage of their annual compensation, subject to certain limitations under the Internal Revenue Code. The Company contributes a matching amount equal to 50% of the first 5% of salary contributed by an employee. Under the terms of the plan, an employee is 100% vested in Company's matching contributions after three years of accredited service. The Company incurred expenses of approximately $5.2 million in Fiscal 2014, $4.7 million in Fiscal 2013 and $3.1 million in Fiscal 2012, relating to its contributions to and administration of its 401(k) plans. | |
Executive Retirement Plan | |
The Company sponsors an Executive Retirement Plan (the “ERP Plan”) for certain officers and key executives. The ERP Plan is a non-qualified deferred compensation plan. The purpose of the ERP Plan is to attract and retain a select group of management or highly compensated employees and to provide them with an opportunity to defer compensation on a pretax basis above Internal Revenue Service limitations. ERP Plan balances cannot be rolled over to another qualified plan or IRA upon distribution. Unlike a qualified plan, the Company is not required to pre-fund the benefits payable under the ERP Plan. | |
ERP Plan participants can contribute up to 95% of base salary and bonus, before federal and state taxes are calculated. The Company makes a matching contribution to the ERP Plan in the amount of 100% on the first 5% of base salary and bonus deferred. Employees vest immediately in their voluntary deferrals and are incrementally vested in their employer matching contributions over a five year vesting period after which they are 100% vested. The Company made matching contributions of approximately $3.4 million in Fiscal 2014, $2.7 million in Fiscal 2013 and $2.2 million in Fiscal 2012 relating to the ERP Plan. In addition, as the ERP Plan is unfunded by the Company, the Company is also required to pay an investment return to participating employees on all account balances in the ERP Plan based on 28 reference investment fund elections offered to participating employees. As a result, the Company’s obligations under the ERP Plan are subject to market appreciation and depreciation, which resulted in expense of $7.2 million in Fiscal 2014, $7.7 million in Fiscal 2013 and $1.4 million in Fiscal 2012. The Company’s obligations under the ERP Plan, including employee compensation deferrals, matching employer contributions and investment returns on account balances, were $65.9 million as of July 26, 2014 and $62.4 million as of July 27, 2013. As of July 26, 2014, $3.6 million was classified within Accrued expenses and other current liabilities and $62.3 million was classified within Other non-current liabilities in the accompanying consolidated balance sheets. As of July 27, 2013, $11.8 million was classified within Accrued expenses and other current liabilities and $50.6 million was classified within Other non-current liabilities in the accompanying consolidated balance sheets. | |
Employee Stock Purchase Plan | |
The Company also sponsors an Employee Stock Purchase Plan, which allows employees to purchase shares of the Company’s common stock during each quarterly offering period at a 10% discount through bi-weekly payroll deductions. Expenses incurred during Fiscal 2014, Fiscal 2013 and Fiscal 2012 relating to this plan were de minimis. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
Commitments and Contingencies | |||||||||||||
Lease Commitments | |||||||||||||
The Company leases all of its retail stores. Certain leases provide for additional rents based on percentages of net sales, charges for real estate taxes, insurance and other occupancy costs. Store leases generally have an initial term of approximately ten years with one or more five-year options to extend the lease. Some of these leases have provisions for rent escalations during the initial term. | |||||||||||||
The Company’s operating lease obligations represent future minimum lease payments under non-cancelable operating leases as of July 26, 2014. The minimum lease payments do not include common area maintenance ("CAM") charges or real estate taxes, which are also required contractual obligations under the operating leases. In the majority of the Company’s operating leases, CAM charges are not fixed and can fluctuate from year to year. | |||||||||||||
A summary of occupancy costs follows: | Fiscal Years Ended | ||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Base rentals | $ | 395.5 | $ | 391.6 | $ | 269 | |||||||
Percentage rentals | 23.2 | 21 | 14.1 | ||||||||||
Other occupancy costs, primarily CAM and real estate taxes | 133.5 | 128.6 | 88.3 | ||||||||||
552.2 | 541.2 | 371.4 | |||||||||||
Less: Rental income from third parties | — | — | (1.1 | ) | |||||||||
Total | $ | 552.2 | $ | 541.2 | $ | 370.3 | |||||||
The following is a schedule of future minimum rentals under non-cancelable operating leases as of July 26, 2014: | |||||||||||||
Fiscal Years | Minimum Operating | ||||||||||||
Lease Payments (a) (b) | |||||||||||||
(millions) | |||||||||||||
2015 | $ | 399.1 | |||||||||||
2016 | 352.6 | ||||||||||||
2017 | 295.6 | ||||||||||||
2018 | 232.1 | ||||||||||||
2019 | 171.5 | ||||||||||||
Subsequent years | 470.3 | ||||||||||||
Total future minimum rentals | $ | 1,921.20 | |||||||||||
(a) Net of sublease income, which is not significant in any period. | |||||||||||||
(b) Although such amounts are generally non-cancelable, certain leases are cancelable if specified sales levels are not achieved. All future minimum rentals under such leases have been included in the above table. | |||||||||||||
Leases with Related Parties | |||||||||||||
The Company leases two stores from its Chairman or related trusts. Future minimum rentals under such related-party leases are approximately $0.4 million for Fiscal 2015 and $0.5 million in the aggregate, which has been included in the above table. The leases also contain provisions for cost escalations and additional rent based on net sales in excess of stipulated amounts. Rent expense under these leases amounted to approximately $0.4 million in Fiscal 2014, Fiscal 2013 and Fiscal 2012. | |||||||||||||
Employment Agreements | |||||||||||||
The Company has employment agreements with certain executives in the normal course of business which provide for compensation and certain other benefits. These agreements also provide for severance payments under certain circumstances. | |||||||||||||
Other Commitments | |||||||||||||
The Company enters into various cancelable and non-cancelable commitments during the year. Typically, those commitments are for less than a year in duration and are principally focused on the construction of new retail stores and the procurement of inventory. The Company normally does not maintain any long-term or exclusive commitments or arrangements to purchase merchandise from any single supplier. Preliminary commitments with the Company’s private-label merchandise vendors typically are made five to seven months in advance of planned receipt date. Certain of these merchandise purchase commitments are cancelable up to 30 days prior to the vendor’s scheduled shipment date. | |||||||||||||
Other off-balance sheet firm commitments, which primarily include $783.2 million of inventory purchase commitments and $18.0 million of outstanding letters of credit, amounted to approximately $813.9 million as of July 26, 2014. | |||||||||||||
Legal Matters | |||||||||||||
The Company is, from time to time, involved in routine litigation incidental to the conduct of our business, including litigation instituted by persons injured upon premises under our control, litigation regarding the merchandise that we sell, including product and safety concerns, litigation with respect to various employment matters, including wage and hour litigation; litigation with present or former employees; and litigation regarding intellectual property rights. Although such litigation is routine and incidental to the conduct of our business, like any business of our size which has a significant number of employees and sells a significant amount of merchandise, such litigation can result in large monetary awards. The consequences of these matters cannot be finally determined by management at this time. However, in the opinion of management, we believe that current pending litigation will not have a material adverse effect on our consolidated financial statements. |
Equity
Equity | 12 Months Ended |
Jul. 26, 2014 | |
Equity [Abstract] | ' |
Equity | ' |
Equity | |
Capital Stock | |
The Company’s capital stock consists of one class of common stock and one class of preferred stock. There are 360 million shares of common stock authorized to be issued and 100,000 shares of preferred stock authorized to be issued. There are no shares of preferred stock issued or outstanding. | |
Common Stock Repurchase Program | |
In Fiscal 2010, the Company’s Board of Directors authorized a $100 million share repurchase program (the “2010 Stock Repurchase Program”). The program was then expanded in Fiscal 2011 to cover an additional $100 million of authorized purchases. Under the 2010 Stock Repurchase Program, purchases of shares of common stock may be made at the Company’s discretion from time to time, subject to overall business and market conditions. | |
Cumulative repurchases under the 2010 Stock Repurchase Plan total $110.1 million and include 2.7 million shares of common stock that were repurchased in Fiscal 2012 at an aggregate cost of $37.1 million. No shares of common stock were repurchased in Fiscal 2014 or Fiscal 2013. Repurchased shares normally are retired and treated as authorized but unissued shares. | |
The remaining availability under the 2010 Stock Repurchase Program was approximately $89.9 million at July 26, 2014. | |
Dividends | |
The Company has never declared or paid cash dividends on its common stock. However, payment of dividends is within the discretion of, and are payable when declared by, the Company’s Board of Directors. Additionally, payments of dividends are limited by the Company’s Revolving Credit Agreement as described in Note 14, “Restrictions under the Revolving Credit Agreement.” |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Jul. 26, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
Long-term Stock Incentive Plan | |||||||||||||||||||||
The Company is authorized to issue up to 51 million shares of stock-based awards to eligible employees and directors of the Company under its 2010 Stock Incentive Plan, as amended (the “2010 Stock Plan”). The 2010 Stock Plan provides for the granting of either Incentive Stock Options or non-qualified options to purchase shares of common stock, as well as the award of shares of restricted stock and other stock-based awards (including restricted stock units). The 2010 Stock Plan expires on September 19, 2022. | |||||||||||||||||||||
As of July 26, 2014, there were approximately 10.9 million shares under the 2010 Stock Plan available for future grants. The Company issues new shares of common stock when stock option awards are exercised. | |||||||||||||||||||||
Impact on Results | |||||||||||||||||||||
A summary of the total compensation expense and associated income tax benefit recognized related to stock-based compensation arrangements is as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(millions) | |||||||||||||||||||||
Compensation expense | $ | 30.6 | $ | 29.5 | $ | 28.4 | |||||||||||||||
Income tax benefit | $ | (11.5 | ) | $ | (11.0 | ) | $ | (10.7 | ) | ||||||||||||
Stock Options | |||||||||||||||||||||
Stock option awards outstanding under the Company’s current plans have been granted at exercise prices that are equal to or exceed the market value of its common stock on the date of grant. Such options generally vest over a period of four or five years and expire at either seven or ten years after the grant date. The Company recognizes compensation expense ratably over the vesting period, net of estimated forfeitures. The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options granted, which requires the input of both subjective and objective assumptions as follows: | |||||||||||||||||||||
Expected Term — The estimate of expected term is based on the historical exercise behavior of grantees, as well as the contractual life of the option grants. | |||||||||||||||||||||
Expected Volatility — The expected volatility factor is based on the historical volatility of the Company's common stock for a period equal to the expected term of the stock option. | |||||||||||||||||||||
Expected Dividend Yield — The expected dividend yield is based on the Company's historical practice of not paying dividends on its common stock. | |||||||||||||||||||||
Risk-free Interest Rate — The risk-free interest rate is determined using the implied yield for a traded zero-coupon U.S. Treasury bond with a term equal to the expected term of the stock option. | |||||||||||||||||||||
The Company’s weighted-average assumptions used to estimate the fair value of stock options granted during the fiscal years presented were as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term (years) | 3.9 | 3.9 | 3.9 | ||||||||||||||||||
Expected volatility | 40 | % | 41.6 | % | 41.7 | % | |||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 0.9 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Weighted-average grant date fair value | $ | 7.11 | $ | 7.29 | $ | 4.77 | |||||||||||||||
A summary of the stock option activity under all plans during Fiscal 2014 is as follows: | |||||||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Shares | Average | Average Remaining Contractual | Intrinsic | ||||||||||||||||||
Exercise Price | Terms | Value (a) | |||||||||||||||||||
(thousands) | (years) | (millions) | |||||||||||||||||||
Options outstanding – July 27, 2013 | 12,159.60 | $ | 12.24 | 6.4 | $ | 81.8 | |||||||||||||||
Granted | 2,812.20 | 19.87 | |||||||||||||||||||
Exercised | (1,745.1 | ) | 9.96 | ||||||||||||||||||
Canceled/Forfeited | (512.3 | ) | 17.32 | ||||||||||||||||||
Options outstanding – July 26, 2014 | 12,714.40 | $ | 14.04 | 5.6 | $ | 45.7 | |||||||||||||||
Options vested and expected to vest at July 26, 2014 (b) | 12,371.30 | $ | 14.42 | 5.7 | $ | 45.6 | |||||||||||||||
Options exercisable at July 26, 2014 | 6,741.20 | $ | 10.57 | 4.6 | $ | 39.9 | |||||||||||||||
______ | |||||||||||||||||||||
(a) | The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. | ||||||||||||||||||||
(b) | The number of options expected to vest takes into consideration estimated expected forfeitures. | ||||||||||||||||||||
As of July 26, 2014, there was $26.9 million of total unrecognized compensation cost related to non-vested options, which is expected to be recognized over a remaining weighted-average vesting period of 2.6 years. The total intrinsic value of options exercised during Fiscal 2014, Fiscal 2013 and Fiscal 2012 was approximately $17.1 million, $44.5 million and $25.5 million, respectively. The total fair value of options that vested during Fiscal 2014, Fiscal 2013 and Fiscal 2012, was approximately $14.1 million, $11.8 million, and $10.3 million, respectively. | |||||||||||||||||||||
Restricted Equity Awards | |||||||||||||||||||||
The 2010 Stock Plan also allows for the issuance of shares of restricted stock and restricted stock units (“RSUs”). Any shares of restricted stock or RSUs are counted against the shares available for future grant limit as 2.3 shares for every one restricted share or RSU granted. In general, if options are canceled for any reason or expire, the shares covered by such options again become available for grant. If a share of restricted stock or a RSU is forfeited for any reason, 2.3 shares become available for grant. | |||||||||||||||||||||
Shares of restricted stock and RSUs are issued with either service-based or performance-based conditions, and some even have market-based conditions (collectively, “Restricted Equity Awards”). Service-based Restricted Equity Awards entitle the holder to receive unrestricted shares of common stock of the Company at the end of a vesting period, subject to the grantee’s continuing employment. Service-based Restricted Equity Awards generally vest over a four year period of time. | |||||||||||||||||||||
Performance-based or market-based Restricted Equity Awards also entitle the holder to receive shares of common stock of the Company at the end of a vesting period. However, such awards are subject to (a) the grantee’s continuing employment, (b) the Company’s achievement of certain performance goals over a pre-defined performance period and (c) in the case of market-based conditions, the Company’s achievement of certain market-based goals over the pre-defined performance period. Both performance-based and market-based Restricted Equity Awards generally vest at the completion of the performance period. | |||||||||||||||||||||
The fair values of both service-based and performance-based Restricted Equity Awards are based on the fair value of the Company’s unrestricted common stock at the date of grant. However, for market-based Restricted Equity Awards, the effect of the market conditions is reflected in the fair value of the awards on the date of grant using a Monte-Carlo simulation model. A Monte-Carlo simulation model estimates the fair value of the market-based award based on the expected term, risk-free interest rate, expected dividend yield and expected volatility measure for the Company and its peer group. | |||||||||||||||||||||
Compensation expense for both service-based and performance-based Restricted Equity Awards is recognized over the vesting period based on the grant-date fair values of the awards that are expected to vest based upon the service and performance-based conditions. However, compensation expense for market-based Restricted Equity Awards is recognized over the vesting period regardless of whether the market conditions are expected to be achieved. | |||||||||||||||||||||
A summary of Restricted Equity Awards activity during Fiscal 2014 is as follows: | |||||||||||||||||||||
Service-based | Performance-based | Market-based | |||||||||||||||||||
Restricted Equity Awards | Restricted Equity Awards | Restricted Equity Awards | |||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | Number of | Weighted- | ||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value Per | Fair Value Per | Fair Value Per | |||||||||||||||||||
Share | Share | Share | |||||||||||||||||||
(thousands) | (thousands) | (thousands) | |||||||||||||||||||
Nonvested at July 27, 2013 | 1,863.20 | $ | 17.77 | 640.1 | $ | 15.08 | 189.7 | $ | 14.35 | ||||||||||||
Granted | 436.5 | 19.23 | 185.1 | 20.06 | 41.3 | 19.46 | |||||||||||||||
Vested | (984.3 | ) | 18.5 | (163.1 | ) | 12.21 | (54.4 | ) | 10.68 | ||||||||||||
Canceled/Forfeited | (67.7 | ) | 18.59 | — | — | — | — | ||||||||||||||
Nonvested at July 26, 2014 | 1,247.70 | $ | 17.66 | 662.1 | $ | 17.18 | 176.6 | $ | 16.68 | ||||||||||||
Service-based | Performance-based | Market-based | |||||||||||||||||||
Restricted Equity Awards | Restricted Equity Awards | Restricted Equity Awards | |||||||||||||||||||
Total unrecognized compensation at July 26, 2014 (millions) | $ | 11.2 | $ | 3.6 | $ | 1.1 | |||||||||||||||
Weighted-average years expected to be recognized over (years) | 3.2 | 1.7 | 1.5 | ||||||||||||||||||
Additional information pertaining to Restricted Equity Awards activity is as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 19.23 | $ | 20.22 | $ | 15.1 | |||||||||||||||
Total fair value of awards vested (millions) | 12.9 | 10 | 5 | ||||||||||||||||||
Performance-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 20.06 | $ | 18.61 | $ | 12.74 | |||||||||||||||
Total fair value of awards vested (millions) | 2.6 | — | — | ||||||||||||||||||
Market-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 19.46 | $ | 18.13 | $ | 12.33 | |||||||||||||||
Total fair value of awards vested (millions) | 0.6 | — | — | ||||||||||||||||||
Cash-Settled Long-Term Incentive Plan Awards | |||||||||||||||||||||
In October 2012, the Compensation Committee of the Board of Directors approved certain modifications to a portion of the Company’s outstanding, performance-based stock-settled awards. In particular, an aggregate of approximately 0.6 million performance and market-based, stock-settled awards held by 44 employees were canceled in exchange for grants of a corresponding amount of new awards that will be settled in cash (collectively, the “Cash-Settled LTIP Awards”). Other than the terms of settlement, the Cash-Settled LTIP Awards have identical restrictions and rights as the prior awards (as discussed further below). As a result of those modifications, the Company recognized a $1.7 million, one-time charge during the first quarter of Fiscal 2013. | |||||||||||||||||||||
The Cash-Settled LTIP Awards entitle the holder to a cash payment equal to the value of the number of shares of the Company’s common stock earned at the end of a three-year performance period and are subject to (a) the grantee’s continuing employment and (b) the Company’s achievement of certain performance goals over that three year performance period. Compensation expense for the Cash-Settled LTIP Awards is recognized over the related vesting periods based on the expected performance of the plan and changes in the Company's stock price over time. | |||||||||||||||||||||
A summary of Cash-Settled Long-Term Incentive Plan Awards activity during Fiscal 2014 is as follows: | |||||||||||||||||||||
Cash-Settled Long-Term Incentive Plan Awards | |||||||||||||||||||||
Number of Shares | |||||||||||||||||||||
(thousands) | |||||||||||||||||||||
Nonvested at July 27, 2013 | 855.4 | ||||||||||||||||||||
Granted | 401.3 | ||||||||||||||||||||
Vested | (287.5 | ) | |||||||||||||||||||
Canceled/Forfeited | (111.2 | ) | |||||||||||||||||||
Nonvested at July 26, 2014 | 858 | ||||||||||||||||||||
As of July 26, 2014, there was $6.2 million of total unrecognized compensation cost related to Cash-Settled LTIP Awards, which is expected to be recognized over a remaining weighted-average vesting period of 1.9 years. As of July 26, 2014, the liability for cash-settled LTIP awards was $5.3 million, of which $1.8 million was classified within Accrued expenses and other current liabilities and $3.5 million was classified within Other non-current liabilities in the accompanying consolidated balance sheets. As of July 27, 2013, the liability for cash-settled LTIP awards was $8.1 million, of which $4.7 million was classified within Accrued expenses and other current liabilities and $3.4 million was classified within Other non-current liabilities in the accompanying consolidated balance sheets. In addition, the Company paid $6.2 million to settle such liabilities during Fiscal 2014. |
Segments
Segments | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ||||||||||||
Segments | ' | ||||||||||||
Segments | |||||||||||||
The Company’s segment reporting structure reflects a brand-focused approach, designed to optimize the operational coordination and resource allocation of its businesses across multiple functional areas including specialty retail, ecommerce and licensing. The five reportable segments described below represent the Company’s brand-based activities for which separate financial information is available and utilized on a regular basis by the Company’s executive team to evaluate performance and allocate resources. In identifying reportable segments and disclosure of product offerings, the Company considers economic characteristics, as well as products, customers, sales growth potential and long-term profitability. As such, the Company reports its operations in five reportable segments as follows: | |||||||||||||
• | Justice segment – consists of the specialty retail, outlet, ecommerce and licensing operations of the Justice brand, as well as the specialty retail and ecommerce operations of the Brothers brand. | ||||||||||||
• | Lane Bryant segment – consists of the specialty retail, outlet and ecommerce operations of the Lane Bryant and Cacique brands. | ||||||||||||
• | maurices segment – consists of the specialty retail, outlet and ecommerce operations of the maurices brand. | ||||||||||||
• | dressbarn segment – consists of the specialty retail, outlet and ecommerce operations of the dressbarn brand. | ||||||||||||
• | Catherines segment - consists of the specialty retail and ecommerce operations of the Catherines brand. | ||||||||||||
The accounting policies of the Company’s reporting segments are consistent with those described in Notes 2 and 3. All intercompany revenues are eliminated in consolidation. Corporate overhead expenses are allocated to the segments based upon specific usage or other reasonable allocation methods. | |||||||||||||
Net sales and operating income (loss) for each segment are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales: | (millions) | ||||||||||||
Justice | $ | 1,384.30 | $ | 1,407.40 | $ | 1,306.70 | |||||||
Lane Bryant (a) | 1,080.00 | 1,050.10 | 119.7 | ||||||||||
maurices | 971.4 | 917.6 | 852.9 | ||||||||||
dressbarn | 1,022.50 | 1,020.70 | 1,037.60 | ||||||||||
Catherines (a) | 332.4 | 319.1 | 36.4 | ||||||||||
Total net sales | $ | 4,790.60 | $ | 4,714.90 | $ | 3,353.30 | |||||||
Operating income (loss): | |||||||||||||
Justice | $ | 99.3 | $ | 182.3 | $ | 172.5 | |||||||
Lane Bryant (a) | (4.3 | ) | (30.1 | ) | (10.1 | ) | |||||||
maurices | 86 | 107 | 102.7 | ||||||||||
dressbarn | 39.4 | 30.3 | 56.9 | ||||||||||
Catherines (a) | 24.4 | 10.4 | (4.0 | ) | |||||||||
Unallocated acquisition-related, integration and restructuring costs | (34.0 | ) | (34.6 | ) | (25.4 | ) | |||||||
Total operating income | $ | 210.8 | $ | 265.3 | $ | 292.6 | |||||||
(a) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. | |||||||||||||
Depreciation and amortization expense and capital expenditures for each segment are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense: | (millions) | ||||||||||||
Justice | $ | 60.7 | $ | 56.3 | $ | 42.8 | |||||||
Lane Bryant (a) | 45.6 | 43.7 | 5.2 | ||||||||||
maurices | 39.5 | 31.5 | 26.1 | ||||||||||
dressbarn | 40.5 | 38.5 | 32.5 | ||||||||||
Catherines (a) | 7.3 | 6 | 0.8 | ||||||||||
Total depreciation and amortization expense | $ | 193.6 | $ | 176 | $ | 107.4 | |||||||
Capital expenditures (b): | |||||||||||||
Justice | $ | 93.5 | $ | 65.9 | $ | 58.9 | |||||||
Lane Bryant (a) | 53.5 | 49.1 | 3.9 | ||||||||||
maurices | 54 | 45.1 | 42.4 | ||||||||||
dressbarn | 93.5 | 50.3 | 45 | ||||||||||
Catherines (a) | 7.3 | 2.7 | 0.2 | ||||||||||
Corporate (c) | 175.7 | 77.8 | — | ||||||||||
Total capital expenditures | $ | 477.5 | $ | 290.9 | $ | 150.4 | |||||||
(a) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. | |||||||||||||
(b) Excludes non-cash capital expenditures of $64.4 million in Fiscal 2014, $58.9 million in Fiscal 2013 and $13.4 million in Fiscal 2012. | |||||||||||||
(c) Includes capital expenditures for store-related capital improvements, investments in our technological and supply chain infrastructure and investments in corporate office space to support our growing operations. | |||||||||||||
Total assets for each segment consist of the following: | |||||||||||||
July 26, | July 27, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets: | (millions) | ||||||||||||
Justice | $ | 858.3 | $ | 745.3 | |||||||||
Lane Bryant | 866.4 | 842.5 | |||||||||||
maurices | 535.5 | 512.3 | |||||||||||
dressbarn | 358.2 | 309.6 | |||||||||||
Catherines | 86.6 | 83 | |||||||||||
Corporate (a) | 418.8 | 379 | |||||||||||
Total assets | $ | 3,123.80 | $ | 2,871.70 | |||||||||
_______ | |||||||||||||
(a) Includes assets specifically identified as Corporate assets, principally cash, investments, corporate fixed assets, as discussed above, and other corporate assets. | |||||||||||||
The Company’s operations are largely concentrated in the United States and Canada. Accordingly, net sales and long-lived assets by geographic location are not meaningful at this time. | |||||||||||||
The Company’s revenues by major product categories as a percentage of total net sales are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Apparel | 83 | % | 83 | % | 82 | % | |||||||
Accessories and other | 17 | % | 17 | % | 18 | % | |||||||
Total net sales | 100 | % | 100 | % | 100 | % |
Additional_Financial_Informati
Additional Financial Information | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Additional Financial Information | ' | ||||||||||||
Additional Financial Information | |||||||||||||
Fiscal Years Ended | |||||||||||||
Cash Interest and Taxes: | July 26, | July 27, | July 28, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Cash paid for interest | $ | 4.6 | $ | 15.6 | $ | 1.3 | |||||||
Cash paid for income taxes | $ | 42.1 | $ | 19.7 | $ | 109.4 | |||||||
Non-cash Transactions | |||||||||||||
Significant non-cash investing activities included the capitalization of fixed assets and recognition of related accrued obligations in the net amount of $64.4 million for Fiscal 2014, $58.9 million for Fiscal 2013 and $13.4 million for Fiscal 2012. | |||||||||||||
In addition, significant non-cash investing activities during Fiscal 2012 included the allocation of the fair value of the net assets acquired in connection with the Charming Shoppes Acquisition (See Note 5 for further discussion). Further, significant non-cash financing activities during 2012 included a two-for-one common stock split. | |||||||||||||
There were no other significant non-cash investing or financing activities for Fiscal 2014, Fiscal 2013 or Fiscal 2012. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||
Jul. 26, 2014 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Consolidation | ' | |||||||||
Basis of Consolidation | ||||||||||
The consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”), and present the financial position, results of operations, comprehensive income and cash flows of the Company and all entities in which the Company has a controlling voting interest. The consolidated financial statements also include the accounts of any variable interest entities in which the Company is considered to be the primary beneficiary and such entities are required to be consolidated in accordance with US GAAP. There were no variable interest entities for any of the periods presented herein. | ||||||||||
All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||
Use of Estimates | ' | |||||||||
Use of Estimates | ||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could differ materially from those estimates. | ||||||||||
Significant estimates inherent in the preparation of the consolidated financial statements include: the realizability of inventory; reserves for litigation and other contingencies; useful lives and impairments of long-lived tangible and intangible assets; accounting for income taxes and related uncertain tax positions; the valuation of stock-based compensation and related expected forfeiture rates; insurance reserves; and accounting for business combinations. | ||||||||||
Fiscal Year | ' | |||||||||
Fiscal Year | ||||||||||
The company utilizes a 52-53 week fiscal year ending on the last Saturday in July. As such, fiscal year 2014 ended on July 26, 2014 and reflected a 52-week period (“Fiscal 2014"); fiscal year 2013 ended on July 27, 2013 and reflected a 52-week period (“Fiscal 2013"); fiscal year 2012 ended on July 28, 2012 and reflected a 52-week period (“Fiscal 2012”). | ||||||||||
Prior to Fiscal 2014, the financial position and results of operations of the sourcing operations of Charming Shoppes located in Hong Kong (“Charming Sourcing”) were reported in these consolidated financial statements on a one-month lag. Accordingly, the Company’s operating results for Fiscal 2013 include the operating results of Charming Sourcing from July 1, 2012 through June 30, 2013. The Company’s operating results for Fiscal 2012 include the operating results of Charming Sourcing for only a two-week, post-acquisition period ended June 30, 2012. | ||||||||||
Discontinued Operations | ' | |||||||||
Discontinued Operations | ||||||||||
In connection with the June 2012 Charming Shoppes Acquisition, certain acquired businesses have been classified as a component of discontinued operations within the consolidated financial statements. | ||||||||||
In particular, the Company announced, contemporaneously with the closing of the Charming Shoppes Acquisition, its intent to cease operating the acquired Fashion Bug business. The Fashion Bug business, consisting of approximately 600 retail stores, ceased operations in February 2013. The liquidation of the related net assets concluded during the fourth quarter of Fiscal 2013 and resulted in an immaterial adjustment to goodwill. Also in Fiscal 2013, the Fashion Bug distribution center was sold for net proceeds of approximately $16 million. | ||||||||||
In addition, the Company also announced, contemporaneously with the closing of the Charming Shoppes Acquisition, its intent to sell the acquired Figi’s business. In August 2013, the Company entered into an agreement to sell the principal net assets of the Figi’s business (the “Figi’s Sale”) and recorded an $8.0 million pretax charge during the fourth quarter of Fiscal 2013 to reduce the carrying value of the Figi’s net assets to an amount approximating the net sales proceeds. The Figi’s Sale closed during the first quarter of Fiscal 2014. Additional pretax charges of $4.6 million for Fiscal 2014 reflect transaction costs and the adjustment of certain liabilities which existed at the date it was sold. These charges have been classified as components of discontinued operations in the accompanying consolidated statements of operations. | ||||||||||
The Fashion Bug and Figi’s businesses have been classified as discontinued operations within the accompanying consolidated financial statements. As such, assets and liabilities relating to discontinued operations have been segregated and separately disclosed in the accompanying consolidated balance sheet as of July 27, 2013. Operating results for those businesses, including $7.4 million of revenues for the first quarter of Fiscal 2014 (only consisting of revenues from the Figi’s business), $407.6 million of revenue for Fiscal 2013, and $66.4 million of revenues for the post-acquisition period in Fiscal 2012, have also been segregated and reported separately in the accompanying consolidated statements of operations. | ||||||||||
The major components of assets and liabilities related to discontinued operations are summarized below: | ||||||||||
July 27, | ||||||||||
2013 | ||||||||||
(millions) | ||||||||||
Accounts and other receivables | $ | 6.7 | ||||||||
Inventories | 14.3 | |||||||||
Property and equipment, net | 9.7 | |||||||||
Other intangible assets, net | 5 | |||||||||
Other assets | 3.1 | |||||||||
Total assets related to discontinued operations | $ | 38.8 | ||||||||
Accounts payable and accrued expenses | $ | 20.8 | ||||||||
Lease-related liabilities | 0.7 | |||||||||
Total liabilities related to discontinued operations | $ | 21.5 | ||||||||
Reclassifications | ' | |||||||||
Reclassifications | ||||||||||
Historically, the Company included freight costs to move merchandise from its distribution centers to its retail stores within Buying, distribution and occupancy costs. As these costs were appropriately treated as a component of inventory, such costs should have been expensed to Cost of goods sold as the inventories were sold. In the fourth quarter of Fiscal 2014, the Company restated its prior period information by reclassifying these freight costs of $47.4 million in Fiscal 2013 and $23.3 million in Fiscal 2012 from Buying, distribution and occupancy costs to Cost of goods sold. There were no changes to historical operating income or historical net income for any period as a result of this change. | ||||||||||
In addition, given the significant increase in ecommerce revenues and related shipping costs, the Company concluded that freight costs to bring ecommerce merchandise to its final destination should be classified consistently with brick-and-mortar freight charges. This presentation aligns with how the Company now evaluates the effect of the increased ecommerce business on its results from operations. As a result, in the fourth quarter of Fiscal 2014, the Company changed its financial statement presentation of these shipping costs for all periods presented. Costs of $23.5 million in Fiscal 2013 and $7.8 million in Fiscal 2012, which previously were recorded in Buying, distribution and occupancy costs, are now included in Costs of goods sold. There were no changes to historical operating income or historical net income for any period as a result of this change. | ||||||||||
Certain other immaterial reclassifications have been made to the prior period financial information in order to conform to the current period's presentation. | ||||||||||
Revenue Recognition | ' | |||||||||
Revenue Recognition | ||||||||||
Revenue is recognized across all segments of the business when there is persuasive evidence of an arrangement, delivery has occurred, price has been fixed or is determinable and collectability is reasonably assured. | ||||||||||
Retail store revenue is recognized net of estimated returns at the time of sale to consumers. Ecommerce revenue from sales of products ordered through the Company’s retail internet sites and revenue from direct-mail orders through Justice’s catazine are recognized upon delivery and receipt of the shipment by our customers. Such revenue also is reduced by an estimate of returns. | ||||||||||
Reserves for estimated product returns are recorded based on historical return trends and are adjusted for known events, as applicable. Product returns have historically been immaterial. Reserves for estimated product returns were $7.7 million and $7.8 million as of the end of Fiscal 2014 and Fiscal 2013, respectively. | ||||||||||
Gift cards, gift certificates and merchandise credits (collectively, “gift cards”) issued by the Company are recorded as a deferred income liability until they are redeemed, at which point revenue is recognized. Gift cards do not have expiration dates. The Company recognizes income for unredeemed gift cards when the likelihood of a gift card being redeemed by a customer is remote and the Company determines that it does not have a legal obligation to remit the value of the unredeemed gift card to the relevant jurisdiction as unclaimed or abandoned property. Gift card breakage is included in Net sales in the accompanying consolidated statements of operations, and historically has not been material. | ||||||||||
In addition to retail-store and ecommerce sales, the Justice segment recognizes revenue from licensing arrangements with franchised stores, advertising and other “tween-right” marketing arrangements with partner companies, as well as merchandise shipments to other third-party retailers. Revenue associated with merchandise shipments is recognized at the time title passes and risk of loss is transferred to customers, which generally occurs at the date of shipment. Royalty payments received under license agreements for the use of the Justice trade name and amounts received in connection with advertising and marketing arrangements with partner companies are recognized when earned in accordance with the terms of the underlying agreements. | ||||||||||
The Company accounts for sales and other related taxes on a net basis, thereby excluding such taxes from revenue. | ||||||||||
Cost of Goods Sold | ' | |||||||||
Cost of Goods Sold | ||||||||||
Cost of goods sold (“COGS”) consists of all costs of merchandise (net of purchase discounts and vendor allowances), merchandise acquisition costs (primarily commissions and import fees) and freight to our distribution centers and stores. These costs are determined to be directly or indirectly incurred in bringing an article to its existing condition and location. Additionally, the direct costs associated with shipping goods to customers and changes in reserve levels for inventory realizability and shrinkage are recorded as a component of Cost of goods sold. | ||||||||||
Our cost of goods sold and gross margin may not be comparable to those of other entities. Some entities, like us, exclude costs related to their distribution network, buying function, store occupancy costs and depreciation and amortization expenses from cost of goods sold and include them in other costs and expenses, whereas other entities include these costs in their cost of goods sold. | ||||||||||
Buying, Distribution and Occupancy Costs | ' | |||||||||
Buying, Distribution and Occupancy Costs | ||||||||||
Buying, distribution and occupancy costs consist of store occupancy and utility costs (excluding depreciation), handling costs (as defined below) and all costs associated with the buying and distribution functions. | ||||||||||
Selling, General and Administrative Expenses | ' | |||||||||
Selling, General and Administrative Expenses | ||||||||||
Selling, general and administrative expenses (“SG&A expenses”) consist of compensation and benefit-related costs for sales and store operations personnel, administrative personnel and other employees not associated with the functions described above under Buying, distribution and occupancy costs. SG&A expenses also include advertising and marketing costs, information technology and communication costs, supplies for our stores and administrative facilities, insurance costs, legal costs and costs related to other administrative services. | ||||||||||
Shipping and Handling | ' | |||||||||
Shipping and Handling | ||||||||||
Shipping and handling fees billed to customers are recorded as revenue. The direct costs associated with shipping goods to customers are recorded as a component of Cost of goods sold. Costs associated with preparing the merchandise for shipping, such as picking, packing, warehousing, and order charges ("handling costs") are recorded as a component of Buying, distribution and occupancy costs. | ||||||||||
Marketing and Advertising Costs | ' | |||||||||
Marketing and Advertising Costs | ||||||||||
Marketing and advertising costs are included in SG&A expenses. Marketing and advertising costs are expensed when the advertisement is first exhibited. Marketing and advertising expenses were $160.1 million for Fiscal 2014, $169.1 million for Fiscal 2013 and $81.5 million for Fiscal 2012. Deferred marketing and advertising costs, which principally relate to advertisements that have not yet been exhibited or services that have not yet been received, were not material at the end of either Fiscal 2014 or Fiscal 2013. | ||||||||||
Foreign Currency Translation and Transactions | ' | |||||||||
Foreign Currency Translation and Transactions | ||||||||||
The operating results and financial position of foreign operations are primarily consolidated using the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange on the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. The resulting translation gains or losses are included in the consolidated statements of comprehensive income, and in the consolidated statements of equity, as a component of accumulated other comprehensive income (“AOCI”), and are not material for any period presented. Gains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature also are included within AOCI. | ||||||||||
The Company recognizes gains and losses on transactions that are denominated in a currency other than the respective entity's functional currency. Foreign currency transaction gains and losses also result from intercompany loans made to foreign subsidiaries that are not of a long-term investment nature and include amounts realized on the settlement of certain intercompany loans with foreign subsidiaries. Net losses from foreign currency transactions amounted to $1.6 million in Fiscal 2014. Such amount is recognized in earnings and are included as part of Interest and other (expense) income, net in the accompanying consolidated statements of operations. | ||||||||||
Comprehensive Income (Loss) | ' | |||||||||
Comprehensive Income (Loss) | ||||||||||
Comprehensive income (loss), which is reported separately in the consolidated statements of comprehensive income, consists of net income (loss) and other gains and losses affecting equity that, under US GAAP, are excluded from net income (loss). The components of other comprehensive income for the Company primarily consist of unrealized gains and losses on available-for-sale investments and foreign currency translation adjustments. | ||||||||||
Net Income Per Common Share | ' | |||||||||
Net Income Per Common Share | ||||||||||
Basic net income per common share is computed by dividing the net income applicable to common shares after preferred dividend requirements, if any, by the weighted-average number of common shares outstanding during the period. Diluted net income per common share adjusts basic net income per common share for the effects of outstanding stock options, restricted stock, restricted stock units and any other potentially dilutive financial instruments, only in the periods in which such effect is dilutive under the treasury stock method. | ||||||||||
The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to those shares used in calculating diluted net income per common share as follows: | ||||||||||
Fiscal Years Ended | ||||||||||
July 26, | July 27, | July 28, | ||||||||
2014 | 2013 | 2012 | ||||||||
(millions) | ||||||||||
Basic | 160.6 | 157.3 | 153.5 | |||||||
Dilutive effect of stock options, restricted stock and restricted stock units | 4.5 | 6 | 5.9 | |||||||
Diluted shares | 165.1 | 163.3 | 159.4 | |||||||
Options to purchase shares of common stock at an exercise price greater than the average market price of the common stock during the reporting period are anti-dilutive, and therefore not included in the computation of diluted net income per common share. In addition, the Company has outstanding restricted stock units that are issuable only upon the achievement of certain service and/or performance or market-based goals. Such performance or market-based restricted stock units are included in the computation of diluted shares only to the extent the underlying performance or market conditions (a) are satisfied prior to the end of the reporting period or (b) would be satisfied if the end of the reporting period were the end of the related contingency period and the result would be dilutive under the treasury stock method. As of the end of Fiscal 2014, Fiscal 2013 and Fiscal 2012 there was an aggregate of approximately 5.6 million, 3.0 million and 1.3 million, respectively, of additional shares issuable upon the exercise of anti-dilutive options and/or the contingent vesting of performance-based and market-based restricted stock units that were excluded from the diluted share calculations. | ||||||||||
Stock-Based Compensation | ' | |||||||||
Stock-Based Compensation | ||||||||||
The Company expenses stock-based compensation to employees and non-employee directors based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The Company uses the Black-Scholes valuation method to determine the grant date fair value of its option-based compensation. Shares of restricted stock and restricted stock units are issued with either service-based or performance-based conditions, and some even have market-based conditions (collectively, “Restricted Equity Awards”). Compensation expense for both service-based and performance-based Restricted Equity Awards is recognized over the vesting period based on the grant-date fair values of the awards that are expected to vest based upon the service and performance-based conditions. However, compensation expense for market-based Restricted Equity Awards is recognized over the vesting period regardless of whether the market conditions are expected to be achieved. Compensation expense for Cash-Settled Long-Term Incentive Plan Awards (the “Cash-Settled LTIP Awards”) is recognized over the related vesting period based on the expected performance of the plan and changes in the Company’s stock price over time. | ||||||||||
See Note 19 for further discussion of the Company's stock-based compensation plans. | ||||||||||
Cash and Cash Equivalents | ' | |||||||||
Cash and Cash Equivalents | ||||||||||
Cash and cash equivalents include all highly liquid investments with original maturities of 90 days or less, including investments in debt securities. Investments in debt securities are diversified among high-credit quality securities in accordance with the Company’s risk management policies, and primarily include commercial paper and money market funds. These amounts are stated at cost, which approximates market value. | ||||||||||
The Company also considers receivables from financial institutions related to credit card purchases to be cash equivalents due to the high credit quality and short time frame for settlement of the outstanding amounts. | ||||||||||
Investments | ' | |||||||||
Investments | ||||||||||
Short-term investments consist of investments which the Company expects to convert into cash within one year. Non-current investments consist of those investments which the Company does not expect to convert into cash within one year. | ||||||||||
Available-for-Sale, Held-to-Maturity and Trading Investments | ||||||||||
Investments in companies in which the Company does not have a controlling interest, or is unable to exert significant influence, are accounted for as either held-to-maturity, available-for-sale investments or trading investments. | ||||||||||
The Company classifies its investments in securities at the time of purchase into one of three categories: held-to-maturity, available-for-sale or trading. The Company re-evaluates such classifications on a quarterly basis. Held-to-maturity investments would normally consist of debt securities that the Company has the intent and ability to retain until maturity. These securities are recorded at cost, as adjusted for the amortization of premiums and discounts. Available-for-sale investments have historically consisted primarily of municipal bonds, which are recorded at fair value. Unrealized gains and losses on available-for-sale investments are classified as a component of AOCI in the accompanying consolidated balance sheets, and realized gains or losses are recognized by the specific identification method and are classified as a component of Interest and other (expense) income, net, in the accompanying consolidated statements of operations. Trading securities would normally consist of securities that are acquired by the Company with the intent of selling in the near term. Trading securities are carried at fair value, with changes in unrealized holding gains and losses included in income and classified within Interest and other (expense) income, net, in the accompanying consolidated statements of operations. The Company normally does not hold any trading securities. | ||||||||||
Cash inflows and outflows related to the sales and purchases of investments are classified as investing activities in the Company’s consolidated statements of cash flows. | ||||||||||
Impairment Assessment | ||||||||||
The Company evaluates investments held in unrealized loss positions for other-than-temporary impairment on a quarterly basis. Such evaluation involves a variety of considerations, including assessments of risks and uncertainties associated with general economic conditions and distinct conditions affecting specific issuers. Factors considered by the Company include (i) the length of time and the extent to which the fair value has been below cost, (ii) the financial condition, credit worthiness and near-term prospects of the issuer, (iii) the length of time to maturity, (iv) future economic conditions and market forecasts, (v) the Company's intent and ability to retain its investment for a period of time sufficient to allow for recovery of market value and (vi) an assessment of whether it is more-likely-than-not that the Company will be required to sell its investment before recovery of market value. | ||||||||||
Concentration of Credit Risk | ' | |||||||||
Concentration of Credit Risk | ||||||||||
The Company maintains cash deposits and cash equivalents with well-known and stable financial institutions; however, there were significant amounts of cash and cash equivalents at these financial institutions in excess of federally insured limits at July 26, 2014. While this represents a concentration of credit risk, there have been no losses recorded on deposits of cash and cash equivalents to date. | ||||||||||
Inventories | ' | |||||||||
Inventories | ||||||||||
Inventory is valued using the retail method of accounting and is stated at the lower of cost, on a First In, First Out (“FIFO”) basis, or market. Under the retail inventory method, the valuation of inventory at cost and resulting gross margin are calculated by applying a calculated cost to retail ratio to the retail value of inventory. The retail inventory method is an averaging method that has been widely used in the retail industry due to its practicality. Inherent in the retail method are certain significant management judgments and estimates including, among others, initial merchandise markup, markdowns and shrinkage, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. | ||||||||||
The Company continuously reviews its inventory levels to identify slow-moving merchandise and markdowns necessary to clear slow-moving merchandise, which reduces the cost of inventories to its estimated net realizable value. Consideration is given to a number of quantitative and qualitative factors, including current pricing levels and the anticipated need for subsequent markdowns, aging of inventories, historical sales trends, and the impact of market trends and economic conditions. Estimates of markdown requirements may differ from actual results due to changes in quantity, quality and mix of products in inventory, as well as changes in consumer preferences, market and economic conditions. The Company’s historical estimates of these costs and its markdown provisions have not differed materially from actual results. | ||||||||||
Reserves for inventory shrinkage, representing the risk of physical loss of inventory, are estimated based on historical experience and are adjusted based upon physical inventory counts. | ||||||||||
Property and Equipment, Net | ' | |||||||||
Property and Equipment, Net | ||||||||||
Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful lives: | ||||||||||
Buildings and improvements | 10-40 years | |||||||||
Distribution center equipment and machinery | 3-20 years | |||||||||
Leasehold improvements | Shorter of the useful life or expected term of the lease | |||||||||
Furniture, fixtures, and equipment | 2-10 years | |||||||||
Information technology | 3-10 years | |||||||||
Certain costs associated with computer software developed or obtained for internal use are capitalized, including internal costs. The Company capitalizes certain costs for employees that are directly associated with internal use computer software projects once specific criteria are met. Costs are expensed for preliminary stage activities, training, maintenance and all other post-implementation stage activities as they are incurred. | ||||||||||
Property and equipment, along with other long-lived assets, are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. In evaluating long-lived assets for recoverability, including finite-lived intangibles as described below, the Company uses its best estimate of future cash flows expected to result from the use of the asset and its eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value, considering external market participant assumptions. Assets to be disposed of and for which there is a committed plan of disposal are reported at the lower of carrying value or fair value less costs to sell. | ||||||||||
Goodwill and Other Intangible Assets, Net | ' | |||||||||
Goodwill and Other Intangible Assets, Net | ||||||||||
At acquisition, the Company estimates and records the fair value of purchased intangible assets, which primarily consist of proprietary software, franchise rights, and certain trade names. The fair value of these intangible assets is estimated based on management's assessment, considering independent third-party appraisals, when necessary. The excess of the purchase consideration over the fair value of net assets acquired is recorded as goodwill. See Note 10 for additional discussion of the Company’s goodwill and other intangible assets. | ||||||||||
Goodwill and certain other intangible assets deemed to have indefinite useful lives, including trade names and certain franchise rights, are not amortized. Rather, goodwill and such indefinite-lived intangible assets are assessed for impairment at least annually based on comparisons of their respective fair values to their carrying values. The Company performs its annual impairment assessment of goodwill and indefinite lived intangible assets during the fourth quarter of each fiscal year. Finite-lived intangible assets are amortized over their respective estimated useful lives and, along with other long-lived assets (as discussed below), are evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying amounts may not be recoverable. Refer to the Company's accounting policy for long-lived asset impairment as described earlier under the caption "Property and Equipment, Net." | ||||||||||
Goodwill impairment is determined using a two-step process. The first step of the goodwill impairment test is to identify potential impairment by comparing the fair value of a reporting unit with its net book value (or carrying amount), including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired and performance of the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value was the purchase price paid to acquire the reporting unit. | ||||||||||
Determining the fair value of a reporting unit under the first step of the goodwill impairment test and determining the fair value of individual assets and liabilities of a reporting unit (including unrecognized intangible assets) under the second step of the goodwill impairment test is judgmental in nature and often involves the use of significant estimates and assumptions. Similarly, estimates and assumptions are used in determining the fair value of other intangible assets. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the magnitude of any such charge. To assist management in the process of determining goodwill impairment, the Company reviews and considers appraisals from independent valuation firms. Estimates of fair value are primarily determined using discounted cash flows, market comparisons and recent transactions. These approaches use significant estimates and assumptions, including projected future cash flows (including timing), discount rates reflecting the risks inherent in future cash flows, perpetual growth rates and determination of appropriate market comparables. | ||||||||||
The impairment test for other indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying value. The fair value of indefinite-lived intangible assets is primarily determined using the relief from royalty approach. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to the excess. In addition, in evaluating finite-lived intangible assets for recoverability, we use our best estimate of future cash flows expected to result from the use of the asset and eventual disposition. To the extent that estimated future undiscounted net cash flows attributable to the asset are less than the carrying amount, an impairment loss is recognized equal to the difference between the carrying value of such asset and its fair value. | ||||||||||
Insurance Reserves | ' | |||||||||
Insurance Reserves | ||||||||||
The Company uses a combination of insurance and self-insurance mechanisms to provide for the potential liabilities for workers’ compensation and employee healthcare benefits. Liabilities associated with these risks are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other actuarial assumptions. Such liabilities are capped through the use of stop loss contracts with insurance companies. The estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. As of July 26, 2014 and July 27, 2013, these reserves were $52.9 million and $52.3 million, respectively. The Company is subject to various claims and contingencies related to insurance and other matters arising out of the normal course of business. The Company is self-insured for expenses related to its employee medical and dental plans, and its workers’ compensation plan, up to certain thresholds. Claims filed, as well as claims incurred but not reported, are accrued based on management’s estimates, using information received from plan administrators, historical analysis and other relevant data. The Company’s stop-loss insurance coverage limit for individual claims under these policies is $350,000. The Company believes its accruals for claims and contingencies are adequate based on information currently available. However, it is possible that actual results could differ significantly from the recorded accruals for claims and contingencies. | ||||||||||
Income Taxes | ' | |||||||||
Income Taxes | ||||||||||
Income taxes are provided using the asset and liability method. Under this method, income taxes (i.e., deferred tax assets and liabilities, current taxes payable/refunds receivable and tax expense) are recorded based on amounts refundable or payable in the current year, and include the results of any differences between US GAAP and tax reporting. Deferred income taxes reflect the tax effect of certain net operating loss, capital loss and general business credit carry forwards and the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial statement and income tax purposes, as determined under enacted tax laws and rates. The Company accounts for the financial effect of changes in tax laws or rates in the period of enactment. | ||||||||||
In addition, valuation allowances are established when management determines that it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. Tax valuation allowances are analyzed periodically and adjusted as events occur, or circumstances change, that warrant adjustments to those balances. | ||||||||||
In determining the income tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions. If the Company considers that a tax position is “more-likely-than-not” of being sustained upon audit, based solely on the technical merits of the position, it recognizes the tax benefit. The Company measures the tax benefit by determining the largest amount that is greater than 50% likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. These assessments can be complex and the Company often obtains assistance from external advisors. To the extent that the Company’s estimates change or the final tax outcome of these matters is different than the amounts recorded, such differences will impact the income tax provision in the period in which such determinations are made. If the initial assessment fails to result in the recognition of a tax benefit, the Company regularly monitors its position and subsequently recognizes the tax benefit if (i) there are changes in tax law or analogous case law that sufficiently raise the likelihood of prevailing on the technical merits of the position to “more-likely-than-not,” (ii) the statute of limitation expires, or (iii) there is a completion of an audit resulting in a settlement of that tax year with the appropriate agency. Uncertain tax positions are classified as current only when the Company expects to pay cash within the next twelve months. Interest and penalties, if any, are recorded within the provision for income taxes in the Company’s accompanying consolidated statements of operations and are classified on the accompanying consolidated balance sheets with the related liability for uncertain tax positions. | ||||||||||
See Note 15 for additional discussion of the Company’s income taxes. | ||||||||||
Leases | ' | |||||||||
Leases | ||||||||||
The Company leases certain facilities and equipment, including its retail stores. Most of the Company's leases contain renewal options, rent escalation clauses and/or landlord incentives. Rent expense for non-cancelable operating leases with scheduled rent increases and/or landlord incentives is recognized on a straight-line basis over the lease term, beginning with the effective lease commencement date. The effective lease commencement date represents the date on which the Company takes possession of, or controls the physical use of, the leased property. The excess of straight-line rent expense over scheduled payment amounts and landlord incentives is recorded as a deferred rent liability and is classified on the consolidated balance sheets with the Lease-related liabilities. | ||||||||||
Certain leases provide for contingent rents, which are determined as a percentage of gross sales in excess of specified levels. A contingent rent liability is recognized together with the corresponding rent expense when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. | ||||||||||
Financial Instruments | ' | |||||||||
Financial Instruments | ||||||||||
The carrying value of the Company's financial instruments approximates fair value. Differences between the carrying value and fair value of the Company's financial instruments were not significant as of July 26, 2014 or July 27, 2013. The fair value of financial instruments generally is determined by reference to fair market values resulting from the trading of the instruments on a national securities exchange or an over-the-counter market. In cases where quoted market prices are not available, fair value is based on estimates derived through the use of present value or other valuation techniques. | ||||||||||
See Notes 7 and 8 for further discussion of the Company's financial instruments. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 12 Months Ended | |||
Jul. 26, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Components of Assets and Liabilities Related to Discontinued Operations | ' | |||
The major components of assets and liabilities related to discontinued operations are summarized below: | ||||
July 27, | ||||
2013 | ||||
(millions) | ||||
Accounts and other receivables | $ | 6.7 | ||
Inventories | 14.3 | |||
Property and equipment, net | 9.7 | |||
Other intangible assets, net | 5 | |||
Other assets | 3.1 | |||
Total assets related to discontinued operations | $ | 38.8 | ||
Accounts payable and accrued expenses | $ | 20.8 | ||
Lease-related liabilities | 0.7 | |||
Total liabilities related to discontinued operations | $ | 21.5 | ||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||
Jul. 26, 2014 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Changes in Sales Return Reserve | ' | |||||||||
Schedule of Weighted-Average Number of Common Shares Outstanding used to Calculate Basic Net Income Per Common Share | ' | |||||||||
The weighted-average number of common shares outstanding used to calculate basic net income per common share is reconciled to those shares used in calculating diluted net income per common share as follows: | ||||||||||
Fiscal Years Ended | ||||||||||
July 26, | July 27, | July 28, | ||||||||
2014 | 2013 | 2012 | ||||||||
(millions) | ||||||||||
Basic | 160.6 | 157.3 | 153.5 | |||||||
Dilutive effect of stock options, restricted stock and restricted stock units | 4.5 | 6 | 5.9 | |||||||
Diluted shares | 165.1 | 163.3 | 159.4 | |||||||
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Tables) (Charming Shoppes Acquisition) | 12 Months Ended | |||
Jul. 26, 2014 | ||||
Charming Shoppes Acquisition | ' | |||
Post-Acquisition Results Included in Consolidated Statement of Operations | ' | |||
Such post-acquisition results included in the Company’s accompanying consolidated statement of operations for Fiscal 2012 consist of the following: | ||||
Fiscal Year Ended | ||||
July 28, | ||||
2012 | ||||
(millions) | ||||
Net sales | $ | 156.1 | ||
Loss from continuing operations | (37.8 | ) | ||
Loss from discontinued operations, net of taxes | (9.6 | ) | ||
Net loss | (47.4 | ) | ||
Pro Forma Financial Information | ' | |||
The pro forma financial information is not indicative of the operating results that would have been obtained had the transactions actually occurred as of that date, nor is it necessarily indicative of the Company’s future operating results. | ||||
Fiscal Year Ended | ||||
July 28, | ||||
2012 | ||||
(millions, except per share data) | ||||
Pro forma net sales | $ | 4,535.50 | ||
Pro forma income from continuing operations | $ | 145.7 | ||
Pro forma net income from continuing operations per common share: | ||||
Basic | $ | 0.95 | ||
Diluted | $ | 0.91 | ||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories by Brand | ' | ||||||||
Inventory by brand is set forth below: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Justice | $ | 198.6 | $ | 196.2 | |||||
Lane Bryant | 125.6 | 119.7 | |||||||
maurices | 105.5 | 92 | |||||||
dressbarn | 97.1 | 106.9 | |||||||
Catherines | 26.4 | 26.1 | |||||||
Total inventories | $ | 553.2 | $ | 540.9 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
Property and equipment, net, consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Property and Equipment: | |||||||||
Land | $ | 33.1 | $ | 29.4 | |||||
Buildings and improvements | 177.9 | 47.2 | |||||||
Leasehold improvements | 604 | 531.4 | |||||||
Furniture, fixtures and equipment | 545.7 | 401 | |||||||
Information technology | 237.3 | 213.1 | |||||||
Construction in progress | 156.8 | 165.3 | |||||||
1,754.80 | 1,387.40 | ||||||||
Less: accumulated depreciation | (644.2 | ) | (562.6 | ) | |||||
Property and equipment, net | $ | 1,110.60 | $ | 824.8 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jul. 26, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Changes in Goodwill for each Reportable Segment | ' | ||||||||||||||||||||||||
The following analysis details the changes in goodwill for each reportable segment during Fiscal 2014 and Fiscal 2013: | |||||||||||||||||||||||||
Justice | Lane Bryant | maurices | dressbarn | Catherines | Total | ||||||||||||||||||||
(millions) | |||||||||||||||||||||||||
Balance at July 28, 2012 | $ | 103.6 | $ | 332.1 | $ | 130.7 | $ | — | $ | 26.8 | $ | 593.2 | |||||||||||||
Acquisition-related activity | — | (13.0 | ) | — | — | 1.2 | (11.8 | ) | |||||||||||||||||
Balance at July 27, 2013 | 103.6 | 319.1 | 130.7 | — | 28 | 581.4 | |||||||||||||||||||
Acquisition-related activity | — | — | — | — | — | — | |||||||||||||||||||
Balance at July 26, 2014 | $ | 103.6 | $ | 319.1 | $ | 130.7 | $ | — | $ | 28 | $ | 581.4 | |||||||||||||
Other Intangible Assets | ' | ||||||||||||||||||||||||
Other intangible assets consist of the following: | |||||||||||||||||||||||||
July 26, 2014 | July 27, 2013 | ||||||||||||||||||||||||
Description | Gross | Accum. | Net | Gross | Accum. | Net | |||||||||||||||||||
Carrying | Amort. | Carrying | Amort. | ||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||
Intangible assets subject to amortization: | (millions) | ||||||||||||||||||||||||
Proprietary technology | $ | 6.5 | $ | (5.7 | ) | $ | 0.8 | $ | 6.5 | $ | (4.8 | ) | $ | 1.7 | |||||||||||
Customer relationships | 2.7 | (2.6 | ) | 0.1 | 2.7 | (2.4 | ) | 0.3 | |||||||||||||||||
Trade names | 5.3 | (3.8 | ) | 1.5 | 5.3 | (2.2 | ) | 3.1 | |||||||||||||||||
Total intangible assets subject to amortization | 14.5 | (12.1 | ) | 2.4 | 14.5 | (9.4 | ) | 5.1 | |||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Brands and trademarks (a) | 422.1 | — | 422.1 | 435.1 | — | 435.1 | |||||||||||||||||||
Franchise rights | 10.9 | — | 10.9 | 10.9 | — | 10.9 | |||||||||||||||||||
Total intangible assets not subject to amortization | 433 | — | 433 | 446 | — | 446 | |||||||||||||||||||
Total intangible assets | $ | 447.5 | $ | (12.1 | ) | $ | 435.4 | $ | 460.5 | $ | (9.4 | ) | $ | 451.1 | |||||||||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ||||||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Prepaid expenses | $ | 40.6 | $ | 39.4 | |||||
Accounts and other receivables | 90.8 | 80.9 | |||||||
Other current assets | 5 | 0.4 | |||||||
Total prepaid expenses and other current assets | $ | 136.4 | $ | 120.7 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | ||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Accrued salary, wages and related expenses | $ | 120.6 | $ | 115.1 | |||||
Accrued operating expenses | 164 | 146.7 | |||||||
Sales and other taxes payable | 15.7 | 16.7 | |||||||
Other | 8.6 | 6.8 | |||||||
Total accrued expenses and other current liabilities | $ | 308.9 | $ | 285.3 | |||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Jul. 26, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt | ' | ||||||||
Debt consists of the following: | |||||||||
July 26, | July 27, | ||||||||
2014 | 2013 | ||||||||
(millions) | |||||||||
Revolving credit agreement | $ | 172 | $ | 135 | |||||
Charming Shoppes convertible notes | — | 0.6 | |||||||
172 | 135.6 | ||||||||
Less: current portion | — | (0.6 | ) | ||||||
Total long-term debt | $ | 172 | $ | 135 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||||
Domestic and foreign pretax income from continuing operations are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Domestic | $ | 144.7 | $ | 189.8 | $ | 237.9 | |||||||
Foreign | 58.8 | 52.8 | 41.1 | ||||||||||
Total income from continuing operations before provision for income taxes | $ | 203.5 | $ | 242.6 | $ | 279 | |||||||
Provisions (Benefits) from Continuing Operations for Current and Deferred Income Taxes | ' | ||||||||||||
Provisions (benefits) from continuing operations for current and deferred income taxes are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | (millions) | ||||||||||||
Federal (a) | $ | 15.2 | $ | 30.6 | $ | 66.6 | |||||||
State and local (a) | 13.5 | 5.7 | 16.4 | ||||||||||
Foreign | 12.3 | 10.6 | 7.9 | ||||||||||
41 | 46.9 | 90.9 | |||||||||||
Deferred: | |||||||||||||
Federal | 24.9 | 38.6 | 20.6 | ||||||||||
State and local | (0.2 | ) | 1.4 | (4.4 | ) | ||||||||
Foreign | (0.4 | ) | 0.5 | 0.1 | |||||||||
24.3 | 40.5 | 16.3 | |||||||||||
Total provision for income taxes from continuing operations | $ | 65.3 | $ | 87.4 | $ | 107.2 | |||||||
(a) | Excludes federal, state and local tax benefits of approximately $4.2 million in Fiscal 2014, $14.1 million in Fiscal 2013 and $7.3 million in Fiscal 2012 resulting from stock-based compensation arrangements. Such amounts were recorded within equity. | ||||||||||||
Differences Between Income Taxes Expected at U.S. Federal Statutory Income Tax Rate and Income Taxes Provided | ' | ||||||||||||
The differences between income taxes expected at the U.S. federal statutory income tax rate of 35% and income taxes provided for continuing operations are as set forth below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Provision for income taxes from continuing operations at the U.S. federal statutory rate | $ | 71.2 | $ | 84.9 | $ | 97.7 | |||||||
Increase (decrease) due to: | |||||||||||||
State and local income taxes, net of federal benefit | 8.8 | 8.4 | 9 | ||||||||||
Net change relating to uncertain income tax benefits | (2.3 | ) | (6.4 | ) | (5.5 | ) | |||||||
Increase in indefinite reinvestment assertion for foreign earnings | (11.6 | ) | (0.9 | ) | (1.7 | ) | |||||||
Other – net | (0.8 | ) | 1.4 | 7.7 | |||||||||
Total provision for income taxes from continuing operations | $ | 65.3 | $ | 87.4 | $ | 107.2 | |||||||
Significant Components of Net Deferred Tax Assets (Liabilities) | ' | ||||||||||||
Significant components of the Company's net deferred tax assets (liabilities) are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | (millions) | ||||||||||||
Inventory capitalization and inventory-related items | $ | 14.3 | $ | 13.4 | |||||||||
Tax credit and net operating loss carryforwards | 14.2 | 34.5 | |||||||||||
Accrued payroll & benefits | 59.9 | 59 | |||||||||||
Share-based compensation | 23.1 | 24.4 | |||||||||||
Straight-line rent | 50 | 56.4 | |||||||||||
Federal benefit of uncertain tax positions | 15.5 | 13.4 | |||||||||||
Other items | 18.8 | 26.9 | |||||||||||
Total deferred tax assets | 195.8 | 228 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 85.8 | 88.7 | |||||||||||
Amortization | 171.7 | 162.5 | |||||||||||
Foreign unremitted earnings | 20.7 | 23.9 | |||||||||||
Other items | 15.8 | 28.8 | |||||||||||
Total deferred tax liabilities | 294 | 303.9 | |||||||||||
Valuation allowance | (2.8 | ) | (2.8 | ) | |||||||||
Net deferred tax liabilities | $ | (101.0 | ) | $ | (78.7 | ) | |||||||
Reconciliation of Beginning and Ending amounts of Unrecognized Tax Benefits, Excluding Interest and Penalties | ' | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for each fiscal year is presented below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Unrecognized tax benefit beginning balance | $ | 31.2 | $ | 40.5 | $ | 17.4 | |||||||
Additions related to acquisitions | — | 2.8 | 35.7 | ||||||||||
Additions related to current period tax positions | 1.5 | 1.5 | 0.7 | ||||||||||
Additions related to tax positions in prior years | 4.3 | 2.2 | 0.7 | ||||||||||
Reductions related to prior period tax positions | — | (3.0 | ) | (7.0 | ) | ||||||||
Reductions related to settlements with taxing authorities | (1.5 | ) | (5.7 | ) | (2.1 | ) | |||||||
Reductions related to expiration of statute of limitations | (5.6 | ) | (7.1 | ) | (4.9 | ) | |||||||
Unrecognized tax benefit ending balance | $ | 29.9 | $ | 31.2 | $ | 40.5 | |||||||
Reconciliation of Beginning and Ending Amounts of Accrued Interest and Penalties Related to Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amounts of accrued interest and penalties related to unrecognized tax benefits for each fiscal year is presented below: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Accrued interest and penalties beginning balance | $ | 16.5 | $ | 21.2 | $ | 5.1 | |||||||
Additions related to acquisitions | — | — | 18.7 | ||||||||||
Reductions charged to expense | (2.7 | ) | (4.7 | ) | (2.6 | ) | |||||||
Accrued interest and penalties ending balance | $ | 13.8 | $ | 16.5 | $ | 21.2 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Summary of Occupancy Costs | ' | ||||||||||||
A summary of occupancy costs follows: | Fiscal Years Ended | ||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Base rentals | $ | 395.5 | $ | 391.6 | $ | 269 | |||||||
Percentage rentals | 23.2 | 21 | 14.1 | ||||||||||
Other occupancy costs, primarily CAM and real estate taxes | 133.5 | 128.6 | 88.3 | ||||||||||
552.2 | 541.2 | 371.4 | |||||||||||
Less: Rental income from third parties | — | — | (1.1 | ) | |||||||||
Total | $ | 552.2 | $ | 541.2 | $ | 370.3 | |||||||
Schedule of Future Minimum Rentals under Non-Cancelable Operating Leases | ' | ||||||||||||
The following is a schedule of future minimum rentals under non-cancelable operating leases as of July 26, 2014: | |||||||||||||
Fiscal Years | Minimum Operating | ||||||||||||
Lease Payments (a) (b) | |||||||||||||
(millions) | |||||||||||||
2015 | $ | 399.1 | |||||||||||
2016 | 352.6 | ||||||||||||
2017 | 295.6 | ||||||||||||
2018 | 232.1 | ||||||||||||
2019 | 171.5 | ||||||||||||
Subsequent years | 470.3 | ||||||||||||
Total future minimum rentals | $ | 1,921.20 | |||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Jul. 26, 2014 | |||||||||||||||||||||
Summary of Total Compensation Expense and Associated Income Tax Benefit | ' | ||||||||||||||||||||
A summary of the total compensation expense and associated income tax benefit recognized related to stock-based compensation arrangements is as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
(millions) | |||||||||||||||||||||
Compensation expense | $ | 30.6 | $ | 29.5 | $ | 28.4 | |||||||||||||||
Income tax benefit | $ | (11.5 | ) | $ | (11.0 | ) | $ | (10.7 | ) | ||||||||||||
Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted | ' | ||||||||||||||||||||
The Company’s weighted-average assumptions used to estimate the fair value of stock options granted during the fiscal years presented were as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term (years) | 3.9 | 3.9 | 3.9 | ||||||||||||||||||
Expected volatility | 40 | % | 41.6 | % | 41.7 | % | |||||||||||||||
Risk-free interest rate | 1.5 | % | 0.7 | % | 0.9 | % | |||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||||||
Weighted-average grant date fair value | $ | 7.11 | $ | 7.29 | $ | 4.77 | |||||||||||||||
Summary of Stock Option Activity Under all Plans | ' | ||||||||||||||||||||
A summary of the stock option activity under all plans during Fiscal 2014 is as follows: | |||||||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Shares | Average | Average Remaining Contractual | Intrinsic | ||||||||||||||||||
Exercise Price | Terms | Value (a) | |||||||||||||||||||
(thousands) | (years) | (millions) | |||||||||||||||||||
Options outstanding – July 27, 2013 | 12,159.60 | $ | 12.24 | 6.4 | $ | 81.8 | |||||||||||||||
Granted | 2,812.20 | 19.87 | |||||||||||||||||||
Exercised | (1,745.1 | ) | 9.96 | ||||||||||||||||||
Canceled/Forfeited | (512.3 | ) | 17.32 | ||||||||||||||||||
Options outstanding – July 26, 2014 | 12,714.40 | $ | 14.04 | 5.6 | $ | 45.7 | |||||||||||||||
Options vested and expected to vest at July 26, 2014 (b) | 12,371.30 | $ | 14.42 | 5.7 | $ | 45.6 | |||||||||||||||
Options exercisable at July 26, 2014 | 6,741.20 | $ | 10.57 | 4.6 | $ | 39.9 | |||||||||||||||
Summary of Restricted Equity Awards Activity | ' | ||||||||||||||||||||
A summary of Restricted Equity Awards activity during Fiscal 2014 is as follows: | |||||||||||||||||||||
Service-based | Performance-based | Market-based | |||||||||||||||||||
Restricted Equity Awards | Restricted Equity Awards | Restricted Equity Awards | |||||||||||||||||||
Number of | Weighted- | Number of | Weighted- | Number of | Weighted- | ||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||
Fair Value Per | Fair Value Per | Fair Value Per | |||||||||||||||||||
Share | Share | Share | |||||||||||||||||||
(thousands) | (thousands) | (thousands) | |||||||||||||||||||
Nonvested at July 27, 2013 | 1,863.20 | $ | 17.77 | 640.1 | $ | 15.08 | 189.7 | $ | 14.35 | ||||||||||||
Granted | 436.5 | 19.23 | 185.1 | 20.06 | 41.3 | 19.46 | |||||||||||||||
Vested | (984.3 | ) | 18.5 | (163.1 | ) | 12.21 | (54.4 | ) | 10.68 | ||||||||||||
Canceled/Forfeited | (67.7 | ) | 18.59 | — | — | — | — | ||||||||||||||
Nonvested at July 26, 2014 | 1,247.70 | $ | 17.66 | 662.1 | $ | 17.18 | 176.6 | $ | 16.68 | ||||||||||||
Total Unrecognized Compensation and Weighted-Average Years Expected to be Recognized | ' | ||||||||||||||||||||
Service-based | Performance-based | Market-based | |||||||||||||||||||
Restricted Equity Awards | Restricted Equity Awards | Restricted Equity Awards | |||||||||||||||||||
Total unrecognized compensation at July 26, 2014 (millions) | $ | 11.2 | $ | 3.6 | $ | 1.1 | |||||||||||||||
Weighted-average years expected to be recognized over (years) | 3.2 | 1.7 | 1.5 | ||||||||||||||||||
Additional Information Pertaining to Restricted Equity Awards Activity | ' | ||||||||||||||||||||
Additional information pertaining to Restricted Equity Awards activity is as follows: | |||||||||||||||||||||
Fiscal Years Ended | |||||||||||||||||||||
July 26, | July 27, | July 28, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Service-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 19.23 | $ | 20.22 | $ | 15.1 | |||||||||||||||
Total fair value of awards vested (millions) | 12.9 | 10 | 5 | ||||||||||||||||||
Performance-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 20.06 | $ | 18.61 | $ | 12.74 | |||||||||||||||
Total fair value of awards vested (millions) | 2.6 | — | — | ||||||||||||||||||
Market-based Restricted Equity Awards: | |||||||||||||||||||||
Weighted-average grant date fair value of awards granted | $ | 19.46 | $ | 18.13 | $ | 12.33 | |||||||||||||||
Total fair value of awards vested (millions) | 0.6 | — | — | ||||||||||||||||||
Cash Settled LTIP Awards | ' | ||||||||||||||||||||
Summary of Restricted Equity Awards Activity | ' | ||||||||||||||||||||
A summary of Cash-Settled Long-Term Incentive Plan Awards activity during Fiscal 2014 is as follows: | |||||||||||||||||||||
Cash-Settled Long-Term Incentive Plan Awards | |||||||||||||||||||||
Number of Shares | |||||||||||||||||||||
(thousands) | |||||||||||||||||||||
Nonvested at July 27, 2013 | 855.4 | ||||||||||||||||||||
Granted | 401.3 | ||||||||||||||||||||
Vested | (287.5 | ) | |||||||||||||||||||
Canceled/Forfeited | (111.2 | ) | |||||||||||||||||||
Nonvested at July 26, 2014 | 858 | ||||||||||||||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ||||||||||||
Net Sales and Operating Income for Each Segment | ' | ||||||||||||
Net sales and operating income (loss) for each segment are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Net sales: | (millions) | ||||||||||||
Justice | $ | 1,384.30 | $ | 1,407.40 | $ | 1,306.70 | |||||||
Lane Bryant (a) | 1,080.00 | 1,050.10 | 119.7 | ||||||||||
maurices | 971.4 | 917.6 | 852.9 | ||||||||||
dressbarn | 1,022.50 | 1,020.70 | 1,037.60 | ||||||||||
Catherines (a) | 332.4 | 319.1 | 36.4 | ||||||||||
Total net sales | $ | 4,790.60 | $ | 4,714.90 | $ | 3,353.30 | |||||||
Operating income (loss): | |||||||||||||
Justice | $ | 99.3 | $ | 182.3 | $ | 172.5 | |||||||
Lane Bryant (a) | (4.3 | ) | (30.1 | ) | (10.1 | ) | |||||||
maurices | 86 | 107 | 102.7 | ||||||||||
dressbarn | 39.4 | 30.3 | 56.9 | ||||||||||
Catherines (a) | 24.4 | 10.4 | (4.0 | ) | |||||||||
Unallocated acquisition-related, integration and restructuring costs | (34.0 | ) | (34.6 | ) | (25.4 | ) | |||||||
Total operating income | $ | 210.8 | $ | 265.3 | $ | 292.6 | |||||||
(a) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. | |||||||||||||
Depreciation and Amortization Expense and Capital Expenditures for Each Segment | ' | ||||||||||||
Depreciation and amortization expense and capital expenditures for each segment are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and amortization expense: | (millions) | ||||||||||||
Justice | $ | 60.7 | $ | 56.3 | $ | 42.8 | |||||||
Lane Bryant (a) | 45.6 | 43.7 | 5.2 | ||||||||||
maurices | 39.5 | 31.5 | 26.1 | ||||||||||
dressbarn | 40.5 | 38.5 | 32.5 | ||||||||||
Catherines (a) | 7.3 | 6 | 0.8 | ||||||||||
Total depreciation and amortization expense | $ | 193.6 | $ | 176 | $ | 107.4 | |||||||
Capital expenditures (b): | |||||||||||||
Justice | $ | 93.5 | $ | 65.9 | $ | 58.9 | |||||||
Lane Bryant (a) | 53.5 | 49.1 | 3.9 | ||||||||||
maurices | 54 | 45.1 | 42.4 | ||||||||||
dressbarn | 93.5 | 50.3 | 45 | ||||||||||
Catherines (a) | 7.3 | 2.7 | 0.2 | ||||||||||
Corporate (c) | 175.7 | 77.8 | — | ||||||||||
Total capital expenditures | $ | 477.5 | $ | 290.9 | $ | 150.4 | |||||||
(a) The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. | |||||||||||||
(b) Excludes non-cash capital expenditures of $64.4 million in Fiscal 2014, $58.9 million in Fiscal 2013 and $13.4 million in Fiscal 2012. | |||||||||||||
(c) Includes capital expenditures for store-related capital improvements, investments in our technological and supply chain infrastructure and investments in corporate office space to support our growing operations. | |||||||||||||
Total Assets for Each Segment | ' | ||||||||||||
Total assets for each segment consist of the following: | |||||||||||||
July 26, | July 27, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets: | (millions) | ||||||||||||
Justice | $ | 858.3 | $ | 745.3 | |||||||||
Lane Bryant | 866.4 | 842.5 | |||||||||||
maurices | 535.5 | 512.3 | |||||||||||
dressbarn | 358.2 | 309.6 | |||||||||||
Catherines | 86.6 | 83 | |||||||||||
Corporate (a) | 418.8 | 379 | |||||||||||
Total assets | $ | 3,123.80 | $ | 2,871.70 | |||||||||
_______ | |||||||||||||
(a) Includes assets specifically identified as Corporate assets, principally cash, investments, corporate fixed assets, as discussed above, and other corporate assets. | |||||||||||||
Revenue from External Customers by Products and Services | ' | ||||||||||||
The Company’s operations are largely concentrated in the United States and Canada. Accordingly, net sales and long-lived assets by geographic location are not meaningful at this time. | |||||||||||||
The Company’s revenues by major product categories as a percentage of total net sales are as follows: | |||||||||||||
Fiscal Years Ended | |||||||||||||
July 26, | July 27, | July 28, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Apparel | 83 | % | 83 | % | 82 | % | |||||||
Accessories and other | 17 | % | 17 | % | 18 | % | |||||||
Total net sales | 100 | % | 100 | % | 100 | % |
Additional_Financial_Informati1
Additional Financial Information (Tables) | 12 Months Ended | ||||||||||||
Jul. 26, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Cash Interest and Taxes | ' | ||||||||||||
Fiscal Years Ended | |||||||||||||
Cash Interest and Taxes: | July 26, | July 27, | July 28, | ||||||||||
2014 | 2013 | 2012 | |||||||||||
(millions) | |||||||||||||
Cash paid for interest | $ | 4.6 | $ | 15.6 | $ | 1.3 | |||||||
Cash paid for income taxes | $ | 42.1 | $ | 19.7 | $ | 109.4 | |||||||
Description_of_Business_Detail
Description of Business (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
segment | ||||||
store | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 3,900 | ' | ' | |||
Net sales | $4,790.60 | $4,714.90 | $3,353.30 | |||
Number of reportable segments | 5 | ' | ' | |||
Justice | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 997 | ' | ' | |||
Net sales | 1,384.30 | 1,407.40 | 1,306.70 | |||
Minimum customer age | '7 years | ' | ' | |||
Maximum customer age | '14 years | ' | ' | |||
Lane Bryant | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 771 | ' | ' | |||
Net sales | 1,080 | [1] | 1,050.10 | [1] | 119.7 | [1] |
Minimum customer age | '25 years | ' | ' | |||
Maximum customer age | '45 years | ' | ' | |||
Maurices | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 922 | ' | ' | |||
Net sales | 971.4 | 917.6 | 852.9 | |||
Minimum customer age | '20 years | ' | ' | |||
Maximum customer age | '35 years | ' | ' | |||
Minimum small market | 25,000 | ' | ' | |||
Maximum small market | 150,000 | ' | ' | |||
Dressbarn | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 820 | ' | ' | |||
Net sales | 1,022.50 | 1,020.70 | 1,037.60 | |||
Catherines | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Number of stores | 386 | ' | ' | |||
Net sales | $332.40 | [1] | $319.10 | [1] | $36.40 | [1] |
Minimum customer age | '45 years | ' | ' | |||
Brothers | Justice | ' | ' | ' | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | |||
Minimum customer age | '7 years | ' | ' | |||
Maximum customer age | '14 years | ' | ' | |||
[1] | The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. |
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Oct. 26, 2013 | Jul. 27, 2013 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 26, 2014 | Feb. 28, 2013 | Jul. 27, 2013 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 27, 2013 | Jul. 28, 2012 |
store | Discontinued Operations | Discontinued Operations | Outbound freight | Outbound freight | Ecommerce shipping | Ecommerce shipping | |||||
store | |||||||||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores | ' | ' | ' | ' | 3,900 | 600 | ' | ' | ' | ' | ' |
Proceeds from Sale of Buildings | ' | ' | ' | ' | ' | ' | $16 | ' | ' | ' | ' |
Discontinued operations, reduction in assets | 4.6 | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales from discontinued operations | 7.4 | ' | 407.6 | 66.4 | ' | ' | ' | ' | ' | ' | ' |
Prior Period Reclassification Adjustment | ' | ' | ' | ' | ' | ' | ' | $47.40 | $23.30 | $23.50 | $7.80 |
Basis_of_Presentation_Componen
Basis of Presentation (Components of Assets and Liabilities Related to Discontinued Operations) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Accounts and other receivables | ' | $6.70 |
Inventories | ' | 14.3 |
Property and equipment, net | ' | 9.7 |
Other intangible assets, net | ' | 5 |
Other assets | ' | 3.1 |
Total assets related to discontinued operations | 0 | 38.8 |
Accounts payable and accrued expenses | ' | 20.8 |
Lease-related liabilities | ' | 0.7 |
Total liabilities related to discontinued operations | ' | $21.50 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Sales return reserves | $7,700,000 | $7,800,000 | ' |
Handling costs | 38,000,000 | 33,400,000 | 15,800,000 |
Marketing and advertising expenses | 160,100,000 | 169,100,000 | 81,500,000 |
Foreign Currency Transaction Gain (Loss), before Tax | -1,600,000 | 0 | 0 |
Anti-dilutive options and/or contingent vesting of performance-based and market-based restricted stock units that were excluded from diluted share calculations | 5.6 | 3 | 1.3 |
Credit losses on deposits of cash and cash equivalents | 0 | ' | ' |
Accrued insurance reserves | 52,900,000 | 52,300,000 | ' |
Insurance coverage | $350,000 | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Weighted-Average Number of Common Shares Outstanding Used to Calculate Basic Net Income Per Common Share) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Basic shares | 160.6 | 157.3 | 153.5 |
Dilutive effect of stock options, restricted stock and restricted stock units | 4.5 | 6 | 5.9 |
Diluted shares | 165.1 | 163.3 | 159.4 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Schedule of Property and Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Jul. 26, 2014 | |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives, description | 'Shorter of the useful life or expected term of the lease |
Minimum | Buildings and Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '10 years |
Minimum | Distribution Center Equipment and Machinery | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '3 years |
Minimum | Furniture, Fixtures, and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '2 years |
Minimum | Information Technology | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '3 years |
Maximum | Buildings and Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '40 years |
Maximum | Distribution Center Equipment and Machinery | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '20 years |
Maximum | Furniture, Fixtures, and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '10 years |
Maximum | Information Technology | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful lives | '10 years |
Acquisitions_and_Dispositions_1
Acquisitions and Dispositions (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2012 | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 30, 2011 |
store | |||||
Business Acquisitions and Dispositions [Line Items] | ' | ' | ' | ' | ' |
Number of stores | ' | 3,900 | ' | ' | ' |
Purchase price | $882.10 | ' | ' | ' | ' |
Purchase accounting adjustment to goodwill | ' | 0 | 11.8 | ' | ' |
Allocation of acquisition cost, cash and cash equivalents, at Carrying Value | ' | 156.9 | 186.4 | 164.3 | 243.5 |
Allocation of acquisition cost, property and equipment | ' | 1,110.60 | 824.8 | ' | ' |
Allocation of acquisition cost, non-tax deductible goodwill | ' | 581.4 | 581.4 | 593.2 | ' |
Allocation of acquisition cost, amortizable intangible assets | ' | 435.4 | 451.1 | ' | ' |
Allocation of acquisition cost, current liabilities | ' | 631.9 | 636.5 | ' | ' |
Allocation of acquisition cost, long term debt | ' | 172 | 135.6 | ' | ' |
Acquisition-related, transaction costs | ' | 0 | 0 | 14 | ' |
Charming Shoppes Acquisition | ' | ' | ' | ' | ' |
Business Acquisitions and Dispositions [Line Items] | ' | ' | ' | ' | ' |
Number of stores | 1,800 | ' | ' | ' | ' |
Purchase price per share | $7.35 | ' | ' | ' | ' |
Purchase accounting adjustment to goodwill | ' | ' | 11.8 | ' | ' |
Allocation of acquisition cost, cash and cash equivalents, at Carrying Value | ' | ' | 203.5 | ' | ' |
Allocation of acquisition cost, inventories | ' | ' | 192 | ' | ' |
Allocation of acquisition cost, net assets related to discontinued operations | ' | ' | 79.2 | ' | ' |
Allocation of acquisition cost, other current and non-current assets | ' | ' | 97.6 | ' | ' |
Allocation of acquisition cost, deferred tax assets | ' | ' | 18.2 | ' | ' |
Allocation of acquisition cost, property and equipment | ' | ' | 162.5 | ' | ' |
Allocation of acquisition cost, non-tax deductible goodwill | ' | ' | 347.1 | ' | ' |
Allocation of acquisition cost, amortizable intangible assets | ' | ' | 270.7 | ' | ' |
Allocation of acquisition cost, current liabilities | ' | ' | 199.5 | ' | ' |
Allocation of acquisition cost, long term debt | ' | ' | 146.2 | ' | ' |
Allocation of acquisition cost, other net liabilities | ' | ' | 143 | ' | ' |
Acquisition-related, transaction costs | ' | ' | ' | 14 | ' |
Acquisition-related, share based compensation pretax charge | ' | ' | ' | $14 | ' |
Acquisitions_and_Dispositions_2
Acquisitions and Dispositions (Post-Acquisition Results Included in Consolidated Statement of Operations) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Net sales | $4,790.60 | $4,714.90 | $3,353.30 | |||
Loss from continuing operations | 138.2 | 155.2 | 171.8 | |||
Loss from discontinued operations, net of taxes | -4.8 | [1] | -3.9 | [1] | -9.6 | [1] |
Net income | 133.4 | 151.3 | 162.2 | |||
Charming Shoppes Acquisition | ' | ' | ' | |||
Business Acquisition [Line Items] | ' | ' | ' | |||
Net sales | ' | ' | 156.1 | |||
Loss from continuing operations | ' | ' | -37.8 | |||
Loss from discontinued operations, net of taxes | ' | ' | -9.6 | |||
Net income | ' | ' | ($47.40) | |||
[1] | Loss from discontinued operations is presented net of a $3.3 million, $3.3 million and $5.1 million income tax benefit for the years ended July 26, 2014, July 27, 2013 and July 28, 2012, respectively. |
Acquisitions_and_Dispositions_3
Acquisitions and Dispositions (Pro Forma Financial Information) (Details) (Charming Shoppes Acquisition, USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jul. 28, 2012 |
Charming Shoppes Acquisition | ' |
Business Acquisition [Line Items] | ' |
Pro forma net sales | $4,535.50 |
Pro forma income from continuing operations | $145.70 |
Pro forma net income from continuing operations per common share: | ' |
Basic | $0.95 |
Diluted | $0.91 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventories by Brand) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Total inventories | $553.20 | $540.90 |
Justice | ' | ' |
Investment [Line Items] | ' | ' |
Total inventories | 198.6 | 196.2 |
Lane Bryant | ' | ' |
Investment [Line Items] | ' | ' |
Total inventories | 125.6 | 119.7 |
Maurices | ' | ' |
Investment [Line Items] | ' | ' |
Total inventories | 105.5 | 92 |
Dressbarn | ' | ' |
Investment [Line Items] | ' | ' |
Total inventories | 97.1 | 106.9 |
Catherines | ' | ' |
Investment [Line Items] | ' | ' |
Total inventories | $26.40 | $26.10 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jul. 28, 2012 | Jul. 28, 2012 | Jul. 26, 2014 | Jul. 27, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from the sale of the investment portfolio | $240,000,000 | ' | ' | ' |
Realized gain on the sale of investment | ' | 1,000,000 | ' | ' |
Short-term investments | ' | ' | 30,400,000 | 3,000,000 |
Held to maturity investments | ' | ' | 0 | ' |
Trading securities investments | ' | ' | $0 | ' |
Property_and_Equipment_Narrati
Property and Equipment (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | 31-May-12 | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
acre | ||||
sqft | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Sale of New York Facility, square-foot of building sold | 900,000 | ' | ' | ' |
Sale of New York Facility, acres of land sold | 16 | ' | ' | ' |
Depreciation | ' | $190.90 | $173.40 | $106.20 |
Restructuring and Related Cost, Accelerated Depreciation | ' | 8.6 | 14.2 | ' |
Increase (decrease) in income due to incremental depreciation expense | ' | -5.3 | -8.9 | ' |
Effect on earning per share diluted, due to incremental depreciation expense increase (decrease) | ' | ($0.03) | ($0.05) | ' |
Suffern, New York Property | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Proceeds from Sale of Buildings | 40 | ' | ' | ' |
Gain (Loss) on Sale of Properties | ' | ' | ' | $6.90 |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment, Net) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $1,754.80 | $1,387.40 |
Less: accumulated depreciation | -644.2 | -562.6 |
Property and equipment, net | 1,110.60 | 824.8 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 33.1 | 29.4 |
Buildings and Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 177.9 | 47.2 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 604 | 531.4 |
Furniture, Fixtures, and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 545.7 | 401 |
Information Technology | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 237.3 | 213.1 |
Construction in Progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $156.80 | $165.30 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Recognized amortization expense on other intangible assets | $2.70 | $2.60 | $1.20 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $2.40 | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Changes in Each Reportable Segment) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | $581.40 | $593.20 |
Acquisition-related activity | 0 | -11.8 |
Goodwill, Ending Balance | 581.4 | 581.4 |
Justice | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 103.6 | 103.6 |
Acquisition-related activity | 0 | 0 |
Goodwill, Ending Balance | 103.6 | 103.6 |
Lane Bryant | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 319.1 | 332.1 |
Acquisition-related activity | 0 | -13 |
Goodwill, Ending Balance | 319.1 | 319.1 |
Maurices | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 130.7 | 130.7 |
Acquisition-related activity | 0 | 0 |
Goodwill, Ending Balance | 130.7 | 130.7 |
Dressbarn | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 0 | 0 |
Acquisition-related activity | 0 | 0 |
Goodwill, Ending Balance | 0 | 0 |
Catherines | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill, Beginning Balance | 28 | 26.8 |
Acquisition-related activity | 0 | 1.2 |
Goodwill, Ending Balance | $28 | $28 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 | ||
In Millions, unless otherwise specified | ||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets subject to amortization, gross carrying amount | $14.50 | $14.50 | ||
Intangible assets subject to amortization, accumulated amortization | -12.1 | -9.4 | ||
Intangible assets subject to amortization, net | 2.4 | 5.1 | ||
Intangible assets not subject to amortization, gross carrying amount | 433 | 446 | ||
Total intangible assets, gross carrying amount | 447.5 | 460.5 | ||
Total intangible assets, Net | 435.4 | 451.1 | ||
Brands and Trademarks | ' | ' | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets not subject to amortization, gross carrying amount | 422.1 | [1] | 435.1 | [1] |
Franchise Rights | ' | ' | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets not subject to amortization, gross carrying amount | 10.9 | 10.9 | ||
Technology-Based Intangible Assets | ' | ' | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets subject to amortization, gross carrying amount | 6.5 | 6.5 | ||
Intangible assets subject to amortization, accumulated amortization | -5.7 | -4.8 | ||
Intangible assets subject to amortization, net | 0.8 | 1.7 | ||
Customer Relationships | ' | ' | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets subject to amortization, gross carrying amount | 2.7 | 2.7 | ||
Intangible assets subject to amortization, accumulated amortization | -2.6 | -2.4 | ||
Intangible assets subject to amortization, net | 0.1 | 0.3 | ||
Trade Names | ' | ' | ||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ' | ' | ||
Intangible assets subject to amortization, gross carrying amount | 5.3 | 5.3 | ||
Intangible assets subject to amortization, accumulated amortization | -3.8 | -2.2 | ||
Intangible assets subject to amortization, net | $1.50 | $3.10 | ||
[1] | The decrease in Brands and trademarks is due to the Fiscal 2014 write-off of the Studio Y trade name, as more fully described in Note 11. |
Impairments_Narrative_Details
Impairments (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | $4,200,000 | $4,600,000 | $2,200,000 |
Non-cash impairment of intangible assets | 13,000,000 | 0 | 0 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
Other Asset Impairment Charges | 0 | 0 | 0 |
Justice | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | 300,000 | 100,000 | 200,000 |
Lane Bryant | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | 900,000 | 2,000,000 | 0 |
Maurices | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | 1,100,000 | 700,000 | 1,000,000 |
Non-cash impairment of intangible assets | 13,000,000 | ' | ' |
Dressbarn | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | 1,900,000 | 1,800,000 | 1,000,000 |
Catherines | ' | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' |
Non-cash impairment charges of tangible assets | $0 | $0 | $0 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Prepaid Expenses and Other Current Assets) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Prepaid Expense and Other Assets, Current [Abstract] | ' | ' |
Prepaid expenses | $40.60 | $39.40 |
Accounts and other receivables | 90.8 | 80.9 |
Other current assets | 5 | 0.4 |
Total prepaid expenses and other current assets | $136.40 | $120.70 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Accrued Expenses and Other Current Liabilities) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities, Current [Abstract] | ' | ' |
Accrued salary, wages and related expenses | $120.60 | $115.10 |
Accrued operating expenses | 164 | 146.7 |
Sales and other taxes payable | 15.7 | 16.7 |
Other | 8.6 | 6.8 |
Total accrued expenses and other current liabilities | $308.90 | $285.30 |
Debt_Revolving_Credit_Agreemen
Debt (Revolving Credit Agreement Narrative) (Details) (USD $) | 1 Months Ended | |
Mar. 31, 2013 | Jul. 26, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Credit facility amount outstanding | ' | $172,000,000 |
Outstanding letter of credit | ' | 18,000,000 |
Senior secured revolving credit facility, remaining borrowing capacity | ' | 274,600,000 |
Swing Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum borrowing capacity | 25,000,000 | ' |
Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum borrowing capacity | 500,000,000 | ' |
Optional additional increase in credit facility | 100,000,000 | ' |
Debt maturity period | 14-Jun-18 | ' |
Outstanding letter of credit | ' | 18,000,000 |
Revolving Credit Facility | Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Applicable margin above base rate | 0.50% | ' |
Commitment fee on unutilized revolving credit facility | 0.25% | ' |
Revolving Credit Facility | Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Applicable margin above base rate | 2.00% | ' |
Commitment fee on unutilized revolving credit facility | 0.38% | ' |
Letter of Credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum borrowing capacity | 250,000,000 | ' |
Standby Letters of Credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum borrowing capacity | $60,000,000 | ' |
LIBOR | Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Applicable margin above base rate | 1.00% | ' |
Federal Funds Rate | Revolving Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Applicable margin above base rate | 0.50% | ' |
Debt_Restrictions_Under_the_Re
Debt (Restrictions Under the Revolving Credit Agreement Narrative) (Details) (USD $) | 12 Months Ended |
Jul. 26, 2014 | |
Debt Instrument [Line Items] | ' |
Minimum availability | $50,000,000 |
Senior secured revolving credit facility, remaining borrowing capacity | $274,600,000 |
Minimum fixed charge coverage ratio | 1 |
Total available borrowings, percentage for dividends declaration | 20.00% |
Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Reduced Availability Period Minimum Level Consecutive Threshold Period | '3 days |
Debt_Term_Loan_Narrative_Detai
Debt (Term Loan Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 28, 2012 | Jan. 28, 2012 | Jul. 27, 2013 | |
Loans | Loans | Loans | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Borrowings Under Credit Facilities For Acquisitions | ' | ' | ' | $300,000,000 | ' | ' |
Debt instrument, term | ' | ' | ' | ' | '6 years | ' |
Debt maturity period | ' | ' | ' | ' | 14-Jun-18 | ' |
Gain (Loss) on extinguishment of debt | $0 | ($9,300,000) | $0 | ' | ' | ($8,500,000) |
Debt_Charming_Shoppes_Narrativ
Debt (Charming Shoppes Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jun. 30, 2012 | Jul. 26, 2014 | Jun. 30, 2012 | Jul. 28, 2012 | |
Charming Shoppes Acquisition | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | ||||
Charming Shoppes Acquisition | Charming Shoppes Acquisition | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, notes assumed | $0 | $600,000 | ' | $140,500,000 | ' | ' | ' |
Debt interest rate | ' | ' | ' | ' | ' | 1.13% | ' |
Debt maturity period | ' | ' | ' | ' | ' | 1-May-14 | ' |
Redemption of senior convertible notes, total | ' | ' | ' | ' | ' | ' | 139,600,000 |
Redemption of senior convertible notes, principal | ' | ' | ' | ' | ' | ' | 139,200,000 |
Redemption of senior convertible notes, interest | ' | ' | ' | ' | ' | ' | 400,000 |
Gain (Loss) on extinguishment of debt | $0 | ($9,300,000) | $0 | ' | $0 | ' | ' |
Debt_Mortgage_Notes_Narrative_
Debt (Mortgage Notes Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jan. 26, 2013 | Jul. 28, 2012 | |
Mortgages | Mortgages | ||||
Charming Shoppes Acquisition | Charming Shoppes Acquisition | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Mortgage note | ' | ' | ' | ' | $7,800,000 |
Payment of principal balance of mortgage note | ' | ' | ' | 8,400,000 | ' |
Gain (Loss) on extinguishment of debt | $0 | ($9,300,000) | $0 | ($800,000) | ' |
Debt_Schedule_of_Debt_Details
Debt (Schedule of Debt) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Revolving credit agreement | $172 | $135 |
Charming Shoppes convertible notes | 0 | 0.6 |
Total Long term debt | 172 | 135.6 |
Less: current portion | 0 | -0.6 |
Total long-term debt | $172 | $135 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jun. 30, 2012 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 |
Minimum | Maximum | Charming Shoppes Acquisition | Charming Shoppes Acquisition | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | State and Local Jurisdiction | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | Internal Revenue Service (IRS) | |||
Period of Expiration One to Five | Period of Expiration Six To Ten | Period of Expiration Eleven to Fifteen | Period of Expiration Sixteen to Twenty | Minimum | Maximum | Minimum | Maximum | |||||||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. federal statutory income tax rate | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings of foreign subsidiaries, reinvested to fund Canadian expansion | $45.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax reversed due to change in indefinite investing assertion | 11.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undistributed earnings of foreign subsidiaries | 66.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | ' | ' | ' | ' | 14.7 | 69.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | ' | ' | ' | ' | 22.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance | 2.8 | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | ' | ' | ' | ' | 57.1 | 12.6 | 16.3 | 19.3 | 8.9 | ' | ' | 14.7 | ' | ' |
Net operating loss carryforwards expiration period (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '20 years | '20 years | ' | ' |
Operating Loss Carryforwards, Year of Expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2028 | '2031 |
Unrecognized tax benefits (including accrued interest and penalties) | 40.9 | 44.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated decrease in unrecognized tax benefits, over the next twelve months | 5.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross unrecognized tax benefits that would affect effective tax rate, including interest and penalties | 29.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total tax credits expected to receive | $60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to recognized tax incentives | ' | ' | '10 years | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Domestic_and_Fore
Income Taxes (Domestic and Foreign Pretax Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Domestic and Foreign Income [Line Items] | ' | ' | ' |
Income (Loss) from continuing operations before provision for income taxes | $203.50 | $242.60 | $279 |
Domestic Tax Authority | ' | ' | ' |
Domestic and Foreign Income [Line Items] | ' | ' | ' |
Income (Loss) from continuing operations before provision for income taxes | 144.7 | 189.8 | 237.9 |
Foreign Tax Authority | ' | ' | ' |
Domestic and Foreign Income [Line Items] | ' | ' | ' |
Income (Loss) from continuing operations before provision for income taxes | $58.80 | $52.80 | $41.10 |
Income_Taxes_Provisions_Benefi
Income Taxes (Provisions (Benefits) from Continuing Operations for Current and Deferred Income Taxes) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Current: | ' | ' | ' | |||
Federal | $15.20 | [1] | $30.60 | [1] | $66.60 | [1] |
State and local | 13.5 | [1] | 5.7 | [1] | 16.4 | [1] |
Foreign | 12.3 | 10.6 | 7.9 | |||
Current income tax expense (benefit), total | 41 | 46.9 | 90.9 | |||
Deferred: | ' | ' | ' | |||
Federal | 24.9 | 38.6 | 20.6 | |||
State and local | -0.2 | 1.4 | -4.4 | |||
Foreign | -0.4 | 0.5 | 0.1 | |||
Total deferred income tax expense (benefit), total | 24.3 | 40.5 | 16.3 | |||
Total provision for income taxes from continuing operations | 65.3 | 87.4 | 107.2 | |||
Income tax benefit related to stock-based compensation and other arrangements | $4.20 | $14.10 | $7.30 | |||
[1] | Excludes federal, state and local tax benefits of approximately $4.2 million in Fiscal 2014, $14.1 million in Fiscal 2013 and $7.3 million in Fiscal 2012 resulting from stock-based compensation arrangements. Such amounts were recorded within equity. |
Income_Taxes_Differences_Betwe
Income Taxes (Differences Between Income Taxes Expected at U.S. Federal Statutory Income Tax Rate and Income Taxes Provided) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Provision for income taxes from continuing operations at the U.S. federal statutory rate | $71.20 | $84.90 | $97.70 |
Increase (decrease) due to: | ' | ' | ' |
State and local income taxes, net of federal benefit | 8.8 | 8.4 | 9 |
Net change relating to uncertain income tax benefits | -2.3 | -6.4 | -5.5 |
Increase in indefinite reinvestment assertion for foreign earnings | -11.6 | -0.9 | -1.7 |
Other – net | -0.8 | 1.4 | 7.7 |
Total provision for income taxes from continuing operations | $65.30 | $87.40 | $107.20 |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of Net Deferred Tax Assets (Liabilities)) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventory capitalization and inventory-related items | $14.30 | $13.40 |
Tax credit and net operating loss carryforwards | 14.2 | 34.5 |
Accrued payroll & benefits | 59.9 | 59 |
Share-based compensation | 23.1 | 24.4 |
Straight-line rent | 50 | 56.4 |
Federal benefit of uncertain tax positions | 15.5 | 13.4 |
Other items | 18.8 | 26.9 |
Total deferred tax assets | 195.8 | 228 |
Deferred tax liabilities: | ' | ' |
Depreciation | 85.8 | 88.7 |
Amortization | 171.7 | 162.5 |
Foreign unremitted earnings | 20.7 | 23.9 |
Other items | 15.8 | 28.8 |
Total deferred tax liabilities | 294 | 303.9 |
Valuation allowance | -2.8 | -2.8 |
Net deferred tax liabilities | ($101) | ($78.70) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Beginning and Ending amounts of Unrecognized Tax Benefits, Excluding Interest and Penalties) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefit beginning balance | $31.20 | $40.50 | $17.40 |
Additions related to acquisitions | 0 | 2.8 | 35.7 |
Additions related to current period tax positions | 1.5 | 1.5 | 0.7 |
Additions related to tax positions in prior years | 4.3 | 2.2 | 0.7 |
Reductions related to prior period tax positions | 0 | -3 | -7 |
Reductions related to settlements with taxing authorities | -1.5 | -5.7 | -2.1 |
Reductions related to expiration of statute of limitations | -5.6 | -7.1 | -4.9 |
Unrecognized tax benefit ending balance | $29.90 | $31.20 | $40.50 |
Income_Taxes_Reconciliation_of1
Income Taxes (Reconciliation of Beginning and Ending Amounts of Accrued Interest and Penalties Related to Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Accrued interest and penalties beginning balance | $16.50 | $21.20 | $5.10 |
Additions related to acquisitions | 0 | 0 | 18.7 |
Reductions charged to expense | -2.7 | -4.7 | -2.6 |
Accrued interest and penalties ending balance | $13.80 | $16.50 | $21.20 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Retirement Savings Plan (401 (k)) | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employer matching contribution of the first 5% employee contribution | 50.00% | ' | ' |
Defined Contribution Plan, Employee's Contribution Matched By Employer | 5.00% | ' | ' |
Defined Contribution Plan, Employers Matching Contribution, Vesting Percentage | 100.00% | ' | ' |
401(k): Employer vesting period requirement | '3 years | ' | ' |
Expenses related to contributions and administration of plans | $5.20 | $4.70 | $3.10 |
Executive Retirement Plan | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employer matching contribution of the first 5% employee contribution | 100.00% | ' | ' |
Defined Contribution Plan, Employee's Contribution Matched By Employer | 5.00% | ' | ' |
Defined Contribution Plan, Employers Matching Contribution, Vesting Percentage | 100.00% | ' | ' |
Expenses related to contributions and administration of plans | 7.2 | 7.7 | 1.4 |
Employee contribution of base salary and bonus | 95.00% | ' | ' |
ERP: vesting period requirement for employer contribution | '5 years | ' | ' |
Executive Retirement Plan, employer matching contributions | 3.4 | 2.7 | 2.2 |
Number reference investment fund elections offered to participating employees | 28 | ' | ' |
Defined Contribution Pension Plan Liabilities, Current | 3.6 | 11.8 | ' |
Defined contribution plan, liabilities recognized | 65.9 | 62.4 | ' |
Defined contribution plan, noncurrent liabilities recognized | $62.30 | $50.60 | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Defined Contribution Plan Disclosure [Line Items] | ' | ' | ' |
Employee share purchase during each quarterly offering period, discount | 10.00% | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | |||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | ||
Commitments and Contingencies [Line Items] | ' | ' | ' | |
Initial terms of lease, period (in years) | '10 years | ' | ' | |
Option to extend lease, period (in years) | '5 years | ' | ' | |
Total future minimum rentals | $1,921,200,000 | [1],[2] | ' | ' |
Operating Leases, Rent Expense | 552,200,000 | 541,200,000 | 371,400,000 | |
Period prior to shipment date to cancel commitments (in days) | '30 days | ' | ' | |
Inventory purchase commitment | 783,200,000 | ' | ' | |
Outstanding letter of credit | 18,000,000 | ' | ' | |
Other off-balance sheet firm commitments | 813,900,000 | ' | ' | |
Chairman or Related Trusts [Member] | ' | ' | ' | |
Commitments and Contingencies [Line Items] | ' | ' | ' | |
Number of leased stores with related parties | 2 | ' | ' | |
Annual future minimum rentals related-party leases | 400,000 | ' | ' | |
Total future minimum rentals | 500,000 | ' | ' | |
Operating Leases, Rent Expense | $400,000 | $400,000 | $400,000 | |
Minimum | ' | ' | ' | |
Commitments and Contingencies [Line Items] | ' | ' | ' | |
Period of preliminary commitments made in advance of planned receipt (in months) | '5 months | ' | ' | |
Maximum | ' | ' | ' | |
Commitments and Contingencies [Line Items] | ' | ' | ' | |
Period of preliminary commitments made in advance of planned receipt (in months) | '7 months | ' | ' | |
[1] | Net of sublease income, which is not significant in any period. | |||
[2] | Although such amounts are generally non-cancelable, certain leases are cancelable if specified sales levels are not achieved. All future minimum rentals under such leases have been included in the above table. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Summary of Occupancy Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Base rentals | $395.50 | $391.60 | $269 |
Percentage rentals | 23.2 | 21 | 14.1 |
Other occupancy costs, primarily CAM and real estate taxes | 133.5 | 128.6 | 88.3 |
Rent expense, total | 552.2 | 541.2 | 371.4 |
Less: Rental income from third parties | 0 | 0 | -1.1 |
Total | $552.20 | $541.20 | $370.30 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Future Minimum Rentals Under Non-Cancelable Operating Leases) (Details) (USD $) | Jul. 26, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' | |
2015 | $399,100,000 | [1],[2] |
2016 | 352,600,000 | [1],[2] |
2017 | 295,600,000 | [1],[2] |
2018 | 232,100,000 | [1],[2] |
2019 | 171,500,000 | [1],[2] |
Subsequent years | 470,300,000 | [1],[2] |
Total future minimum rentals | $1,921,200,000 | [1],[2] |
[1] | Net of sublease income, which is not significant in any period. | |
[2] | Although such amounts are generally non-cancelable, certain leases are cancelable if specified sales levels are not achieved. All future minimum rentals under such leases have been included in the above table. |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 31, 2010 | Jul. 30, 2011 | ||
Equity [Abstract] | ' | ' | ' | ' | ' | |
Common Stock, shares authorized | 360,000,000 | ' | ' | ' | ' | |
Preferred Stock, shares authorized | 100,000 | ' | ' | ' | ' | |
Preferred Stock, Shares Issued | 0 | ' | ' | ' | ' | |
Preferred Stock, shares outstanding | 0 | ' | ' | ' | ' | |
Share repurchase program authorized amount | ' | ' | ' | $100,000,000 | ' | |
Share repurchase program additional authorized amount | ' | ' | ' | ' | 100,000,000 | |
Stock Repurchase, Accumulated Repurchase, Amount | ' | ' | 110,100,000 | ' | ' | |
Purchases of common stock, shares | 0 | 0 | 2,700,000 | ' | ' | |
Stock Repurchased and Retired During Period, Value | ' | ' | 37,100,000 | [1] | ' | ' |
Stock repurchase program remaining authorized repurchase amount | $89,900,000 | ' | ' | ' | ' | |
[1] | Shares of common stock repurchased historically have been retired, resulting in a net decrease to retained earnings. |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Jul. 26, 2014 | Oct. 31, 2012 | Oct. 27, 2012 | Jul. 26, 2014 |
In Millions, except Share data, unless otherwise specified | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Restricted Stock Units (RSUs) | Service Based Restricted Units | Cash Settled LTIP Awards | Cash Settled LTIP Awards | Cash Settled LTIP Awards | ||
Minimum | Maximum | employee | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate number of share that may be issued under Stock Incentive Plan | 51,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for future grants under stock incentive plan | 10,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options vesting period | ' | ' | ' | ' | ' | '4 years | '5 years | ' | '4 years | ' | ' | '3 years |
Stock options expiration period | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' |
Total unrecognized compensation costs related to non-vested option | ' | ' | $26.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average years expected to be recognized over (years) | ' | ' | '2 years 7 months | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 10 months 24 days |
Total intrinsic value of options exercised | ' | ' | 17.1 | 44.5 | 25.5 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | 14.1 | 11.8 | 10.3 | ' | ' | ' | ' | ' | ' | ' |
Number of shares issuable per vesting of one restricted stock or unit | ' | ' | ' | ' | ' | ' | ' | 2.3 | ' | ' | ' | ' |
Awards canceled in exchange for grants of new awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Number of employees affected by cancelled awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.2 |
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | 5.3 | 8.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Share-based Arrangements, Liability, Current | 1.8 | 4.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent | 3.5 | 3.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $6.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Total Compensation Expense and Associated Income Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Compensation expense | $30.60 | $29.50 | $28.40 |
Income tax benefit | ($11.50) | ($11) | ($10.70) |
Stock_Based_Compensation_Weigh
Stock Based Compensation (Weighted-Average Assumptions Used to Estimate Fair Value of Stock Options Granted) (Details) (USD $) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Expected term (years) | '3 years 10 months 24 days | '3 years 10 months 24 days | '3 years 10 months 24 days |
Expected volatility | 40.00% | 41.60% | 41.70% |
Risk-free interest rate | 1.50% | 0.70% | 0.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value | $7.11 | $7.29 | $4.77 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of Stock Option Activity Under All Plans) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | ||
Number of Shares | ' | ' | ||
Number of Shares, Options outstanding - Beginning | 12,159,600 | ' | ||
Number of Shares, Granted | 2,812,200 | ' | ||
Number of Shares, Exercised | -1,745,100 | ' | ||
Number of Shares, Cancelled/Forfeited | -512,300 | ' | ||
Number of Shares, Options outstanding - Ending | 12,714,400 | 12,159,600 | ||
Number of Shares, Options vested and expected to vest at year-end | 12,371,300 | [1] | ' | |
Number of Shares, Options exercisable at year-end | 6,741,200 | ' | ||
Weighted-Average Exercise Price | ' | ' | ||
Weighted-Average Exercise Price, Options outstanding - Beginning | $12.24 | ' | ||
Weighted-Average Exercise Price, Granted | $19.87 | ' | ||
Weighted-Average Exercise Price, Exercised | $9.96 | ' | ||
Weighted-Average Exercise Price, Cancelled/Forfeited | $17.32 | ' | ||
Weighted-Average Exercise Price, Options outstanding - Ending | $14.04 | $12.24 | ||
Weighted-Average Exercise Price, Options vested and expected to vest at year-end | $14.42 | [1] | ' | |
Weighted-Average Exercise Price, Options exercisable at year-end | $10.57 | ' | ||
Weighted-Average Remaining Contractual Terms (years) | ' | ' | ||
Weighted-Average Remaining Contractual Terms (years), Options outstanding - Beginning | '5 years 7 months 11 days | '6 years 4 months 24 days | ||
Weighted-Average Remaining Contractual Terms (years), Options outstanding - Ending | '5 years 7 months 11 days | '6 years 4 months 24 days | ||
Weighted-Average Remaining Contractual Terms (years), Options vested and expected to vest at year-end | '5 years 8 months 19 days | [1] | ' | |
Weighted-Average Remaining Contractual Terms (years), Options exercisable at year-end | '4 years 7 months 11 days | ' | ||
Aggregate Intrinsic Value | ' | ' | ||
Aggregate Intrinsic Value, Options outstanding - Beginning | $81.80 | [2] | ' | |
Aggregate Intrinsic Value, Options outstanding - Ending | 45.7 | [2] | 81.8 | [2] |
Aggregate Intrinsic Value, Options vested and expected to vest at year-end | 45.6 | [1],[2] | ' | |
Aggregate Intrinsic Value, Options exercisable at year-end | $39.90 | [2] | ' | |
[1] | The number of options expected to vest takes into consideration estimated expected forfeitures. | |||
[2] | The intrinsic value is the amount by which the market price at the end of the period of the underlying share of stock exceeds the exercise price of the stock option. |
StockBased_Compensation_Summar2
Stock-Based Compensation (Summary of Restricted Equity Awards Activity) (Details) (USD $) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Service-based Restricted Equity Awards | ' | ' | ' |
Number of shares | ' | ' | ' |
Nonvested Number of shares at beginning of the year | 1,863,200 | ' | ' |
Granted | 436,500 | ' | ' |
Vested | -984,300 | ' | ' |
Canceled/Forfeited | -67,700 | ' | ' |
Nonvested Number of shares at the end of the year | 1,247,700 | 1,863,200 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the beginning of the year | $17.77 | ' | ' |
Granted | $19.23 | $20.22 | $15.10 |
Vested | $18.50 | ' | ' |
Canceled/Forfeited | $18.59 | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the end of the year | $17.66 | $17.77 | ' |
Performance-based Restricted Equity Awards | ' | ' | ' |
Number of shares | ' | ' | ' |
Nonvested Number of shares at beginning of the year | 640,100 | ' | ' |
Granted | 185,100 | ' | ' |
Vested | -163,100 | ' | ' |
Canceled/Forfeited | 0 | ' | ' |
Nonvested Number of shares at the end of the year | 662,100 | 640,100 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the beginning of the year | $15.08 | ' | ' |
Granted | $20.06 | $18.61 | $12.74 |
Vested | $12.21 | ' | ' |
Canceled/Forfeited | $0 | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the end of the year | $17.18 | $15.08 | ' |
Market-based Restricted Equity Awards | ' | ' | ' |
Number of shares | ' | ' | ' |
Nonvested Number of shares at beginning of the year | 189,700 | ' | ' |
Granted | 41,300 | ' | ' |
Vested | -54,400 | ' | ' |
Canceled/Forfeited | 0 | ' | ' |
Nonvested Number of shares at the end of the year | 176,600 | 189,700 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the beginning of the year | $14.35 | ' | ' |
Granted | $19.46 | $18.13 | $12.33 |
Vested | $10.68 | ' | ' |
Canceled/Forfeited | $0 | ' | ' |
Nonvested Weighted-Average Grant Date Fair Value at the end of the year | $16.68 | $14.35 | ' |
StockBased_Compensation_Total_
Stock-Based Compensation (Total Unrecognized Compensation and Weighted-Average Years Expected to be Recognized) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jul. 26, 2014 |
Service-based Restricted Equity Awards | ' |
Unrecognized Share Based Compensation Expense [Line Items] | ' |
Total unrecognized compensation | $11.20 |
Weighted-average years expected to be recognized over (years) | '3 years 2 months 14 days |
Performance-based Restricted Equity Awards | ' |
Unrecognized Share Based Compensation Expense [Line Items] | ' |
Total unrecognized compensation | 3.6 |
Weighted-average years expected to be recognized over (years) | '1 year 8 months 19 days |
Market-based Restricted Equity Awards | ' |
Unrecognized Share Based Compensation Expense [Line Items] | ' |
Total unrecognized compensation | $1.10 |
Weighted-average years expected to be recognized over (years) | '1 year 6 months 5 days |
StockBased_Compensation_Additi
Stock-Based Compensation (Additional Information Pertaining to Restricted Equity Awards Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Service-based Restricted Equity Awards | ' | ' | ' |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | ' | ' | ' |
Weighted-average grant date fair value of awards granted (dollars per share) | $19.23 | $20.22 | $15.10 |
Total fair value of awards vested | $12.90 | $10 | $5 |
Performance-based Restricted Equity Awards | ' | ' | ' |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | ' | ' | ' |
Weighted-average grant date fair value of awards granted (dollars per share) | $20.06 | $18.61 | $12.74 |
Total fair value of awards vested | 2.6 | 0 | 0 |
Market-based Restricted Equity Awards | ' | ' | ' |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | ' | ' | ' |
Weighted-average grant date fair value of awards granted (dollars per share) | $19.46 | $18.13 | $12.33 |
Total fair value of awards vested | $0.60 | $0 | $0 |
StockBased_Compensation_Summar3
Stock-Based Compensation (Summary of Cash-Settled Awards) (Details) (Cash Settled LTIP Awards) | 12 Months Ended |
Jul. 26, 2014 | |
Cash Settled LTIP Awards | ' |
Number of shares | ' |
Nonvested Number of shares at beginning of the year | 855,400 |
Granted | 401,300 |
Vested | -287,500 |
Canceled/Forfeited | -111,200 |
Nonvested Number of shares at the end of the year | 858,000 |
Segments_Net_Sales_and_Operati
Segments (Net Sales and Operating Income) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
segment | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | $4,790.60 | $4,714.90 | $3,353.30 | |||
Total operating income | 210.8 | 265.3 | 292.6 | |||
Less unallocated acquisition-related, integration and restructuring costs | -34 | -34.6 | -25.4 | |||
Number of reportable segments | 5 | ' | ' | |||
Justice | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,384.30 | 1,407.40 | 1,306.70 | |||
Total operating income | 99.3 | 182.3 | 172.5 | |||
Lane Bryant | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,080 | [1] | 1,050.10 | [1] | 119.7 | [1] |
Total operating income | -4.3 | [1] | -30.1 | [1] | -10.1 | [1] |
Maurices | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 971.4 | 917.6 | 852.9 | |||
Total operating income | 86 | 107 | 102.7 | |||
Dressbarn | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 1,022.50 | 1,020.70 | 1,037.60 | |||
Total operating income | 39.4 | 30.3 | 56.9 | |||
Catherines | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Total net sales | 332.4 | [1] | 319.1 | [1] | 36.4 | [1] |
Total operating income | 24.4 | [1] | 10.4 | [1] | -4 | [1] |
Corporate Segment | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Less unallocated acquisition-related, integration and restructuring costs | ($34) | ($34.60) | ($25.40) | |||
[1] | The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. |
Segments_Depreciation_and_Amor
Segments (Depreciation and Amortization Expense and Capital Expenditures) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | $193.60 | $176 | $107.40 | |||
Capital expenditures | 477.5 | 290.9 | 150.4 | |||
Non-cash capital expenditures, capitalization of fixed assets and recognition of related obligations | 64.4 | 58.9 | 13.4 | |||
Justice | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | 60.7 | 56.3 | 42.8 | |||
Capital expenditures | 93.5 | [1] | 65.9 | [1] | 58.9 | [1] |
Lane Bryant | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | 45.6 | [2] | 43.7 | [2] | 5.2 | [2] |
Capital expenditures | 53.5 | [1],[2] | 49.1 | [1],[2] | 3.9 | [1],[2] |
Maurices | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | 39.5 | 31.5 | 26.1 | |||
Capital expenditures | 54 | [1] | 45.1 | [1] | 42.4 | [1] |
Dressbarn | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | 40.5 | 38.5 | 32.5 | |||
Capital expenditures | 93.5 | [1] | 50.3 | [1] | 45 | [1] |
Catherines | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Depreciation and amortization expense | 7.3 | [2] | 6 | [2] | 0.8 | [2] |
Capital expenditures | 7.3 | [2] | 2.7 | [2] | 0.2 | [2] |
Corporate Segment | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Capital expenditures | $175.70 | [3] | $77.80 | [3] | $0 | [3] |
[1] | Excludes non-cash capital expenditures of $64.4 million in Fiscal 2014, $58.9 million in Fiscal 2013 and $13.4 million in Fiscal 2012. | |||||
[2] | The Charming Shoppes Acquisition was consummated on June 14, 2012; therefore the data related to the Lane Bryant and Catherines segments for Fiscal 2012 is only a partial period from the acquisition date to July 28, 2012. | |||||
[3] | ncludes capital expenditures for store-related capital improvements, investments in our technological and supply chain infrastructure and investments in corporate office space to support our growing operations. |
Segments_Total_Assets_Details
Segments (Total Assets) (Details) (USD $) | Jul. 26, 2014 | Jul. 27, 2013 | ||
In Millions, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | $3,123.80 | $2,871.70 | ||
Justice | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 858.3 | 745.3 | ||
Lane Bryant | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 866.4 | 842.5 | ||
Maurices | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 535.5 | 512.3 | ||
Dressbarn | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 358.2 | 309.6 | ||
Catherines | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | 86.6 | 83 | ||
Corporate | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Assets | $418.80 | [1] | $379 | [1] |
[1] | Includes assets specifically identified as Corporate assets, principally cash, investments, corporate fixed assets, as discussed above, and other corporate assets. |
Segments_Revenue_from_external
Segments Revenue from external customers by products (Details) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of Total net Sales | 100.00% | 100.00% | 100.00% |
Apparel | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of Total net Sales | 83.00% | 83.00% | 82.00% |
Accessories and other | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Percentage of Total net Sales | 17.00% | 17.00% | 18.00% |
Additional_Financial_Informati2
Additional Financial Information (Narrative) (Details) (USD $) | 12 Months Ended | ||
Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Non-cash capital expenditures, capitalization of fixed assets and recognition of related obligations | $64,400,000 | $58,900,000 | $13,400,000 |
Other non-cash investing or financing activities | $0 | $0 | $0 |
Additional_Financial_Informati3
Additional Financial Information (Cash Interest and Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 26, 2014 | Jul. 27, 2013 | Jul. 28, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Cash paid for interest | $4.60 | $15.60 | $1.30 |
Cash paid for income taxes | $42.10 | $19.70 | $109.40 |