Dave & Buster's Entertainment (PLAY) 10-Q 11 Jun 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 06, 2018	Jun. 06, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	May 6, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	PLAY
Entity Registrant Name	Dave & Buster's Entertainment, Inc.
Entity Central Index Key	1,525,769
Current Fiscal Year End Date	--02-03
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		39,372,312

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 06, 2018	Feb. 04, 2018
Current assets:
Cash and cash equivalents	$ 16,914	$ 18,795
Inventories	28,332	27,560
Prepaid expenses	20,562	19,052
Income taxes receivable	995	4,867
Other current assets	28,591	24,633
Total current assets	95,394	94,907
Property and equipment (net of $499,966 and $474,330 accumulated depreciation as of May 6, 2018 and February 4, 2018, respectively)	757,082	726,455
Deferred tax assets	7,169	7,789
Tradenames	79,000	79,000
Goodwill	272,603	272,566
Other assets and deferred charges	16,058	16,313
Total assets	1,227,306	1,197,030
Current liabilities:
Current installments of long-term debt	15,000	15,000
Accounts payable	55,732	54,627
Accrued liabilities	138,195	135,161
Income taxes payable	9,307	3,037
Total current liabilities	218,234	207,825
Deferred income taxes	11,873	10,213
Deferred occupancy costs	198,878	184,994
Other liabilities	20,557	21,103
Long-term debt, net	339,554	351,249
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 42,801,006 shares at May 6, 2018 and 42,660,806 shares at February 4, 2018; outstanding: 39,619,726 shares at May 6, 2018 and 40,102,085 shares at February 4, 2018	428	427
Preferred stock, 50,000,000 authorized; none issued
Paid-in capital	323,211	320,488
Treasury stock, 3,181,280 and 2,558,721 shares as of May 6, 2018 and February 4, 2018, respectively	(175,372)	(147,331)
Accumulated other comprehensive loss	(518)	(249)
Retained earnings	290,461	248,311
Total stockholders' equity	438,210	421,646
Total liabilities and stockholders' equity	$ 1,227,306	$ 1,197,030

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 06, 2018	Feb. 04, 2018
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 499,966	$ 474,330
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	42,801,006	42,660,806
Common stock, shares outstanding	39,619,726	40,102,085
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Treasury stock, shares	3,181,280	2,558,721

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Statement of Comprehensive Income [Abstract]
Food and beverage revenues	$ 139,755	$ 129,811
Amusement and other revenues	192,435	174,337
Total revenues	332,190	304,148
Cost of food and beverage	36,020	32,702
Cost of amusement and other	21,119	16,283
Total cost of products	57,139	48,985
Operating payroll and benefits	72,894	65,190
Other store operating expenses	93,340	82,368
General and administrative expenses	15,654	14,978
Depreciation and amortization expense	27,506	23,928
Pre-opening costs	7,053	4,471
Total operating costs	273,586	239,920
Operating income	58,604	64,228
Interest expense, net	2,857	1,854
Income before provision for income taxes	55,747	62,374
Provision for income taxes	13,597	19,578
Net income	42,150	42,796
Unrealized foreign currency translation loss	(269)	(292)
Total comprehensive income	$ 41,881	$ 42,504
Net income per share:
Basic	$ 1.06	$ 1.02
Diluted	$ 1.04	$ 0.98
Weighted average shares used in per share calculations:
Basic	39,695,421	42,027,551
Diluted	40,612,388	43,522,403

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 3 months ended May 06, 2018 - USD ($) $ in Thousands	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock at Cost [Member]	Accumulated Other Comprehensive Gain (Loss) [Member]	Retained Earnings [Member]
Beginning balance at Feb. 04, 2018	$ 421,646	$ 427	$ 320,488	$ (147,331)	$ (249)	$ 248,311
Beginning balance, shares at Feb. 04, 2018		42,660,806		2,558,721
Net income	42,150					42,150
Unrealized foreign currency translation loss	(269)				(269)
Share-based compensation	2,388		2,388
Issuance of common stock	336	$ 1	335
Issuance of common stock, shares		140,200
Repurchase of common stock	$ (28,041)			$ (28,041)
Repurchase of common stock, shares	606,308			622,559
Ending balance at May. 06, 2018	$ 438,210	$ 428	$ 323,211	$ (175,372)	$ (518)	$ 290,461
Ending balance, shares at May. 06, 2018		42,801,006		3,181,280

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Cash flows from operating activities:
Net income	$ 42,150	$ 42,796
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	27,506	23,928
Deferred taxes	2,280	(635)
Loss on disposal of fixed assets	262	645
Share-based compensation	2,388	2,063
Other, net	462	(35)
Changes in assets and liabilities:
Inventories	(772)	(1,159)
Prepaid expenses	(1,510)	(1,926)
Income tax receivable	3,872	4,678
Other current assets	(3,954)	(5,347)
Other assets and deferred charges	162	(613)
Accounts payable	3,558	4,089
Accrued liabilities	2,956	3,010
Income taxes payable	6,270	14,284
Deferred occupancy costs	13,961	9,177
Other liabilities	(645)	859
Net cash provided by operating activities	98,946	95,814
Cash flows from investing activities:
Capital expenditures	(61,389)	(45,718)
Proceeds from sales of property and equipment	17	23
Net cash used in investing activities	(61,372)	(45,695)
Cash flows from financing activities:
Proceeds from debt	65,000	16,000
Payments of debt	(76,750)	(35,875)
Proceeds from the exercise of stock options	336
Proceeds from issuance of treasury stock		743
Repurchase of common stock under share repurchase program	(27,368)	(31,125)
Repurchases of common stock to satisfy employee withholding tax obligations	(673)
Net cash used in financing activities	(39,455)	(50,257)
Decrease in cash and cash equivalents	(1,881)	(138)
Beginning cash and cash equivalents	18,795	20,083
Ending cash and cash equivalents	16,914	19,945
Supplemental disclosures of cash flow information:
Decrease in fixed asset accounts payable	(2,453)	(2,394)
Cash paid for income taxes, net	1,160	1,258
Cash paid for interest, net	$ 2,635	$ 1,613

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	May 06, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the thirteen weeks ended May 6, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 3, 2019. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended February 4, 2018, included in our Annual Report on Form 10-K We operate on a 52 or 53 week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period has 13 weeks, except in a 53 week year when the fourth quarter has 14 weeks. Fiscal 2018 and 2017, which end on February 3, 2019 and February 4, 2018, contain 52 and 53 weeks, respectively. Cash and cash equivalents As of May 6, 2018, the Company had no restricted cash, and the adoption of Accounting Standards Update (“ASU”) 2016-18, 2016-15, Other current assets Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, and our credit facility. The carrying amount of cash and cash equivalents, accounts and notes receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. Non-financial Revenue recognition Food and beverage revenues are recognized when payment is tendered at the point of sale. Amusement revenues are primarily recognized upon utilization of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games. We have recognized a liability for the estimated amount of unused game play credits which we believe our customers will utilize in the future based on credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. Total deferred revenue related to our deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen weeks ended May 6, 2018, we recognized revenue of approximately $10,000 related to the amount in deferred amusement revenue as of the end of fiscal 2017. Proceeds from the sale of gift cards are deferred and recognized as revenue when the holder redeems the card or its likelihood of redemption becomes remote (“breakage”) and the Company determines that there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions. The determination of the gift card breakage rate is based on the Company’s specific historical redemption patterns and the Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. We review estimated redemption rates regularly and on an ongoing basis and revise it as necessary throughout the year. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. Total deferred revenue related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets and includes the full value of unredeemed gift cards less any breakage revenue recognized. During the thirteen weeks ended May 6, 2018, we recognized revenue of approximately $1,800 related to the amount in deferred revenue as of the end of fiscal 2017, of which approximately $260 was gift card breakage revenue. Certain of our promotional programs include multiple performance obligations that include both a delivered and undelivered component and are discounted from the standalone selling prices of the deliverables. We allocate the entire discount to the amusement deliverable. Revenues are presented net of sales taxes. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities. Share repurchase program 10b5-1 The Company grants performance restricted stock units pursuant to our 2014 incentive compensation plan. For the performance restricted stock units that are granted, the number of shares of common stock issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that the Company pays in cash to the appropriate taxing authorities on behalf of our employees. In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the first quarter of fiscal 2018, we withheld 16,251 shares of common stock to satisfy $673 of employees’ tax obligations. Recent accounting pronouncements 2016-02, right-of-use In January 2017, the FASB issued ASU 2017-04,

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	May 06, 2018
Text Block [Abstract]
Accrued Liabilities	Note 2: Accrued Liabilities Accrued liabilities consist of the following as of: May 6, 2018 February 4, 2018 Deferred amusement revenue $ 36,749 $ 33,806 Amusement redemption liability 19,202 18,041 Compensation and benefits 17,629 19,959 Rent 17,501 16,478 Property taxes 7,257 6,054 Deferred gift card revenue 6,889 7,583 Customer deposits 5,298 3,250 Current portion of long-term insurance 4,600 4,600 Sales and use taxes 3,861 5,191 Inventory liabilities 3,825 4,336 Utilities 3,468 3,554 Other (refer to Note 4) 11,916 12,309 Total accrued liabilities $ 138,195 $ 135,161

Debt

Debt	3 Months Ended
	May 06, 2018
Debt Disclosure [Abstract]
Debt	Note 3: Debt Long-term debt consists of the following as of: May 6, 2018 February 4, 2018 Credit facility - term $ 292,500 $ 296,250 Credit facility - revolver 63,000 71,000 Total debt outstanding 355,500 367,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (946 ) (1,001 ) Long-term debt, net $ 339,554 $ 351,249 On August 17, 2017, we entered into a senior secured credit facility that provides a $300,000 term loan facility and a $500,000 revolving credit facility with a maturity date of August 17, 2022. The $500,000 revolving credit facility includes a $35,000 letter of credit sub-facility sub-facility. The interest rates per annum applicable to loans, other than swing loans, under our existing credit facility are currently set based on a defined LIBOR rate plus an applicable margin. Swing loans bear interest at a base rate plus an applicable margin. The loans bear interest subject to a pricing grid based on a total leverage ratio, at LIBOR plus a spread ranging from 1.25% to 2.00% for the term loans and the revolving loans. The stated weighted average interest rate at May 6, 2018 was 3.15%. The year-to-date Our credit facility contains restrictive covenants that, among other things, place certain limitations on our ability to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our credit facility requires us to maintain certain financial ratio covenants. As of May 6, 2018, we were in compliance with our restrictive and financial ratio covenants. Interest expense, net Thirteen Weeks Thirteen Weeks Ended Ended May 6, 2018 April 30, 2017 Interest expense on credit facilities $ 3,023 $ 1,708 Amortization of issuance cost 198 167 Interest income (28 ) (83 ) Capitalized interest (326 ) (141 ) Change in fair value of interest rate cap (10 ) 203 Total interest expense, net $ 2,857 $ 1,854

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	May 06, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 4: Commitments and Contingencies We are subject to certain legal proceedings and claims that arise in the ordinary course of our business, including claims alleging violations of federal and state law regarding workplace and employment matters, discrimination and similar matters. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition. On June 30, 2017, we agreed to settle litigation related to alleged violations of the Employee Retirement Income Security Act. Once the settlement agreement is finalized, it will be subject to court approval. To cover the estimated net costs of settlement, including estimated payment to any opt-in During the third quarter of fiscal 2017, three major hurricanes made landfall impacting areas where we operate our stores, which negatively impacted store revenues. During the first quarter of fiscal 2018, we recognized business interruption insurance recoveries of approximately $500 related to one of the events, which are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. We continue to work closely with our insurers to finalize all property and business interruption insurance claims, although the amount of any future recoveries has not yet been determined. We lease certain property and equipment under various non-cancelable The following table sets forth our lease commitments as of May 6, 2018: 1 year or less $ 110,212 2 years 107,698 3 years 101,409 4 years 94,387 5 years 88,929 Thereafter 1,049,675 Total future payments $ 1,552,310 As of May 6, 2018, we have signed operating lease agreements for six future sites which are expected to open in fiscal 2018. The landlord has fulfilled the obligations to commit us to the lease terms under these agreements and therefore, the future obligations related to these locations are included in the table above. As of May 6, 2018, we have signed twenty additional operating lease agreements for future sites. Our commitments under these agreements are contingent upon, among other things, the landlord’s delivery of access to the premises for construction. Future obligations related to these agreements are not included in the table above.

Income Taxes

Income Taxes	3 Months Ended
	May 06, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 5: Income Taxes The effective income tax rate for the 13 weeks ended May 6, 2018 was 24.4%, compared to 31.4% for the 13 weeks ended April 30, 2017. This decrease in the effective tax rate primarily reflects a favorable impact from the Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017. Other differences from the statutory rate are due to the FICA tip credits, state income taxes and the impact of certain income and expense items which are not recognized for income tax purposes. The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21%, among other provisions. We believe we have properly estimated our federal and state income tax liabilities for the impacts of the Tax Act, including provisional amounts under SAB No. 118 related to the deferred tax rate change, the utilization of the bonus depreciation election and the effects on executive compensation. The Tax Act may be subject to technical amendments, as well as interpretations and implementing of regulations by the Department of Treasury and Internal Revenue Service, any of which could increase or decrease one or more impacts of the legislation. As such, we will continue to analyze the effects of the Tax Act and may record adjustments to provisional amounts during the measurement period ending no later than the end of fiscal 2018. As of May 6 2018, we have not changed the provisional estimates recognized in fiscal 2017. Any impacts to our income tax expense as a result of additional guidance will be recorded in the period in which the guidance is issued.

Earnings per share

Earnings per share	3 Months Ended
	May 06, 2018
Earnings Per Share [Abstract]
Earnings per share	Note 6: Earnings per share Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and unvested), unvested time-based restricted stock units (RSU’s) and unvested performance RSU’s to the extent performance measures were attained as of the end of the reporting period, calculated using the treasury-stock method. Potential dilutive shares are excluded from the computation of earnings per share (“EPS”) if their effect is anti-dilutive. Stock options for which the exercise price exceeds the average market price over the period are anti-dilutive and, accordingly, are excluded from the calculation. We excluded 387,824 anti-dilutive options from the calculation of common equivalent shares as of the thirteen weeks ended May 6, 2018. The following table sets forth the computation of EPS, basic and diluted for the periods indicated: Thirteen Weeks Thirteen Weeks Ended Ended (in thousands, except share and per share data) May 6, 2018 April 30, 2017 Numerator: Net income $ 42,150 $ 42,796 Denominator: Weighted average number of common shares outstanding (basic) 39,695,421 42,027,551 Weighted average dilutive impact of equity-based awards 916,967 1,494,852 Weighted average number of common and common equivalent shares outstanding (diluted) 40,612,388 43,522,403 Net income per share: Basic $ 1.06 $ 1.02 Diluted $ 1.04 $ 0.98

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	May 06, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note 7: Share-Based Compensation Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock are included in general and administrative expenses and were as follows: Thirteen Weeks Ended May 6, 2018 April 30, 2017 Stock options $ 1,358 $ 1,304 RSU’s and restricted stock 1,030 759 Total share-based compensation expense $ 2,388 $ 2,063 Transactions related to stock option awards during the thirteen weeks ended May 6, 2018 were as follows: 2014 Stock Incentive Plan 2010 Stock Incentive Plan Weighted Weighted Average Average Number Exercise Number Exercise of Options Price of Options Price Outstanding at February 4, 2018 1,001,403 $ 32.55 709,979 $ 5.88 Granted 202,423 41.65 — — Exercised (5,794 ) 34.29 (18,844 ) 7.34 Forfeited (4,177 ) 52.54 (4,498 ) 9.34 Outstanding at May 6, 2018 1,193,855 $ 34.02 686,637 $ 5.81 Exercisable at May 6, 2018 600,608 $ 31.24 672,607 $ 5.74 The total intrinsic value of options exercised during the thirteen weeks ended May 6, 2018 was $705. The unrecognized expense related to our stock option plan totaled approximately $3,503 as of May 6, 2018 and will be expensed over a weighted average period of 1.8 years. Transactions related to time-based and performance-based RSU’s and restricted stock during the thirteen weeks ended May 6, 2018 were as follows: Weighted Average Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 73,231 41.65 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (2,692 ) 45.32 Outstanding at May 6, 2018 189,970 $ 46.06 Fair value of our time-based and performance-based RSU’s and restricted stock is based on our closing stock price on the date of grant. The unrecognized expense related to our time-based and performance-based RSU’s and unvested restricted stock was $6,763 as of May 6, 2018 and will be expensed over a weighted average period of 2.3 years. During the thirteen weeks ended May 6, 2018 and April 30, 2017, excess tax benefits of $380 and $3,306, respectively, were recognized as a benefit in the “Provision for income taxes” in the Consolidated Statement of Comprehensive Income and classified as a source in operating activities in the Consolidated Statement of Cash Flows. Forfeitures are estimated at the time of grant and adjusted if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rate is based on historical experience.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	May 06, 2018
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information as prescribed by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The preparation of consolidated financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the thirteen weeks ended May 6, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year ending February 3, 2019. Our quarterly financial data should be read in conjunction with the audited financial statements and notes thereto for the year ended February 4, 2018, included in our Annual Report on Form 10-K We operate on a 52 or 53 week fiscal year that ends on the Sunday after the Saturday closest to January 31. Each quarterly period has 13 weeks, except in a 53 week year when the fourth quarter has 14 weeks. Fiscal 2018 and 2017, which end on February 3, 2019 and February 4, 2018, contain 52 and 53 weeks, respectively.
Cash and cash equivalents	Cash and cash equivalents As of May 6, 2018, the Company had no restricted cash, and the adoption of Accounting Standards Update (“ASU”) 2016-18, 2016-15,
Other current assets	Other current assets
Fair value of financial instruments	Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, accounts and notes receivable, accounts payable, and our credit facility. The carrying amount of cash and cash equivalents, accounts and notes receivable and accounts payable approximates fair value because of their short maturities. We believe that the carrying amount of our credit facility approximates its fair value because the interest rates are adjusted regularly based on current market conditions. The fair value of the Company’s credit facility was determined to be a Level Two instrument as defined by GAAP. Non-financial
Revenue recognition	Revenue recognition Food and beverage revenues are recognized when payment is tendered at the point of sale. Amusement revenues are primarily recognized upon utilization of game play credits on Power Cards purchased and used by customers to activate most of the video and redemption games. We have recognized a liability for the estimated amount of unused game play credits which we believe our customers will utilize in the future based on credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. Total deferred revenue related to our deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the thirteen weeks ended May 6, 2018, we recognized revenue of approximately $10,000 related to the amount in deferred amusement revenue as of the end of fiscal 2017. Proceeds from the sale of gift cards are deferred and recognized as revenue when the holder redeems the card or its likelihood of redemption becomes remote (“breakage”) and the Company determines that there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions. The determination of the gift card breakage rate is based on the Company’s specific historical redemption patterns and the Company recognizes gift card breakage by applying its estimate of the rate of gift card breakage over the period of estimated redemption. We review estimated redemption rates regularly and on an ongoing basis and revise it as necessary throughout the year. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. Total deferred revenue related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets and includes the full value of unredeemed gift cards less any breakage revenue recognized. During the thirteen weeks ended May 6, 2018, we recognized revenue of approximately $1,800 related to the amount in deferred revenue as of the end of fiscal 2017, of which approximately $260 was gift card breakage revenue. Certain of our promotional programs include multiple performance obligations that include both a delivered and undelivered component and are discounted from the standalone selling prices of the deliverables. We allocate the entire discount to the amusement deliverable. Revenues are presented net of sales taxes. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities.
Share repurchase program	Share repurchase program 10b5-1 The Company grants performance restricted stock units pursuant to our 2014 incentive compensation plan. For the performance restricted stock units that are granted, the number of shares of common stock issued on the date the restricted stock units vest is net of the minimum statutory withholding requirements that the Company pays in cash to the appropriate taxing authorities on behalf of our employees. In our consolidated financial statements, the Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of performance restricted stock units as common stock repurchases because they reduce the number of shares that would have been issued upon vesting. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. During the first quarter of fiscal 2018, we withheld 16,251 shares of common stock to satisfy $673 of employees’ tax obligations.
Recent accounting pronouncements	Recent accounting pronouncements 2016-02, right-of-use In January 2017, the FASB issued ASU 2017-04,

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	May 06, 2018
Text Block [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following as of: May 6, 2018 February 4, 2018 Deferred amusement revenue $ 36,749 $ 33,806 Amusement redemption liability 19,202 18,041 Compensation and benefits 17,629 19,959 Rent 17,501 16,478 Property taxes 7,257 6,054 Deferred gift card revenue 6,889 7,583 Customer deposits 5,298 3,250 Current portion of long-term insurance 4,600 4,600 Sales and use taxes 3,861 5,191 Inventory liabilities 3,825 4,336 Utilities 3,468 3,554 Other (refer to Note 4) 11,916 12,309 Total accrued liabilities $ 138,195 $ 135,161

Debt (Tables)

Debt (Tables)	3 Months Ended
	May 06, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consists of the following as of: May 6, 2018 February 4, 2018 Credit facility - term $ 292,500 $ 296,250 Credit facility - revolver 63,000 71,000 Total debt outstanding 355,500 367,250 Less: Current installments - term (15,000 ) (15,000 ) Debt issuance costs - term (946 ) (1,001 ) Long-term debt, net $ 339,554 $ 351,249
Recorded Interest Expense, Net	Interest expense, net Thirteen Weeks Thirteen Weeks Ended Ended May 6, 2018 April 30, 2017 Interest expense on credit facilities $ 3,023 $ 1,708 Amortization of issuance cost 198 167 Interest income (28 ) (83 ) Capitalized interest (326 ) (141 ) Change in fair value of interest rate cap (10 ) 203 Total interest expense, net $ 2,857 $ 1,854

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	May 06, 2018
Commitments and Contingencies Disclosure [Abstract]
Lease Commitments	The following table sets forth our lease commitments as of May 6, 2018: 1 year or less $ 110,212 2 years 107,698 3 years 101,409 4 years 94,387 5 years 88,929 Thereafter 1,049,675 Total future payments $ 1,552,310

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	May 06, 2018
Earnings Per Share [Abstract]
Summary of Calculation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of EPS, basic and diluted for the periods indicated: Thirteen Weeks Thirteen Weeks Ended Ended (in thousands, except share and per share data) May 6, 2018 April 30, 2017 Numerator: Net income $ 42,150 $ 42,796 Denominator: Weighted average number of common shares outstanding (basic) 39,695,421 42,027,551 Weighted average dilutive impact of equity-based awards 916,967 1,494,852 Weighted average number of common and common equivalent shares outstanding (diluted) 40,612,388 43,522,403 Net income per share: Basic $ 1.06 $ 1.02 Diluted $ 1.04 $ 0.98

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	May 06, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Compensation Expenses	Compensation expense related to stock options, time-based and performance-based RSU’s and restricted stock are included in general and administrative expenses and were as follows: Thirteen Weeks Ended May 6, 2018 April 30, 2017 Stock options $ 1,358 $ 1,304 RSU’s and restricted stock 1,030 759 Total share-based compensation expense $ 2,388 $ 2,063
Transactions Related to Stock Options Awards	Transactions related to stock option awards during the thirteen weeks ended May 6, 2018 were as follows: 2014 Stock Incentive Plan 2010 Stock Incentive Plan Weighted Weighted Average Average Number Exercise Number Exercise of Options Price of Options Price Outstanding at February 4, 2018 1,001,403 $ 32.55 709,979 $ 5.88 Granted 202,423 41.65 — — Exercised (5,794 ) 34.29 (18,844 ) 7.34 Forfeited (4,177 ) 52.54 (4,498 ) 9.34 Outstanding at May 6, 2018 1,193,855 $ 34.02 686,637 $ 5.81 Exercisable at May 6, 2018 600,608 $ 31.24 672,607 $ 5.74
Transactions Related to Time-based and Performance-based RSU's and Restricted Stock	Transactions related to time-based and performance-based RSU’s and restricted stock during the thirteen weeks ended May 6, 2018 were as follows: Weighted Average Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 73,231 41.65 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (2,692 ) 45.32 Outstanding at May 6, 2018 189,970 $ 46.06

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended	23 Months Ended
	May 06, 2018USD ($)StatesStoresProvinceSegment$ / sharesshares	May 06, 2018USD ($)StatesStoresProvince$ / sharesshares	Feb. 04, 2018USD ($)
Summary Of Significant Accounting Policy [Line Items]
Number of stores | Stores	112	112
Number of states store operates | States	37	37
Number of operating segment | Segment	1
Number of reportable segment | Segment	1
Book overdrafts reclassified to accounts payable	$ 6,426,000	$ 6,426,000	$ 3,416,000
Construction allowance receivables	18,861,000	$ 18,861,000	$ 14,941,000
Long lived asset impairment loss	$ 0
Repurchase of common stock, shares | shares	606,308	3,809,680
Share repurchase program authorized amount	$ 300,000,000	$ 300,000,000
Repurchase of common stock, price per shares | $ / shares	$ 45.14	$ 54.63
Share repurchase program remaining authorized amount	$ 91,895,000	$ 91,895,000
Estimated undiscounted future minimum lease commitments	1,552,310,000	$ 1,552,310,000
Amusement Revenue [Member]
Summary Of Significant Accounting Policy [Line Items]
Deferred revenue recognized	10,000,000
Gift Card Revenue [Member]
Summary Of Significant Accounting Policy [Line Items]
Deferred revenue recognized	1,800,000
Gift card breakage revenue	$ 260,000
Dave And Busters Holdings Inc [Member]
Summary Of Significant Accounting Policy [Line Items]
Percentage of outstanding common stock owned	100.00%	100.00%
Canada [Member]
Summary Of Significant Accounting Policy [Line Items]
Number of Canadian province | Province	1	1

Accrued Liabilities - Accrued L

Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands	May 06, 2018	Feb. 04, 2018
Accrued Liabilities, Current [Abstract]
Deferred amusement revenue	$ 36,749	$ 33,806
Amusement redemption liability	19,202	18,041
Compensation and benefits	17,629	19,959
Rent	17,501	16,478
Property taxes	7,257	6,054
Deferred gift card revenue	6,889	7,583
Customer deposits	5,298	3,250
Current portion of long-term insurance	4,600	4,600
Sales and use taxes	3,861	5,191
Inventory liabilities	3,825	4,336
Utilities	3,468	3,554
Other (refer to Note 4)	11,916	12,309
Total accrued liabilities	$ 138,195	$ 135,161

Debt - Long-Term Debt (Detail)

Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	May 06, 2018	Feb. 04, 2018
Debt Instrument [Line Items]
Total debt outstanding	$ 355,500	$ 367,250
Less current installments - term	(15,000)	(15,000)
Long-term debt, net	339,554	351,249
Credit Facility - Term [Member]
Debt Instrument [Line Items]
Total debt outstanding	292,500	296,250
Less current installments - term	(15,000)	(15,000)
Less debt issuance costs - term	(946)	(1,001)
Credit Facility-Revolver [Member]
Debt Instrument [Line Items]
Total debt outstanding	$ 63,000	$ 71,000

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Aug. 17, 2017	May 06, 2018
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		1.25%
Maximum [Member]
Debt Instrument [Line Items]
Debt instrument interest rate		2.00%
Credit Facility [Member]
Debt Instrument [Line Items]
Senior secured credit facility	$ 300,000,000
Revolving credit facility, maximum borrowing capacity	$ 500,000,000
Maturity date	Aug. 17, 2022
Revolving credit facility, letter of credit sub-facility maximum borrowing capacity	$ 35,000,000
Revolving credit facility, swingline sub-facility maximum borrowing capacity	15,000,000
Term loan repayment of principal	$ 3,750,000
Frequency of periodic payment	Quarterly
Letter of credit facility outstanding		$ 5,047,000
Borrowing available		$ 431,953,000
Weighted average interest rate on the Credit Facility		3.15%
Weighted average effective interest		3.57%
Debt instrument, description of variable rate basis		The loans bear interest subject to a pricing grid based on a total leverage ratio, at LIBOR plus a spread ranging from 1.25% to 2.00% for the term loans and the revolving loans.
Debt Instrument, covenant compliance		Our credit facility contains restrictive covenants that, among other things, place certain limitations on our ability to: incur additional indebtedness, make loans or advances to subsidiaries and other entities, pay dividends, acquire other businesses or sell assets. In addition, our credit facility requires us to maintain certain financial ratio covenants. As of May 6, 2018, we were in compliance with our restrictive and financial ratio covenants.

Debt - Recorded Interest Expens

Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Debt Disclosure [Abstract]
Interest expense on credit facilities	$ 3,023	$ 1,708
Amortization of issuance cost	198	167
Interest income	(28)	(83)
Capitalized interest	(326)	(141)
Change in fair value of interest rate cap	(10)	203
Total interest expense, net	$ 2,857	$ 1,854

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	May 06, 2018USD ($)Lease_Agreementsite	Jul. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Litigation charge	$ 0	$ 2,550,000
Legal gross settlement cost		7,500,000
Insurance recoveries		$ 4,950,000
Insurance recoveries	$ 500,000
Lease commitments for future sites | site	6
Number of additional operating lease agreements signed | Lease_Agreement	20

Commitments and Contingencies26

Commitments and Contingencies - Lease Commitments (Detail) $ in Thousands	May 06, 2018USD ($)
Leases [Abstract]
1 year or less	$ 110,212
2 years	107,698
3 years	101,409
4 years	94,387
5 years	88,929
Thereafter	1,049,675
Total future payments	$ 1,552,310

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		12 Months Ended
	May 06, 2018	Apr. 30, 2017	Feb. 04, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	24.40%	31.40%
Federal corporate statutory rate	21.00%		35.00%

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail)	3 Months Ended
	May 06, 2018shares
Earnings Per Share [Abstract]
Anti-dilutive options excluded from calculation of common equivalent shares	387,824

Earnings Per Share - Summary of

Earnings Per Share - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Numerator:
Net income	$ 42,150	$ 42,796
Denominator:
Weighted average number of common shares outstanding (basic)	39,695,421	42,027,551
Weighted average dilutive impact of equity-based awards	916,967	1,494,852
Weighted average number of common and common equivalent shares outstanding (diluted)	40,612,388	43,522,403
Net income per share:
Basic	$ 1.06	$ 1.02
Diluted	$ 1.04	$ 0.98

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Share-based Compensation [Abstract]
Stock options	$ 1,358	$ 1,304
RSU's and restricted stock	1,030	759
Total share-based compensation expense	$ 2,388	$ 2,063

Share-Based Compensation - Tran

Share-Based Compensation - Transactions Related to Stock Option Awards (Detail)	3 Months Ended
	May 06, 2018$ / sharesshares
2014 Stock Incentive Plan [Member]
Number of Options
Options outstanding at February 4, 2018 | shares	1,001,403
Granted | shares	202,423
Exercised | shares	(5,794)
Forfeited | shares	(4,177)
Outstanding at May 6, 2018 | shares	1,193,855
Exercisable at May 6, 2018 | shares	600,608
Weighted Average Exercise Price
Options outstanding at February 4, 2018 | $ / shares	$ 32.55
Granted | $ / shares	41.65
Exercised | $ / shares	34.29
Forfeited | $ / shares	52.54
Options outstanding at May 6, 2018 | $ / shares	34.02
Options exercisable at May 6, 2018 | $ / shares	$ 31.24
2010 Stock Incentive Plan [Member]
Number of Options
Options outstanding at February 4, 2018 | shares	709,979
Exercised | shares	(18,844)
Forfeited | shares	(4,498)
Outstanding at May 6, 2018 | shares	686,637
Exercisable at May 6, 2018 | shares	672,607
Weighted Average Exercise Price
Options outstanding at February 4, 2018 | $ / shares	$ 5.88
Exercised | $ / shares	7.34
Forfeited | $ / shares	9.34
Options outstanding at May 6, 2018 | $ / shares	5.81
Options exercisable at May 6, 2018 | $ / shares	$ 5.74

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	May 06, 2018	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess income tax benefit related to stock-based compensation plans	$ 380	$ 3,306
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options exercised	705
Unrecognized expense related to stock option plan	$ 3,503
Unrecognized compensation expense, weighted average years	1 year 9 months 18 days
Restricted Stock Units (RSU's) and Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, weighted average years	2 years 3 months 18 days
Unrecognized expense related to unvested restricted stock and RSUs	$ 6,763

Share-Based Compensation - Tr33

Share-Based Compensation - Transactions Related to Time-based and Performance-based RSU's and Restricted Stock (Detail) - Time-Based and Performance-Based RSU's and Restricted Shares [Member]	3 Months Ended
	May 06, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Awards, February 4, 2018 | shares	184,541
Restricted Stock Awards, Granted | shares	73,231
Change in units based on performance | shares	50,452
Restricted Stock Awards, Vested | shares	(115,562)
Restricted Stock Awards, Forfeited | shares	(2,692)
Restricted Stock Awards, May 6, 2018 | shares	189,970
Weighted Average Fair Value, February 4, 2018 | $ / shares	$ 44.96
Weighted Average Fair Value, Granted | $ / shares	41.65
Change in units based on performance | $ / shares	31.72
Weighted Average Fair Value, Vested | $ / shares	35.26
Weighted Average Fair Value, Forfeited | $ / shares	45.32
Weighted Average Fair Value, May 6, 2018 | $ / shares	$ 46.06