Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2019 | Mar. 26, 2019 | Aug. 05, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 3, 2019 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Dave & Buster's Entertainment, Inc. | ||
Entity Central Index Key | 0001525769 | ||
Current Fiscal Year End Date | --02-03 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,920,871,669 | ||
Entity Common Stock, Shares Outstanding | 36,604,531 | ||
Trading Symbol | PLAY | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 21,585 | $ 18,795 |
Inventories | 27,315 | 27,560 |
Prepaid expenses | 20,713 | 19,052 |
Income taxes receivable | 1,880 | 4,867 |
Other current assets | 19,600 | 24,633 |
Total current assets | 91,093 | 94,907 |
Property and equipment (net of $578,178 and $474,330 accumulated depreciation as of February 3, 2019 and February 4, 2018, respectively) | 805,337 | 726,455 |
Deferred tax assets | 6,736 | 7,789 |
Tradenames | 79,000 | 79,000 |
Goodwill | 272,625 | 272,566 |
Other assets and deferred charges | 18,396 | 16,313 |
Total assets | 1,273,187 | 1,197,030 |
Current liabilities: | ||
Current installments of long-term debt | 15,000 | 15,000 |
Accounts payable | 60,427 | 54,627 |
Accrued liabilities | 157,164 | 135,161 |
Income taxes payable | 11,799 | 3,037 |
Total current liabilities | 244,390 | 207,825 |
Deferred income taxes | 14,634 | 10,213 |
Deferred occupancy costs | 223,678 | 184,994 |
Other liabilities | 24,179 | 21,103 |
Long-term debt, net | 378,469 | 351,249 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 43,177,476 shares at February 3, 2019 and 42,660,806 shares at February 4, 2018; outstanding: 37,522,085 shares at February 3, 2019 and 40,102,085 shares at February 4, 2018 | 432 | 427 |
Preferred stock, 50,000,000 authorized; none issued | ||
Paid-in capital | 331,255 | 320,488 |
Treasury stock, 5,655,391 and 2,558,721 shares as of February 3, 2019 and February 4, 2018, respectively | (297,129) | (147,331) |
Accumulated other comprehensive loss | (683) | (249) |
Retained earnings | 353,962 | 248,311 |
Total stockholders' equity | 387,837 | 421,646 |
Total liabilities and stockholders' equity | $ 1,273,187 | $ 1,197,030 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 578,178 | $ 474,330 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 43,177,476 | 42,660,806 |
Common stock, shares outstanding | 37,522,085 | 40,102,085 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 5,655,391 | 2,558,721 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Total revenues | $ 1,265,301 | $ 1,139,791 | $ 1,005,158 |
Total cost of products | 220,263 | 196,672 | 180,300 |
Operating payroll and benefits | 296,924 | 256,724 | 228,827 |
Other store operating expenses | 384,155 | 334,546 | 287,322 |
General and administrative expenses | 61,521 | 59,565 | 54,474 |
Depreciation and amortization expense | 118,275 | 102,766 | 88,305 |
Pre-opening costs | 23,163 | 23,746 | 15,414 |
Total operating costs | 1,104,301 | 974,019 | 854,642 |
Operating income | 161,000 | 165,772 | 150,516 |
Interest expense, net | 13,113 | 8,665 | 6,985 |
Loss on debt retirement | 718 | ||
Income before provision for income taxes | 147,887 | 156,389 | 143,531 |
Provision for income taxes | 30,666 | 35,440 | 52,736 |
Net income | 117,221 | 120,949 | 90,795 |
Unrealized foreign currency translation gain (loss) | (434) | 474 | 247 |
Total comprehensive income | $ 116,787 | $ 121,423 | $ 91,042 |
Net Income per share: | |||
Basic | $ 3 | $ 2.93 | $ 2.16 |
Diluted | $ 2.93 | $ 2.84 | $ 2.10 |
Weighted average shares used in per share calculations: | |||
Basic | 39,047,106 | 41,276,314 | 41,951,770 |
Diluted | 39,975,122 | 42,583,009 | 43,288,592 |
Cash dividends per share | $ 0.30 | ||
Amusement and Other Revenues [Member] | |||
Total revenues | $ 728,832 | $ 644,975 | $ 553,018 |
Cost of amusement and other | 81,064 | 69,072 | 65,354 |
Food and Beverage [Member] | |||
Total revenues | 536,469 | 494,816 | 452,140 |
Cost of food and beverage | $ 139,199 | $ 127,600 | $ 114,946 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock at Cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning balance at Jan. 31, 2016 | $ 346,338 | $ 416 | $ 280,828 | $ (970) | $ 66,064 | |
Beginning balance, shares at Jan. 31, 2016 | 41,618,933 | |||||
Net income | 90,795 | 90,795 | ||||
Unrealized foreign currency translation gain (loss) | 247 | 247 | ||||
Share-based compensation | 5,828 | 5,828 | ||||
Issuance of common stock | 4,360 | $ 9 | 4,351 | |||
Issuance of common stock, shares | 850,637 | |||||
Excess income tax benefit related to share-based compensation plans | 19,304 | 19,304 | ||||
Repurchase of common stock | (28,825) | $ (28,825) | ||||
Repurchase of common stock, shares | 566,756 | |||||
Issuance of treasury stock | 1,405 | (81) | $ 14,008 | (12,522) | ||
Issuance of treasury stock, shares | (301,773) | |||||
Ending balance at Jan. 29, 2017 | 439,452 | $ 425 | 310,230 | $ (14,817) | (723) | 144,337 |
Ending balance, shares at Jan. 29, 2017 | 42,469,570 | 264,983 | ||||
Net income | 120,949 | 120,949 | ||||
Unrealized foreign currency translation gain (loss) | 474 | 474 | ||||
Share-based compensation | 8,916 | 8,916 | ||||
Issuance of common stock | 1,344 | $ 2 | 1,342 | |||
Issuance of common stock, shares | 191,236 | |||||
Repurchase of common stock | (151,913) | $ (151,913) | ||||
Repurchase of common stock, shares | 2,636,616 | |||||
Issuance of treasury stock | 1,642 | $ 19,399 | (17,757) | |||
Issuance of treasury stock, shares | (342,878) | |||||
Ending balance at Feb. 04, 2018 | 421,646 | $ 427 | 320,488 | $ (147,331) | (249) | 248,311 |
Ending balance, shares at Feb. 04, 2018 | 42,660,806 | 2,558,721 | ||||
Cumulative effect of a change in accounting principle | 782 | 782 | ||||
Net income | 117,221 | 117,221 | ||||
Unrealized foreign currency translation gain (loss) | (434) | (434) | ||||
Dividends ($0.30 per share) | (11,570) | (11,570) | ||||
Share-based compensation | 7,422 | 7,422 | ||||
Issuance of common stock | 3,350 | $ 5 | 3,345 | |||
Issuance of common stock, shares | 516,670 | |||||
Repurchase of common stock | (149,798) | $ (149,798) | ||||
Repurchase of common stock, shares | 3,096,670 | |||||
Ending balance at Feb. 03, 2019 | $ 387,837 | $ 432 | $ 331,255 | $ (297,129) | $ (683) | $ 353,962 |
Ending balance, shares at Feb. 03, 2019 | 43,177,476 | 5,655,391 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 117,221 | $ 120,949 | $ 90,795 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 118,275 | 102,766 | 88,305 |
Deferred taxes | 5,474 | (8,845) | 6,961 |
Excess income tax benefit related to share-based compensation plans | (19,304) | ||
Loss on debt refinancing | 718 | ||
Loss on disposal of fixed assets | 1,121 | 1,863 | 1,533 |
Share-based compensation | 7,422 | 8,916 | 5,828 |
Other, net | 1,049 | 881 | 1,467 |
Changes in assets and liabilities: | |||
Inventories | 245 | (5,700) | (2,331) |
Prepaid expenses | (1,661) | (3,224) | (2,874) |
Income tax receivable | 2,987 | 1,034 | (1,755) |
Other current assets | 4,705 | (13,361) | 6,032 |
Other assets and deferred charges | (2,523) | (224) | 487 |
Accounts payable | 11,122 | (4,071) | 832 |
Accrued liabilities | 21,329 | 22,394 | 14,431 |
Income taxes payable | 8,762 | 345 | 19,299 |
Deferred occupancy costs | 38,958 | 37,702 | 20,156 |
Other liabilities | 3,130 | 2,529 | 1,467 |
Net cash provided by operating activities | 337,616 | 264,672 | 231,329 |
Cash flows from investing activities: | |||
Capital expenditures | (216,286) | (219,901) | (180,577) |
Proceeds from sale-leaseback transactions | 11,571 | 20,262 | |
Proceeds from insurance | 541 | ||
Proceeds from sales of property and equipment | 366 | 78 | 30 |
Collections on notes receivable | 3,200 | 800 | |
Net cash used in investing activities | (203,808) | (216,623) | (159,485) |
Cash flows from financing activities: | |||
Proceeds from debt | 265,000 | 509,000 | 97,000 |
Payments of debt | (238,000) | (406,500) | (170,500) |
Debt issuance costs | (2,910) | ||
Repurchase of common stock | (149,125) | (151,913) | (28,825) |
Repurchases of common stock to satisfy employee withholding tax obligations | (673) | ||
Dividends paid | (11,570) | ||
Proceeds from the exercise of stock options | 3,350 | 1,344 | 4,360 |
Proceeds from issuance of treasury stock | 1,642 | 1,405 | |
Excess income tax benefit related to share-based compensation plans | 19,304 | ||
Net cash used in financing activities | (131,018) | (49,337) | (77,256) |
Increase (decrease) in cash and cash equivalents | 2,790 | (1,288) | (5,412) |
Beginning cash and cash equivalents | 18,795 | 20,083 | 25,495 |
Ending cash and cash equivalents | 21,585 | 18,795 | 20,083 |
Supplemental disclosures of cash flow information: | |||
Increase (decrease) in fixed asset accounts payable | (5,321) | 3,420 | 11,610 |
Cash paid for income taxes, net | 13,464 | 43,072 | 28,213 |
Cash paid for interest, net | $ 12,247 | $ 7,853 | $ 6,603 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2019 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Note 1: Description of the Business and Summary of Significant Accounting Policies Description of the business 121 . We own and operate two stores outside of the United States, in the Canadian province of Ontario. These stores generated revenues of approximately $1 8,848 20,075 13,369 2.0 Principles of consolidation . Fiscal year — The Company’s fiscal year consists of 52 or 53 weeks ending on the Sunday after the Saturday closest to January 31. Fiscal 2018, which ended on February 3, 2019, contained 52 weeks. Fiscal 2017, which ended on February 4, 2018, contained 53 weeks. Fiscal 2016, which ended on January 29, 2017, contained 52 weeks. Each quarterly period has 13 weeks, except in a 53-week year when the fourth quarter has 14 weeks. Use of estimates . Cash and cash equivalents Concentration of credit risk — Inventories . Other current assets — Other current assets include receivables for tenant improvement allowances of $10,742 and $14,941 as of February 3, 2019 and February 4, 2018, respectively, primarily related to our new store openings. We consider the concentration of credit risk for tenant improvement allowance receivables from landlords to be minimal due to the payment histories and general financial condition of our landlords. Property and equipment : Estimated Depreciable Lives (In Years) Building and building improvements 5 40 Leasehold improvements 5 20 Furniture, fixtures and equipment 3-10 Games 3-20 Expenditures that extend the life, increase capacity or improve the safety or the efficiency of the property and equipment are capitalized, whereas costs incurred to maintain the appearance and functionality of such assets are charged to repair and maintenance expense. Application development stage costs for significant internally-developed software projects are capitalized and amortized as part of furniture, fixtures and equipment. Interest cost on funds used during the acquisition period of significant capital assets are capitalized as part of the asset and depreciated. Gains and losses related to store property and equipment disposals are recorded in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. We evaluate our property and equipment annually or more frequently if an event occurs or circumstances change that would indicate that the carrying values of these long-lived assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual store level, since this is the lowest level of identifiable cash flows and primarily includes an assessment of historical cash flows and other relevant factors and circumstances, including the maturity of the store, changes in the economic environment, unfavorable changes in legal factors or business climate and future operating plans. If the carrying amount is not recoverable, we record an impairment charge, if any, for the excess of the carrying amount over the fair value, which is estimated based on discounted projected future operating cash flows of the store over the remaining service life using a risk adjusted discount rate that is commensurate with the inherent risk. No impairment charges were recognized in fiscal 2018, 2017 or 2016. Goodwill and tradenames $59 $63 When evaluating goodwill and tradenames for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that its reporting unit or tradenames are impaired. For fiscal year 2018, 2017 and 2016, there was no impairment to our goodwill or tradenames. Other intangible assets $3,837 and $3,398 Amortization expense in fiscal 2018, 2017 and 2016 includes $188, $588 and $1,399, respectively, of amortization associated with our trademarks, which were fully amortized as of the end of fiscal 2017, and our customer relationships, which had an unamortized balance of $61 as of February 3, 2019. Other intangible assets, net of any applicable accumulated amortization, are included in “Other assets and deferred charges” on the Consolidated Balance Sheets. Debt issuance costs — The Company capitalizes certain costs incurred in connection with borrowings or establishment of credit facilities, and these costs are amortized as interest expense over the life of the borrowing or life of the related debt facility. Debt issuance costs on the revolving portion of our credit facility of $2,026 and $2,597 at the end of fiscal 2018 and fiscal 2017, respectively, are included in “Other assets and deferred charges” in the Consolidated Balance Sheets. Debt issuance costs on the term loan portion of our credit facility are reported as a direct reduction from the carrying amount of our debt. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable and other current liabilities approximate fair value because of their short-term nature. 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. 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 deferred a portion of revenues for the estimated unfulfilled performance obligations related to unused game play credits which we believe our customers will utilize in the future. Our estimates are based on an analysis of credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended February 3, 2019, we recognized revenue of approximately $19,300 related to the amount in deferred amusement revenue as of the end of fiscal 2017. We sell gift cards, which do not have expiration dates, and we do not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards upon redemption by the customer. For unredeemed gift cards that the Company expects to be entitled to breakage and for which there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption by the customers. The determination of the gift card breakage is based on the Company’s specific historical redemption patterns. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. The contract liability related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended February 3, 2019, we recognized revenue of approximately $4,000 $660 was gift card breakage revenue. Revenues are reported net of sales-related taxes collected from customers to be remitted to governmental taxing authorities. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities. Certain of our promotional programs include multiple performance obligations that are discounted from the standalone selling prices. We allocate the entire discount to the amusement performance obligation. Amusements costs of products — Certain midway games allow customers to earn tickets, which may be redeemed for prizes. The cost of these prizes is included in the cost of amusement products and is generally recorded when tickets are utilized by the customer by redeeming the tickets for a prize in our WIN! area. Customers may also store the ticket value on a Power Card for future redemption. We have recorded a liability for the estimated amount of outstanding tickets that we believe will be redeemed in subsequent periods based on tickets outstanding, historic redemption patterns and the estimated redemption cost of products per ticket. Advertising costs — Advertising production costs are expensed in the period when the advertising first takes place. Other advertising costs are expensed as incurred. Advertising costs expensed were $40,767, $37,876 and $33,795 in fiscal 2018, 2017 and 2016, respectively. Advertising costs are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. Leases — We currently lease the building or site of all of our stores under operating leases. The Company’s lease agreements generally contain rent holidays and/or escalating rent clauses. The Company recognizes minimum rent expense on a straight-line basis over the lease term, which includes reasonably assured renewal periods. The lease term begins when the Company has the right to control the use of the property, which is typically before rent payments are due under the lease agreement. The difference between the rent expense and rent paid is recorded as deferred rent within “Accrued liabilities” or “Deferred occupancy costs” in the Consolidated Balance Sheets. Tenant improvement allowances are also recorded in “Accrued liabilities or “Deferred occupancy costs” and amortized as reductions of lease rent expense ratably over the lease term. The fair values of acquired lease contracts having contractual rents higher than fair market rents (unfavorable leases) or lower than fair market rents (favorable leases) are amortized on a straight-line basis over the remaining initial lease term. The current and non-current portions of unfavorable leases are included in “Accrued liabilities” and “Deferred occupancy costs”, respectively, in the Consolidated Balance Sheets. The current and non-current portions of favorable leases are included in “Other current assets” and “Other assets and deferred charges”, respectively, in the Consolidated Balance Sheets. Additionally, certain of our lease agreements contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense provided the achievement of that target is considered probable. Self-insurance programs Pre-opening costs — Pre-opening costs include costs associated with the opening and organizing of new stores, including the cost of feasibility studies, pre-opening rent, training, relocation, recruiting and travel costs for employees engaged in such pre-opening activities. All pre-opening costs are expensed as incurred. Income taxes — Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the balance sheet carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effects of changes in income tax rates or law changes are included in the provision for income taxes in the period enacted. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if we determine that it is more likely than not that such assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The calculation of tax liabilities involves judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. As a result, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. Tax accruals are reviewed regularly pursuant to accounting guidance for uncertainty in income taxes. Tax accruals are adjusted as events occur that affect the potential liability for taxes such as the expiration of statutes of limitations, conclusion of tax audits, identification of additional exposure based on current calculations, identification of new issues, or the issuance of statutory or administrative guidance or rendering of a court decision affecting a certain issue. Accordingly, we may experience significant changes in tax accruals in the future, if or when such events occur. After the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), the Company began recording excess tax benefits or shortfalls to the provision for income taxes in the Consolidated Statements of Comprehensive Income beginning in fiscal 2017. In prior years, any similar excess tax benefits were recorded as an adjustment to additional paid-in capital in the Consolidated Balance Sheets. The Company recorded excess tax benefits of $4,998 and $11,491 in fiscal 2018 and fiscal 2017, respectively, to the provision for income taxes in the Consolidated Statements of Comprehensive Income. In connection with the adoption of the new accounting guidance in fiscal 2017 we recorded an adjustment to retained earnings of $782 to recognize deferred tax assets related to certain state net operating loss carryforwards attributable to excess tax benefits in share-based compensation that had not been previously recognized in additional paid-in capital. Foreign currency — Foreign currency translation adjustments represent the unrealized impact of translating the financial statements of our Canadian stores from their respective functional currency (Canadian dollars) to U.S. dollars and are reported as a component of comprehensive income and recorded in “Accumulated other comprehensive loss” on our Consolidated Balance Sheets. Gains and losses from foreign currency transactions are recognized in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. Recent accounting pronouncements The Company will adopt this guidance during our first quarter of fiscal 2019 without restating comparative periods and recognizing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. We plan to elect to apply the package of practical expedients that permit us to not reassess existing contracts for embedded leases or to reassess lease classification or initial direct costs. We also plan to make policy elections not to apply the balance sheet recognition requirements for qualifying short-term leases and not to separate non-lease components from lease components, as applicable, to our facility leases. The adoption of this guidance is expected to have a material impact on our Consolidated Balance Sheets. We expect to recognize additional operating liabilities of approximately $1,050,000 to $1,175,000 for existing operating leases, based on the present value of the remaining minimum rental payments. We expect to recognize the corresponding right-of-use assets of approximately $825,000 to $925,000, which includes the change in presentation of approximately $225,000 to $250,000 of deferred occupancy costs. We estimate the cumulative effect reduction to the opening balance sheet of retained earnings from adjustments resulting from adoption of this guidance to be approximately $150, net of tax. The Company has not yet finalized quantifying the impact, if any, of leases included in certain other contracts and may identify other impacts. The Company also continues to evaluate the impact the adoption of this new guidance will have on financial statement disclosures, in addition to evaluating business processes and internal controls related to lease accounting to assist in the ongoing application of the new guidance. The new guidance is not expected to impact any covenants related to the Company’s long-term debt because the current credit facility agreements specify that covenant ratios be calculated using GAAP in effect at the time the credit facility agreements were entered. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), which eliminates the requirement to calculate the implied fair value of goodwill if the fair value of a reporting unit is less than the carrying amount of the reporting unit. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. The Company does not expect the adoption will have a material impact on our consolidated financial statements when we perform future annual impairment tests. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The update is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other — Internal Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs. The new standard requires the capitalized implementation costs of a hosting arrangement that is a service contract to be expensed over the term of the hosting arrangement and to present the expense in the same line item in the Consolidated Statements of Comprehensive Income as the fees associated with the hosting element of the arrangement. This update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted and can be applied either retrospectively or prospectively. We early adopted this guidance during fiscal 2018, and there was no significant impact upon adoption. Capitalized implementation costs are included in “Prepaid expenses” in the Consolidated Balance Sheets. |
Inventories
Inventories | 12 Months Ended |
Feb. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2: Inventories Inventories consist of the following for the fiscal years ended: February 3, 2019 February 4, 2018 Operating store—food and beverage $ 7,617 $ 6,977 Operating store—amusement 9,258 8,964 Corporate—amusement, supplies and other 10,440 11,619 $ 27,315 $ 27,560 Amusement inventory includes electronics, plush toys and small novelty and other items used as redemption prizes for certain midway games, as well as supplies needed for midway operations. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3: Property and Equipment Property and equipment consist of the following for the fiscal years ended: February 3, 2019 February 4, 2018 Land $ 2,444 $ 3,608 Buildings and building improvements 17,153 25,222 Leasehold improvements 698,328 597,649 Furniture, fixtures and equipment 338,605 287,418 Games 251,819 204,593 Construction in progress 75,166 82,295 Total cost 1,383,515 1,200,785 Accumulated depreciation (578,178 ) (474,330 ) Property and equipment, net $ 805,337 $ 726,455 Depreciation expense totaled $ 118,087 102,178 86,906 During fiscal , we purchased land in Wichita, Kansas in the amount of $ . $ 13 $ . $ 126 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Feb. 03, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Note 4: Accrued Liabilities Accrued liabilities consist of the following as of the fiscal years ended: February 3, 2019 February 4, 2018 Deferred amusement revenue $ 44,232 $ 33,806 Compensation and benefits 24,280 19,959 Amusement redemption liability 19,911 18,041 Rent 17,982 16,478 Deferred gift card revenue 9,450 7,583 Property taxes 7,278 6,054 Current portion of long term insurance 5,900 4,600 Sales and use taxes 5,226 5,191 Utilities 4,032 3,554 Customer deposits 3,731 3,250 Inventory liabilities 2,876 4,336 Other (Refer to Note 10) 12,266 12,309 Total accrued liabilities $ 157,164 $ 135,161 |
Debt
Debt | 12 Months Ended |
Feb. 03, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 5: Debt Long-term debt consists of the following as of the fiscal years ended: February 3, 2019 February 4, 2018 Credit Facility—term $ 281,250 $ 296,250 Credit Facility—revolver 113,000 71,000 Total debt outstanding 394,250 367,250 Less current installments—term (15,000 ) (15,000 ) Less debt issuance costs—term (781 ) (1,001 ) Long-term debt, net $ 378,469 $ 351,249 On August 17, 2017, we entered 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 At the time of the refinancing in fiscal 2017, the majority of proceeds from this senior secured credit facility was used to refinance in full the May 15, 2015 credit facility (of which $291,000 $2,910, of which $397 $718. 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 2.00 average effective interest rate was 3.84%. The weighted average effective rate includes amortization of debt issuance costs, commitment and other fees. 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 February 3, 2019, the Company was in compliance with the restrictive and financial ratio covenants of our credit facility. Future debt obligations — Below is our future debt principal payment obligations as of February 3, 2019 by fiscal year: 2019 $ 15,000 2020 15,000 2021 15,000 2022 349,250 Thereafter — Total future payments $ 394,250 Interest expense, net — The following tables set forth our recorded interest expense, net for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Interest expense on credit facilities $ 13,408 $ 8,697 $ 6,896 Amortization of issuance cost and discount 792 739 674 Interest income (136 ) (224 ) (271 ) Capitalized interest (1,009 ) (786 ) (462 ) Change in fair value of interest rate cap 58 239 148 Total interest expense, net $ 13,113 $ 8,665 $ 6,985 |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6: Income Taxes On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act . The Tax Act contains significant changes to corporate taxation, including a reduction of the corporate tax rate from 35 21 Our federal statutory rate for fiscal 2018 is 21.0 The following table sets forth our provision for income taxes for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Current provision: Federal $ 13,456 $ 35,195 $ 35,596 State and local 10,730 9,112 10,107 Foreign 1,006 (22 ) 72 Total current provision 25,192 44,285 45,775 Deferred provision (benefit): Federal 5,029 (5,697 ) 7,318 State and local (228 ) (2,885 ) (287 ) Foreign 673 (263 ) (70 ) Total deferred provision (benefit) 5,474 (8,845 ) 6,961 Provision for income taxes $ 30,666 $ 35,440 $ 52,736 The following tables set forth the significant components of our deferred assets and liabilities as of the fiscal years ended: February 3, 2019 February 4, 2018 Deferred tax assets: Deferred revenue and redemption ticket liability $ 18,503 $ 14,994 Leasing transactions 16,678 12,891 Accrued liabilities 5,510 4,631 Workers compensation and general liability insurance 4,103 3,386 Share-based compensation 5,991 5,289 Net operating loss carryovers 3,177 3,715 Indirect benefit of unrecognized tax benefits 574 398 Other 2,431 2,626 Total 56,967 47,930 Valuation allowance (1,341 ) (402 ) Total deferred tax assets, net of valuation allowance 55,626 47,528 Deferred tax liabilities: Trademark/tradename (21,498 ) (21,413 ) Property and equipment (40,171 ) (25,797 ) Other (1,855 ) (2,742 ) Total deferred tax liabilities (63,524 ) (49,952 ) Net deferred tax liabilities $ (7,898 ) $ (2,424 ) Reported as: Deferred tax assets, net—noncurrent 6,736 7,789 Deferred tax liablities, net—noncurrent (14,634 ) (10,213 ) Net deferred tax liabilities $ (7,898 ) $ (2,424 ) At February 3, 2019, we had a valuation allowance of $1,341 409 As of February 3, 2019, we have $61,402 of state net operating loss The following table sets forth the change in unrecognized tax benefits excluding interest, penalties and related income tax benefits for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Balance at beginning of year $ 1,568 $ 1,348 $ 1,263 Additions for tax positions of current year 437 290 240 Additions for tax positions of prior years 435 — — Reductions for tax positions of prior years (30 ) (31 ) (76 ) Lapse of statute of limitations (77 ) (39 ) (79 ) Balance at end of year $ 2,333 $ 1,568 $ 1,348 The accrued interest and penalties on the unrecognized tax benefits, excluding any related income tax benefits, were $394 and $360 We currently anticipate that approximately $668 , $2,153 of unrecognized tax benefits, if recognized, would affect the effective tax rate. The following table sets forth the reconciliation of the federal statutory rate to the effective income tax rate for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Federal corporate statutory rate 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal income tax benefit 5.3 % 3.8 % 4.4 % Foreign taxes 0.5 % (0.2 )% — % Nondeductible expenses 1.2 % 1.4 % 1.5 % Tax credits (5.0 )% (4.0 )% (4.1 )% Valuation allowance 0.6 % (0.3 )% (0.1 )% Tax contingency reserves 0.6 % 0.1 % — % Share-based compensation (3.4 )% (7.3 )% — % Impacts related to the Tax Act — % (5.1 )% — % Other (0.1 )% 0.6 % — % Effective tax rate 20.7 % 22.7 % 36.7 % We file consolidated income tax returns with all our domestic subsidiaries, which are periodically audited by various federal, state and foreign jurisdictions. We are generally no longer subject to federal, state, or foreign income tax examinations for years prior to 2014 . |
Leases
Leases | 12 Months Ended |
Feb. 03, 2019 | |
Leases [Abstract] | |
Leases | Note 7 : Leases We lease certain property and equipment under various non-cancelable operating leases. Some of the leases include options for renewal or extension on various terms. Most of the leases require us to pay property taxes, insurance and maintenance of the leased assets. Certain leases also have provisions for additional contingent rentals based on revenues. Store rent expense is included in “Other store operating expenses” or “Pre-opening costs” accordingly, and rent expense related to our corporate offices is included in “General and administrative expenses” in the Consolidated Statements of Comprehensive Income. For fiscal 2018, rent expense for operating leases was $113,007, including contingent rentals of $3,526. For fiscal 2017, rent expense for operating leases was $96,814, including contingent rentals of $3,427. For fiscal 2016, rent expense for operating leases was $77,964, including contingent rentals of $4,263. At February 3, 2019, future minimum lease payments, including any periods covered by renewal options we are reasonably assured of exercising are: 2019 2020 2021 2022 2023 Thereafter Total $ 121,550 $117,033 $111,045 $104,049 $100,712 $1,229,784 $1,784,173 At February 3, 2019, we also had lease commitments on equipment as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 951 $ 875 $ 597 $ 146 $ 67 $ 19 $ 2,655 As of February 3, 2019, we have signed operating lease agreements for ten future sites which are expected to open in fiscal 2019. The landlords have 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 February 3, 2019, we have signed fourteen additional 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 03, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8: Stockholders’ Equity Share repurchase program Our Board of Directors has approved a share repurchase program, under which the Company may repurchase shares on the open market, through privately negotiated transactions, and through trading plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The share repurchase program may be modified, suspended or discontinued at any time. As of February 3, 2019, the Company had a total share repurchase authorization of $400,000 which expires at the end of fiscal 2020, and there was approximately $70,137 of share repurchase authorization remaining. On April 2, 2019, our Board of Directors approved an additional $200,000 in authorization under our existing share repurchase program. The Company considers several factors in determining when to execute share repurchases, including among other things, current cash needs, capacity for leverage, cost of borrowings, its results of operations and the market price of its common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2018, 2017 and 2016: Fiscal 2018 Fiscal 2017 Fiscal 2016 Total number of shares repurchased 3,080,419 2,636,616 566,756 Average price paid per share $ 48.41 $ 57.62 $ 50.86 Toal cash paid for share repurchases $ 149,125 $ 151,913 $ 28,825 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 and are not included in the table above. During the fiscal year ended 2018, we withheld 16,251 shares of common stock to satisfy $673 of employees’ tax obligations. Dividends Our Board of Directors declared the following dividends in fiscal 2018: Declaration Date Dividend per share Record Date Amount Payment Date September 11, 2018 $ 0.15 September 25, 2018 $ 5,842 October 10, 2018 December 13, 2018 $ 0.15 December 26, 2018 $ 5,728 January 10, 2019 On March 11, 2019, our Board of Directors declared a quarterly cash dividend of $0.15 per share on each of its outstanding common shares, such dividend to be paid on April 10, 2019 March 26, 2019 Share-based compensation The Company maintains an equity incentive plan under which it may grant awards denominated in the Company’s common stock or units of the Company’s common stock, as well as cash variable compensation awards. The Company’s long-term incentive compensation provides awards to executive and management personnel as well as directors. Prior to October 2014, we issued share-based awards under our 2010 Stock Incentive Plan. Outstanding grants under this plan include fully vested performance-based options and time-based options which vest over a five-year period from the grant date. Share-based awards granted after October 2014 and beyond were issued pursuant to the terms of our 2014 Stock Incentive Plan. We may grant stock options, restricted stock or restricted stock units (“RSU’s”) to executive and management personnel as well as directors. The maximum number of shares of common stock issuable under the 2014 Stock Incentive Plan is 3,100,000 shares. Time-based options granted to employees generally become exercisable ratably over a three-year period from the grant date. Certain time-based options granted to executives at the IPO date vest 50% after a period of three years and 50% after a period of four years. Performance-based RSU’s awarded to employees fully vest after three years, subject to the achievement of performance conditions. Time-based RSU’s have various service periods not exceeding five years. Options granted under both plans terminate on the ten-year anniversary of the grants. Stock option awards generally provide continued vesting, in the event of termination, for employees that reach age 60 or greater and have at least ten years of service or for employees that reach age 65 (“retired employees”). Unvested stock options, restricted stock and RSU’s are generally forfeited by employees who terminate prior to vesting and prorated for retired employees. Each share granted subject to a stock option award or time-based RSU award reduces the number of shares available under our stock incentive plans by one share. Each share granted subject to a performance RSU award reduces the number of shares available under our stock incentive plans by a range of one share if the target performance is achieved, up to a maximum of two shares for performance above target and a minimum of no shares if performance is below a minimum threshold target. Compensation expense associated with share-based equity awards granted has been calculated as required by current accounting standards related to stock compensation. The valuation of our stock option awards has been determined using the Black-Scholes option valuation model. The Black-Scholes option valuation model uses assumptions of expected volatility, the expected dividend yield of our stock, the expected term of the awards and the risk-free interest rate, as well as an estimated fair value of our common stock. For all stock options granted after our IPO, we have obtained fair value valuation analyses prepared by an independent third-party valuation firm, and the analyses utilized the market-determined share price. Since our stock had not been publicly traded prior to our IPO, the expected volatility was based on an average of the historical volatility of certain of our competitors’ stocks over the expected term of the share-based awards with the calculation placing more weight on company-specific volatilities each year thereafter. The dividend yield assumption was based on our history. The simplified method was used to estimate the expected term of share-based awards. This method was used because the Company does not have enough historical option activity to derive an expected life. The risk-free interest rate was based on the implied yield on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term. The significant assumptions used in determining the underlying fair value of the weighted-average options granted in fiscal 2018, 2017 and 2016 were as follows: 2014 Stock Incentive Plan Fiscal 2018 Fiscal 2017 Fiscal 2016 Volatility 32.7 % 32.9 % 34.0 % Risk free interest rate 2.73 % 2.00 % 1.29 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected term in years 6.0 6.0 5.9 Weighted average calculated value $ 15.36 $ 20.54 $ 13.62 Compensation expense related to stock options with only service conditions (time-based) is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award or to the date on which retirement eligibility is achieved, if shorter. Compensation expense related to stock option plans was $3,185, $4,875, and $3,483 during the fiscal years ended February 3,2019, February 4, 2018, and January 29, 2017, respectively. Compensation expense for RSU’s and restricted shares is based on the market price of the shares underlying the awards on the grant date. Compensation expense for RSU’s based on performance reflects the estimated probability that performance conditions at target or above will be met, and time-based RSU’s and restricted shares are expensed ratably over the service period. We recorded compensation expense related to our RSU’s and restricted shares awards of $4,237, $4,041, and $2,345 during the fiscal years ended February 3, 2019, February 4, 2018, and January 29, 2017, respectively. 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. Transactions related to stock option awards during fiscal 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 205,646 41.65 — — Exercised (55,611 ) 27.94 (345,497 ) 5.20 Forfeited (17,220 ) 46.12 (4,498 ) 9.34 Outstanding at February 3, 2019 1,134,218 34.22 359,984 6.48 Exercisable at February 3, 2019 745,267 $ 27.97 359,984 $ 6.48 The total intrinsic value of options exercised during fiscal 2018, 2017 and 2016 was $19,524, $30,844, and $50,403, respectively. The unrecognized expense related to our stock option plan totaled approximately $1,750 as of February 3, 2019 and will be expensed over a weighted average of 1.9 years. For options outstanding at February 3, 2019, the weighted average remaining contractual life was 6.1 years and the aggregate intrinsic value was $36,800. For options exercisable at February 3, 2019, the weighted average remaining contractual life was 5.3 years and the aggregate intrinsic value was $34,000. Transactions related to time-based and performance-based RSU’s during fiscal 2018 were as follows: Weighted Avg Grant Date Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 112,574 46.50 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (11,175 ) 45.01 Outstanding at February 3, 2019 220,830 $ 47.79 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 total fair value of shares vested during fiscal 2018, 2017 and 2016 was approximately $4,812, $426 and $360, respectively. The unrecognized expense related to our time-based and performance-based RSU’s was approximately $5,400 as of February 3, 2019 and will be expensed over a weighted average 2.4 years. Stock option exercise activity and share unit conversion in fiscal 2018 were satisfied through the issuance of new shares. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 03, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 9: Employee Benefit Plans We sponsor a plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for all employees who have completed a specified term of service. We provide for a guaranteed matching of 25% of employee contributions, up to a maximum of 6% of eligible employee compensation, as defined by the 401(k) Plan. We also have a discretionary contribution dependent upon attaining a specified performance target. Should we achieve the performance target, it would contribute an additional 25% of qualified employee contributions. Employees may elect to contribute up to 50% of their eligible compensation on a pretax basis. Benefits under the 401(k) Plan are limited to the assets of the 401(k) Plan. Expenses related to our contributions to the 401(k) Plan were $692, $1,089, $889 for fiscal 2018, 2017 and 2016, respectively. We offer a deferred compensation plan that permits a select group of management or highly compensated employees to defer a portion of their compensation. Under this plan, eligible employees may elect to defer up to 50% of their base salary on a pre-tax basis each plan year. Each pay period, we match 25% of the employee’s contributions up to the first 6% of salary deferred. At the end of each year, if our performance target is met, we contribute an additional amount, equal to the employer match contributed each pay period. Any contributions to a participant’s account vest in equal portions over a five-year period and become immediately vested upon termination of a participant’s employment on or after age 65 or by reason of the participant’s death or disability, and upon a change of control (as defined). We recognized $135, $246, and $237 of deferred compensation expense in fiscal 2018, 2017 and 2016, respectively. The deferred compensation plan assets are invested through a rabbi trust. Assets in the rabbi trust are invested in certain mutual funds that cover an investment spectrum ranging from equities to money market instruments and are available to satisfy the claims of our creditors in the event of bankruptcy or insolvency. These mutual funds have published market prices and are reported at fair value using quoted prices available on identical assets and liabilities in active markets, representing Level One assets as defined by GAAP. As of February 3, 2019 and February 4, 2018, $7,409 and $7,059, respectively, of deferred compensation plan assets are included in “Other assets and deferred charges” and the offsetting deferred compensation plan liabilities are included in “Other liabilities” in the accompanying Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 03, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10: 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. The settlement agreement was preliminarily approved by the court on December 7, 2018, and the court has set a hearing concerning final approval for May 9, 2019. To cover the estimated net costs of settlement, including estimated payment to any opt-in members and class attorneys, as well as related settlement administration costs, we recorded a net charge of $2,550 (representing $7,500 of gross settlement costs less $4,950 of insurance recoveries) during fiscal 2017. The charge was recorded in general and administrative expenses in our Consolidated Statements of Comprehensive Income. No additional settlement liabilities or recoveries related to this litigation were recorded during fiscal 2018. The actual amount of any settlement payment could vary from our estimate and will be subject to many factors including approval by the court, the claims process and other matters typically associated with the settlement of litigation. During fiscal 2017, three major hurricanes made landfall impacting areas where we operate our stores, which negatively impacted store revenues. During fiscal 2018, we recognized business interruption insurance recoveries of approximately $3,075 related to the events, which are included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. During fiscal 2018, we also recognized property insurance recoveries of approximately $541, related to the events, which resulted in a net gain on disposal of fixed assets of approximately $180, which is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. We are subject to the terms of a settlement agreement with the Federal Trade Commission that requires us, on an ongoing basis, to establish, implement, and maintain a comprehensive information security program that is reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers. The agreement does not require us to pay any fines or other monetary assessments and we do not believe that the terms of the agreement will have a material adverse effect on our business, operations, or financial performance. |
Earnings per share
Earnings per share | 12 Months Ended |
Feb. 03, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | Note 11: Earnings per share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options, unvested time-based RSU’s and 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. For fiscal 2018 and fiscal 2017, we excluded approximately 52,000 and 31,000 anti-dilutive options from the calculation of common equivalent shares. The following table sets forth the computation of EPS, basic and diluted for the fiscal years ended: (in thousands, except share and per share data) February 3, 2019 February 4, 2018 January 29, 2017 Numerator: Net income $ 117,221 $ 120,949 $ 90,795 Denominator: Weighted average number of common shares outstanding (basic) 39,047,106 41,276,314 41,951,770 Weighted average dilutive impact of equity-based awards 928,016 1,306,695 1,336,822 Weighted average number of common and common equivalent shares outstanding (dilutive) 39,975,122 42,583,009 43,288,592 Net income per share: Basic $ 3.00 $ 2.93 $ 2.16 Diluted $ 2.93 $ 2.84 $ 2.10 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Feb. 03, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Note 12: Selected Quarterly Financial Information (unaudited) Fiscal 2018 Quarters Ended 5/6/2018 8/5/2018 11/4/2018 2/3/2019 Total revenues $ 332,190 $ 319,188 $ 282,139 $ 331,784 Total cost of products 57,139 55,556 48,734 58,834 Operating income 58,604 45,930 15,472 40,994 Net income 42,150 33,779 11,856 29,436 Net income per share of common stock: Basic $ 1.06 $ 0.86 $ 0.30 $ 0.77 Diluted $ 1.04 $ 0.84 $ 0.30 $ 0.75 Weighted average number of shares outstanding: Basic 39,695,421 39,355,105 38,892,288 38,245,612 Diluted 40,612,388 40,280,301 39,855,648 39,065,459 Stores open at end of period 112 117 118 121 Fiscal 2017 Quarters Ended 4/30/2017 7/30/2017 10/29/2017 2/4/2018 Total revenues $ 304,148 $ 280,751 $ 249,979 $ 304,913 Total cost of products 48,985 48,451 44,607 54,629 Operating income 64,228 39,163 19,926 42,455 Net income 42,796 30,356 12,157 35,640 Net income per share of common stock: Basic $ 1.02 $ 0.73 $ 0.30 $ 0.88 Diluted $ 0.98 $ 0.71 $ 0.29 $ 0.85 Weighted average number of shares outstanding: Basic 42,027,551 41,460,651 41,077,206 40,568,751 Diluted 43,522,403 42,830,873 42,250,611 41,699,060 Stores open at end of period 96 100 101 106 The fourth quarter of fiscal 2018 consists of 13 weeks and the fourth quarter of fiscal 2017 consists of 14 weeks. Our revenues and operations are influenced by seasonal shifts in consumer spending. Revenues associated with spring and year-end holidays have historically been higher. Our third quarter, which encompasses the back-to-school fall season, has historically had lower revenues as compared to the other quarters. Net income for the fourth quarter of fiscal 2017 includes a benefit to our income tax provision related to the favorable impact of the Tax Act (refer to Note 6 for further discussion of income taxes). |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2019 | |
Accounting Policies [Abstract] | |
Description of the business | Description of the business We own and operate two stores outside of the United States, in the Canadian province of Ontario. These stores generated revenues of approximately $18,848, $20,075 and $13,369 in fiscal 2018, 2017 and 2016, respectively. As of February 3, 2019, less than 2.0% of our long-lived assets were located outside of the United States. |
Principles of consolidation | Principles of consolidation |
Fiscal year | Fiscal year |
Use of estimates | Use of estimates |
Cash and cash equivalents | Cash and cash equivalents |
Concentration of credit risk | Concentration of credit risk |
Inventories | Inventories |
Other current assets | Other current assets |
Property and equipment | Property and equipment Estimated Depreciable Lives Building and building improvements 5-40 Leasehold improvements 5-20 Furniture, fixtures and equipment 3-10 Games 3-20 Expenditures that extend the life, increase capacity or improve the safety or the efficiency of the property and equipment are capitalized, whereas costs incurred to maintain the appearance and functionality of such assets are charged to repair and maintenance expense. Application development stage costs for significant internally-developed software projects are capitalized and amortized as part of furniture, fixtures and equipment. Interest cost on funds used during the acquisition period of significant capital assets are capitalized as part of the asset and depreciated. Gains and losses related to store property and equipment disposals are recorded in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income. We evaluate our property and equipment annually or more frequently if an event occurs or circumstances change that would indicate that the carrying values of these long-lived assets may not be recoverable. In determining the recoverability of the asset value, an analysis is performed at the individual store level, since this is the lowest level of identifiable cash flows and primarily includes an assessment of historical cash flows and other relevant factors and circumstances, including the maturity of the store, changes in the economic environment, unfavorable changes in legal factors or business climate and future operating plans. If the carrying amount is not recoverable, we record an impairment charge, if any, for the excess of the carrying amount over the fair value, which is estimated based on discounted projected future operating cash flows of the store over the remaining service life using a risk adjusted discount rate that is commensurate with the inherent risk. No impairment charges were recognized in fiscal 2018, 2017 or 2016. |
Goodwill and tradenames | Goodwill and tradenames When evaluating goodwill and tradenames for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that its reporting unit or tradenames are impaired. For fiscal year 2018, 2017 and 2016, there was no impairment to our goodwill or tradenames. |
Other intangible assets | Other intangible assets Amortization expense in fiscal 2018, 2017 and 2016 includes $188, $588 and $1,399, respectively, of amortization associated with our trademarks, which were fully amortized as of the end of fiscal 2017, and our customer relationships, which had an unamortized balance of $61 as of February 3, 2019. Other intangible assets, net of any applicable accumulated amortization, are included in “Other assets and deferred charges” on the Consolidated Balance Sheets. |
Debt issuance costs | Debt issuance costs |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts and notes receivable, accounts payable and other current liabilities approximate fair value because of their short-term nature. 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. |
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 deferred a portion of revenues for the estimated unfulfilled performance obligations related to unused game play credits which we believe our customers will utilize in the future. Our estimates are based on an analysis of credits remaining on Power Cards, historic utilization patterns and revenue per game play credit sold. Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended February 3, 2019, we recognized revenue of approximately $19,300 related to the amount in deferred amusement revenue as of the end of fiscal 2017. We sell gift cards, which do not have expiration dates, and we do not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards upon redemption by the customer. For unredeemed gift cards that the Company expects to be entitled to breakage and for which there is not a legal obligation to remit the unredeemed gift card balances to the relevant jurisdictions, the Company recognizes expected breakage as revenue in proportion to the pattern of redemption by the customers. The determination of the gift card breakage is based on the Company’s specific historical redemption patterns. Recognized gift card breakage revenue is included in “Amusements and other revenues” in the Consolidated Statements of Comprehensive Income. The contract liability related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended February 3, 2019, we recognized revenue of approximately $4,000 related to the amount in deferred gift card revenue as of the end of fiscal 2017, of which approximately $660 was gift card breakage revenue. Revenues are reported net of sales-related taxes collected from customers to be remitted to governmental taxing authorities. Sales tax collected is included in “Accrued liabilities” until the taxes are remitted to the appropriate taxing authorities. Certain of our promotional programs include multiple performance obligations that are discounted from the standalone selling prices. We allocate the entire discount to the amusement performance obligation. |
Amusements costs of products | Amusements costs of products |
Advertising costs | Advertising costs |
Leases | Leases The fair values of acquired lease contracts having contractual rents higher than fair market rents (unfavorable leases) or lower than fair market rents (favorable leases) are amortized on a straight-line basis over the remaining initial lease term. The current and non-current portions of unfavorable leases are included in “Accrued liabilities” and “Deferred occupancy costs”, respectively, in the Consolidated Balance Sheets. The current and non-current portions of favorable leases are included in “Other current assets” and “Other assets and deferred charges”, respectively, in the Consolidated Balance Sheets. Additionally, certain of our lease agreements contain clauses that provide for additional contingent rent based on a percentage of sales greater than certain specified target amounts. We recognize contingent rent expense provided the achievement of that target is considered probable. |
Self-insurance programs | Self-insurance programs |
Pre-opening costs | Pre-opening costs |
Income taxes | Income taxes The calculation of tax liabilities involves judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. As a result, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. Tax accruals are reviewed regularly pursuant to accounting guidance for uncertainty in income taxes. Tax accruals are adjusted as events occur that affect the potential liability for taxes such as the expiration of statutes of limitations, conclusion of tax audits, identification of additional exposure based on current calculations, identification of new issues, or the issuance of statutory or administrative guidance or rendering of a court decision affecting a certain issue. Accordingly, we may experience significant changes in tax accruals in the future, if or when such events occur. After the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), the Company began recording excess tax benefits or shortfalls to the provision for income taxes in the Consolidated Statements of Comprehensive Income beginning in fiscal 2017. In prior years, any similar excess tax benefits were recorded as an adjustment to additional paid-in capital in the Consolidated Balance Sheets. The Company recorded excess tax benefits of $4,998 and $11,491 in fiscal 2018 and fiscal 2017, respectively, to the provision for income taxes in the Consolidated Statements of Comprehensive Income. In connection with the adoption of the new accounting guidance in fiscal 2017 we recorded an adjustment to retained earnings of $782 to recognize deferred tax assets related to certain state net operating loss carryforwards attributable to excess tax benefits in share-based compensation that had not been previously recognized in additional paid-in capital. |
Foreign currency | Foreign currency |
Recent accounting pronouncements | Recent accounting pronouncements The Company will adopt this guidance during our first quarter of fiscal 2019 without restating comparative periods and recognizing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. We plan to elect to apply the package of practical expedients that permit us to not reassess existing contracts for embedded leases or to reassess lease classification or initial direct costs. We also plan to make policy elections not to apply the balance sheet recognition requirements for qualifying short-term leases and not to separate non-lease components from lease components, as applicable, to our facility leases. The adoption of this guidance is expected to have a material impact on our Consolidated Balance Sheets. We expect to recognize additional operating liabilities of approximately $1,050,000 to $1,175,000 for existing operating leases, based on the present value of the remaining minimum rental payments. We expect to recognize the corresponding right-of-use assets of approximately $825,000 to $925,000, which includes the change in presentation of approximately $225,000 to $250,000 of deferred occupancy costs. We estimate the cumulative effect reduction to the opening balance sheet of retained earnings from adjustments resulting from adoption of this guidance to be approximately $150, net of tax. The Company has not yet finalized quantifying the impact, if any, of leases included in certain other contracts and may identify other impacts. The Company also continues to evaluate the impact the adoption of this new guidance will have on financial statement disclosures, in addition to evaluating business processes and internal controls related to lease accounting to assist in the ongoing application of the new guidance. The new guidance is not expected to impact any covenants related to the Company’s long-term debt because the current credit facility agreements specify that covenant ratios be calculated using GAAP in effect at the time the credit facility agreements were entered. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), which eliminates the requirement to calculate the implied fair value of goodwill if the fair value of a reporting unit is less than the carrying amount of the reporting unit. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The guidance is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. The Company does not expect the adoption will have a material impact on our consolidated financial statements when we perform future annual impairment tests. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, modifies and adds disclosure requirements for fair value measurements. The update is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other — Internal Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs. The new standard requires the capitalized implementation costs of a hosting arrangement that is a service contract to be expensed over the term of the hosting arrangement and to present the expense in the same line item in the Consolidated Statements of Comprehensive Income as the fees associated with the hosting element of the arrangement. This update is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted and can be applied either retrospectively or prospectively. We early adopted this guidance during fiscal 2018, and there was no significant impact upon adoption. Capitalized implementation costs are included in “Prepaid expenses” in the Consolidated Balance Sheets. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Estimated Depreciable Lives (In Years) Building and building improvements 5 40 Leasehold improvements 5 20 Furniture, fixtures and equipment 3-10 Games 3-20 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following for the fiscal years ended: February 3, 2019 February 4, 2018 Operating store—food and beverage $ 7,617 $ 6,977 Operating store—amusement 9,258 8,964 Corporate—amusement, supplies and other 10,440 11,619 $ 27,315 $ 27,560 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following for the fiscal years ended: February 3, 2019 February 4, 2018 Land $ 2,444 $ 3,608 Buildings and building improvements 17,153 25,222 Leasehold improvements 698,328 597,649 Furniture, fixtures and equipment 338,605 287,418 Games 251,819 204,593 Construction in progress 75,166 82,295 Total cost 1,383,515 1,200,785 Accumulated depreciation (578,178 ) (474,330 ) Property and equipment, net $ 805,337 $ 726,455 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Text Block [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following as of the fiscal years ended: February 3, 2019 February 4, 2018 Deferred amusement revenue $ 44,232 $ 33,806 Compensation and benefits 24,280 19,959 Amusement redemption liability 19,911 18,041 Rent 17,982 16,478 Deferred gift card revenue 9,450 7,583 Property taxes 7,278 6,054 Current portion of long term insurance 5,900 4,600 Sales and use taxes 5,226 5,191 Utilities 4,032 3,554 Customer deposits 3,731 3,250 Inventory liabilities 2,876 4,336 Other (Refer to Note 10) 12,266 12,309 Total accrued liabilities $ 157,164 $ 135,161 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following as of the fiscal years ended: February 3, 2019 February 4, 2018 Credit Facility—term $ 281,250 $ 296,250 Credit Facility—revolver 113,000 71,000 Total debt outstanding 394,250 367,250 Less current installments—term (15,000 ) (15,000 ) Less debt issuance costs—term (781 ) (1,001 ) Long-term debt, net $ 378,469 $ 351,249 |
Future Debt Payment Obligation | Future debt obligations — Below is our future debt principal payment obligations as of February 3, 2019 by fiscal year: 2019 $ 15,000 2020 15,000 2021 15,000 2022 349,250 Thereafter — Total future payments $ 394,250 |
Recorded Interest Expense, Net | Interest expense, net — The following tables set forth our recorded interest expense, net for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Interest expense on credit facilities $ 13,408 $ 8,697 $ 6,896 Amortization of issuance cost and discount 792 739 674 Interest income (136 ) (224 ) (271 ) Capitalized interest (1,009 ) (786 ) (462 ) Change in fair value of interest rate cap 58 239 148 Total interest expense, net $ 13,113 $ 8,665 $ 6,985 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The following table sets forth our provision for income taxes for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Current provision: Federal $ 13,456 $ 35,195 $ 35,596 State and local 10,730 9,112 10,107 Foreign 1,006 (22 ) 72 Total current provision 25,192 44,285 45,775 Deferred provision (benefit): Federal 5,029 (5,697 ) 7,318 State and local (228 ) (2,885 ) (287 ) Foreign 673 (263 ) (70 ) Total deferred provision (benefit) 5,474 (8,845 ) 6,961 Provision for income taxes $ 30,666 $ 35,440 $ 52,736 |
Components of Deferred Assets and Liabilities | The following tables set forth the significant components of our deferred assets and liabilities as of the fiscal years ended: February 3, 2019 February 4, 2018 Deferred tax assets: Deferred revenue and redemption ticket liability $ 18,503 $ 14,994 Leasing transactions 16,678 12,891 Accrued liabilities 5,510 4,631 Workers compensation and general liability insurance 4,103 3,386 Share-based compensation 5,991 5,289 Net operating loss carryovers 3,177 3,715 Indirect benefit of unrecognized tax benefits 574 398 Other 2,431 2,626 Total 56,967 47,930 Valuation allowance (1,341 ) (402 ) Total deferred tax assets, net of valuation allowance 55,626 47,528 Deferred tax liabilities: Trademark/tradename (21,498 ) (21,413 ) Property and equipment (40,171 ) (25,797 ) Other (1,855 ) (2,742 ) Total deferred tax liabilities (63,524 ) (49,952 ) Net deferred tax liabilities $ (7,898 ) $ (2,424 ) Reported as: Deferred tax assets, net—noncurrent 6,736 7,789 Deferred tax liablities, net—noncurrent (14,634 ) (10,213 ) Net deferred tax liabilities $ (7,898 ) $ (2,424 ) |
Change in Unrecognized Tax Benefits | The following table sets forth the change in unrecognized tax benefits excluding interest, penalties and related income tax benefits for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Balance at beginning of year $ 1,568 $ 1,348 $ 1,263 Additions for tax positions of current year 437 290 240 Additions for tax positions of prior years 435 — — Reductions for tax positions of prior years (30 ) (31 ) (76 ) Lapse of statute of limitations (77 ) (39 ) (79 ) Balance at end of year $ 2,333 $ 1,568 $ 1,348 |
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate | The following table sets forth the reconciliation of the federal statutory rate to the effective income tax rate for the fiscal years ended: February 3, 2019 February 4, 2018 January 29, 2017 Federal corporate statutory rate 21.0 % 33.7 % 35.0 % State and local income taxes, net of federal income tax benefit 5.3 % 3.8 % 4.4 % Foreign taxes 0.5 % (0.2 )% — % Nondeductible expenses 1.2 % 1.4 % 1.5 % Tax credits (5.0 )% (4.0 )% (4.1 )% Valuation allowance 0.6 % (0.3 )% (0.1 )% Tax contingency reserves 0.6 % 0.1 % — % Share-based compensation (3.4 )% (7.3 )% — % Impacts related to the Tax Act — % (5.1 )% — % Other (0.1 )% 0.6 % — % Effective tax rate 20.7 % 22.7 % 36.7 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Future Minimum Lease Payments | At February 3, 2019, future minimum lease payments, including any periods covered by renewal options we are reasonably assured of exercising are: 2019 2020 2021 2022 2023 Thereafter Total $ 121,550 $117,033 $111,045 $104,049 $100,712 $1,229,784 $1,784,173 |
Equipment [Member] | |
Future Minimum Lease Payments | At February 3, 2019, we also had lease commitments on equipment as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 951 $ 875 $ 597 $ 146 $ 67 $ 19 $ 2,655 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Equity [Abstract] | |
Schedule Of Number of Shares Repurchases and Amount paid On Repurchases | The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2018, 2017 and 2016: Fiscal 2018 Fiscal 2017 Fiscal 2016 Total number of shares repurchased 3,080,419 2,636,616 566,756 Average price paid per share $ 48.41 $ 57.62 $ 50.86 Toal cash paid for share repurchases $ 149,125 $ 151,913 $ 28,825 |
Schedule Of Dividends Declared | Our Board of Directors declared the following dividends in fiscal 2018: Declaration Date Dividend per share Record Date Amount Payment Date September 11, 2018 $ 0.15 September 25, 2018 $ 5,842 October 10, 2018 December 13, 2018 $ 0.15 December 26, 2018 $ 5,728 January 10, 2019 |
Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted | The significant assumptions used in determining the underlying fair value of the weighted-average options granted in fiscal 2018, 2017 and 2016 were as follows: 2014 Stock Incentive Plan Fiscal 2018 Fiscal 2017 Fiscal 2016 Volatility 32.7 % 32.9 % 34.0 % Risk free interest rate 2.73 % 2.00 % 1.29 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected term in years 6.0 6.0 5.9 Weighted average calculated value $ 15.36 $ 20.54 $ 13.62 |
Transactions Related to Stock Options Awards | Transactions related to stock option awards during fiscal 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 205,646 41.65 — — Exercised (55,611 ) 27.94 (345,497 ) 5.20 Forfeited (17,220 ) 46.12 (4,498 ) 9.34 Outstanding at February 3, 2019 1,134,218 34.22 359,984 6.48 Exercisable at February 3, 2019 745,267 $ 27.97 359,984 $ 6.48 |
Transactions Related to Time-based and Performance-based RSU's and Restricted Stock | Transactions related to time-based and performance-based RSU’s during fiscal 2018 were as follows: Weighted Avg Grant Date Shares Fair Value Outstanding at February 4, 2018 184,541 $ 44.96 Granted 112,574 46.50 Change in units based on performance 50,452 31.72 Vested (115,562 ) 35.26 Forfeited (11,175 ) 45.01 Outstanding at February 3, 2019 220,830 $ 47.79 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
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 fiscal years ended: (in thousands, except share and per share data) February 3, 2019 February 4, 2018 January 29, 2017 Numerator: Net income $ 117,221 $ 120,949 $ 90,795 Denominator: Weighted average number of common shares outstanding (basic) 39,047,106 41,276,314 41,951,770 Weighted average dilutive impact of equity-based awards 928,016 1,306,695 1,336,822 Weighted average number of common and common equivalent shares outstanding (dilutive) 39,975,122 42,583,009 43,288,592 Net income per share: Basic $ 3.00 $ 2.93 $ 2.16 Diluted $ 2.93 $ 2.84 $ 2.10 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Feb. 03, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Fiscal 2018 Quarters Ended 5/6/2018 8/5/2018 11/4/2018 2/3/2019 Total revenues $ 332,190 $ 319,188 $ 282,139 $ 331,784 Total cost of products 57,139 55,556 48,734 58,834 Operating income 58,604 45,930 15,472 40,994 Net income 42,150 33,779 11,856 29,436 Net income per share of common stock: Basic $ 1.06 $ 0.86 $ 0.30 $ 0.77 Diluted $ 1.04 $ 0.84 $ 0.30 $ 0.75 Weighted average number of shares outstanding: Basic 39,695,421 39,355,105 38,892,288 38,245,612 Diluted 40,612,388 40,280,301 39,855,648 39,065,459 Stores open at end of period 112 117 118 121 Fiscal 2017 Quarters Ended 4/30/2017 7/30/2017 10/29/2017 2/4/2018 Total revenues $ 304,148 $ 280,751 $ 249,979 $ 304,913 Total cost of products 48,985 48,451 44,607 54,629 Operating income 64,228 39,163 19,926 42,455 Net income 42,796 30,356 12,157 35,640 Net income per share of common stock: Basic $ 1.02 $ 0.73 $ 0.30 $ 0.88 Diluted $ 0.98 $ 0.71 $ 0.29 $ 0.85 Weighted average number of shares outstanding: Basic 42,027,551 41,460,651 41,077,206 40,568,751 Diluted 43,522,403 42,830,873 42,250,611 41,699,060 Stores open at end of period 96 100 101 106 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||||||||
Feb. 03, 2019USD ($)StoresStatesProvinceSegment | Feb. 04, 2018USD ($)Stores | Jan. 29, 2017USD ($) | Jan. 31, 2016USD ($) | Nov. 04, 2018Stores | Aug. 05, 2018Stores | May 06, 2018Stores | Oct. 29, 2017Stores | Jul. 30, 2017Stores | Apr. 30, 2017Stores | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Number of stores | Stores | 121 | 106 | 118 | 117 | 112 | 101 | 100 | 96 | ||
Number of states store operates | States | 39 | |||||||||
Number of operating segment | Segment | 1 | |||||||||
Number of reportable segment | Segment | 1 | |||||||||
Book overdrafts reclassified to accounts payable | $ 12,782 | $ 3,416 | ||||||||
Receivables for tenant improvement allowances | 10,742 | 14,941 | ||||||||
Long lived asset impairment loss | 0 | 0 | $ 0 | |||||||
Foreign exchange Transaction adjustment | 59 | 63 | ||||||||
Impairment of goodwill and tradenames | 0 | 0 | 0 | |||||||
Amortization expense | 188 | 588 | 1,399 | |||||||
Balance of transferable liquor licenses | 3,837 | 3,398 | ||||||||
Advertising costs expensed | 40,767 | 37,876 | 33,795 | |||||||
Stores Generated Revenues | 1,265,301 | 1,139,791 | 1,005,158 | |||||||
Other store operating expenses | 384,155 | 334,546 | 287,322 | |||||||
Excess Tax Benefit | 4,998 | 11,491 | ||||||||
Cumulative Effect Adjustment of Retained Earnings | 782 | |||||||||
Minimum [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Deferred Occupancy Costs | 225,000 | |||||||||
Additional Operating Liability | 1,050,000 | |||||||||
Right Of Use Assets | 825,000 | |||||||||
Maximum [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Deferred Occupancy Costs | 250,000 | |||||||||
Additional Operating Liability | 1,175,000 | |||||||||
Right Of Use Assets | 925,000 | |||||||||
Credit Facility-Revolver [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Debt issuance costs | 2,026 | 2,597 | ||||||||
Customer Relationships [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Net unamortized balances | $ 61 | |||||||||
Intellectual Property [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Other store operating expenses | 259 | |||||||||
Weighted Average Term of the License Agreements | 5 years | |||||||||
Unamortized Balance of Intellectual Property Licenses | $ 2,029 | |||||||||
Dave And Busters Holdings Inc [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Percentage of outstanding common stock owned | 100.00% | |||||||||
Canada [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Number of Canadian province | Province | 1 | |||||||||
Stores Generated Revenues | $ 18,848 | $ 20,075 | $ 13,369 | |||||||
Long-lived assets | 2.00% | |||||||||
Amusement Revenue [Member] | Other Comprehensive Income (Loss) [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Deferred amusement revenue | $ 19,300 | |||||||||
Gift Card Revenue [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Deferred amusement revenue | 4,000 | |||||||||
Gift card breakage revenue | 660 | |||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||
Cumulative Effect Adjustment of Retained Earnings | $ 150 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Feb. 03, 2019 | |
Building and building improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 40 years |
Building and building improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 20 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 5 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 10 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 3 years |
Games [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 20 years |
Games [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Depreciable Lives (In Years) | 3 years |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Inventory [Line Items] | ||
Inventory | $ 27,315 | $ 27,560 |
Operating store—food and beverage [Member] | ||
Inventory [Line Items] | ||
Inventory | 7,617 | 6,977 |
Operating store—amusement [Member] | ||
Inventory [Line Items] | ||
Inventory | 9,258 | 8,964 |
Corporate—amusement, supplies and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 10,440 | $ 11,619 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,383,515 | $ 1,200,785 |
Accumulated depreciation | (578,178) | (474,330) |
Property and equipment, net | 805,337 | 726,455 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,444 | 3,608 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,153 | 25,222 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 698,328 | 597,649 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 338,605 | 287,418 |
Games [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 251,819 | 204,593 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 75,166 | $ 82,295 |
Property and Equipment Capitali
Property and Equipment Capitalized and Depreciated - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019USD ($)StoresLease | Feb. 04, 2018USD ($) | Jan. 29, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 118,087 | $ 102,178 | $ 86,906 |
Number of sale leaseback transactions | Stores | 2 | ||
Number of sale leaseback transactions | Lease | 2 | ||
Sale-Leaseback proceeds | $ 11,571 | 20,262 | |
Property and equipment, gross | 1,383,515 | 1,200,785 | |
Deferred gain (loss) on sale of property | (13) | $ 126 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,444 | $ 3,608 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Deferred amusement revenue | $ 44,232 | $ 33,806 |
Compensation and benefits | 24,280 | 19,959 |
Amusement redemption liability | 19,911 | 18,041 |
Rent | 17,982 | 16,478 |
Deferred gift card revenue | 9,450 | 7,583 |
Property taxes | 7,278 | 6,054 |
Current portion of long term insurance | 5,900 | 4,600 |
Sales and use taxes | 5,226 | 5,191 |
Utilities | 4,032 | 3,554 |
Customer deposits | 3,731 | 3,250 |
Inventory liabilities | 2,876 | 4,336 |
Other (Refer to Note 10) | 12,266 | 12,309 |
Total accrued liabilities | $ 157,164 | $ 135,161 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Aug. 17, 2017 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 2,910,000 | |||
Loss on debt refinancing | 397,000 | |||
Loss on debt refinancing | $ 718,000 | |||
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, swing loan 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 | $ 381,953,000 | |||
Credit facility outstanding | $ 291,000,000 | |||
Weighted average interest rate on the Credit Facility | 3.75% | |||
Weighted average effective interest | 3.84% | |||
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 February 3, 2019, the Company was in compliance with the restrictive and financial ratio covenants of our credit facility. |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 394,250 | $ 367,250 |
Less current installments—term | (15,000) | (15,000) |
Long-term debt, net | 378,469 | 351,249 |
Credit Facility—term [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 281,250 | 296,250 |
Less current installments—term | (15,000) | (15,000) |
Less debt issuance costs—term | (781) | (1,001) |
Credit Facility—revolver [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 113,000 | $ 71,000 |
Debt - Future Debt Payment Obli
Debt - Future Debt Payment Obligation (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 04, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 15,000 | |
2020 | 15,000 | |
2021 | 15,000 | |
2022 | 349,250 | |
Thereafter | 0 | |
Total debt outstanding | $ 394,250 | $ 367,250 |
Debt - Recorded Interest Expens
Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Debt Disclosure [Abstract] | |||
Interest expense on credit facilities | $ 13,408 | $ 8,697 | $ 6,896 |
Amortization of issuance cost and discount | 792 | 739 | 674 |
Interest income | (136) | (224) | (271) |
Capitalized interest | (1,009) | (786) | (462) |
Change in fair value of interest rate cap | 58 | 239 | 148 |
Total interest expense, net | $ 13,113 | $ 8,665 | $ 6,985 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Feb. 04, 2018 | Dec. 31, 2017 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Nov. 04, 2018 | |
Income Taxes [Line Items] | ||||||
Corporate tax rate | 21.00% | 35.00% | 21.00% | 33.70% | 35.00% | |
Valuation allowance against deferred tax assets - US | $ 402 | $ 1,341 | $ 402 | $ 409 | ||
Accrued interest on unrecognized tax benefits | $ 360 | 394 | $ 360 | |||
Unrecognized tax benefits will be settled through federal and state audits or will be recognized as a result of the expiration of statute of limitations | 668 | |||||
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 2,153 | |||||
State and Local Jurisdiction [Member] | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforwards | $ 61,402 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Current provision: | |||
Federal | $ 13,456 | $ 35,195 | $ 35,596 |
State and local | 10,730 | 9,112 | 10,107 |
Foreign | 1,006 | (22) | 72 |
Total current provision | 25,192 | 44,285 | 45,775 |
Deferred provision (benefit): | |||
Federal | 5,029 | (5,697) | 7,318 |
State and local | (228) | (2,885) | (287) |
Foreign | 673 | (263) | (70) |
Total deferred provision (benefit) | 5,474 | (8,845) | 6,961 |
Provision for income taxes | $ 30,666 | $ 35,440 | $ 52,736 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Assets and Liabilities (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Nov. 04, 2018 | Feb. 04, 2018 |
Deferred tax assets: | |||
Deferred revenue and redemption ticket liability | $ 18,503 | $ 14,994 | |
Leasing transactions | 16,678 | 12,891 | |
Accrued liabilities | 5,510 | 4,631 | |
Workers compensation and general liability insurance | 4,103 | 3,386 | |
Share-based compensation | 5,991 | 5,289 | |
Net operating loss carryovers | 3,177 | 3,715 | |
Indirect benefit of unrecognized tax benefits | 574 | 398 | |
Other | 2,431 | 2,626 | |
Total | 56,967 | 47,930 | |
Valuation allowance | (1,341) | $ (409) | (402) |
Total deferred tax assets, net of valuation allowance | 55,626 | 47,528 | |
Deferred tax liabilities: | |||
Trademark/tradename | (21,498) | (21,413) | |
Property and equipment | (40,171) | (25,797) | |
Other | (1,855) | (2,742) | |
Total deferred tax liabilities | (63,524) | (49,952) | |
Net deferred tax liabilities | (7,898) | (2,424) | |
Reported as: | |||
Deferred tax assets, net — noncurrent | 6,736 | 7,789 | |
Deferred tax liabilities, net — noncurrent | (14,634) | (10,213) | |
Net deferred tax liabilities | $ (7,898) | $ (2,424) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 1,568 | $ 1,348 | $ 1,263 |
Additions for tax positions of current year | 437 | 290 | 240 |
Additions for tax positions of prior years | 435 | ||
Reductions for tax positions of prior years | (30) | (31) | (76) |
Lapse of statute of limitations | (77) | (39) | (79) |
Balance at end of year | $ 2,333 | $ 1,568 | $ 1,348 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Rate to Effective Income Tax Rate (Detail) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Feb. 04, 2018 | Dec. 31, 2017 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Federal corporate statutory rate | 21.00% | 35.00% | 21.00% | 33.70% | 35.00% |
State and local income taxes, net of federal income tax benefit | 5.30% | 3.80% | 4.40% | ||
Foreign taxes | 0.50% | (0.20%) | |||
Nondeductible expenses | 1.20% | 1.40% | 1.50% | ||
Tax credits | (5.00%) | (4.00%) | (4.10%) | ||
Valuation allowance | 0.60% | (0.30%) | (0.10%) | ||
Tax contingency reserves | 0.60% | 0.10% | |||
Share-based compensation | (3.40%) | (7.30%) | |||
Impacts related to the Tax Act | (5.10%) | ||||
Other | (0.10%) | 0.60% | |||
Effective tax rate | 20.70% | 22.70% | 36.70% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Leases [Abstract] | |||
Rent expense for operating leases | $ 113,007 | $ 96,814 | $ 77,964 |
Contingent rentals | $ 3,526 | $ 3,427 | $ 4,263 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) $ in Thousands | Feb. 03, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 121,550 |
2020 | 117,033 |
2021 | 111,045 |
2022 | 104,049 |
2023 | 100,712 |
Thereafter | 1,229,784 |
Total | $ 1,784,173 |
Leases - Lease Commitments on E
Leases - Lease Commitments on Equipment (Detail) $ in Thousands | Feb. 03, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 121,550 |
2020 | 117,033 |
2021 | 111,045 |
2022 | 104,049 |
2023 | 100,712 |
Thereafter | 1,229,784 |
Total | 1,784,173 |
Operating Lease Equipment [Member] | |
Operating Leased Assets [Line Items] | |
2019 | 951 |
2020 | 875 |
2021 | 597 |
2022 | 146 |
2023 | 67 |
Thereafter | 19 |
Total | $ 2,655 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 11, 2019 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | Apr. 02, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share repurchase remaining authorization amount | $ 70,137,000 | ||||
Withholding shares of common stock | 16,251 | ||||
Employees tax obligations | $ 673,000 | ||||
Stock repurchase authorized amount | $ 400,000,000 | ||||
Stock repurchase expiration year | 2020 | ||||
Board of Directors [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorized amount | $ 200,000,000 | ||||
Dividend [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend per | $ 0.15 | ||||
Dividend to be paid date | Apr. 10, 2019 | ||||
Dividend record date | Mar. 26, 2019 | ||||
2014 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares of common stock available for issuance | 3,100,000 | ||||
Vesting period | 3 years | ||||
2010 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period of Incentive plan | 10 years | ||||
Recipient age to expense award on grant date | 60 years | ||||
Recipient age to expense award on grant date | 65 years | ||||
Share-based compensation expense related to stock option | $ 3,185,000 | $ 4,875,000 | $ 3,483,000 | ||
Total intrinsic value of stock options exercised | 19,524,000 | 30,844,000 | 50,403,000 | ||
Unrecognized expense related to stock option plan | $ 1,750,000 | ||||
Unrecognized compensation expense, weighted average years | 1 year 10 months 24 days | ||||
Weighted average remaining contractual life, options outstanding | 6 years 1 month 6 days | ||||
Aggregate intrinsic value, options outstanding | $ 36,800,000 | ||||
Weighted average remaining contractual life, options exercisable | 5 years 3 months 18 days | ||||
Aggregate intrinsic value, options outstanding, options exercisable | $ 34,000,000 | ||||
Stock Options [Member] | IPO [Member] | 2014 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rate | 50.00% | ||||
Vesting period | 3 years | ||||
Vesting period | 4 years | ||||
Performance Based RSU [Member] | 2014 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reduction in available shares granted subject to target performance | 1 | ||||
Reduction in shares granted subject to above target performance | 2 | ||||
Reduction in shares granted subject to below target performance | 0 | ||||
Restricted Stock Units (RSU's) and Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 4,237,000 | $ 4,041,000 | $ 2,345,000 | ||
Unrecognized compensation expense, weighted average years | 2 years 4 months 24 days | ||||
Unrecognized expense related to unvested restricted stock and RSUs | $ 5,400,000 | ||||
Weighted average fair value for RSU's and restricted stock issued | $ 46.50 | $ 58.78 | $ 40.71 | ||
Shares vested, value | $ 4,812,000 | $ 426,000 | $ 360,000 | ||
Time Based RSU [Member] | 2014 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years |
Stockholders' Equity - Share re
Stockholders' Equity - Share repurchase program (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Equity [Abstract] | |||
Total number of shares repurchased | 3,080,419 | 2,636,616 | 566,756 |
Average price paid per share | $ 48.41 | $ 57.62 | $ 50.86 |
Total cash paid for share repurchases | $ 149,125 | $ 151,913 | $ 28,825 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Feb. 04, 2018USD ($)$ / shares | |
Dividend One [Member] | |
Dividends Payable [Line Items] | |
Declaration Date | Sep. 11, 2018 |
Dividend per | $ / shares | $ 0.15 |
Record Date | Sep. 25, 2018 |
Amount | $ | $ 5,842 |
Payment Date | Oct. 10, 2018 |
Dividend Two [Member] | |
Dividends Payable [Line Items] | |
Declaration Date | Dec. 13, 2018 |
Dividend per | $ / shares | $ 0.15 |
Record Date | Dec. 26, 2018 |
Amount | $ | $ 5,728 |
Payment Date | Jan. 10, 2019 |
Stockholders' Equity - Signific
Stockholders' Equity - Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted (Detail) - 2014 Stock Incentive Plan [Member] - Service Based Option [Member] - $ / shares | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 32.70% | 32.90% | 34.00% |
Risk free interest rate | 2.73% | 2.00% | 1.29% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term – in years | 6 years | 6 years | 5 years 10 months 24 days |
Weighted average calculated value | $ 15.36 | $ 20.54 | $ 13.62 |
Stockholders' Equity - Transact
Stockholders' Equity - Transactions Related to Stock Option Awards (Detail) | 12 Months Ended |
Feb. 03, 2019$ / sharesshares | |
2014 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 4, 2018 | shares | 1,001,403 |
Granted | shares | 205,646 |
Exercised | shares | (55,611) |
Forfeited | shares | (17,220) |
Options outstanding at February 3, 2019 | shares | 1,134,218 |
Options exercisable at February 3, 2019 | shares | 745,267 |
Weighted Average Exercise Price | |
Options outstanding at February 4, 2018 | $ / shares | $ 32.55 |
Granted | $ / shares | 41.65 |
Exercised | $ / shares | 27.94 |
Forfeited | $ / shares | 46.12 |
Options outstanding at February 3, 2019 | $ / shares | 34.22 |
Options exercisable at February 3, 2019 | $ / shares | $ 27.97 |
2010 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 4, 2018 | shares | 709,979 |
Exercised | shares | (345,497) |
Forfeited | shares | (4,498) |
Options outstanding at February 3, 2019 | shares | 359,984 |
Options exercisable at February 3, 2019 | shares | 359,984 |
Weighted Average Exercise Price | |
Options outstanding at February 4, 2018 | $ / shares | $ 5.88 |
Exercised | $ / shares | 5.20 |
Forfeited | $ / shares | 9.34 |
Options outstanding at February 3, 2019 | $ / shares | 6.48 |
Options exercisable at February 3, 2019 | $ / shares | $ 6.48 |
Stockholders' Equity - Transa_2
Stockholders' Equity - 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] | 12 Months Ended |
Feb. 03, 2019$ / 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 | 112,574 |
Restricted Stock Awards, Change in units based on performance | shares | 50,452 |
Restricted Stock Awards, Vested | shares | (115,562) |
Restricted Stock Awards, Forfeited | shares | (11,175) |
Restricted Stock Awards, February 3, 2019 | shares | 220,830 |
Weighted Average Grant Date Fair Value, February 4, 2018 | $ / shares | $ 44.96 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 46.50 |
Weighted Average Fair Value Grant Date, Change in units based on performance | $ / shares | 31.72 |
Weighted Average Fair Value, Vested | $ / shares | 35.26 |
Weighted Average Fair Value, Forfeited | $ / shares | 45.01 |
Weighted Average Fair Value, February 3, 2019 | $ / shares | $ 47.79 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Deferred Compensation Plan [Member] | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Guaranteed percentage of employee contribution | 25.00% | ||
Maximum eligibility of employee compensation | 6.00% | ||
Percentage of discretionary contribution | 25.00% | ||
Percentage of maximum employee eligible compensation on pretax basis that can be contributed | 50.00% | ||
Deferred compensation expense | $ 135 | $ 246 | $ 237 |
Description of contributions | Any contributions to a participant’s account vest in equal portions over a five-year period and become immediately vested upon termination of a participant’s employment on or after age 65 or by reason of the participant’s death or disability, and upon a change of control (as defined). | ||
Defined contribution plan employer matching contribution vesting period | 5 years | ||
Deferred compensation plan assets | $ 7,409 | 7,059 | |
401(k) Plan [Member] | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Guaranteed percentage of employee contribution | 25.00% | ||
Maximum eligibility of employee compensation | 6.00% | ||
Percentage of discretionary contribution | 25.00% | ||
Percentage of maximum employee eligible compensation on pretax basis that can be contributed | 50.00% | ||
Deferred compensation expense | $ 692 | $ 1,089 | $ 889 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Other Commitments [Line Items] | ||
Litigation charge | $ 2,550 | |
Legal gross settlement cost | 7,500 | |
Insurance recoveries | $ 4,950 | |
Insurance recoveries | $ 3,075 | |
Recognized property insurance recoveries | 541 | |
Other Store Operating Expenses [Member] | ||
Other Commitments [Line Items] | ||
Recognized property insurance recoveries | $ 180 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | |
Feb. 03, 2019 | Feb. 04, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted average anti-dilutive options excluded from calculation of common equivalent shares | 52,000 | 31,000 |
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 | 12 Months Ended | |||||||||
Feb. 03, 2019 | Nov. 04, 2018 | Aug. 05, 2018 | May 06, 2018 | Feb. 04, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 30, 2017 | Feb. 03, 2019 | Feb. 04, 2018 | Jan. 29, 2017 | |
Numerator: | |||||||||||
Net income | $ 117,221 | $ 120,949 | $ 90,795 | ||||||||
Denominator: | |||||||||||
Weighted average number of common shares outstanding (basic) | 38,245,612 | 38,892,288 | 39,355,105 | 39,695,421 | 40,568,751 | 41,077,206 | 41,460,651 | 42,027,551 | 39,047,106 | 41,276,314 | 41,951,770 |
Weighted average dilutive impact of equity-based awards | 928,016 | 1,306,695 | 1,336,822 | ||||||||
Weighted average number of common and common equivalent shares outstanding (dilutive) | 39,065,459 | 39,855,648 | 40,280,301 | 40,612,388 | 41,699,060 | 42,250,611 | 42,830,873 | 43,522,403 | 39,975,122 | 42,583,009 | 43,288,592 |
Net income per share: | |||||||||||
Basic | $ 0.77 | $ 0.30 | $ 0.86 | $ 1.06 | $ 0.88 | $ 0.30 | $ 0.73 | $ 1.02 | $ 3 | $ 2.93 | $ 2.16 |
Diluted | $ 0.75 | $ 0.30 | $ 0.84 | $ 1.04 | $ 0.85 | $ 0.29 | $ 0.71 | $ 0.98 | $ 2.93 | $ 2.84 | $ 2.10 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information - Quarterly Financial Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 03, 2019USD ($)Stores$ / sharesshares | Nov. 04, 2018USD ($)Stores$ / sharesshares | Aug. 05, 2018USD ($)Stores$ / sharesshares | May 06, 2018USD ($)Stores$ / sharesshares | Feb. 04, 2018USD ($)Stores$ / sharesshares | Oct. 29, 2017USD ($)Stores$ / sharesshares | Jul. 30, 2017USD ($)Stores$ / sharesshares | Apr. 30, 2017USD ($)Stores$ / sharesshares | Feb. 03, 2019USD ($)Stores$ / sharesshares | Feb. 04, 2018USD ($)Stores$ / sharesshares | Jan. 29, 2017USD ($)$ / sharesshares | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 331,784 | $ 282,139 | $ 319,188 | $ 332,190 | $ 304,913 | $ 249,979 | $ 280,751 | $ 304,148 | |||
Total cost of products | 58,834 | 48,734 | 55,556 | 57,139 | 54,629 | 44,607 | 48,451 | 48,985 | $ 220,263 | $ 196,672 | $ 180,300 |
Operating income | 40,994 | 15,472 | 45,930 | 58,604 | 42,455 | 19,926 | 39,163 | 64,228 | $ 147,887 | $ 156,389 | $ 143,531 |
Net income | $ 29,436 | $ 11,856 | $ 33,779 | $ 42,150 | $ 35,640 | $ 12,157 | $ 30,356 | $ 42,796 | |||
Net income per share of common stock: | |||||||||||
Basic | $ / shares | $ 0.77 | $ 0.30 | $ 0.86 | $ 1.06 | $ 0.88 | $ 0.30 | $ 0.73 | $ 1.02 | $ 3 | $ 2.93 | $ 2.16 |
Diluted | $ / shares | $ 0.75 | $ 0.30 | $ 0.84 | $ 1.04 | $ 0.85 | $ 0.29 | $ 0.71 | $ 0.98 | $ 2.93 | $ 2.84 | $ 2.10 |
Denominator: | |||||||||||
Basic | shares | 38,245,612 | 38,892,288 | 39,355,105 | 39,695,421 | 40,568,751 | 41,077,206 | 41,460,651 | 42,027,551 | 39,047,106 | 41,276,314 | 41,951,770 |
Diluted | shares | 39,065,459 | 39,855,648 | 40,280,301 | 40,612,388 | 41,699,060 | 42,250,611 | 42,830,873 | 43,522,403 | 39,975,122 | 42,583,009 | 43,288,592 |
Stores open at end of period | Stores | 121 | 118 | 117 | 112 | 106 | 101 | 100 | 96 | 121 | 106 |