Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 28, 2021 | Aug. 02, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Entity Registrant Name | Dave & Buster’s Entertainment, Inc. | ||
Entity Central Index Key | 0001525769 | ||
Entity Filer Category | Large Accelerated Filer | ||
Current Fiscal Year End Date | --01-31 | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-35664 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Common Stock, Shares Outstanding | 47,658,356 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Address, Address Line One | 2481 Mañana Drive | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
City Area Code | 214 | ||
Entity Address, Postal Zip Code | 75220 | ||
Local Phone Number | 357-9588 | ||
Entity Tax Identification Number | 35-2382255 | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 580 | ||
ICFR Auditor Attestation Flag | true | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | PLAY | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | PLAY | ||
Title of 12(b) Security | Preferred Stock | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 11,891 | $ 24,655 |
Inventories | 23,807 | 34,477 |
Prepaid expenses | 11,878 | 14,269 |
Income taxes receivable | 70,064 | 2,331 |
Other current assets | 1,231 | 3,245 |
Total current assets | 118,871 | 78,977 |
Property and equipment (net of $798,804 and $686,824 accumulated depreciation as of January 31, 2021 and February 2, 2020, respectively) | 815,027 | 900,637 |
Operating lease right of use assets, net | 1,037,569 | 1,011,568 |
Deferred tax assets | 5,874 | 7,639 |
Tradenames | 79,000 | 79,000 |
Goodwill | 272,597 | 272,636 |
Other assets and deferred charges | 23,886 | 19,682 |
Total assets | 2,352,824 | 2,370,139 |
Current liabilities: | ||
Current installments of long-term debt | 15,000 | |
Accounts payable | 36,400 | 65,359 |
Accrued liabilities | 234,790 | 207,452 |
Income taxes payable | 446 | 3,054 |
Total current liabilities | 271,636 | 290,865 |
Deferred income taxes | 13,658 | 19,102 |
Operating lease liabilities | 1,267,791 | 1,222,054 |
Other liabilities | 50,119 | 35,779 |
Long-term debt, net | 596,388 | 632,689 |
Stockholders' equity: | ||
Common stock, par value $0.01; authorized: 400,000,000 shares; issued: 60,488,833 shares at January 31, 2021 and 43,386,852 shares at February 2, 2020; outstanding: 47,646,606 shares at January 31, 2021 and 30,603,340 shares at February 2, 2020 | 605 | 434 |
Paid-in capital | 531,191 | 339,161 |
Treasury stock, 12,842,227 and 12,783,512 shares as of January 31, 2021 and February 2, 2020, respectively | (595,970) | (595,041) |
Accumulated other comprehensive loss | (9,085) | (8,369) |
Retained earnings | 226,491 | 433,465 |
Total stockholders' equity | 153,232 | 169,650 |
Total liabilities and stockholders' equity | $ 2,352,824 | $ 2,370,139 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 798,804 | $ 686,824 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 60,488,833 | 43,386,852 |
Common stock, shares outstanding | 47,646,606 | 30,603,340 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 12,842,227 | 12,783,512 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Total revenues | $ 436,512 | $ 1,354,691 | $ 1,265,301 |
Total cost of products | 74,905 | 233,311 | 220,263 |
Operating payroll and benefits | 117,475 | 322,970 | 296,924 |
Other store operating expenses | 299,464 | 429,431 | 384,155 |
General and administrative expenses | 47,215 | 69,469 | 61,521 |
Depreciation and amortization expense | 138,789 | 132,460 | 118,275 |
Pre-opening costs | 11,276 | 18,971 | 23,163 |
Total operating costs | 689,124 | 1,206,612 | 1,104,301 |
Operating income (loss) | (252,612) | 148,079 | 161,000 |
Interest expense, net | 36,890 | 20,937 | 13,113 |
Loss on debt refinance | 904 | ||
Income (loss) before provision (benefit) for income taxes | (290,406) | 127,142 | 147,887 |
Provision (benefit) for income taxes | (83,432) | 26,879 | 30,666 |
Net income (loss) | (206,974) | 100,263 | 117,221 |
Unrealized foreign currency translation gain (loss) | 119 | (65) | (434) |
Unrealized loss on derivatives, net of tax | (835) | (7,621) | |
Total other comprehensive loss | (716) | (7,686) | (434) |
Total comprehensive income (loss) | $ (207,690) | $ 92,577 | $ 116,787 |
Net income (loss) per share: | |||
Basic | $ (4.75) | $ 3 | $ 3 |
Diluted | $ (4.75) | $ 2.94 | $ 2.93 |
Weighted average shares used in per share calculations: | |||
Basic | 43,549,887 | 33,450,217 | 39,047,106 |
Diluted | 43,549,887 | 34,099,378 | 39,975,122 |
Amusement and Other Revenues [Member] | |||
Total revenues | $ 277,011 | $ 791,115 | $ 728,832 |
Cost of amusement and other | 29,698 | 85,115 | 81,064 |
Food and Beverage [Member] | |||
Total revenues | 159,501 | 563,576 | 536,469 |
Cost of food and beverage | $ 45,207 | $ 148,196 | $ 139,199 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock at Cost [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Retained Earnings [Member] |
Beginning balance at Feb. 04, 2018 | $ 421,646,000 | $ 427,000 | $ 320,488,000 | $ (147,331,000) | $ (249,000) | $ 248,311,000 | |
Beginning balance, shares at Feb. 04, 2018 | 42,660,806 | 2,558,721 | |||||
Net income | 117,221,000 | 117,221,000 | |||||
Unrealized foreign currency translation loss | (434,000) | (434,000) | |||||
Dividends declared | (11,570,000) | (11,570,000) | |||||
Share-based compensation | 7,422,000 | 7,422,000 | |||||
Issuance of common stock | 3,350,000 | $ 5,000 | 3,345,000 | ||||
Issuance of common stock, shares | 516,670 | ||||||
Repurchase of common stock | (149,798,000) | $ (149,798,000) | |||||
Repurchase of common stock, shares | 3,096,670 | ||||||
Ending balance at Feb. 03, 2019 | 387,837,000 | $ (145) | $ 432,000 | 331,255,000 | $ (297,129,000) | (683,000) | 353,962,000 |
Ending balance, shares at Feb. 03, 2019 | 43,177,476 | 5,655,391 | |||||
Net income | 100,263,000 | 100,263,000 | |||||
Unrealized foreign currency translation loss | (65,000) | (65,000) | |||||
Unrealized loss on derivatives, net of tax | (7,621,000) | (7,621,000) | |||||
Dividends declared | (20,615,000) | (20,615,000) | |||||
Share-based compensation | 6,857,000 | 6,857,000 | |||||
Issuance of common stock | 1,051,000 | $ 2,000 | 1,049,000 | ||||
Issuance of common stock, shares | 209,376 | ||||||
Repurchase of common stock | (297,912,000) | $ (297,912,000) | |||||
Repurchase of common stock, shares | 7,128,121 | ||||||
Ending balance at Feb. 02, 2020 | 169,650,000 | $ 434,000 | 339,161,000 | $ (595,041,000) | (8,369,000) | 433,465,000 | |
Ending balance, shares at Feb. 02, 2020 | 43,386,852 | 12,783,512 | |||||
Net income | (206,974,000) | (206,974,000) | |||||
Unrealized foreign currency translation loss | 119,000 | 119,000 | |||||
Unrealized loss on derivatives, net of tax | (835,000) | (835,000) | |||||
Share-based compensation | 6,985,000 | 6,985,000 | |||||
Issuance of common stock | 185,216,000 | $ 171,000 | 185,045,000 | ||||
Issuance of common stock, shares | 17,101,981 | ||||||
Repurchase of common stock | (929,000) | $ (929,000) | |||||
Repurchase of common stock, shares | 58,715 | ||||||
Ending balance at Jan. 31, 2021 | $ 153,232,000 | $ 605,000 | $ 531,191,000 | $ (595,970,000) | $ (9,085,000) | $ 226,491,000 | |
Ending balance, shares at Jan. 31, 2021 | 60,488,833 | 12,842,227 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Feb. 02, 2020 | Feb. 03, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share | $ 0.62 | $ 0.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (206,974) | $ 100,263 | $ 117,221 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization expense | 138,789 | 132,460 | 118,275 |
Non-cash interest expense | 5,974 | ||
Impairment of long-lived assets | 12,248 | ||
Deferred taxes | (3,365) | 6,473 | 5,474 |
Loss on debt refinance | 904 | ||
Loss on disposal of fixed assets | 577 | 1,813 | 1,121 |
Share-based compensation | 6,985 | 6,857 | 7,422 |
Other, net | 2,033 | 1,070 | 1,049 |
Changes in assets and liabilities: | |||
Inventories | 10,670 | (7,162) | 245 |
Prepaid expenses | 2,993 | (2,162) | (1,661) |
Income tax receivable | (67,733) | (451) | 2,987 |
Other current assets | 2,014 | 5,320 | 4,705 |
Other assets and deferred charges | 484 | (1,017) | (2,523) |
Accounts payable | (9,576) | 2,026 | 11,122 |
Accrued liabilities | 56,757 | 47,896 | 21,329 |
Income taxes payable | (2,608) | (8,745) | 8,762 |
Deferred occupancy costs | 38,958 | ||
Other liabilities | 604 | 4,305 | 3,130 |
Net cash provided by (used in) operating activities | (49,224) | 288,946 | 337,616 |
Cash flows from investing activities: | |||
Capital expenditures | (83,016) | (228,091) | (216,286) |
Proceeds from sale-leaseback transactions | 11,571 | ||
Proceeds from insurance | 595 | 541 | |
Proceeds from sales of property and equipment | 461 | 800 | 366 |
Net cash used in investing activities | (81,960) | (227,291) | (203,808) |
Cash flows from financing activities: | |||
Proceeds from debt | 732,000 | 406,000 | 265,000 |
Payments of debt | (770,250) | (152,000) | (238,000) |
Debt issuance costs | (20,209) | ||
Net proceeds from the issuance of common stock | 182,207 | ||
Repurchase of common stock under share repurchase program | (297,317) | (149,125) | |
Repurchases of common stock to satisfy employee withholding tax obligations | (929) | (595) | (673) |
Dividends paid | (4,891) | (15,724) | (11,570) |
Proceeds from the exercise of stock options | 492 | 1,051 | 3,350 |
Net cash provided by (used in) financing activities | 118,420 | (58,585) | (131,018) |
Increase (decrease) in cash and cash equivalents | (12,764) | 3,070 | 2,790 |
Beginning cash and cash equivalents | 24,655 | 21,585 | 18,795 |
Ending cash and cash equivalents | 11,891 | 24,655 | 21,585 |
Supplemental disclosures of cash flow information: | |||
Increase (decrease) for capital expenditures in accounts payable | (19,383) | (2,906) | (5,321) |
Cash paid (received) for income taxes, net | (9,352) | 27,245 | 13,464 |
Cash paid for interest, net | $ 17,916 | 20,115 | $ 12,247 |
Dividends declared, not paid | $ 4,891 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2021 | |
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 During fiscal 2020, we opened six new stores, and management made the decision to not re-open stores located in states, Puerto Rico and Canadian province. The Company’s two stores located in the Canadian province of Ontario generated revenues of approximately $2,896, $ 18,649, and $18,848 in fiscal 2020, 2019 and 2018, respectively. As of January 31, 2021, less than 2.0% of our long-lived assets were located outside of the United States. COVID-19 COVID-19 non-essential To-Go On April 30, 2020, our first store re-opened re-opened re-opened COVID-19 COVID-19 As stores are re-opened, reduced labor and other operating costs. The Company has also been in ongoing discussions with landlords and other vendors to negotiate relief from cash payments under existing lease and trade payable obligations. During fiscal 2020, a total of 126 rent relief agreements related to our operating locations and corporate headquarters were initially executed, which generally provide for full deferral for three months beginning April 2020, with partial deferral continuing for periods of up to six months, at approximately 50% of those locations. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. As of the end of fiscal 2020, the Company had executed 17 of these additional rent relief agreements. The Company also negotiated extended and reduced payment terms with several vendors. In addition to reducing or deferring expenditures, including capital expenditures and discretionary spending, the $182,207. On October 27, 2020, D&B Inc completed the private sale of $550,000 in aggregate principal amount of 7.625% senior secured notes due 2025. At the same time, the revolving credit commitments under our existing credit facility were extended through August 17, 2024, and the suspension of our financial ratio covenants was extended until the last day of the first quarter of fiscal year 2022. See Note 5, Debt, for more information on these transactions. The measures taken by the Company provide sufficient liquidity to meet estimated cash flow needs and covenant compliance obligations for at least the next twelve months from the issuance of the financial statements. We cannot predict whether, when or the manner in which the conditions surrounding COVID-19 re-open, re-opened re-engagement re-closures Principles of consolidation Fiscal year , 53-week Use of estimates Cash and cash equivalents Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company maintains cash and cash equivalent balances that exceed federally insured limits with a number of financial institutions. Inventories (first-in, first-out Cloud-Based Computing Arrangements Property and equipment terms of the underlying leases of the related assets. Estimated depreciable lives for the categories of property and equipment follows: 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 of or improve the safety or the efficiency of the property and equipment are capitalized, Annually or more frequently if an event occurs or circumstances change that would indicate that the carrying values of these assets may not be recoverable, we evaluate long-lived assets related to each store to be held and used in business, including property and equipment and right-of-use During fiscal 2020, the Company recorded an impairment charge for its long-lived assets, including ROU assets, of $6,746, primarily driven by the expected impact of the COVID-19 potentially terminate or delay possession on certain executed lease contracts that have not yet commenced. The Company has also curtailed several potential new store projects that were in the early stage of development. During fiscal , we recorded an impairment loss and related contract termination costs of $ related to these projects, which is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). Given the ongoing impacts of COVID-19 impairment charges were recognized in fiscal and . Goodwill and tradenames carrying amount of goodwill is impacted by foreign currency translation adjustments. The foreign currency translation adjustment decreased goodwill by $ and increased goodwill by $ during fiscal and fiscal , respectively. Goodwill and tradenames which have an indefinite useful life, are not subject to amortization, and are evaluated for impairment annually or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. Goodwill and tradenames are evaluated at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit. 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 2020, 2019 and 2018, there was no impairment to our goodwill or tradenames. Other assets and deferred charges, net assets and deferred charges, net consist primarily of intangible assets related to transferable liquor licenses and intellectual property licenses associated with some of our proprietary amusement offerings, and assets related to various deposits, the employee deferred compensation plan, and unamortized debt issuance costs on the revolving portion of our credit facility. The balance of transferable liquor licenses was $5,213 and $5,025 at the end of fiscal 2020 and fiscal 2019, respectively. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and are tested for impairment annually by comparing the estimated fair value of each asset with their carrying amount. The unamortized balance of our intellectual license costs was $1,862 and $2,422 at the end of fiscal 2020 and fiscal 2019, respectively. Intellectual licenses are amortized over the respective term of the license agreements, with a weighted average term remaining of 3.2 years at the end of fiscal 2020. Amortization of intellectual licenses of $575 , $507 and $ in fiscal 2020, fiscal 2019 and fiscal 2018, respectively, is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). 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 were $5,525 and $1,454 at the end of fiscal 2020 and fiscal 2019, respectively. Debt issuance costs on the senior secured notes 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. The fair value of the Company’s interest rate swap is determined based upon Level Two inputs which includes valuation models as reported by our counterparties and third-party valuation specialists. These valuation models are based on the present value of expected cash flows using forward rate curves. The fair values of our revolving credit facility of $62,114 and senior secured notes of $576,033 as of January 31, 2021, were valued using Interest rate swaps one-month The Company initially designated its interest rate swap agreements as a cash flow hedge and accounted for the underlying activity in accordance with hedge accounting. Effective April 14, 2020, the Company amended its existing credit facility agreement to obtain relief from its financial covenants, and as a result, the variable interest rate terms were modified to create an interest rate floor of 1.00%. Accordingly, and as a result of the then (de-designation the continued existence of the hedged interest payments, the Company is reclassifying its accumulated other comprehensive loss of $ as of the de-designation date into “Interest expense, net” using a straight-line approach over the remaining life of the originally designated hedging relationship. During fiscal , the amount of pre-tax losses in accumulated other comprehensive loss that was reclassified into interest expense subsequent to the de-designation date was $ , and the Company expects to reclassify $ within the next twelve months. Effective with the de-designation, any gain or loss on the derivatives are recognized in earnings in the period in which the change occurs. During fiscal , a loss of $ was recognized, which is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). Prior to the de-designation, Credit risk related to the failure of our counterparties to perform under the terms of the swap agreements is minimized by entering into transactions with carefully selected, credit-worthy parties and the fact that the swap contracts are distributed among several financial institutions to reduce the concentration of credit risk. Our swap agreements with our derivative counterparties contain a provision where if the Company defaults on any of its indebtedness, and repayment of the indebtedness has been accelerated, the Company could also be declared in default on its derivative obligations. The following derivative instruments were outstanding for the fiscal years ended: Fair Value Balance Sheet Location January 31, 2021 February 2, 2020 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (8,350 ) $ (3,518 ) Interest rate swaps Other liabilities (4,416 ) (6,967 ) Total derivatives (1) $ (12,766 ) $ (10,485 ) (1) The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. The following table summarizes the activity in accumulated other comprehensive loss related to our derivative instruments for the fiscal years ended: January 31, 2021 February 2, 2020 Amount of loss recorded in accumulated other comprehensive income $ 7,602 $ 11,454 Amount of loss reclassified into income (1) $ (6,453 ) $ (969 ) Income tax expense (benefit) in accumulated other comprehensive income $ (314 ) $ (2,864 ) (1) Amounts reclassified into income are included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income (Loss). Revenue recognition Power Cards purchased and used by customers to activate video and redemption games. Redemption games allow customers to earn tickets, which may be redeemed for prizes in our WIN! area. We have deferred a portion of amusement revenues for the estimated unfulfilled performance obligations based on an estimated rate of future use by customers of unused game play credits and the material right provided to customers to redeem tickets in the future for prizes. We estimate the amount of deferred revenue based upon credits and tickets remaining on Power Cards, historic game play credit and ticket utilization patterns and estimates of the standalone selling prices of Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended January 31, 2021, we recognized revenue of approximately related to the amount in deferred amusement revenue as of the end of fiscal 20 19 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 (Loss). The contract liability related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended January 31, 2021, we recognized revenue of approximately related to the amount in deferred gift card revenue as of the end of fiscal 2019, of which approximately 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. Historically, 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. Advertising costs Comprehensive Income (Loss). Leases contract. Generally, the Company’s lease contracts do not provide a readily determinable implicit rate, and therefore, the Company uses an estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. The Company uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a hypothetical credit rating. Our leases typically have initial terms ranging from ten to twenty years and most include options to extend the leases for one or more 5-year non-lease Tenant incentives used to fund leasehold improvements are recognized when earned and reduce our ROU asset related to the lease. Tenant incentives are amortized through the ROU asset as reductions of expense over the lease term. The balance of leasehold improvement incentive receivables is reflected as a reduction of the current portion of operating lease liabilities. We consider the concentration of credit risk for tenant improvement allowance receivables from landlords to be minimal due the payment histories and general financial condition of our landlords. During fiscal 2020, the Company entered into 126 initial rent relief agreements with our respective landlords on operating locations and our corporate headquarters. Under these agreements, certain rent payments will be abated, deferred or modified without penalty for various periods, generally providing for full deferral for three months beginning April 2020, with partial deferrals continuing for periods of up to six months at approximately 50% of those locations. The Company has chosen not to pay rent or to pay a portion of operating lease obligations as they become due for five properties without any rent relief agreements as of the end of fiscal 2020. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. In anticipation of the second phase of relief agreements, the Company chose not to pay certain scheduled deferred rent payments or not to pay all or a portion of rent due under the initial rent relief agreements, for an additional 52 locations. As of the end of fiscal 2020, the Company had executed 17 rent relief agreements related to the second phase of negotiations. The Company has elected to apply the practical expedient to account for lease concessions and deferrals resulting directly from COVID-19 Operating leases are included within the “Operating lease right of use assets”, “Accrued liabilities” and “Operating lease liabilities” in the Consolidated Balance Sheets. Operating lease payments are classified as cash flows from operating activities with ROU asset amortization and the change in the lease liability combined within “Other liabilities” in the reconciliation of net income to cash flows provided by operating activities in the Consolidated Statements of Cash Flows. Self-insurance programs Pre-opening Pre-opening pre-opening pre-opening pre-opening Income taxes The calculation of tax liabilities involves judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. For uncertain tax positions that do not meet this threshold, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. 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. Foreign currency Earnings per share January 31, 2021 February 2, 2020 February 3, 2019 Basic weighted average shares outstanding 43,549,887 33,450,217 39,047,106 Weighted average dilutive impact of awards (1) — 649,161 928,016 Diluted weighted average shares outstanding 43,549,887 34,099,378 39,975,122 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. Recently adopted accounting guidance 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, 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 On February 4, 2019, we adopted ASU 2016-02, Leases (Topic 842) Upon adoption of the new lease accounting standard, we applied the package of practical expedients, which eliminated the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. We also elected a short-term lease exception policy and an accounting policy to not separate non-lease Recent accounting pronouncements 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Reform on Financial Reporting de-designation de-designation |
Inventories
Inventories | 12 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2: Inventories Inventories consist of the following: January 31, 2021 February 2, 2020 Operating store—food and beverage $ 4,175 $ 7,950 Operating store—amusement 8,640 9,585 Corporate—amusement, supplies and other 10,992 16,942 $ 23,807 $ 34,477 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 |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3: Property and Equipment Property and equipment consist of the following: January 31, 2021 February 2, 2020 Land $ 12,302 $ 9,021 Buildings and building improvements 37,417 23,484 Leasehold improvements 805,229 793,698 Furniture, fixtures and equipment 430,331 412,716 Games 295,170 286,195 Construction in progress 33,382 62,347 Total cost 1,613,831 1,587,461 Accumulated depreciation (798,804 ) (686,824 ) Property and equipment, net $ 815,027 $ 900,637 Depreciation expense totaled $138,789 for fiscal 2020, $132,399 for fiscal 2019, and $118,087 for fiscal 2018. During fiscal 2020, we recognized business interruption insurance and property insurance recoveries of $160 and $595, respectively, related to flooding at one of our stores, and a net gain on disposal of fixed assets of $500, which are included in “other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). During fiscal Comprehensive Income (Loss). Comprehensive Income (Loss). During fiscal 2018, we completed a sale-leaseback transaction under which we sold land and buildings of one of our stores to an unrelated party for net proceeds of $11,571. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jan. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Note 4: Accrued Liabilities Accrued liabilities consist of the following as of the fiscal years ended: January 31, 2021 February 2, 2020 Deferred amusement revenue $ 78,852 $ 75,113 Current portion of operating lease liabilities, net (1) 46,471 45,611 Current portion of deferred occupancy costs 36,121 — Compensation and benefits 13,846 23,421 Accrued interest 11,321 648 Deferred gift card revenue 10,918 11,253 Current portion of derivatives 8,350 3,518 Property taxes 8,149 7,226 Current portion of long-term insurance 5,100 6,500 Utilities 4,151 4,442 Sales and use taxes 1,385 4,000 Customer deposits 1,373 4,324 Dividend payable — 4,891 Other (Note 10) 8,753 16,505 Total accrued liabilities $ 234,790 $ 207,452 (1) The balance of leasehold incentive receivables of $8,763 and $6,339 at January 31, 2021 and February 2, 2020, respectively, is reflected as a reduction of the current portion of operating lease liabilities. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 5: Debt January 31, February 2, Credit Facility—term $ — $ 266,250 Credit Facility—revolver 60,000 382,000 Senior secured notes 550,000 — Total debt outstanding 610,000 648,250 Less current installments — (15,000 ) Less debt issuance costs (13,612 ) (561 ) Long-term debt, net $ 596,388 $ 632,689 On August 17, 2017, we entered into a senior secured credit facility that provided a $300,000 term loan facility and a $500,000 revolving credit facility with a maturity date of August 17, 2022. The $500,000 revolving credit facility includes a $35,000 letter of credit sub-facility sub-facility. covenants. Effective April 14, 2020, we amended our existing credit facility, which provided relief from compliance with financial covenants through the third quarter of fiscal 2020. The interest rate spread increased to 2.00% plus a LIBOR floor of 1.00%. On October 27, 2020, the Company issued $550,000 aggregate principal amount of 7.625% senior secured notes (the “Notes”). Interest on the Notes accrues from October 27, 2020 and is payable in arrears on November 1 and May 1 of each year, commencing on May 1, 2021. The Notes mature on November 1, 2025 Concurrent and subject to the issuance of the Notes, the Company entered into a second amendment to its existing credit facility, which included relief from testing compliance with certain financial covenants until the last day of the fiscal quarter ending on May 1, 2022. During the financial covenant suspension period the Company is required to maintain minimum liquidity (primarily availability under the credit facility) of $150,000. The second amendment extended the maturity date of the $500,000 revolving portion of the facility from August 17, 2022 to August 17, 2024, inc reased spread to 4.00% during the financial covenant suspension period, and instituted a during that same time period. The utilization fee is due at maturity. After the financial covenant suspension period, the interest rate spread ranges from % to %. The second amendment terminated the term loan portion of the credit facility, which triggered payment of $ of lender debt costs associated with the first amendment. The Company used the proceeds of the Notes offering, along with cash on hand, to repay the $255,000 principal balance of the term loan facility, $463,000 of borrowings under the revolving credit facility, and related accrued interest. The Company incurred debt costs of $18,300, which are being amortized over the terms of the respective Notes and revolving credit facility. The Company also recorded a loss of $904 related to the unamortized debt costs associated with the term portion of the credit facility. For fiscal 2020 and fiscal 2019, the Company’s weighted average interest rate on outstanding borrowings was 5.40% and 3.98%, respectively. As of January 31, 2021, we had letters of credit outstanding of $9,686 and an unused commitment balance of $430,314 under the revolving credit facility. Future debt obligations 2024 $ 60,000 2025 550,000 Total future payments $ 610,000 Interest expense, net January 31, February 2, February 3, Interest expense on debt $ 29,124 $ 20,277 $ 13,408 Interest associated with swap agreements 6,453 969 — Amortization of issuance cost 2,184 792 792 Interest income (22 ) (119 ) (136 ) Capitalized interest (849 ) (982 ) (1,009 ) Change in fair value of interest rate cap — — 58 Total interest expense, net $ 36,890 $ 20,937 $ 13,113 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6: Income Taxes On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law. Intended to provide economic relief to those impacted by the COVID-19 includes provisions, among others, allowing for the carryback of net operating losses generated in fiscal 2018, 2019 and 2020 and technical amendments regarding the expensing of qualified improvement property. We accelerated tax depreciation expense due to the technical amendments made by the CARES Act to qualified improvement property and carried back tax net operating losses from fiscal 2020 and fiscal 2019 to years with a higher federal corporate income tax rate. We expect to file fiscal 2020 carryback claims during fiscal 2021, and we expect The effects of these claims were included in our provision for income taxes based on the best information available at the time we prepared or consolidated financial statements. Legislative and judicial developments relating to these provisions may evolve and the actual effect of these claims may differ, which, in turn, may result in adjustments to our effective tax rate. Additionally, the CARES Act, in efforts to enhance business’ liquidity, provides for the deferral of the employer-paid portion of social security taxes. As of January 31, 2021, we have elected to defer employer-paid portion of social security taxes of $4,798. The current portion is included in “Accrued liabilities” and the balance is included in “Other liabilities” in the Consolidated Balance Sheets. The following table sets forth our income tax provision: January 31, 2021 February 2, 2020 February 3, 2019 Current provision: Federal $ (78,629 ) $ 11,744 $ 13,456 State and local (1,360 ) 8,562 10,730 Foreign (78 ) 100 1,006 Total current provision (80,067 ) 20,406 25,192 Deferred provision (benefit): Federal (5,415 ) 7,109 5,029 State and local 1,951 (365 ) (228 ) Foreign 99 (271 ) 673 Total deferred provision (benefit) (3,365 ) 6,473 5,474 Provision for income taxes $ (83,432 ) $ 26,879 $ 30,666 The following table reconciles the effective tax rate to the federal income tax rate: January 31, 2021 February 2, 2020 February 3, 2019 Federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 2.7 % 5.4 % 5.3 % Permanent differences (0.2 ) 1.5 % 1.2 % Tax credits 0.7 % (6.4 )% (5.0 )% Share-based compensation (0.2 ) (0.9 )% (3.4 )% Impact of net operating loss carryback 7.5 % — % — % Other (2.8 ) 0.5 % 1.6 % Effective tax rate 28.7 % 21.1 % 20.7 % Components of the deferred income tax asset (liability) consist of the following: January 31, February 2, Deferred revenue $ 24,136 $ 21,961 Operating lease liability 383,378 355,566 Accrued liabilities 1,332 3,744 Workers compensation and general liability insurance 3,923 4,397 Share-based compensation 7,236 6,740 Hedging transactions 3,488 2,864 Net operating loss carryovers 10,303 2,817 Tax credit carryovers 3,054 810 Indirect benefit of unrecognized tax benefits 639 525 Other 5,549 2,399 Total deferred tax assets 443,038 401,823 Trademark/tradename (21,583 ) (21,583 ) Property and equipment (127,969 ) (108,685 ) Operating lease right of use asset (287,030 ) (279,812 ) Other (493 ) (586 ) Total deferred tax liabilitie s (437,075 ) (410,666 ) Net deferred tax asset (liability) before valuation allowance 5,963 (8,843 ) Valuation allowanc e (13,747 ) (2,620 ) Net deferred tax liability $ (7,784 ) $ (11,463 ) As of January 31, 2021, we had $157,779 of state net operating loss carryforwards, which will begin to expire in 202 1 We also have general business credit carryovers of $2,158, which will begin to expire in 2040. During fiscal 2020, the increase in the valuation allowance of $11,127 primarily relates to the increase in net operating loss carryovers. During fiscal 2019, the increase of $ A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: January 31, February 2, February 3, Balance at beginning of year $ 2,080 $ 2,333 $ 1,568 Additions for tax positions of prior years 28 463 435 Reductions for tax positions of prior years — (44 ) (30 ) Additions for tax positions of current year 660 450 437 Settlements with taxing authorities — (390 ) — Lapse of statute of limitations (204 ) (732 ) (77 ) Balance at end of year $ 2,564 $ 2,080 $ 2,333 The January 31, 2021 balance of unrecognized tax benefits includes $2,337, that if recognized, would affect our effective tax rate. As of January 31, 2021, and February 2, 2020, we had accrued interest and penalties of $412 penalties as a component of the provision for income taxes recognized in the Consolidated Statements of Comprehensive Income ( Loss) . In the next twelve months, it is reasonably possible that our unrecognized tax benefits could change due to the resolution of certain tax matters, including payments on those tax matters or due to lapse of the statute of limitations. These resolutions and payments could reduce our unrecognized tax benefits by up to approximately $ 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. The Company recorded excess tax expense (benefits) of $437, in fiscal 2020, fiscal 2019 and fiscal 2018, respectively, to the provision for income taxes in the Consolidated Statements of Comprehensive Income (Loss). |
Leases
Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases | |
Leases | Note 7: Leases The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, are as follows: January 31, 2021 February 2, 2020 Operating lease cost $ 132,658 $ 124,065 Variable lease cost 25,360 30,009 Short-term lease cost (1) 457 435 Total lease cost $ 158,475 $ 154,509 (1) We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Leases with an initial term of 12 months or less, that do not include a purchase option that we are reasonably certain to exercise, are not recorded on the Consolidated Balance Sheet. Operating lease cost, variable lease cost and short-term lease cost related primarily to our facilities is included in “Other store operating expenses” for our operating stores, “Pre-opening costs” for our stores not yet operating, or “General and administrative expenses” for our corporate office and warehouse, in the Consolidated Statements of Comprehensive Income (Loss). During fiscal 2018, rent expense under operating lease agreements under the previous lease guidance, which excludes certain amounts required under the curre nt Supplemental disclosures of cash flow information related to leases were as follows: January 31, 2021 February 2, 2020 Cash paid for operating lease liabilities $ 77,292 $ 123,748 ROU assets obtained in exchange for new operating lease liabilities (1) $ 98,218 $ 220,648 Weighted-average remaining lease term - operating leases (in years) 14.8 15.7 Weighted-average discount rate - operating leases 5.94 % 5.90 % (1) Excludes the transition adjustment at adoption of Topic 842 in fiscal 2019. Maturities of our operating lease liabilities were as follows as of January 31, 2021: 2022 $ 132,037 2023 138,413 2024 135,388 2025 134,488 2026 134,915 Thereafter 1,374,294 Total future operating lease liability $ 2,049,535 Less: interest (726,510 ) Present value of operating lease liabilities $ 1,323,025 Operating lease payments in the table above includes minimum lease payments for three future sites for which the leases have commenced. Operating lease payments exclude approximately $173,000 of minimum lease payments for seven executed facility leases which have not yet commenced. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8: Stockholders’ Equity Shareholder rights plan Effective March 18, 2020, the Board of Directors of the Company adopted a 364-day one-ten Sale of common stock On April 14, 2020, pursuant to an open market sale agreement, the Company sold 6,149,936 shares of its common stock at a price of $12.20 per share, for proceeds of $75,000, prior to deducting offering expenses related to the offering. During May 2020, the Company entered into an underwriting agreement, pursuant to which it sold an additional (including shares under an over-allotment option) at a price of $ per share, for proceeds of $110,600, prior to deducting offering costs. Share repurchases and cash dividends As a result of the impacts to our business arising from the COVID-19 The Company treats shares withheld for tax purposes on behalf of our employees in connection with the vesting of 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 were not considered common stock repurchases under the share repurchase plan. During the fiscal year ended 2020, 2019 and 2018, we withheld 58,715, 11,536 and 16,251 shares of common stock to satisfy $929, $595 and $673 of employees’ tax obligations, respectively. The share activity in fiscal 2020 includes the settlements of $2,517 cash obligations through the issuance of 160,540 shares of common stock. 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, and all outstanding grants under this plan were fully vested as of the end of fiscal 2018. Share-based awards granted after October 2014 were issued pursuant to the terms of our 2014 Stock Incentive Plan. We may grant stock option or restricted stock units to executive and management personnel as well as directors. Time-based options granted to employees generally become exercisable ratably over a three-year period from the grant date. Performance-based restricted stock units awarded to employees fully vest after three years, subject to the achievement of specified performance conditions. Market stock units (“MSU’s”) awarded to employees vest ratably over a restricted stock units have various service periods not exceeding five years. Options granted under both plans terminate on the ten-year (“retired employees”). Unvested stock options, and restricted stock units 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 restricted stock unit award reduces the number of shares available under our stock incentive plans by one share. Each share granted subject to a performance restricted stock unit or market stock unit award reduces the number of shares available under our stock incentive plans by a range of below a minimum threshold target. On June , , shareholders approved a proposal to amend the Stock Incentive Plan to increase the number of shares available for awards to shares. The number of unissued common shares reserved for future grants under the Stock Incentive Plan is approximately as of January 31, 2021. The Company satisfies stock option exercises and vesting of restricted stock units with newly issued shares. The grant date fair value 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. Fair value valuation analyses were prepared by an independent third-party valuation firm, utilizing 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 Fiscal 2019 Fiscal 2018 Volatility 34.2 % 32.7 % Risk free interest rate 2.34 % 2.73 % Expected dividend yield 1.15 % 0.00 % Expected term – in years 6.0 6.0 Weighted average grant-date fair value $ 16.93 $ 15.36 Based on the terms and conditions of our MSU awards, the grant date fair value of the MSU’s was determined using a Monte-Carlo simulation model, which simulated the Company’s stock price over the performance period using a volatility assumption of 126.2%, and a risk-free interest rate of 0.16% to discount the value of the award. The dividend yield was zero as the Company has suspended dividends as a result of the COVID-19 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 $1,318, $3,010, and $3,185 during the fiscal years ended January 31, 2021, February 2, 2020, and February 3, 2019, respectively. Compensation expense for time-based restricted stock units is based on the market price of the shares underlying the awards on the grant date. Compensation expense for performance-based restricted stock units reflects the estimated probability that performance conditions at target or above will be met. Restricted stock units are expensed ratably over the service period. The effect of market conditions is considered in determining the grant date fair value of MSU awards, which is not subsequently revised based on actual performance. We recorded compensation expense related to our restricted stock unit awards of $ Compensation expense related to stock options and restricted stock units is included in “General and administrative expenses” in the Consolidated Statements of Comprehensive Income (Loss). 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 2020 were as follows: 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Average Number Weighted Outstanding at February 2, 2020 1,323,495 $ 36.97 266,900 $ 6.72 Granted — — — — Exercised — — (93,337 ) 5.27 Forfeited (91,894 ) 39.56 — — Outstanding at January 31, 2021 1,231,601 36.77 173,563 7.51 Exercisable at January 31, 2021 1,043,759 $ 34.60 173,563 $ 7.51 The total intrinsic value of options exercised during fiscal 2020, 2019, and 2018 was $963, $3,968, and $19,524, respectively. The unrecognized expense related to our stock option plan totaled approximately $583 as of January 31, 2021 and will be expensed over a weighted average of 1.0 years. For options outstanding at January 31, 2021, the weighted average remaining contractual life was 5.1 years and the aggregate intrinsic value was $11,000. For options exercisable at January 31, 2021, the weighted average remaining contractual life was 4.7 years and the aggregate intrinsic value was $11,000. Transactions related to restricted stock unit awards during fiscal 2020 were as follows: Shares Weighted Outstanding at February 2, 2020 216,815 $ 51.58 Granted 1,064,336 12.75 Change in units based on performance 4,352 59.67 Vested (104,752 ) 38.50 Forfeited (64,410 ) 25.58 Outstanding at January 31, 202 1,116,341 $ 17.32 The weighted average grant-date fair values of restricted stock units granted during fiscal 2020, 2019 and 2018 were $12.75, $51.44, and $46.50, respectively. The total fair value of restricted stock units vested during fiscal 2020, 2019, and 2018 was approximately $1,518, $ respectively. The unrecognized expense related to our restricted stock units was approximately $ |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 9: Employee Benefit Plans We sponsor a defined contribution plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the “401(k) Savings Plan”) for all employees who have completed a specified term of service. Employees may elect to contribute up to 50% of their eligible compensation on a pretax basis. Under the 401(k) Savings Plan, the Company may match 25% of employee contributions, up to a maximum of 6% of eligible employee compensation, as defined. If a specified performance target is achieved, there may be an annual discretionary contribution by the Company, based on eligible employee contributions. As a result of the impacts to our business arising from the COVID-19 The Company offers 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 % of their base salary on a pre-tax basis each plan year. Under the deferred compensation plan, the Company may match % of the employee’s contributions up to the first % of salary deferred. If a specified performance target is achieved, there may be an annual discretionary contribution by the Company, based on eligible employee contributions. As a result of the impacts to our business arising from the COVID-19 pandemic, the Company suspended matching of employee contributions during fiscal 2020. The Company recognized $ , $ , and $ of deferred compensation expense in fiscal 2020, 2019, and 2018, 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. Deferred compensation plan assets of $ and $ , at January 31, 2021 and February 2, 2020, respectively, 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 |
Jan. 31, 2021 | |
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, slip-and-fall The Company is a defendant in several lawsuits filed in courts in California alleging violations of California Business and Professions Code, industry wage orders, wage-and-hour 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. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Note 11: Selected Quarterly Financial Information (unaudited) Fiscal 2020 Quarters Ended 5/3/2020 8/2/2020 11/1/2020 1/31/2021 Total revenues $ 159,806 $ 50,833 $ 109,052 $ 116,821 Total cost of products 28,072 8,684 17,908 20,241 Operating loss (61,413 ) (81,115 ) (56,043 ) (54,041 ) Net loss (43,544 ) (58,602 ) (48,043 ) (56,785 ) Net loss per share of common stock: Basic $ (1.37 ) $ (1.24 ) $ (1.01 ) $ (1.19 ) Diluted $ (1.37 ) $ (1.24 ) $ (1.01 ) $ (1.19 ) Weighted average number of shares outstanding: Basic 31,829,985 47,111,763 47,613,741 47,644,062 Diluted 31,829,985 47,111,763 47,613,741 47,644,062 Company-owned stores at end of period 137 137 137 140 Fiscal 2019 Quarters Ended 5/5/2019 8/4/2019 11/3/2019 2/2/2020 Total revenues $ 363,582 $ 344,599 $ 299,352 $ 347,158 Total cost of products 61,725 59,623 52,180 59,783 Operating income 57,750 46,214 6,499 37,616 Net income 42,443 32,356 482 24,982 Net income per share of common stock: Basic $ 1.15 $ 0.91 $ 0.02 $ 0.82 Diluted $ 1.13 $ 0.90 $ 0.02 $ 0.80 Weighted average number of shares outstanding: Basic 36,827,665 35,407,965 30,980,878 30,584,360 Diluted 37,591,944 36,015,710 31,515,454 31,158,919 Company-owned stores at end of period 127 130 134 136 Refer to Note 1 of our Consolidated Financial Statements for a discussion of the material impact of the COVID-19 |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of the business | Description of the business During fiscal 2020, we opened six new stores, and management made the decision to not re-open stores located in states, Puerto Rico and Canadian province. The Company’s two stores located in the Canadian province of Ontario generated revenues of approximately $2,896, $ 18,649, and $18,848 in fiscal 2020, 2019 and 2018, respectively. As of January 31, 2021, less than 2.0% of our long-lived assets were located outside of the United States. |
COVID-19 Considerations | COVID-19 COVID-19 non-essential To-Go On April 30, 2020, our first store re-opened re-opened re-opened COVID-19 COVID-19 As stores are re-opened, reduced labor and other operating costs. The Company has also been in ongoing discussions with landlords and other vendors to negotiate relief from cash payments under existing lease and trade payable obligations. During fiscal 2020, a total of 126 rent relief agreements related to our operating locations and corporate headquarters were initially executed, which generally provide for full deferral for three months beginning April 2020, with partial deferral continuing for periods of up to six months, at approximately 50% of those locations. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. As of the end of fiscal 2020, the Company had executed 17 of these additional rent relief agreements. The Company also negotiated extended and reduced payment terms with several vendors. In addition to reducing or deferring expenditures, including capital expenditures and discretionary spending, the $182,207. On October 27, 2020, D&B Inc completed the private sale of $550,000 in aggregate principal amount of 7.625% senior secured notes due 2025. At the same time, the revolving credit commitments under our existing credit facility were extended through August 17, 2024, and the suspension of our financial ratio covenants was extended until the last day of the first quarter of fiscal year 2022. See Note 5, Debt, for more information on these transactions. The measures taken by the Company provide sufficient liquidity to meet estimated cash flow needs and covenant compliance obligations for at least the next twelve months from the issuance of the financial statements. We cannot predict whether, when or the manner in which the conditions surrounding COVID-19 re-open, re-opened re-engagement re-closures |
Principles of consolidation | Principles of consolidation |
Fiscal year | Fiscal year , 53-week |
Use of estimates | Use of estimates |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are maintained with multiple financial institutions. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company maintains cash and cash equivalent balances that exceed federally insured limits with a number of financial institutions. |
Inventories | Inventories (first-in, first-out |
Cloud-based computing arrangements | Cloud-Based Computing Arrangements |
Property and equipment | Property and equipment terms of the underlying leases of the related assets. Estimated depreciable lives for the categories of property and equipment follows: 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 of or improve the safety or the efficiency of the property and equipment are capitalized, Annually or more frequently if an event occurs or circumstances change that would indicate that the carrying values of these assets may not be recoverable, we evaluate long-lived assets related to each store to be held and used in business, including property and equipment and right-of-use During fiscal 2020, the Company recorded an impairment charge for its long-lived assets, including ROU assets, of $6,746, primarily driven by the expected impact of the COVID-19 potentially terminate or delay possession on certain executed lease contracts that have not yet commenced. The Company has also curtailed several potential new store projects that were in the early stage of development. During fiscal , we recorded an impairment loss and related contract termination costs of $ related to these projects, which is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). Given the ongoing impacts of COVID-19 impairment charges were recognized in fiscal and . |
Goodwill and tradenames | Goodwill and tradenames carrying amount of goodwill is impacted by foreign currency translation adjustments. The foreign currency translation adjustment decreased goodwill by $ and increased goodwill by $ during fiscal and fiscal , respectively. Goodwill and tradenames which have an indefinite useful life, are not subject to amortization, and are evaluated for impairment annually or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. Goodwill and tradenames are evaluated at the level of the Company’s single operating segment, which also represents the Company’s only reporting unit. |
Other assets and deferred charges, net | Other assets and deferred charges, net assets and deferred charges, net consist primarily of intangible assets related to transferable liquor licenses and intellectual property licenses associated with some of our proprietary amusement offerings, and assets related to various deposits, the employee deferred compensation plan, and unamortized debt issuance costs on the revolving portion of our credit facility. The balance of transferable liquor licenses was $5,213 and $5,025 at the end of fiscal 2020 and fiscal 2019, respectively. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and are tested for impairment annually by comparing the estimated fair value of each asset with their carrying amount. The unamortized balance of our intellectual license costs was $1,862 and $2,422 at the end of fiscal 2020 and fiscal 2019, respectively. Intellectual licenses are amortized over the respective term of the license agreements, with a weighted average term remaining of 3.2 years at the end of fiscal 2020. Amortization of intellectual licenses of $575 , $507 and $ in fiscal 2020, fiscal 2019 and fiscal 2018, respectively, is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). 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 were $5,525 and $1,454 at the end of fiscal 2020 and fiscal 2019, respectively. Debt issuance costs on the senior secured notes are reported as a direct reduction from the carrying amount of our debt. |
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. The fair value of the Company’s interest rate swap is determined based upon Level Two inputs which includes valuation models as reported by our counterparties and third-party valuation specialists. These valuation models are based on the present value of expected cash flows using forward rate curves. The fair values of our revolving credit facility of $62,114 and senior secured notes of $576,033 as of January 31, 2021, were valued using |
Interest rate swap | Interest rate swaps one-month The Company initially designated its interest rate swap agreements as a cash flow hedge and accounted for the underlying activity in accordance with hedge accounting. Effective April 14, 2020, the Company amended its existing credit facility agreement to obtain relief from its financial covenants, and as a result, the variable interest rate terms were modified to create an interest rate floor of 1.00%. Accordingly, and as a result of the then (de-designation the continued existence of the hedged interest payments, the Company is reclassifying its accumulated other comprehensive loss of $ as of the de-designation date into “Interest expense, net” using a straight-line approach over the remaining life of the originally designated hedging relationship. During fiscal , the amount of pre-tax losses in accumulated other comprehensive loss that was reclassified into interest expense subsequent to the de-designation date was $ , and the Company expects to reclassify $ within the next twelve months. Effective with the de-designation, any gain or loss on the derivatives are recognized in earnings in the period in which the change occurs. During fiscal , a loss of $ was recognized, which is included in “Other store operating expenses” in the Consolidated Statements of Comprehensive Income (Loss). Prior to the de-designation, Credit risk related to the failure of our counterparties to perform under the terms of the swap agreements is minimized by entering into transactions with carefully selected, credit-worthy parties and the fact that the swap contracts are distributed among several financial institutions to reduce the concentration of credit risk. Our swap agreements with our derivative counterparties contain a provision where if the Company defaults on any of its indebtedness, and repayment of the indebtedness has been accelerated, the Company could also be declared in default on its derivative obligations. The following derivative instruments were outstanding for the fiscal years ended: Fair Value Balance Sheet Location January 31, 2021 February 2, 2020 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (8,350 ) $ (3,518 ) Interest rate swaps Other liabilities (4,416 ) (6,967 ) Total derivatives (1) $ (12,766 ) $ (10,485 ) (1) The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. The following table summarizes the activity in accumulated other comprehensive loss related to our derivative instruments for the fiscal years ended: January 31, 2021 February 2, 2020 Amount of loss recorded in accumulated other comprehensive income $ 7,602 $ 11,454 Amount of loss reclassified into income (1) $ (6,453 ) $ (969 ) Income tax expense (benefit) in accumulated other comprehensive income $ (314 ) $ (2,864 ) (1) Amounts reclassified into income are included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income (Loss). |
Revenue recognition | Revenue recognition Power Cards purchased and used by customers to activate video and redemption games. Redemption games allow customers to earn tickets, which may be redeemed for prizes in our WIN! area. We have deferred a portion of amusement revenues for the estimated unfulfilled performance obligations based on an estimated rate of future use by customers of unused game play credits and the material right provided to customers to redeem tickets in the future for prizes. We estimate the amount of deferred revenue based upon credits and tickets remaining on Power Cards, historic game play credit and ticket utilization patterns and estimates of the standalone selling prices of Total deferred amusement revenue is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended January 31, 2021, we recognized revenue of approximately related to the amount in deferred amusement revenue as of the end of fiscal 20 19 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 (Loss). The contract liability related to our gift cards is included in “Accrued liabilities” in our Consolidated Balance Sheets. During the fiscal year ended January 31, 2021, we recognized revenue of approximately related to the amount in deferred gift card revenue as of the end of fiscal 2019, of which approximately 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. Historically, 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. |
Advertising costs | Advertising costs Comprehensive Income (Loss). |
Leases | Leases contract. Generally, the Company’s lease contracts do not provide a readily determinable implicit rate, and therefore, the Company uses an estimated incremental borrowing rate as of the commencement date in determining the present value of lease payments. The Company uses judgment in determining its incremental borrowing rate, which includes selecting a yield curve based on a hypothetical credit rating. Our leases typically have initial terms ranging from ten to twenty years and most include options to extend the leases for one or more 5-year non-lease Tenant incentives used to fund leasehold improvements are recognized when earned and reduce our ROU asset related to the lease. Tenant incentives are amortized through the ROU asset as reductions of expense over the lease term. The balance of leasehold improvement incentive receivables is reflected as a reduction of the current portion of operating lease liabilities. We consider the concentration of credit risk for tenant improvement allowance receivables from landlords to be minimal due the payment histories and general financial condition of our landlords. During fiscal 2020, the Company entered into 126 initial rent relief agreements with our respective landlords on operating locations and our corporate headquarters. Under these agreements, certain rent payments will be abated, deferred or modified without penalty for various periods, generally providing for full deferral for three months beginning April 2020, with partial deferrals continuing for periods of up to six months at approximately 50% of those locations. The Company has chosen not to pay rent or to pay a portion of operating lease obligations as they become due for five properties without any rent relief agreements as of the end of fiscal 2020. As the pandemic continued to impact our business into the fourth quarter, the Company renewed negotiations with the majority of these landlords in order to provide additional rent relief, generally seeking to push out or extend the terms of deferral pay back periods and/or provide rent relief beyond the periods in the initial agreements. In anticipation of the second phase of relief agreements, the Company chose not to pay certain scheduled deferred rent payments or not to pay all or a portion of rent due under the initial rent relief agreements, for an additional 52 locations. As of the end of fiscal 2020, the Company had executed 17 rent relief agreements related to the second phase of negotiations. The Company has elected to apply the practical expedient to account for lease concessions and deferrals resulting directly from COVID-19 Operating leases are included within the “Operating lease right of use assets”, “Accrued liabilities” and “Operating lease liabilities” in the Consolidated Balance Sheets. Operating lease payments are classified as cash flows from operating activities with ROU asset amortization and the change in the lease liability combined within “Other liabilities” in the reconciliation of net income to cash flows provided by operating activities in the Consolidated Statements of Cash Flows. |
Self-insurance programs | Self-insurance programs |
Pre-opening costs | Pre-opening Pre-opening pre-opening pre-opening pre-opening |
Income taxes | Income taxes The calculation of tax liabilities involves judgment and evaluation of uncertainties in the interpretation of federal and state tax regulations. We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. For uncertain tax positions that do not meet this threshold, we have established accruals for taxes that may become payable in future years as a result of audits by tax authorities. 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. |
Foreign currency | Foreign currency |
Earnings per share | Earnings per share January 31, 2021 February 2, 2020 February 3, 2019 Basic weighted average shares outstanding 43,549,887 33,450,217 39,047,106 Weighted average dilutive impact of awards (1) — 649,161 928,016 Diluted weighted average shares outstanding 43,549,887 34,099,378 39,975,122 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. |
Recently adopted accounting guidance | Recently adopted accounting guidance 2017-04 , Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, 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 On February 4, 2019, we adopted ASU 2016-02, Leases (Topic 842) Upon adoption of the new lease accounting standard, we applied the package of practical expedients, which eliminated the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. We also elected a short-term lease exception policy and an accounting policy to not separate non-lease |
Recent accounting pronouncements | Recent accounting pronouncements 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Reform on Financial Reporting de-designation de-designation |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Estimated depreciable lives for the categories of property and equipment follows: Estimated Depreciable Lives Building and building improvements 5-40 Leasehold improvements 5-20 Furniture, fixtures and equipment 3-10 Games 3-20 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following derivative instruments were outstanding for the fiscal years ended: Fair Value Balance Sheet Location January 31, 2021 February 2, 2020 Derivatives designated as hedging instruments: Interest rate swaps Accrued liabilities $ (8,350 ) $ (3,518 ) Interest rate swaps Other liabilities (4,416 ) (6,967 ) Total derivatives (1) $ (12,766 ) $ (10,485 ) (1) The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the activity in accumulated other comprehensive loss related to our derivative instruments for the fiscal years ended: January 31, 2021 February 2, 2020 Amount of loss recorded in accumulated other comprehensive income $ 7,602 $ 11,454 Amount of loss reclassified into income (1) $ (6,453 ) $ (969 ) Income tax expense (benefit) in accumulated other comprehensive income $ (314 ) $ (2,864 ) (1) Amounts reclassified into income are included in “Interest expense, net” in the Consolidated Statements of Comprehensive Income (Loss). |
Summary of Calculation of Basic and Diluted Earnings Per Share | Basic weighted average shares outstanding are reconciled to diluted weighted average shares outstanding as follows January 31, 2021 February 2, 2020 February 3, 2019 Basic weighted average shares outstanding 43,549,887 33,450,217 39,047,106 Weighted average dilutive impact of awards (1) — 649,161 928,016 Diluted weighted average shares outstanding 43,549,887 34,099,378 39,975,122 (1) Amounts exclude all potential common and common equivalent shares for periods when there is a net loss. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following: January 31, 2021 February 2, 2020 Operating store—food and beverage $ 4,175 $ 7,950 Operating store—amusement 8,640 9,585 Corporate—amusement, supplies and other 10,992 16,942 $ 23,807 $ 34,477 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: January 31, 2021 February 2, 2020 Land $ 12,302 $ 9,021 Buildings and building improvements 37,417 23,484 Leasehold improvements 805,229 793,698 Furniture, fixtures and equipment 430,331 412,716 Games 295,170 286,195 Construction in progress 33,382 62,347 Total cost 1,613,831 1,587,461 Accumulated depreciation (798,804 ) (686,824 ) Property and equipment, net $ 815,027 $ 900,637 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Text Block [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following as of the fiscal years ended: January 31, 2021 February 2, 2020 Deferred amusement revenue $ 78,852 $ 75,113 Current portion of operating lease liabilities, net (1) 46,471 45,611 Current portion of deferred occupancy costs 36,121 — Compensation and benefits 13,846 23,421 Accrued interest 11,321 648 Deferred gift card revenue 10,918 11,253 Current portion of derivatives 8,350 3,518 Property taxes 8,149 7,226 Current portion of long-term insurance 5,100 6,500 Utilities 4,151 4,442 Sales and use taxes 1,385 4,000 Customer deposits 1,373 4,324 Dividend payable — 4,891 Other (Note 10) 8,753 16,505 Total accrued liabilities $ 234,790 $ 207,452 (1) The balance of leasehold incentive receivables of $8,763 and $6,339 at January 31, 2021 and February 2, 2020, respectively, is reflected as a reduction of the current portion of operating lease liabilities. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consists of the following: January 31, February 2, Credit Facility—term $ — $ 266,250 Credit Facility—revolver 60,000 382,000 Senior secured notes 550,000 — Total debt outstanding 610,000 648,250 Less current installments — (15,000 ) Less debt issuance costs (13,612 ) (561 ) Long-term debt, net $ 596,388 $ 632,689 |
Future Debt Payment Obligation | Future debt obligations 2024 $ 60,000 2025 550,000 Total future payments $ 610,000 |
Recorded Interest Expense, Net | Interest expense, net January 31, February 2, February 3, Interest expense on debt $ 29,124 $ 20,277 $ 13,408 Interest associated with swap agreements 6,453 969 — Amortization of issuance cost 2,184 792 792 Interest income (22 ) (119 ) (136 ) Capitalized interest (849 ) (982 ) (1,009 ) Change in fair value of interest rate cap — — 58 Total interest expense, net $ 36,890 $ 20,937 $ 13,113 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The following table sets forth our income tax provision: January 31, 2021 February 2, 2020 February 3, 2019 Current provision: Federal $ (78,629 ) $ 11,744 $ 13,456 State and local (1,360 ) 8,562 10,730 Foreign (78 ) 100 1,006 Total current provision (80,067 ) 20,406 25,192 Deferred provision (benefit): Federal (5,415 ) 7,109 5,029 State and local 1,951 (365 ) (228 ) Foreign 99 (271 ) 673 Total deferred provision (benefit) (3,365 ) 6,473 5,474 Provision for income taxes $ (83,432 ) $ 26,879 $ 30,666 |
Components of Deferred Assets and Liabilities | Components of the deferred income tax asset (liability) consist of the following: January 31, February 2, Deferred revenue $ 24,136 $ 21,961 Operating lease liability 383,378 355,566 Accrued liabilities 1,332 3,744 Workers compensation and general liability insurance 3,923 4,397 Share-based compensation 7,236 6,740 Hedging transactions 3,488 2,864 Net operating loss carryovers 10,303 2,817 Tax credit carryovers 3,054 810 Indirect benefit of unrecognized tax benefits 639 525 Other 5,549 2,399 Total deferred tax assets 443,038 401,823 Trademark/tradename (21,583 ) (21,583 ) Property and equipment (127,969 ) (108,685 ) Operating lease right of use asset (287,030 ) (279,812 ) Other (493 ) (586 ) Total deferred tax liabilitie s (437,075 ) (410,666 ) Net deferred tax asset (liability) before valuation allowance 5,963 (8,843 ) Valuation allowanc e (13,747 ) (2,620 ) Net deferred tax liability $ (7,784 ) $ (11,463 ) |
Change in Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: January 31, February 2, February 3, Balance at beginning of year $ 2,080 $ 2,333 $ 1,568 Additions for tax positions of prior years 28 463 435 Reductions for tax positions of prior years — (44 ) (30 ) Additions for tax positions of current year 660 450 437 Settlements with taxing authorities — (390 ) — Lapse of statute of limitations (204 ) (732 ) (77 ) Balance at end of year $ 2,564 $ 2,080 $ 2,333 |
Reconciliation of Effective Tax Rate To The Federal Income Tax Rate | The following table reconciles the effective tax rate to the federal income tax rate: January 31, 2021 February 2, 2020 February 3, 2019 Federal income tax rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 2.7 % 5.4 % 5.3 % Permanent differences (0.2 ) 1.5 % 1.2 % Tax credits 0.7 % (6.4 )% (5.0 )% Share-based compensation (0.2 ) (0.9 )% (3.4 )% Impact of net operating loss carryback 7.5 % — % — % Other (2.8 ) 0.5 % 1.6 % Effective tax rate 28.7 % 21.1 % 20.7 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Lessee, Operating Lease, Disclosure | The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and property taxes, are as follows: January 31, 2021 February 2, 2020 Operating lease cost $ 132,658 $ 124,065 Variable lease cost 25,360 30,009 Short-term lease cost (1) 457 435 Total lease cost $ 158,475 $ 154,509 |
Disclosure of Other information related to leases | Supplemental disclosures of cash flow information related to leases were as follows: January 31, 2021 February 2, 2020 Cash paid for operating lease liabilities $ 77,292 $ 123,748 ROU assets obtained in exchange for new operating lease liabilities (1) $ 98,218 $ 220,648 Weighted-average remaining lease term - operating leases (in years) 14.8 15.7 Weighted-average discount rate - operating leases 5.94 % 5.90 % (1) Excludes the transition adjustment at adoption of Topic 842 in fiscal 2019. |
Lessee, Operating Lease, Liability, Maturity | Maturities of our operating lease liabilities were as follows as of January 31, 2021: 2022 $ 132,037 2023 138,413 2024 135,388 2025 134,488 2026 134,915 Thereafter 1,374,294 Total future operating lease liability $ 2,049,535 Less: interest (726,510 ) Present value of operating lease liabilities $ 1,323,025 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Equity [Abstract] | |
Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted | Fiscal 2019 Fiscal 2018 Volatility 34.2 % 32.7 % Risk free interest rate 2.34 % 2.73 % Expected dividend yield 1.15 % 0.00 % Expected term – in years 6.0 6.0 Weighted average grant-date fair value $ 16.93 $ 15.36 |
Transactions Related to Stock Options Awards | 2014 Stock Incentive Plan 2010 Stock Incentive Plan Number Weighted Average Number Weighted Outstanding at February 2, 2020 1,323,495 $ 36.97 266,900 $ 6.72 Granted — — — — Exercised — — (93,337 ) 5.27 Forfeited (91,894 ) 39.56 — — Outstanding at January 31, 2021 1,231,601 36.77 173,563 7.51 Exercisable at January 31, 2021 1,043,759 $ 34.60 173,563 $ 7.51 |
Transactions Related to Restricted Stock Units | Transactions related to restricted stock unit awards during fiscal 2020 were as follows: Shares Weighted Outstanding at February 2, 2020 216,815 $ 51.58 Granted 1,064,336 12.75 Change in units based on performance 4,352 59.67 Vested (104,752 ) 38.50 Forfeited (64,410 ) 25.58 Outstanding at January 31, 202 1,116,341 $ 17.32 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Fiscal 2020 Quarters Ended 5/3/2020 8/2/2020 11/1/2020 1/31/2021 Total revenues $ 159,806 $ 50,833 $ 109,052 $ 116,821 Total cost of products 28,072 8,684 17,908 20,241 Operating loss (61,413 ) (81,115 ) (56,043 ) (54,041 ) Net loss (43,544 ) (58,602 ) (48,043 ) (56,785 ) Net loss per share of common stock: Basic $ (1.37 ) $ (1.24 ) $ (1.01 ) $ (1.19 ) Diluted $ (1.37 ) $ (1.24 ) $ (1.01 ) $ (1.19 ) Weighted average number of shares outstanding: Basic 31,829,985 47,111,763 47,613,741 47,644,062 Diluted 31,829,985 47,111,763 47,613,741 47,644,062 Company-owned stores at end of period 137 137 137 140 Fiscal 2019 Quarters Ended 5/5/2019 8/4/2019 11/3/2019 2/2/2020 Total revenues $ 363,582 $ 344,599 $ 299,352 $ 347,158 Total cost of products 61,725 59,623 52,180 59,783 Operating income 57,750 46,214 6,499 37,616 Net income 42,443 32,356 482 24,982 Net income per share of common stock: Basic $ 1.15 $ 0.91 $ 0.02 $ 0.82 Diluted $ 1.13 $ 0.90 $ 0.02 $ 0.80 Weighted average number of shares outstanding: Basic 36,827,665 35,407,965 30,980,878 30,584,360 Diluted 37,591,944 36,015,710 31,515,454 31,158,919 Company-owned stores at end of period 127 130 134 136 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 31, 2021USD ($)StoresStates | Oct. 27, 2020USD ($) | Jan. 31, 2021USD ($)StoresSegmentStatesshares | Feb. 02, 2020USD ($)SegmentStoresshares | Feb. 03, 2019USD ($)shares | Feb. 03, 2018USD ($) | Nov. 01, 2020Stores | Aug. 02, 2020Stores | May 03, 2020Stores | Mar. 20, 2020Stores | Nov. 03, 2019Stores | Aug. 04, 2019Stores | May 05, 2019Stores | Feb. 04, 2019USD ($) |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Number of stores | Stores | 140 | 140 | 136 | 137 | 137 | 137 | 137 | 134 | 130 | 127 | ||||
Number of states store operates | States | 40 | 40 | ||||||||||||
Number of operating segment | Segment | 1 | |||||||||||||
Number of reportable segment | Segment | 1 | |||||||||||||
Book overdrafts reclassified to accounts payable | $ 8,168 | $ 8,168 | $ 14,026 | |||||||||||
Impairment Loss and Contract Termination Costs | 6,981 | 0 | $ 0 | |||||||||||
Foreign exchange Transaction adjustment | 39 | 11 | ||||||||||||
Balance of transferable liquor licenses | 5,213 | 5,213 | 5,025 | |||||||||||
Impairment of long-lived assets | 6,746 | 12,248 | ||||||||||||
Advertising costs expensed | 21,107 | 44,834 | 40,767 | |||||||||||
Stores Generated Revenues | 436,512 | 1,354,691 | 1,265,301 | |||||||||||
Other store operating expenses | $ 299,464 | 429,431 | $ 384,155 | |||||||||||
Weighted Average Term of the License Agreements | 3 years 2 months 12 days | |||||||||||||
Deferred Occupancy Costs | 16,243 | $ 16,243 | ||||||||||||
Operating lease liability | 1,323,025 | 1,323,025 | ||||||||||||
Right Of Use Assets | 1,037,569 | 1,037,569 | $ 1,011,568 | |||||||||||
National amount of the swap agreement | $ 350,000 | $ 350,000 | ||||||||||||
Derivative, Average Fixed Interest Rate | 2.47% | 2.47% | ||||||||||||
Fair value of long term debt | $ 62,114 | $ 62,114 | ||||||||||||
Notes payable, fair value | 576,033 | 576,033 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 3.98% | ||||||||||||
Debt Instrument, Maturity Date, Description | senior secured notes due 2025 | |||||||||||||
Proceeds from Issuance of Common Stock | $ 182,207 | |||||||||||||
Weighted average anti-dilutive options excluded from calculation of common equivalent shares | shares | 1,200,000 | 150,000 | 52,000 | |||||||||||
Interest Rate Swap [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Interest payments reclassified to interest expense | $ 17,609 | |||||||||||||
Interest payments to be reclassified during next 12 months | 7,547 | |||||||||||||
Interest payments reclassified to interest expense during the period | 5,974 | |||||||||||||
Loss on Derivative | 1,729 | |||||||||||||
Secured Debt [Member] | Senior Notes [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 550,000 | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.625% | |||||||||||||
Credit Facility-Revolver [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Debt issuance costs | 5,525 | 5,525 | $ 1,454 | |||||||||||
Intellectual Property [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Other store operating expenses | 575 | $ 507 | $ 259 | |||||||||||
Unamortized Balance of Intellectual Property Licenses | $ 1,862 | $ 1,862 | $ 2,422 | |||||||||||
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% | 100.00% | ||||||||||||
Canada [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Number of Canadian province | Segment | 1 | |||||||||||||
Stores Generated Revenues | $ 2,896 | $ 18,649 | $ 18,848 | |||||||||||
Long-lived assets | 2.00% | 2.00% | ||||||||||||
Amusement Revenue [Member] | Other Comprehensive Income (Loss) [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred amusement revenue | 20,100 | |||||||||||||
Gift Card Revenue [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred amusement revenue | 2,330 | |||||||||||||
Gift card breakage revenue | $ 570 | |||||||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||||||||||
Operating lease liability | $ 1,116,252 | |||||||||||||
Right Of Use Assets | 877,714 | |||||||||||||
Deferred Rent Creditand Unfavorable Lease Liability | 239,416 | |||||||||||||
Favorable Lease Asset | 878 | |||||||||||||
Cumulative Effect Adjustment of Retained Earnings | $ 145 |
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 |
Jan. 31, 2021 | |
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 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies - Derivative Instruments Outstanding (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Current portion of derivatives | $ (8,350) | $ (3,518) | |
Non-current portion of derivatiives | (4,416) | (6,967) | |
Total derivatives | [1] | $ (12,766) | $ (10,485) |
[1] | The balance at January 31, 2021 relates to our swap agreements after hedge accounting was discontinued. |
Description of the Business a_7
Description of the Business and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Loss recognized in accumulated other comprehensive loss | $ 7,602 | $ 11,454 |
Income tax benefit of interest rate swaps in accumulated other comprehensive loss | (314) | (2,864) |
Interest Expense [Member] | ||
Loss reclassified from accumulated other comprehensive loss into net earnings | $ (6,453) | $ (969) |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies - Summary of Calculation of Basic and Diluted Earnings Per Share (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Nov. 01, 2020 | Aug. 02, 2020 | May 03, 2020 | Feb. 02, 2020 | Nov. 03, 2019 | Aug. 04, 2019 | May 05, 2019 | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Basic weighted average shares outstanding | 47,644,062 | 47,613,741 | 47,111,763 | 31,829,985 | 30,584,360 | 30,980,878 | 35,407,965 | 36,827,665 | 43,549,887 | 33,450,217 | 39,047,106 |
Weighted average dilutive impact of awards (1) | 649,161 | 928,016 | |||||||||
Diluted weighted average shares outstanding | 47,644,062 | 47,613,741 | 47,111,763 | 31,829,985 | 31,158,919 | 31,515,454 | 36,015,710 | 37,591,944 | 43,549,887 | 34,099,378 | 39,975,122 |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Inventory [Line Items] | ||
Inventory | $ 23,807 | $ 34,477 |
Operating store—food and beverage [Member] | ||
Inventory [Line Items] | ||
Inventory | 4,175 | 7,950 |
Operating store—amusement [Member] | ||
Inventory [Line Items] | ||
Inventory | 8,640 | 9,585 |
Corporate—amusement, supplies and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 10,992 | $ 16,942 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,613,831 | $ 1,587,461 |
Accumulated depreciation | (798,804) | (686,824) |
Property and equipment, net | 815,027 | 900,637 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12,302 | 9,021 |
Buildings and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 37,417 | 23,484 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 805,229 | 793,698 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 430,331 | 412,716 |
Games [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 295,170 | 286,195 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 33,382 | $ 62,347 |
Property and Equipment Capitali
Property and Equipment Capitalized and Depreciated - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 138,789 | $ 132,399 | $ 118,087 |
Sale-Leaseback proceeds | 11,571 | ||
Insurance Recoveries | 160 | 3,075 | |
Net Gain on FA from Property Insurance Recoveries [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Insurance Recoveries | 595 | 541 | |
Other Store Operating Expenses [Member] | Net Gain on FA from Property Insurance Recoveries [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Insurance Recoveries | $ 500 | $ 180 |
Accrued Liabilities - Accrued L
Accrued Liabilities - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Deferred amusement revenue | $ 78,852 | $ 75,113 |
Current portion of operating lease liabilities, net refer to Note 7) | 46,471 | 45,611 |
Current portion of deferred occupancy costs | 36,121 | 0 |
Compensation and benefits | 13,846 | 23,421 |
Accrued interest | 11,321 | 648 |
Deferred gift card revenue | 10,918 | 11,253 |
Property taxes | 8,149 | 7,226 |
Current portion of long-term insurance | 5,100 | 6,500 |
Dividend payable | 0 | 4,891 |
Utilities | 4,151 | 4,442 |
Customer deposits | 1,373 | 4,324 |
Sales and use taxes | 1,385 | 4,000 |
Current portion of derivatives | 8,350 | 3,518 |
Other (Refer to Note 10) | 8,753 | 16,505 |
Total accrued liabilities | $ 234,790 | $ 207,452 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Current portion of operating lease liabilities, net refer to Note 7) |
Accrued Liabilities - Accrued_2
Accrued Liabilities - Accrued Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Receivables for tenant improvement allowances | $ 8,763 | $ 6,339 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Oct. 27, 2020 | Aug. 17, 2017 | Jan. 31, 2021 | Feb. 02, 2020 | Aug. 04, 2019 |
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 20,209,000 | ||||
Weighted average interest rate on outstanding borrowings | 5.40% | 3.98% | |||
Repayments of Long-term Debt | 255,000,000 | ||||
Secured Debt [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility | $ 550,000,000 | ||||
Maturity date | Nov. 1, 2025 | ||||
Weighted average interest rate on outstanding borrowings | 7.625% | ||||
Frequency of periodic interest payment | November 1 and May 1 of each year | ||||
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 | quarter | ||||
Letter of credit facility outstanding | 9,686,000 | ||||
Borrowing available | 430,314,000 | ||||
Credit facility outstanding | 463,000,000 | ||||
Credit Facility [Member] | First Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 1,900,000 | ||||
Debt instrument interest rate | 2.00% | ||||
Interest Rate LIBOR Floor | 1.00% | ||||
Credit Facility [Member] | Second Amendment [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 | ||||
Debt instrument interest rate | 4.00% | ||||
Write off of Deferred Debt Issuance Cost | $ 904,000 | ||||
Debt instrument minimum liquidity covenant | $ 150,000,000 | ||||
Utilization fee percent | 1.00% | ||||
Credit Facility [Member] | Second Amendment [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 18,300,000 | ||||
Credit Facility [Member] | Minimum [Member] | Interest Rate Spread Post Financial Covenant Suspension Period [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 1.25% | ||||
Credit Facility [Member] | Maximum [Member] | Interest Rate Spread Post Financial Covenant Suspension Period [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate | 3.00% |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 610,000 | $ 648,250 |
Less current installments—term | (15,000) | |
less: debt issuance costs | (13,612) | (561) |
Long-term debt, net | 596,388 | 632,689 |
Credit Facility—term [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 0 | 266,250 |
Less current installments—term | (15,000) | |
Credit Facility—revolver [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | 60,000 | 382,000 |
Senior Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt outstanding | $ 550,000 | $ 0 |
Debt - Future Debt Payment Obli
Debt - Future Debt Payment Obligation (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Debt Disclosure [Abstract] | ||
2024 | $ 60,000 | |
2025 | 550,000 | |
Total debt outstanding | $ 610,000 | $ 648,250 |
Debt - Recorded Interest Expens
Debt - Recorded Interest Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Debt Disclosure [Abstract] | |||
Interest expense on credit facilities | $ 29,124 | $ 20,277 | $ 13,408 |
Interest associated with swap agreements | 6,453 | 969 | 0 |
Amortization of issuance cost and discount | 2,184 | 792 | 792 |
Interest income | (22) | (119) | (136) |
Capitalized interest | (849) | (982) | (1,009) |
Change in fair value of interest rate cap | 0 | 0 | 58 |
Total interest expense, net | $ 36,890 | $ 20,937 | $ 13,113 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 |
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 157,779 | $ 157,779 | ||
General Business Credit Carryforwards | 2,158 | 2,158 | ||
Accrued interest on unrecognized tax benefits | 412 | 412 | $ 390 | |
Foreign tax credit carryovers | 3,054 | 3,054 | 810 | |
Increase in Valuation Allowance | 1,279 | 11,127 | ||
Excess tax expense (benefits) | 437 | $ 1,201 | $ 4,998 | |
Reduction in unrecognized tax benefits | 280 | 280 | ||
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | 2,337 | 2,337 | ||
Income tax refunds | 55,400 | 55,400 | ||
CARES Act [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Employer Portion Of Social Security Tax | 4,798 | 4,798 | ||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 6,528 | 6,528 | ||
Foreign tax credit carryovers | $ 870 | $ 870 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Current provision: | |||
Federal | $ (78,629) | $ 11,744 | $ 13,456 |
State and local | (1,360) | 8,562 | 10,730 |
Foreign | (78) | 100 | 1,006 |
Total current provision | (80,067) | 20,406 | 25,192 |
Deferred provision (benefit): | |||
Federal | (5,415) | 7,109 | 5,029 |
State and local | 1,951 | (365) | (228) |
Foreign | 99 | (271) | 673 |
Total deferred provision (benefit) | (3,365) | 6,473 | 5,474 |
Provision for income taxes | $ (83,432) | $ 26,879 | $ 30,666 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jan. 31, 2021 | Feb. 02, 2020 |
Deferred tax assets: | ||
Deferred revenue | $ 24,136 | $ 21,961 |
Operating lease liability | 383,378 | 355,566 |
Accrued liabilities | 1,332 | 3,744 |
Workers compensation and general liability insurance | 3,923 | 4,397 |
Share-based compensation | 7,236 | 6,740 |
Hedging transactions | 3,488 | 2,864 |
Net operating loss carryovers | 10,303 | 2,817 |
Tax credit carryovers | 3,054 | 810 |
Indirect benefit of unrecognized tax benefits | 639 | 525 |
Other | 5,549 | 2,399 |
Total deferred tax assets | 443,038 | 401,823 |
Deferred tax liabilities: | ||
Trademark/tradename | (21,583) | (21,583) |
Property and equipment | (127,969) | (108,685) |
Operating lease right of use asset | (287,030) | (279,812) |
Other | (493) | (586) |
Total deferred tax liabilities | (437,075) | (410,666) |
Net deferred tax asset (liability) before valuation allowance | 5,963 | (8,843) |
Valuation allowance | (13,747) | (2,620) |
Net deferred tax liability | $ (7,784) | $ (11,463) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 2,080 | $ 2,333 | $ 1,568 |
Additions for tax positions of prior years | 28 | 463 | 435 |
Reductions for tax positions of prior years | (44) | (30) | |
Additions for tax positions of current year | 660 | 450 | 437 |
Settlements with taxing authorities | (390) | ||
Lapse of statute of limitations | (204) | (732) | (77) |
Balance at end of year | $ 2,564 | $ 2,080 | $ 2,333 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate To The Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of federal benefit | 2.70% | 5.40% | 5.30% |
Permanent differences | (0.20%) | 1.50% | 1.20% |
Tax credits | 0.70% | (6.40%) | (5.00%) |
Share-based compensation | (0.20%) | (0.90%) | (3.40%) |
Impact of net operating loss carryback | 7.50% | ||
Other | (2.80%) | 0.50% | 1.60% |
Effective tax rate | 28.70% | 21.10% | 20.70% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2019 | Jan. 31, 2021 | |
Leases | ||
Rent expense for operating leases | $ 109,481 | |
Contingent rentals | $ 3,526 | |
Future minimum rent operating leases not yet commenced | $ 173,000 |
Leases - Lease Expense (Detail)
Leases - Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Leases | ||
Operating lease cost | $ 132,658 | $ 124,065 |
Variable lease cost | 25,360 | 30,009 |
Short-term lease cost | 457 | 435 |
Total lease cost | $ 158,475 | $ 154,509 |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosures of Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Feb. 02, 2020 | |
Leases | ||
Cash paid for operating lease liabilities | $ 77,292 | $ 123,748 |
ROU assets obtained in exchange for new operating lease liabilities | $ 98,218 | $ 220,648 |
Weighted-average remaining lease term—operating leases (in years) | 14 years 9 months 18 days | 15 years 8 months 12 days |
Weighted-average discount rate—operating leases | 5.94% | 5.90% |
Leases - Maturities of Our Oper
Leases - Maturities of Our Operating Lease Liabilities (Detail) $ in Thousands | Jan. 31, 2021USD ($) |
Leases | |
2022 | $ 132,037 |
2023 | 138,413 |
2024 | 135,388 |
2025 | 134,488 |
2026 | 134,915 |
Therafter | 1,374,294 |
Total future operating lease liability | 2,049,535 |
Less: interest | (726,510) |
Present value of operating lease liabilities | $ 1,323,025 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 14, 2020 | Mar. 18, 2020 | May 31, 2020 | Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | Mar. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Withholding shares of common stock | 58,715 | 11,536 | 16,251 | ||||
Employees tax obligations | $ 929 | $ 595 | $ 673 | ||||
Proceeds from Issuance of Common Stock | $ 182,207 | ||||||
Total number of shares repurchased | 7,116,585 | 3,080,419 | |||||
Total cash paid for share repurchases | $ 297,317 | $ 149,125 | |||||
Dividend per | $ 0.62 | $ 0.30 | |||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period | 6,149,936 | 10,593,416 | 17,101,981 | 209,376 | 516,670 | ||
Sale of Stock, Price Per Share | $ 12.20 | $ 10.44 | |||||
Proceeds from Issuance of Common Stock | $ 75,000 | $ 110,600 | |||||
Shareholder Rights Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Dividends Payable, Date Declared | Mar. 18, 2020 | ||||||
Dividends Payable, Nature | one preferred share purchase right for each outstanding share of common stock | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Exercise price of rights | $ 45 | ||||||
Dividends Payable, Date of Record | Mar. 30, 2020 | ||||||
2014 Stock Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Excess stock shares permitted to issue | 6,100,000 | ||||||
Number of shares of common stock available for issuance | 3,300,000 | ||||||
Settlement Of Cash Obligation [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash obligation | $ 2,517 | ||||||
Stock issued during period, shares, issued for services | 160,540 | ||||||
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 | $ 1,318 | $ 3,010 | $ 3,185 | ||||
Total intrinsic value of stock options exercised | 963 | 3,968 | 19,524 | ||||
Unrecognized expense related to stock option plan | $ 583 | ||||||
Unrecognized compensation expense, weighted average years | 1 year | ||||||
Weighted average remaining contractual life, options outstanding | 5 years 1 month 6 days | ||||||
Aggregate intrinsic value, options outstanding | $ 11,000 | ||||||
Weighted average remaining contractual life, options exercisable | 4 years 8 months 12 days | ||||||
Aggregate intrinsic value, options outstanding, options exercisable | $ 11,000 | ||||||
Market Stock Units (MSU's) [Member] | 2014 Stock Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expected volatility rate | 126.20% | ||||||
Risk free interest rate | 0.16% | ||||||
Expected dividend yield | 0.00% | ||||||
Share based compensation, assumption method used | Monte-Carlo simulation model | ||||||
Restricted Stock Units (RSU's) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 5,667 | 3,847 | 4,237 | ||||
Unrecognized compensation expense, weighted average years | 2 years | ||||||
Unrecognized expense related to unvested restricted stock and RSUs | $ 7,009 | ||||||
Shares vested, value | $ 1,518 | $ 5,259 | $ 4,812 | ||||
Weighted Average Grant Date Fair Value, Granted | $ 12.75 | $ 51.44 | $ 46.50 | ||||
Time Based RSU [Member] | 2014 Stock Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Performance Based RSU and MSU [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 |
Stockholders' Equity - Signific
Stockholders' Equity - Significant Assumptions Used in Determining Underlying Fair Value of Weighted-Average Options Granted (Detail) - 2014 Stock Incentive Plan [Member] - Stock Options [Member] - $ / shares | 12 Months Ended | |
Feb. 02, 2020 | Feb. 03, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 34.20% | 32.70% |
Risk free interest rate | 2.34% | 2.73% |
Expected dividend yield | 1.15% | 0.00% |
Expected term – in years | 6 years | 6 years |
Weighted average grant-date fair value | $ 16.93 | $ 15.36 |
Stockholders' Equity - Transact
Stockholders' Equity - Transactions Related to Stock Option Awards (Detail) | 12 Months Ended |
Jan. 31, 2021$ / sharesshares | |
2014 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 2, 2020 | shares | 1,323,495 |
Forfeited | shares | (91,894) |
Options outstanding at January 31, 2021 | shares | 1,231,601 |
Options exercisable at January 31, 2021 | shares | 1,043,759 |
Weighted Average Exercise Price | |
Options outstanding at February 2, 2020 | $ / shares | $ 36.97 |
Forfeited | $ / shares | 39.56 |
Options outstanding at January 31, 2021 | $ / shares | 36.77 |
Options exercisable at January 31, 2021 | $ / shares | $ 34.60 |
2010 Stock Incentive Plan [Member] | |
Number of Options | |
Options outstanding at February 2, 2020 | shares | 266,900 |
Exercised | shares | (93,337) |
Options outstanding at January 31, 2021 | shares | 173,563 |
Options exercisable at January 31, 2021 | shares | 173,563 |
Weighted Average Exercise Price | |
Options outstanding at February 2, 2020 | $ / shares | $ 6.72 |
Exercised | $ / shares | 5.27 |
Options outstanding at January 31, 2021 | $ / shares | 7.51 |
Options exercisable at January 31, 2021 | $ / shares | $ 7.51 |
Stockholders' Equity - Transa_2
Stockholders' Equity - Transactions Related to Time-based and Performance-based RSU's and Restricted Stock (Detail) - Restricted Stock Unit Awards [Member] | 12 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Stock Awards, February 2, 2020 | shares | 216,815 |
Restricted Stock Awards, Granted | shares | 1,064,336 |
Restricted Stock Awards, Change in units based on performance | shares | 4,352 |
Restricted Stock Awards, Vested | shares | (104,752) |
Restricted Stock Awards, Forfeited | shares | (64,410) |
Restricted Stock Awards, January 31, 2021 | shares | 1,116,341 |
Weighted Average Grant Date Fair Value, February 2, 2020 | $ / shares | $ 51.58 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 12.75 |
Weighted Average Fair Value Grant Date, Change in units based on performance | $ / shares | 59.67 |
Weighted Average Fair Value, Vested | $ / shares | 38.50 |
Weighted Average Fair Value, Forfeited | $ / shares | 25.58 |
Weighted Average Fair Value, January 31, 2021 | $ / shares | $ 17.32 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Feb. 02, 2020 | Feb. 03, 2019 | |
Deferred Compensation Plan [Member] | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Employer match percentage | 25.00% | ||
Maximum eligibility of employee compensation | 6.00% | ||
Percentage of maximum employee eligible compensation on pretax basis that can be contributed | 50.00% | ||
Deferred compensation expense | $ 0 | $ 158 | $ 135 |
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 | $ 10,115 | 8,896 | |
401(k) Plan [Member] | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Employer match percentage | 25.00% | ||
Maximum eligibility of employee compensation | 6.00% | ||
Percentage of maximum employee eligible compensation on pretax basis that can be contributed | 50.00% | ||
Deferred compensation expense | $ 0 | $ 817 | $ 692 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information - Quarterly Financial Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2021USD ($)Stores$ / sharesshares | Nov. 01, 2020USD ($)Stores$ / sharesshares | Aug. 02, 2020USD ($)Stores$ / sharesshares | May 03, 2020USD ($)Stores$ / sharesshares | Feb. 02, 2020USD ($)Stores$ / sharesshares | Nov. 03, 2019USD ($)Stores$ / sharesshares | Aug. 04, 2019USD ($)Stores$ / sharesshares | May 05, 2019USD ($)Stores$ / sharesshares | Jan. 31, 2021USD ($)Stores$ / sharesshares | Feb. 02, 2020USD ($)Stores$ / sharesshares | Feb. 03, 2019USD ($)$ / sharesshares | Mar. 20, 2020Stores | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Total revenues | $ 116,821 | $ 109,052 | $ 50,833 | $ 159,806 | $ 347,158 | $ 299,352 | $ 344,599 | $ 363,582 | ||||
Total cost of products | 20,241 | 17,908 | 8,684 | 28,072 | 59,783 | 52,180 | 59,623 | 61,725 | $ 74,905 | $ 233,311 | $ 220,263 | |
Operating income | (54,041) | (56,043) | (81,115) | (61,413) | 37,616 | 6,499 | 46,214 | 57,750 | $ (290,406) | $ 127,142 | $ 147,887 | |
Net income | $ (56,785) | $ (48,043) | $ (58,602) | $ (43,544) | $ 24,982 | $ 482 | $ 32,356 | $ 42,443 | ||||
Net income per share of common stock: | ||||||||||||
Basic | $ / shares | $ (1.19) | $ (1.01) | $ (1.24) | $ (1.37) | $ 0.82 | $ 0.02 | $ 0.91 | $ 1.15 | $ (4.75) | $ 3 | $ 3 | |
Diluted | $ / shares | $ (1.19) | $ (1.01) | $ (1.24) | $ (1.37) | $ 0.80 | $ 0.02 | $ 0.90 | $ 1.13 | $ (4.75) | $ 2.94 | $ 2.93 | |
Denominator: | ||||||||||||
Basic | shares | 47,644,062 | 47,613,741 | 47,111,763 | 31,829,985 | 30,584,360 | 30,980,878 | 35,407,965 | 36,827,665 | 43,549,887 | 33,450,217 | 39,047,106 | |
Diluted | shares | 47,644,062 | 47,613,741 | 47,111,763 | 31,829,985 | 31,158,919 | 31,515,454 | 36,015,710 | 37,591,944 | 43,549,887 | 34,099,378 | 39,975,122 | |
Stores open at end of period | Stores | 140 | 137 | 137 | 137 | 136 | 134 | 130 | 127 | 140 | 136 | 137 |