Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 01, 2019 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 2, 2019 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BURL | ||
Entity Registrant Name | BURLINGTON STORES, INC. | ||
Entity Central Index Key | 0001579298 | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 67,076,918 | ||
Entity Public Float | $ 10,318,465,432 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
REVENUES: | |||
Net sales | $ 6,643,051 | $ 6,084,766 | $ 5,566,038 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Other revenue | $ 25,428 | $ 25,277 | $ 24,912 |
Total revenue | 6,668,479 | 6,110,043 | 5,590,950 |
COSTS AND EXPENSES: | |||
Cost of sales | 3,868,119 | 3,559,158 | 3,297,373 |
Selling, general and administrative expenses | 2,018,737 | 1,863,501 | 1,723,251 |
Costs related to debt amendments | 2,496 | 2,262 | 1,346 |
Stock option modification expense | 142 | 601 | |
Depreciation and amortization | 217,884 | 201,103 | 183,586 |
Impairment charges - long-lived assets | 6,844 | 2,127 | 2,450 |
Other income - net | (10,998) | (8,888) | (10,835) |
Loss on extinguishment of debt | 1,823 | 2,881 | 3,805 |
Interest expense | 55,990 | 58,777 | 56,161 |
Total costs and expenses | 6,160,895 | 5,681,063 | 5,257,738 |
Income before income tax expense | 507,584 | 428,980 | 333,212 |
Income tax expense | 92,839 | 44,128 | 117,339 |
Net income | $ 414,745 | $ 384,852 | $ 215,873 |
Net income per common stock - basic | $ 6.21 | $ 5.64 | $ 3.06 |
Net income per common stock - diluted | $ 6.04 | $ 5.48 | $ 3.01 |
Weighted average number of common stock - basic | 66,812 | 68,286 | 70,480 |
Weighted average number of common stock - diluted | 68,679 | 70,288 | 71,721 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 414,745 | $ 384,852 | $ 215,873 |
Interest rate cap contracts: | |||
Net unrealized gains arising during the period | (3,080) | 1,742 | 220 |
Reclassification into earnings during the period | 1,354 | 3,562 | 1,581 |
Other comprehensive (loss) income, net of tax: | (1,726) | 5,304 | 1,801 |
Total comprehensive income | $ 413,019 | $ 390,156 | $ 217,674 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 112,274 | $ 133,286 |
Restricted cash and cash equivalents | 21,882 | 27,800 |
Accounts receivable—net of allowance for doubtful accounts of $78 and $99 at February 2, 2019 and February 3, 2018, respectively | 58,752 | 71,649 |
Merchandise inventories | 954,183 | 752,562 |
Prepaid and other current assets | 124,809 | 115,136 |
Total current assets | 1,271,900 | 1,100,433 |
Property and equipment—net | 1,253,705 | 1,134,772 |
Tradenames | 238,000 | 238,000 |
Favorable leases—net | 164,324 | 188,947 |
Goodwill | 47,064 | 47,064 |
Deferred tax assets | 4,361 | 6,952 |
Other assets | 99,818 | 96,661 |
Total assets | 3,079,172 | 2,812,829 |
Current liabilities: | ||
Accounts payable | 848,561 | 736,252 |
Other current liabilities | 396,257 | 370,215 |
Current maturities of long term debt | 2,924 | 13,164 |
Total current liabilities | 1,247,742 | 1,119,631 |
Long term debt | 983,643 | 1,113,808 |
Other liabilities | 346,298 | 313,130 |
Deferred tax liabilities | 178,779 | 179,486 |
Commitments and contingencies (Note 17) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value: authorized: 50,000,000 shares; no shares issued and outstanding | ||
Common stock, $0.0001 par value: Authorized: 500,000,000 shares; Issued: 79,224,669 shares and 78,421,947 shares, respectively; Outstanding: 67,145,097 shares and 67,871,725 shares, respectively | 7 | 7 |
Additional paid-in-capital | 1,508,996 | 1,457,205 |
Accumulated deficit | (260,919) | (675,664) |
Accumulated other comprehensive loss | (3,613) | (1,887) |
Treasury stock, at cost | (921,761) | (692,887) |
Total stockholders' equity | 322,710 | 86,774 |
Total liabilities and stockholders' equity | $ 3,079,172 | $ 2,812,829 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts Receivable, Allowances for Doubtful Accounts | $ 78 | $ 99 |
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Issued | 0 | 0 |
Preferred Stock, Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares Issued | 79,224,669 | 78,421,947 |
Common Stock, Shares Outstanding | 67,145,097 | 67,871,725 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
OPERATING ACTIVITIES | ||||
Net income | $ 414,745 | $ 384,852 | $ 215,873 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 217,884 | 201,103 | 183,586 | |
Impairment charges - long-lived assets | 6,844 | 2,127 | 2,450 | |
Amortization of deferred financing costs | 1,596 | 2,463 | 2,679 | |
Accretion of long term debt instruments | 754 | 1,048 | 942 | |
Deferred income taxes | 2,519 | (30,727) | (2,919) | |
Non-cash loss on extinguishment of debt | 1,823 | 2,881 | 3,805 | |
Non-cash stock compensation expense | [1] | 35,485 | 27,034 | 15,953 |
Non-cash rent | (25,568) | (24,689) | (27,910) | |
Deferred rent incentives | 50,843 | 48,834 | 32,212 | |
Changes in assets and liabilities: | ||||
Accounts receivable | 3,482 | (19,983) | (3,489) | |
Merchandise inventories | (201,621) | (50,671) | 81,048 | |
Prepaid and other current assets | (7,461) | (42,855) | (13,267) | |
Accounts payable | 111,023 | 97,003 | 41,543 | |
Other current liabilities | 13,700 | 2,509 | 74,819 | |
Other long term assets and long term liabilities | 8,780 | (2,109) | 5,715 | |
Other operating activities | 4,825 | 8,430 | 2,876 | |
Net cash provided by operating activities | 639,653 | 607,250 | 615,916 | |
INVESTING ACTIVITIES | ||||
Cash paid for property and equipment | (295,772) | (268,194) | (187,507) | |
Lease acquisition costs | (8,543) | |||
Proceeds from insurance recoveries related to property and equipment | 2,787 | 5,980 | ||
Proceeds from sale of property and equipment and assets held for sale | 6,020 | (3) | 7,288 | |
Other investing activities | (3,000) | 9 | (132) | |
Net cash (used in) investing activities | (298,508) | (262,208) | (180,351) | |
FINANCING ACTIVITIES | ||||
Purchase of treasury shares | (228,874) | (289,777) | (202,371) | |
Proceeds from stock option exercises | 16,306 | 9,173 | 4,484 | |
Deferred financing costs | (2,439) | (1,188) | (655) | |
Other financing activities | (275) | (5,975) | (6,149) | |
Net cash (used in) financing activities | (368,075) | (293,353) | (374,883) | |
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (26,930) | 51,689 | 60,682 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 161,086 | 109,397 | 48,715 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 134,156 | 161,086 | 109,397 | |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 52,173 | 49,092 | 51,590 | |
Income tax payments - net | 75,650 | 109,581 | 68,962 | |
Non-cash investing activities: | ||||
Accrued purchases of property and equipment | 47,258 | 31,279 | 24,120 | |
Acquisition of capital lease | 13,538 | |||
ABL senior secured revolving facility | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Non-cash loss on extinguishment of debt | 200 | |||
FINANCING ACTIVITIES | ||||
Proceeds from long term debt | 1,220,200 | 1,215,500 | 1,392,700 | |
Principal payments on long term debt | (1,220,200) | (1,215,500) | (1,560,100) | |
Senior Secured Term B-5 Loans | ||||
FINANCING ACTIVITIES | ||||
Proceeds from long term debt | 1,114,207 | |||
Principal payments on long term debt | $ (152,793) | (2,793) | ||
Senior Secured Term B-4 Loans | ||||
FINANCING ACTIVITIES | ||||
Proceeds from long term debt | 1,114,208 | |||
Principal payments on long term debt | $ (1,117,000) | |||
Senior Secured Term B-3 Loans | ||||
FINANCING ACTIVITIES | ||||
Principal payments on long term debt | $ (1,117,000) | |||
[1] | The amounts presented in the table above exclude the effect of income taxes. The tax benefit related to the Company’s non-cash stock compensation was $9.7 million, $2.8 million and $5.6 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | |
Balance at beginning of period at Jan. 30, 2016 | $ (99,022) | $ 7 | $ 1,395,863 | $ (1,275,972) | $ (8,992) | $ (209,928) | |
Balance at beginning of period (in shares) at Jan. 30, 2016 | 76,711,663 | (4,640,486) | |||||
Net income | 215,873 | 215,873 | |||||
Stock options exercised and related taxes | 17,954 | 17,954 | |||||
Stock options exercised and related taxes (in shares) | 604,675 | ||||||
Shares used for tax withholding | (2,371) | $ (2,371) | |||||
Shares used for tax withholding (in shares) | (35,637) | ||||||
Shares purchased as part of publicly announced programs | (200,000) | $ (200,000) | |||||
Shares purchased as part of publicly announced programs, (in shares) | (2,797,088) | ||||||
Issuance of restricted shares, net of forfeitures | 337,586 | ||||||
Stock based compensation | 15,953 | 15,953 | |||||
Unrealized gains (losses) on interest rate cap contracts, net of related taxes | 220 | 220 | |||||
Re-issuance of shares previously held within treasury | (9,189) | $ 9,189 | |||||
Amount reclassified into earnings, net of related taxes | 1,581 | 1,581 | |||||
Balance at end of period at Jan. 28, 2017 | (49,812) | $ 7 | 1,420,581 | (1,060,099) | (7,191) | $ (403,110) | |
Balance at end of period (in shares) at Jan. 28, 2017 | 77,653,924 | (7,473,211) | |||||
Net income | 384,852 | 384,852 | |||||
Stock options exercised and related taxes | 9,173 | 9,173 | |||||
Stock options exercised and related taxes (in shares) | 568,675 | ||||||
Shares used for tax withholding | (7,307) | $ (7,307) | |||||
Shares used for tax withholding (in shares) | (70,291) | ||||||
Shares purchased as part of publicly announced programs | (282,470) | $ (282,470) | |||||
Shares purchased as part of publicly announced programs, (in shares) | (3,006,720) | ||||||
Issuance of restricted shares, net of forfeitures | 199,348 | ||||||
Stock based compensation | 27,034 | 27,034 | |||||
Unrealized gains (losses) on interest rate cap contracts, net of related taxes | 1,742 | 1,742 | |||||
Amount reclassified into earnings, net of related taxes | 3,562 | 3,562 | |||||
Cumulative-effect adjustment | 417 | (417) | |||||
Balance at end of period at Feb. 03, 2018 | 86,774 | $ 7 | 1,457,205 | (675,664) | (1,887) | $ (692,887) | |
Balance at end of period (in shares) at Feb. 03, 2018 | 78,421,947 | (10,550,222) | |||||
Net income | 414,745 | 414,745 | |||||
Stock options exercised and related taxes | $ 16,306 | 16,306 | |||||
Stock options exercised and related taxes (in shares) | 684,011 | [1] | 684,011 | ||||
Shares used for tax withholding | $ (10,127) | $ (10,127) | |||||
Shares used for tax withholding (in shares) | (69,489) | ||||||
Shares purchased as part of publicly announced programs | (218,747) | $ (218,747) | |||||
Shares purchased as part of publicly announced programs, (in shares) | (1,459,861) | ||||||
Issuance of restricted shares, net of forfeitures | 118,711 | ||||||
Stock based compensation | 35,485 | 35,485 | |||||
Unrealized gains (losses) on interest rate cap contracts, net of related taxes | (3,080) | (3,080) | |||||
Amount reclassified into earnings, net of related taxes | 1,354 | 1,354 | |||||
Balance at end of period at Feb. 02, 2019 | $ 322,710 | $ 7 | $ 1,508,996 | $ (260,919) | $ (3,613) | $ (921,761) | |
Balance at end of period (in shares) at Feb. 02, 2019 | 79,224,669 | (12,079,572) | |||||
[1] | Options exercised during Fiscal 2018 had a total intrinsic value of $87.8 million. |
Consolidated Statements of St_2
Consolidated Statements of Stockholder's Equity (Deficit) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Stock options exercised, related tax | $ 13.5 | ||
Forfeited restricted shares | 25,504 | 33,263 | 17,815 |
Unrealized gains (losses) on Interest Rate Cap Contracts, Tax | $ 1.2 | $ 1.4 | $ (0.1) |
Amount reclassified into earnings on Interest Rate Cap Contracts, Tax | $ 0.5 | $ 2.4 | $ 1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Business As of February 2, 2019, Burlington Stores, Inc., a Delaware corporation (collectively with its subsidiaries, the Company), through its indirect subsidiary Burlington Coat Factory Warehouse Corporation (BCFWC), has expanded its store base to 675 retail stores, inclusive of an internet store, in 45 Basis of Consolidation and Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Consolidated Financial Statements include the accounts of Burlington Stores, Inc. and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. Fiscal Years The Company defines its fiscal year as the 52 or 53-week period ending on the Saturday closest to January 31. The fiscal years ended February 2, 2019 (Fiscal 2018) and January 28, 2017 (Fiscal 2016) each consisted of 52 weeks. The fiscal year ended February 3, 2018 (Fiscal 2017) consisted of 53 weeks. Use of Estimates Certain amounts included in the Consolidated Financial Statements are estimated based on historical experience, currently available information and management’s judgment as to the expected outcome of future conditions and circumstances. While every effort is made to ensure the integrity of such estimates, actual results could differ from these estimates, and such differences could have a material impact on the Company’s Consolidated Financial Statements. Weather-Related Incidents As a result of the effects of certain weather-related incidents, 82 of the Company’s stores were closed for at least one day during Fiscal 2017. The Company incurred losses during Fiscal 2017 of (i) $5.4 million related to the net book values of merchandise inventories and (ii) $17.7 million related to the net book values of property and equipment and other long-lived assets, as well as repair and maintenance costs related to the clean-up of its stores. These costs were recorded in the line items “Cost of sales” and “Selling general and administrative expenses” on the Company’s Consolidated Statement of Income for the year ended February 3, 2018. The Company is insured at the selling price of the inventory and at replacement costs for the property and equipment and other long-lived assets, less a deductible. During Fiscal 2017, the Company received approximately $11.7 million of insurance proceeds to offset some of the losses. The Company allocated $6.0 million of these proceeds to property and equipment, which is included in the line item “Proceeds from insurance recoveries related to property and equipment,” a component of cash flows from investing activities, on the Company’s Consolidated Statements of Cash Flows during the year ended February 3, 2018. During Fiscal 2018, the Company received $9.3 million of insurance proceeds related to these weather-related incidents. These proceeds resulted in a gain on insurance recovery of $3.3 million, which is included in “Other income – net” on the Company’s Consolidated Statement of Income for the year ended February 2, 2019. The Company allocated $2.8 million of these proceeds to property and equipment, which is included in the line item “Proceeds from insurance recoveries related to property and equipment,” a component of cash flows from investing activities, on the Company’s Consolidated Statement of Cash Flows for the year ended February 2, 2019. Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of three months or less at the time of purchase. Book cash overdrafts are included in the line item “Accounts payable” on the Company’s Consolidated Balance Sheets. Accounts Receivable Accounts receivable consist of credit card receivables, lease incentive receivables, insurance receivables and other receivables. Accounts receivable are recorded at net realizable value, which approximates fair value. The Company provides an allowance for doubtful accounts for amounts deemed uncollectible. Inventories Merchandise inventories are valued at the lower of cost or market, as determined by the retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. The Company regularly records a provision for estimated shortage, thereby reducing the carrying value of merchandise inventory. Complete physical inventories of all of the Company’s stores and warehouses are performed no less frequently than annually, with the recorded amount of merchandise inventory being adjusted to coincide with these physical counts. The Company records its cost of merchandise (net of purchase discounts and certain vendor allowances), certain merchandise acquisition costs (primarily commissions and import fees), inbound freight, outbound freight from distribution centers, and freight on internally transferred merchandise in the line item “Cost of sales” in the Company’s Consolidated Statements of Income. Costs associated with the Company’s distribution, buying, and store receiving functions (product sourcing costs) are included in the line items “Selling, general and administrative expenses” and “Depreciation and amortization” in the Company’s Consolidated Statements of Income. Product sourcing costs included within the line item “Selling, general and administrative expenses” amounted to $313.3 million, $283.6 million and $261.0 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. Depreciation and amortization related to the distribution and purchasing functions for the same periods amounted to $30.5 million, $26.6 million and $22.6 million, respectively. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 20 to 40 years for buildings, depending upon the expected useful life of the facility, and 3 to 15 years for store fixtures and equipment. Leasehold improvements are amortized over the lease term, including any reasonably assured renewal options or the expected economic life of the improvement, whichever is less. Repairs and maintenance expenditures are expensed as incurred. Renewals and betterments, which significantly extend the useful lives of existing property and equipment, are capitalized. Assets recorded under capital leases are recorded at the present value of minimum lease payments and are amortized over the lease term. Amortization of assets recorded as capital leases is included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. The carrying value of all long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, in accordance with ASC Topic No. 360 “ Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to undiscounted pre-tax future net cash flows expected to be generated by that asset. If the undiscounted future cash flows are not adequate to recover the carrying value of the asset, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of such assets. Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. Capitalized Computer Software Costs The Company accounts for capitalized software in accordance with ASC Topic No. 350 “Intangibles—Goodwill and Other” (Topic No. 350) which requires the capitalization of certain costs incurred in connection with developing or obtaining software for internal use. The Company capitalized $15.7 million and $19.1 million relating to these costs during Fiscal 2018 and Fiscal 2017, respectively. Intangible Assets The Company accounts for intangible assets in accordance with Topic No. 350. The Company’s intangible assets primarily represent tradenames and favorable lease positions. The tradename asset “Burlington” is expected to generate cash flows indefinitely and, therefore, is accounted for as an indefinite-lived asset not subject to amortization. The values of favorable and unfavorable lease positions are amortized on a straight-line basis over the expected lease terms. Amortization of net favorable lease positions is included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. The Company evaluates its intangible assets for possible impairment as follows: Indefinite-lived intangible assets: The Company tests identifiable intangible assets with an indefinite life for impairment on an annual basis, or when a triggering event occurs, relying on a number of factors that include operating results, business plans and projected future cash flows. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. The Company determines fair value through the relief of royalty method which is a widely accepted valuation technique. On the first business day of the second quarter, the Company’s annual assessment date, the Company performed a quantitative analysis and determined that the fair values of each of the Company’s identifiable intangible assets are greater than their respective carrying values. There were no impairment charges recorded during Fiscal 2018, Fiscal 2017 or Fiscal 2016 related to indefinite-lived intangible assets. Finite-lived intangible assets: Identifiable intangible assets that are subject to amortization are evaluated for impairment in accordance with Topic No. 360 using a process similar to that used to evaluate other long-lived assets as described in Note 6, “Impairment Charges.” An impairment charge is recognized for the amount by which the carrying value exceeds the fair value of the asset. For the favorable lease positions, if the carrying amount exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset to its fair value. The fair value is estimated by discounting expected future cash flows using the Company’s risk adjusted rate of interest. The Company recorded impairment charges of $2.9 million, $0.8 million and $1.6 million related to finite-lived intangible assets during Fiscal 2018, Fiscal 2017 and respectively. These charges are recorded in the line item “Impairment charges–long-lived assets” in the Company’s Consolidated Statements of . Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. Goodwill Goodwill represents the excess of the acquisition cost over the estimated fair value of tangible assets and other identifiable intangible assets acquired less liabilities assumed. Topic No. 350 requires a comparison, at least annually, of the carrying value of the assets and liabilities associated with a reporting unit, including goodwill, with the fair value of the reporting unit. The Company determines fair value through multiple widely accepted valuation techniques. These techniques use a variety of assumptions including projected market conditions, discount rates and future cash flows. If the carrying value of the assets and liabilities exceeds the fair value of the reporting unit, the Company would calculate the implied fair value of its reporting unit goodwill as compared with the carrying value of its reporting unit goodwill to determine the appropriate impairment charge. On the first business day of the second fiscal quarter, the Company’s annual assessment date, the Company performed a quantitative analysis and determined that the fair value of the Company’s reporting unit was greater than its carrying value. There were no impairment charges related to goodwill during Fiscal 2018, Fiscal 2017 or Fiscal 2016. Other Assets Other assets consist primarily of landlord-owned store assets that the Company has paid for as part of its lease, deferred financing costs associated with the Company’s senior secured asset-based revolving credit facility (the ABL Line of Credit) and purchased lease rights. Landlord-owned assets represent leasehold improvements at certain stores for which the Company has paid, but the landlord has retained title. These assets are amortized over the lease term inclusive of reasonably assured renewal options. Amortization of landlord-owned assets was $16.0 million, $14.5 million and $13.4 million, during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively, and was included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. Deferred financing costs are amortized over the life of the ABL Line of Credit using the interest method of amortization. Amortization of deferred financing costs is recorded in the line item “Interest expense” in the Company’s Consolidated Statements of Income. Purchased lease rights are amortized over the lease term inclusive of reasonably assured renewal options and the amortization is recorded in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. Both landlord-owned assets and purchased lease rights are assessed for impairment in accordance with Topic No. 360. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, the Company recorded impairment charges of $0.1 million, $0.2 million and $0.1 million, respectively, related to purchased lease rights and landlord-owned assets. These charges are recorded in the line item “Impairment charges–long-lived assets” in the Company’s Consolidated Statements of Income. Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. Other Current Liabilities Other current liabilities primarily consist of sales tax payable, customer liabilities, accrued payroll costs, self-insurance reserves, accrued operating expenses, payroll taxes payable, current portion of straight line rent liability and other miscellaneous items. Customer liabilities totaled $33.7 million and $34.6 million as of February 2, 2019 and February 3, 2018, respectively. The Company has risk participation agreements with insurance carriers with respect to workers’ compensation, general liability insurance and health insurance. Pursuant to these arrangements, the Company is responsible for paying individual claims up to designated dollar limits. The amounts related to these claims are estimated and can vary based on changes in assumptions or claims experience included in the associated insurance programs. An increase in workers’ compensation claims, health insurance claims or general liability claims may result in a corresponding increase in costs related to these claims. Self-insurance reserves as of February 2, 2019 and February 3, 2018 were: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 Short-term self-insurance reserve(a) $ 29,918 $ 26,652 Long-term self-insurance reserve(b) 40,975 38,255 Total $ 70,893 $ 64,907 (a) Represents the portions of the self-insurance reserve expected to be paid in the next twelve months, which were recorded in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. (b) Represents the portions of the self-insurance reserve expected to be paid in excess of twelve months, which was recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets. Other Liabilities Other liabilities primarily consist of deferred lease incentives, the long term portion of straight line rent liability, the long term portion of self-insurance reserves, the excess of straight-line rent expense over actual rental payments and tax liabilities associated with the uncertain tax positions recognized by the Company in accordance with ASC Topic No. 740 “Income Taxes” (Topic No. 740). Deferred lease incentives are funds received or receivable from landlords used primarily to offset the costs incurred for remodeling of stores. These deferred lease incentives are amortized over the expected lease term, including rent holiday periods and option periods where the exercise of the option can be reasonably assured. Amortization of deferred lease incentives is included in the line item “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Income. At February 2, 2019 and February 3, 2018, deferred lease incentives were $216.2 million and $206.0 million, respectively. Revenue Recognition Effective February 4, 2018, the Company adopted Accounting Standard Update 2014-09, “Revenue from Contracts with Customers,” which supersedes most preexisting revenue recognition guidance. The Company records revenue at the time of sale and delivery of merchandise, net of allowances for estimated future returns, which is estimated based on historical return rates. The Company presents sales, net of sales taxes, in its Consolidated Statements of Income. The Company accounts for layaway sales and leased department revenue in compliance with ASC Topic No. 606 “Revenue from Contracts with Customers” (Topic No. 606). Layaway sales are recognized upon delivery of merchandise to the customer. The amount of cash received upon initiation of the layaway is recorded as a deposit liability in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. Stored value cards (gift cards and store credits issued for merchandise returns) are recorded as a liability at the time of issuance, and the related sale is recorded upon redemption. The Company determines an estimated stored value card breakage rate by continuously evaluating historical redemption data. Breakage income is recognized monthly in proportion to the historical redemption patterns for those stored value cards for which the likelihood of redemption is remote. Other Revenue Other revenue consists of service fees (layaway, shipping and handling, alteration, dormancy and other service charges), subleased rental income and rental income from leased departments as shown in the table below: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 January 28, 2017 (53 Weeks) Service fees $ 15,836 $ 16,207 $ 15,779 Subleased rental income and other 9,319 8,846 8,720 Rental income from leased departments 273 224 413 Total $ 25,428 $ 25,277 $ 24,912 Rental income from leased departments resulted from arrangements at some of the Company’s stores where the Company granted unaffiliated third parties the right to use designated store space solely for the purpose of selling such third parties’ goods, including such items as fragrances and designer handbags. Rental income was based on an agreed upon percentage of the lease departments’ total revenues. The Company did not own or have any rights to any tradenames, licenses or other intellectual property in connection with the brands sold by such unaffiliated third parties. The Company no longer has any such arrangements as of the end of Fiscal 2018. Advertising Costs The Company’s advertising costs consist primarily of national television, direct mail and digital costs. Advertising costs are expensed the first time the advertising takes place, and are included in the line item “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Income. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, advertising costs were $77.1 million, $82.3 million and $81.8 million, respectively. Income Taxes The Company accounts for income taxes in accordance with Topic No. 740. Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. A valuation allowance against the Company’s deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the need for a valuation allowance, management is required to make assumptions and to apply judgment, including forecasting future earnings, taxable income, and the mix of earnings in the jurisdictions in which the Company operates. Management periodically assesses the need for a valuation allowance based on the Company’s current and anticipated results of operations. The need for and the amount of a valuation allowance can change in the near term if operating results and projections change significantly. Topic No. 740 requires the recognition in the Company’s Consolidated Financial Statements of the impact of a tax position taken or expected to be taken in a tax return, if that position is “more likely than not” to be sustained upon examination by the relevant taxing authority, based on the technical merits of the position. The tax benefits recognized in the Company’s Consolidated Financial Statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company records interest and penalties related to unrecognized tax benefits as part of income taxes. Other Income, Net Other income, net, consists of breakage income, net gains and losses on disposition of assets, gains and losses on insurance proceeds and other miscellaneous items million, Comprehensive Income Comprehensive income is comprised of net income and the effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges, less amounts reclassified into earnings. Lease Accounting The Company leases store locations, distribution centers and office space used in its operations. The Company accounts for these types of leases in accordance with ASC Topic No. 840, “Leases” (Topic No. 840), and subsequent amendments, which require that leases be evaluated and classified as operating or capital leases for financial reporting purposes. Assets held under capital leases are included in the line item “Property and equipment—net of accumulated depreciation and amortization” in the Company’s Consolidated Balance Sheets. For leases classified as operating, the Company calculates rent expense on a straight-line basis over the lesser of the lease term including renewal options, if reasonably assured, or the economic life of the leased premises, taking into consideration rent escalation clauses, rent holidays and other lease concessions. The Company commences recording rent expense during the store fixturing and merchandising phase of the leased property. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic No. 718, “Stock Compensation” (Topic No. 718), which requires companies to record stock compensation expense for all non-vested and new awards beginning as of the grant date. Refer to Note 12, “Stock-Based Compensation,” for further details. Net Income Per Share Net income per share is calculated using the treasury stock method. Refer to Note 11, “Net Income Per Share,” for further details. Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and investments. The Company manages the credit risk associated with cash equivalents and investments by investing with high-quality institutions and, by policy, limiting investments only to those which meet prescribed investment guidelines. The Company maintains cash accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses from maintaining cash accounts in excess of such limits. Management believes that it is not exposed to any significant risks on its cash and cash equivalent accounts. Segment Information The Company reports segment information in accordance with ASC Topic No. 280 “Segment Reporting.” The Company has one reportable segment. The Company is an off-price retailer that offers customers a complete line of value-priced apparel, including: women’s ready-to-wear apparel, accessories, footwear, menswear, youth apparel, baby, home, coats, beauty, toys and gifts Category Fiscal 2018(a) Fiscal 2017(a) Fiscal 2016(a) Women’s ready-to-wear apparel 23 % 23 % 24 % Accessories and footwear 22 % 22 % 22 % Menswear 20 % 20 % 20 % Youth apparel/baby 16 % 16 % 16 % Home 15 % 14 % 12 % Coats 5 % 5 % 6 % (a) Percentages may not foot due to rounding. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Feb. 02, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which converges revenue recognition under GAAP and International Financial Reporting Standards. The new guidance supersedes most preexisting revenue recognition guidance, and provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard effective February 4, 2018 on a modified retrospective basis. Adoption of the standard did not result in any material change in the timing or amount of revenue recognized as it relates to revenue from point of sale at the registers in our stores, which constitutes more than 99% of the Company’s revenue. The new standard requires the Company’s sales return reserve to be established at the gross sales value with an asset established for the value of the expected merchandise returned. The liability and asset related to the sales return reserve as of February 2, 2019 were $9.5 million and $5.7 million, respectively, and were included in the lines “Other current liabilities” and “Prepaid and other current assets,” respectively, on the Company’s Consolidated Balance Sheet. Prior period amounts have not been adjusted. As of February 3, 2018, the net sales return reserve was $3.8 million and was included in the line “Other current liabilities” on the Company’s Consolidated Balance Sheet. The Company records revenue at the time of sale and delivery of merchandise, net of allowances for estimated future returns, which is estimated based on historical return rates. The Company presents sales, net of sales taxes, in its Consolidated Statements of Income. The Company accounts for layaway sales and leased department revenue in compliance with Topic No. 606. Layaway sales are recognized upon delivery of merchandise to the customer. The amount of cash received upon initiation of the layaway is recorded as a deposit liability in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. Stored value cards (gift cards and store credits issued for merchandise returns) are recorded as a liability at the time of issuance, and the related sale is recorded upon redemption. The Company determines an estimated stored value card breakage rate by continuously evaluating historical redemption data. Breakage income is recognized monthly in proportion to the historical redemption patterns for those stored value cards for which the likelihood of redemption is remote. Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The Company adopted this standard effective February 4, 2018. Adoption of the new guidance did not have a significant impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash.” The primary purpose of this ASU is to reduce the diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard effective February 4, 2018. As a result of adoption, the Company has included $27.8 million of restricted cash and cash equivalents in both the beginning-of-period and end-of-period cash and cash equivalents balances on its Consolidated Statements of Cash Flows for both of the years ended February 3, 2018 and January 28, 2017. Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” This ASU eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. As a result, changes in fair value for hedging instruments designated as a cash flow or net investment hedge will be recognized as a component of other comprehensive income, regardless of whether or not an economic mismatch exists in the hedging relationship. Additionally, the ASU eliminates the benchmark interest rate concept for variable-rate instruments in cash flow hedges. As a result, the contractually specified interest rate can now be designated as the hedged risk. The Company has elected to adopt the ASU as of February 4, 2018, using a modified retrospective transition method. Adoption of this ASU did not have a significant impact on the Company’s Consolidated Financial Statements. Pending Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company intends to adopt this ASU as of the beginning of the fiscal year ending February 1, 2020 (Fiscal 2019). The Company is in the process of finalizing the implementation of controls within its existing IT systems and changes to business processes to capture, calculate and account for leases under the new standard. The Company plans to apply the changes from the new guidance at the adoption date and recognize a cumulative effect adjustment to retained earnings in the period of adoption, as allowed under ASU 2018-11, “Leases: Targeted Improvements.” The Company intends to make an accounting policy election not to capitalize leases with a term of twelve months or less. The Company intends to elect the transition package of practical expedients, which allows the Company to carry forward for its existing leases: i) the historical lease classification as either operating or capital; ii) assessment of whether any expired or existing contracts are or contain leases; and iii) capitalization of initial direct costs. Additionally, the Company intends to elect the practical expedients to not separate lease and non-lease components, to not assess whether existing or expired land easements contain a lease, and to employ hindsight when determining lease terms for existing leases on the date of adoption. As a result of this standard, the Company will recognize approximately $2.1 billion of additional right-of-use assets (current and long-term combined) and approximately $2.2 billion of additional lease liabilities (current and long-term combined) on its consolidated balance sheet as of the first day of Fiscal 2019. The right-of-use lease liability for operating leases is based on the net present value of future minimum lease payments. The right-of-use asset for operating leases is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as favorable leases with remaining fixed rental payments in excess of 12 months, the long term portion of straight line rent liability, purchased lease rights and deferred lease incentives. In addition, the Company will also record an approximate $0.6 million cumulative-effect adjustment to retained earnings, related to a deferred gain on a previous sale-leaseback transaction that was being recognized into the line item “Other income” over a 13 year period. The Company also expects a change in the timing of expense recognition, primarily related to net favorable lease amortization, as well as a reclassification of favorable lease amortization from “depreciation and amortization” to “selling, general and administrative expenses” on the Company’s consolidated statements of income. This guidance is not expected to have a material impact on the Company's liquidity. Refer to Note 13, “Lease Commitments,” for further detail of the Company’s future minimum lease payments. Intangible Assets On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment,” which aims to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, goodwill impairment will be measured as the amount by which the carrying value exceeds the fair value. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The new guidance will be effective for annual reporting periods beginning after December 15, 2019, including interim periods. This ASU will be effective for the Company as of the beginning of Fiscal 2020. Early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not anticipate that the new guidance will have a significant impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU requires that implementation costs incurred in a hosting arrangement that is a service contract be assessed in accordance with the existing guidance in Subtopic 350-40, “Internal-Use Software.” Accordingly, costs incurred during the preliminary project stage must be expensed as incurred, while costs incurred during the application development stage must be capitalized. Capitalized implementation costs associated with a hosting arrangement that is a service contract must be expensed over the term of the hosting arrangement. Additionally, the new guidance requires that the expense of these capitalized costs be presented in the same line item in the statement of income as the fees associated with the hosting element of the arrangement. The new guidance will be effective for annual reporting periods beginning after December 15, 2019, including interim periods. This ASU will be effective for the Company as of the beginning of Fiscal 2020. Early adoption is permitted for annual or interim periods. While t he Company is still in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto, it There were no other new accounting standards that had a material impact on the Company’s Consolidated Financial Statements during the fiscal year ended February 2, 2019, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of February 2, 2019 that the Company expects to have a material impact on its financial position or results of operations upon becoming effective. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 12 Months Ended |
Feb. 02, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash and Cash Equivalents | 3. Restricted Cash and Cash Equivalents At February 2, 2019 and February 3, 2018, restricted cash and cash equivalents consisted of $21.9 million and $27.8 million, respectively, related to collateral for certain insurance contracts. The Company has the ability to convert the restricted cash to a letter of credit at any time, which would reduce available borrowings on the ABL Line of Credit by a like amount. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 02, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consist of: (in thousands) Useful Lives February 2, 2019 February 3, 2018 Land N/A $ 156,040 $ 159,465 Buildings 20 to 40 Years 485,265 465,207 Store fixtures and equipment 3 to 15 Years 927,081 831,963 Software 3 to 10 Years 256,610 235,799 Leasehold improvements Shorter of lease term or useful life 694,145 604,470 Construction in progress N/A 24,767 28,155 Total property and equipment at cost 2,543,908 2,325,059 Less: accumulated depreciation (1,290,203 ) (1,190,287 ) Total property and equipment, net of accumulated depreciation and amortization $ 1,253,705 $ 1,134,772 As of February 2, 2019 and February 3, 2018, assets, net of accumulated amortization of $23.2 million and $21.0 million, respectively, held under capital leases amounted to approximately $30.3 million and $19.8 million, respectively, and are included in the line item “Buildings” in the foregoing table. Amortization expense related to capital leases is included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. The total amount of depreciation expense during Fiscal 2018, Fiscal 2017 and Fiscal 2016 was $175.8 million, $163.3 million and $146.3 million, respectively. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, the Company recorded impairment charges related to property and equipment of $3.9 million, $1.1 million and $0.8 million, respectively. Refer to Note 6, “Impairment Charges,” for further discussion. Internally developed software is amortized on a straight line basis over three to ten years and is recorded in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. Depreciation and amortization of internally developed software amounted to $19.4 million, $18.2 million and $15.4 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible assets at February 2, 2019 and February 3, 2018 consist primarily of tradenames and favorable lease positions as follows: (in thousands) February 2, 2019 February 3, 2018 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Tradenames $ 238,000 $ — $ 238,000 $ 238,000 $ — $ 238,000 Favorable leases $ 420,537 (256,213 ) $ 164,324 $ 442,322 $ (253,375 ) $ 188,947 Favorable Leases The total amount of net favorable lease amortization expense during Fiscal 2018, Fiscal 2017 and Fiscal 2016 was $26.1 million, $23.3 million and $24.0 million, respectively. The Company recorded impairment charges of $2.9 million, $0.8 million and $1.6 million related to its favorable leases during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. The weighted average amortization period remaining for the Company’s favorable leases is 12.0 Fiscal Years: (in thousands) 2019 $ 21,024 2020 18,477 2021 17,968 2022 16,135 2023 15,251 Thereafter 75,469 Total $ 164,324 |
Impairment Charges
Impairment Charges | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment Charges | 6. Impairment Charges Impairment charges recorded during Fiscal 2018, Fiscal 2017 and Fiscal 2016 amounted to $6.8 million, $2.1 million and $2.5 million, respectively, and are primarily related to declines in revenues and operating results of the respective stores. Additionally, during Fiscal 2018 and Fiscal 2017, a portion of the impairment related to a decline in the appraised fair value of one of the Company’s owned stores. Impairment charges during these periods related to the following: (in thousands) Fiscal Years Ended Asset Categories February 2, 2019 February 3, 2018 January 28, 2017 Favorable leases $ 2,894 $ 836 $ 1,550 Store fixtures and equipment 878 308 440 Leasehold improvements 195 306 387 Other assets 64 203 73 Buildings 1,262 227 — Land 1,551 247 — Total $ 6,844 $ 2,127 $ 2,450 The Company recorded impairment charges related to store-level assets for eight stores during , Long-lived assets are measured at fair value on a non-recurring basis for purposes of calculating impairment using the fair value hierarchy of ASC Topic No. 820 “Fair Value Measurements” (Topic No. 820). Refer to Note 16, “Fair Value of Financial Instruments,” for further discussion of the Company’s fair value hierarchy. The fair value of the Company’s long-lived assets is calculated using a discounted cash-flow model that used level 3 inputs. In calculating future cash flows, the Company makes estimates regarding future operating results based on its experience and knowledge of market factors in which the retail location is located. Two of the impaired stores were fully impaired during Fiscal 2018. The remaining six impaired stores were partially impaired during Fiscal 2018. The table below sets forth, by level within the fair value hierarchy, the remaining fair value of the partially-impaired stores as of February 2, 2019: (in thousands) Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- Observable Inputs (Level 3) Total Total Impairment Losses Land $ — $ — $ 3,055 3,055 $ 1,551 Buildings — — 2,036 2,036 1,262 Store fixtures and equipment — — 801 801 878 Leasehold improvements — — 69 69 195 Favorable leases — — 896 896 2,894 Other assets — — 41 41 64 Total $ — $ — $ 6,898 $ 6,898 $ 6,844 |
Long Term Debt
Long Term Debt | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 7. Long Term Debt Long term debt consists of: (in thousands) February 2, February 3, 2019 2018 $1,200,000 senior secured term loan facility (Term B-5 Loans), LIBOR (with a floor of 0.00%) plus 2.00%, matures on November 17, 2024 (a) $ 956,693 $ 1,108,913 $600,000 ABL senior secured revolving facility, LIBOR plus spread based on average outstanding balance, matures on June 29, 2023 — — Capital lease obligations 32,706 21,931 Unamortized deferred financing costs (2,832 ) (3,872 ) Total debt 986,567 1,126,972 Less: current maturities (2,924 ) (13,164 ) Long term debt, net of current maturities $ 983,643 $ 1,113,808 (a) Prior to November 2, 2018, the interest rate on the Term B-5 Loans was LIBOR (with a floor of 0.75%) plus 2.50%. Term Loan Facility On February 24, 2011, the Company entered into a $1.0 billion senior secured term loan facility (the Term Loan Facility). The Term Loan Facility was issued pursuant to a credit agreement (Term Loan Credit Agreement), dated February 24, 2011, among BCFWC, the guarantors signatory thereto, and JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent, the lenders party thereto, J.P. Morgan Securities LLC and Goldman Sachs Lending Partners LLC, as joint bookrunners, and J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as joint arrangers, governing the terms of the Term Loan Facility. On July 29, 2016, BCFWC entered into Amendment No. 5 (the Fifth Amendment) to the Term Loan Credit Agreement governing its Term Loan Facility. The Fifth Amendment, among other things, reduced the interest rate margins applicable to the Term Loan Facility from 2.25% to 1.75% in the case of prime rate loans, and from 3.25% to 2.75% in the case of LIBOR loans, with the LIBOR floor being reduced from 1.00% to 0.75%. The Fifth Amendment was accomplished by replacing the outstanding $1,117.0 million principal amount of Term B-3 Loans with a like aggregate principal amount of Term B-4 Loans. On November 17, 2017, BCFWC entered into Amendment No. 6 (the Sixth Amendment) to the Term Loan Credit Agreement governing its Term Loan Facility. The Sixth Amendment, among other things, reduced the interest rate margins applicable to the Term Loan Facility from 1.75% to 1.50% in the case of prime rate loans, and from 2.75% to 2.50% in the case of LIBOR loans, with the LIBOR floor continuing to be 0.75%. The Sixth Amendment also extended the maturity date from August 13, 2021 to November 17, 2024. The Sixth Amendment was accomplished by replacing the outstanding $1,117.0 million principal amount of Term B-4 Loans with a like aggregate principal amount of Term B-5 Loans. In June 2018, the Company prepaid $150.0 million on the Term Loan Facility, which offset the mandatory quarterly payments through November 17, 2024. In accordance with ASC Topic No. 470-50, “Debt Modifications and Extinguishments” (Topic No. 470), the Company recognized a non-cash loss on the extinguishment of debt of $1.2 million, representing the write-off of unamortized original issue discount and deferred financing costs, which was recorded in the line item “Loss on extinguishment of debt” in the Company’s Consolidated Statement of Income. On November 2, 2018, BCFWC entered into Amendment No. 7 (the Seventh Amendment) to the Term Loan Credit Agreement governing its Term Loan Facility. The Seventh Amendment, among other things, reduced the interest rate margins applicable to the Company’s term loan facility from 1.50% to 1.00%, in the case of prime rate loans, and from 2.50% to 2.00%, in the case of LIBOR loans, with the LIBOR floor being reduced from 0.75% to 0.00%. In connection with the execution of the Seventh Amendment, the Company paid fees and expenses, including a fee to each consenting lender equal to 0.125% of the aggregate principal amount of such lender’s loans under the Term Loan Credit Agreement. In accordance with Topic No. 470, the Company recognized a non-cash loss on the extinguishment of debt of $0.5 million, representing the write-off of deferred financing costs and unamortized original issue discount, which was recorded in the line item “Loss on extinguishment of debt” in the Company’s Consolidated Statement of Income. Also in connection with the Seventh Amendment, the Company incurred fees of $2.4 million, primarily related to legal and placement fees, which were recorded in the line item “Costs related to debt amendments” in the Company’s Consolidated Statement of Income. The Term Loan Facility is collateralized by a first lien on our favorable leases, real estate and property & equipment and a second lien on our inventory and receivables. Interest rates for the Term Loan Facility are based on: (i) for LIBOR rate loans for any interest period, at a rate per annum equal to the greater of (x) the LIBOR rate, as determined by the Term Loan Facility Administrative Agent, for such interest period multiplied by the Statutory Reserve Rate (as defined in the Term Loan Credit Agreement), and (y) 0.00% (the Term Loan Adjusted LIBOR Rate), plus an applicable margin; and (ii) for prime rate loans, a rate per annum equal to the highest of (a) the variable annual rate of interest then announced by JPMorgan Chase Bank, N.A. at its head office as its “prime rate,” (b) the federal reserve bank of New York rate in effect on such date plus 0.50% per annum, and (c) the Term Loan Adjusted LIBOR Rate for the applicable class of term loans for one-month plus 1.00%, plus, in each case, an applicable margin. As of February 2, 2019, the Company’s borrowing rate related to the Term Loan Facility was 4.5%. ABL Line of Credit On June 29, 2018, BCFWC entered into Amendment No. 2 (the Second Amendment) to the Second Amended and Restated Credit Agreement, dated September 2, 2011 (the ABL Credit Agreement), governing BCFWC’s existing senior secured asset-based revolving credit facility (the ABL Line of Credit). The Second Amendment, among other things, extended the maturity date from August 13, 2019 to June 29, 2023 and adjusted the pricing grid such that the lower interest rate of 1.25% in the case of LIBOR loans and 0.25% in the case of prime rate loans is applicable so long as the Company maintains at least 40% average daily availability (as opposed to 50%). In connection with its entry into the Second Amendment, and in accordance with Topic No. 470, the Company recognized a non-cash loss on the extinguishment of debt of $0.2 million, representing the write-off of deferred financing costs, which was recorded in the line item “Loss on extinguishment of debt” in the Company’s Consolidated Statement of Income for the year ended February 2, 2019. The aggregate amount of commitments under the Second Amended and Restated Credit Agreement (as amended, supplemented and otherwise modified, the Amended ABL Credit Agreement) is $600.0 million (subject to a borrowing base limitation) and, subject to the satisfaction of certain conditions, the Company can increase the aggregate amount of commitments up to $900.0 million. The interest rate margin applicable under the Amended ABL Credit Agreement in the case of loans drawn at LIBOR is 1.25% - 1.50% (based on total commitments or borrowing base availability), and the fee on the average daily balance of unused loan commitments is 0.20%. Prior to the Second Amendment, the ABL Line of Credit was collateralized by a first lien on the Company’s inventory and receivables and a second lien on the Company’s real estate and property and equipment. In connection with the Second Amendment, the agent and lenders under the ABL Line of Credit agreed to release their second liens on the Company's real estate, but retained their liens on the Company's inventory, receivables, and equipment. The Company believes that the Amended ABL Credit Agreement provides the liquidity and flexibility to meet its operating and capital requirements over the remaining term of the ABL Line of Credit. Further, the calculation of the borrowing base under the Amended ABL Credit Agreement has been amended to allow for increased availability, particularly during the September 1st through December 15th period of each year. At February 2, 2019, the Company had $543.3 million available under the ABL Line of Credit. At February 3, 2018, the Company had $455.8 million available under the ABL Line of Credit. The maximum borrowings under the facility during Fiscal 2017 amounted to $235.5 million. Average borrowings during Fiscal 2017 amounted to $71.0 million at an average interest rate of 2.7%. Deferred Financing Costs The Company had $3.4 million and million and $3.9 Amortization of deferred financing costs amounted to $1.6 million, Amortization expense related to the deferred financing costs as of February 2, 2019 for each of the next five fiscal years and thereafter is estimated to be as follows: Fiscal Years (in thousands) 2019 $ 1,278 2020 1,249 2021 1,249 2022 1,249 2023 817 Thereafter 386 Total $ 6,228 Deferred financing costs have a weighted average amortization period of approximately 5.0 Scheduled Maturities Scheduled maturities of the Company’s long term debt and capital lease obligations, as they exist as of February 2, 2019, in each of the next five fiscal years and thereafter are as follows: (in thousands) Long- Term Debt Capital Lease Obligations Total Fiscal Years: 2019 $ — $ 2,924 $ 2,924 2020 — 3,066 3,066 2021 — 3,638 3,638 2022 — 4,094 4,094 2023 — 4,944 4,944 Thereafter 961,415 14,040 975,455 Total 961,415 32,706 994,121 Less: unamortized discount (4,722 ) — (4,722 ) Less: unamortized deferred financing costs (2,832 ) — (2,832 ) Total 953,861 32,706 986,567 Less: current portion — (2,924 ) (2,924 ) Long term debt $ 953,861 $ 29,782 $ 983,643 The capital lease obligations noted above are exclusive of interest charges of $2.5 million, $2.1 million, $2.0 million, $1.6 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Feb. 02, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 8. Derivative Instruments and Hedging Activities The Company accounts for derivatives and hedging activities in accordance with ASC Topic No. 815 “Derivatives and Hedging” (Topic No. 815). Topic No. 815 provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments, (ii) how the entity accounts for derivative instruments and related hedged items, and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by Topic No. 815, the Company records all derivatives on the balance sheet at fair value and adjusts them to market on a quarterly basis. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company uses interest rate cap contracts and interest rate swap contracts to manage interest rate risk. The fair value of these contracts are determined using the market standard methodology of discounted future variable cash flows. The variable cash flows of the interest rate cap contracts are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the caps in conjunction with the cash payments related to financing the premium of the interest rate caps. The variable cash flows of the interest rate swap contract are determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise or fall compared to current levels in conjunction with the fixed cash payments. The variable interest rates used in the calculation of projected receipts on the cap and swap contracts are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. In addition, to comply with the provisions of Topic No. 820, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, are incorporated in the fair values to account for potential nonperformance risk. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered any applicable credit enhancements such as collateral postings, thresholds, mutual puts, and guarantees. In accordance with Topic No. 820, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. There is no impact of netting because the Company’s only derivatives are interest rate cap contracts and interest rate swap contracts that are with separate counterparties and are under separate master netting agreements. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of February 2, 2019 and February 3, 2018, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustment is not significant to the overall valuation of its derivative portfolios. As a result, the Company classifies its derivative valuations in Level 2 of the fair value hierarchy. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company uses derivative financial instruments to manage differences in the amount, timing, and duration of the Company’s known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company uses interest rate derivatives to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate caps and interest rate swaps as part of its interest rate risk management strategy. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. On April 24, 2015, the Company entered into two interest rate cap contracts, which were designated as cash flow hedges. On December 17, 2018, the Company entered into an interest rate swap contract, which was designated as a cash flow hedge, and will become effective May 31, 2019. During Fiscal 2018, the Company’s derivatives were used to hedge the variable cash flows associated with existing (or anticipated) variable-rate debt. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in the line item “Accumulated other comprehensive loss” on the Company’s Consolidated Balance Sheets and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to the Company’s derivative contracts will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of February 2, 2019, the Company estimates that less than $1.0 million will be reclassified into interest expense during the next twelve months. As of February 2, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Aggregate Principal Amount Interest Cap/Swap Rate Maturity Date Interest rate cap contracts Two $ 800.0 million 1.00% May 31, 2019 Interest rate swap contract One $ 450.0 million 2.72% December 29, 2023 Tabular Disclosure The tables below present the fair value of the Company’s derivative financial instruments on a gross basis, as well as their classification on the Company’s Consolidated Balance Sheets: (in thousands) Fair Values of Derivative Instruments February 2, 2019 February 3, 2018 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate cap contracts Prepaid and other current assets $ 2,213 Other assets $ 4,543 Interest rate swap contract Other liabilities $ 5,239 N/A N/A The following table presents the unrealized gains (losses) deferred to accumulated other comprehensive loss resulting from the Company’s derivative instruments designated as cash flow hedging instruments for each of the reporting periods. (in thousands) Fiscal Year Ended Interest Rate Cap Contracts: February 2, 2019 February 3, 2018 January 28, 2017 Unrealized (losses) gains, before taxes $ (4,232 ) $ 3,460 $ 365 Income tax benefit (expense) 1,152 (1,718 ) (145 ) Unrealized (losses) gains, net of taxes $ (3,080 ) $ 1,742 $ 220 The following table presents information about the reclassification of losses from accumulated other comprehensive loss into earnings related to the Company’s derivative instruments designated as cash flow hedging instruments for each of the reporting periods. (in thousands) Fiscal Year Ended Component of Earnings: February 2, 2019 February 3, 2018 January 28, 2017 Interest expense $ 1,872 $ 5,931 $ 2,622 Income tax expense (518 ) (2,369 ) (1,041 ) Net income $ 1,354 $ 3,562 $ 1,581 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss Amounts included in accumulated other comprehensive loss are recorded net of the related income tax effects. The table below details the changes in accumulated other comprehensive loss for Fiscal 2018 and Fiscal 2017. (in thousands) Derivative Instruments Balance at January 28, 2017 $ (7,191 ) Unrealized gains, net of related taxes of $1.4 million 1,742 Amount reclassified into earnings, net of related taxes of $2.4 million 3,562 Balance at February 3, 2018 $ (1,887 ) Unrealized losses, net of related tax benefit of $1.2 million (3,080 ) Amount reclassified into earnings, net of related taxes of $0.5 million 1,354 Balance at February 2, 2019 $ (3,613 ) |
Capital Stock
Capital Stock | 12 Months Ended |
Feb. 02, 2019 | |
Capital Stock [Abstract] | |
Capital Stock | 10. Capital Stock Common Stock As of February 2, 2019, the total amount of the Company’s authorized capital stock consisted of 500,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of undesignated preferred stock, par value of $0.0001 per share. The Company’s common stock is not entitled to preemptive or other similar subscription rights to purchase any of the Company’s securities. The Company’s common stock is neither convertible nor redeemable. Unless the Company’s Board of Directors determines otherwise, the Company will issue all of the Company’s capital stock in uncertificated form. Preferred Stock The Company does not have any shares of preferred stock issued or outstanding. The Company’s Board of Directors has the authority to issue shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designations, preferences, privileges, and restrictions of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the General Corporation Law of the State of Delaware. The issuance of the Company’s preferred stock could have the effect of decreasing the trading price of the Company’s common stock, restricting dividends on the Company’s capital stock, diluting the voting power of the Company’s common stock, impairing the liquidation rights of the Company’s capital stock, or delaying or preventing a change in control of the Company. Dividend Rights Each holder of shares of the Company’s capital stock will be entitled to receive such dividends and other distributions in cash, stock or property as may be declared by the Company’s Board of Directors from time to time out of the Company’s assets or funds legally available for dividends or other distributions. These rights are subject to the preferential rights of any other class or series of the Company’s preferred stock. Treasury Stock The Company accounts for treasury stock under the cost method. During Fiscal 2018, the Company acquired 69,489 shares of common stock from employees for approximately $10.1 million to satisfy their minimum statutory tax withholdings related to the vesting of restricted stock awards. Share Repurchase Programs On August 16, 2017, the Company’s Board of Directors authorized the repurchase of up to $300 million of common stock, which the Company completed during the fourth quarter of Fiscal 2018. On August 15, 2018, the Company’s Board of Directors authorized the repurchase of up to an additional $300 million of common stock, which is authorized to be executed through August 2020. This repurchase program is funded using the Company’s available cash and borrowings under the ABL Line of Credit. During Fiscal 2018, the Company repurchased 1,459,861 shares of common stock for $218.7 million under its share repurchase programs, which was recorded in the line item, “Treasury stock” on the Company’s Consolidated Balance Sheets, and the line item “Purchase of treasury shares” on the Company’s Consolidated Statements of Cash Flows. As of February 2, 2019, the Company had $298.4 million remaining under its share repurchase authorization. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 11. Net Income Per Share Basic net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding. Dilutive net income per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method. (in thousands, except per share data) Fiscal Year Ended February 2, February 3, January 28, 2019 2018 2017 (53 Weeks) Basic net income per share Net income $ 414,745 $ 384,852 $ 215,873 Weighted average number of common shares – basic 66,812 68,286 70,480 Net income per common share – basic $ 6.21 $ 5.64 $ 3.06 Diluted net income per share Net income $ 414,745 $ 384,852 $ 215,873 Shares for basic and diluted net income per share: Weighted average number of common shares – basic 66,812 68,286 70,480 Assumed exercise of stock options and vesting of restricted stock 1,867 2,002 1,241 Weighted average number of common shares – diluted 68,679 70,288 71,721 Net income per common share – diluted $ 6.04 $ 5.48 $ 3.01 Approximately 425,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation On May 1, 2013, the Company’s Board of Directors approved the Company’s assumption and adoption of the 2006 Management Incentive Plan (the 2006 Plan) that was previously sponsored by Burlington Coat Factory Holdings, LLC. The 2006 Plan terminated on April 12, 2016. The Company’s 2013 Omnibus Incentive Plan (the 2013 Plan and, together with the 2006 Plan, the Plans), originally adopted effective prior to and in connection with the Company’s initial public offering, was amended and restated effective May 17, 2017. The 2006 Plan, prior to its termination, and the 2013 Plan provide for the granting of stock options, restricted stock and other forms of awards to key employees and directors of the Company or its affiliates. The Company accounts for awards issued under the Plans in accordance with Topic No. 718. As of February 2, 2019, there were 4,228,635 shares of common stock available for issuance under the 2013 Plan. Stock Options Options granted during Fiscal 2018, Fiscal 2017 and Fiscal 2016 were all service-based awards granted under the Plans at the following exercise prices: Exercise Price Ranges From To Fiscal 2018 $ 113.80 $ 172.40 Fiscal 2017 $ 80.91 $ 110.50 Fiscal 2016 $ 54.11 $ 83.83 All awards granted during Fiscal 2018, Fiscal 2017 and Fiscal 2016 vest 25% on each of the first four anniversaries of the grant date. The final exercise date for any option granted is the tenth anniversary of the grant date. With the exception of a special one-time grant of options to purchase shares of common stock to certain members of management made during Fiscal 2013, all options awarded prior to Fiscal 2016 become immediately exercisable upon a change of control; options awarded after Fiscal 2015 become exercisable if the grantee’s employment is terminated without cause or, in some instances, the recipient resigns with good reason, within a certain period of time following a change in control. The vesting of the special one-time grants will not be accelerated in the event of a change of control, provided, however, that in the event that within two years after a change of control, the grantee’s employment is terminated without cause or, in some instances, the grantee resigns with good reason, then an incremental 20% of the special one-time grants shall be deemed vested as of the date of termination of grantee’s employment, but in no event more than the total number of the special one-time grants granted to such grantee. Unless determined otherwise by the plan administrator, upon cessation of employment other than for cause, the majority of options that have not vested will terminate immediately (subject to the potential acceleration of special one-time grants in the event of a change of control, as described above) and unexercised vested options will be exercisable for a period of 60 days. In May 2013, the Company’s Board of Directors approved a modification to all then outstanding options. The modification, through a combination of either reduced exercise prices or cash payments, did not affect the existing vesting schedules. The modification resulted in a total of $0.1 million and $0.6 million of incremental compensation expense during Fiscal 2017 and Fiscal 2016, respectively, of which less than $0.1 million and $0.1 million, respectively, are payable in cash. These costs were recorded in the line item “Stock option modification expense” in the Company’s Consolidated Statements of Income. There was no incremental compensation expense as a result of the modification during Fiscal 2018. As of February 2, 2019, the Company does not expect to recognize any additional compensation expense related to the modification. Non-cash stock compensation expense is as follows: (in thousands) Fiscal Year Ended February 2, February 3, January 28, 2019 2018 2017 Type of Non-Cash Stock Compensation (53 Weeks) Restricted stock grants (a) $ 18,967 $ 15,864 $ 8,816 Stock option grants (a) 16,518 11,039 6,636 Stock option modification (b) — 131 501 Total (c) $ 35,485 $ 27,034 $ 15,953 (a) Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. (b) Represents non-cash compensation related to the May 2013 stock option modification as discussed above. Amounts are included in the line item “Stock option modification expense” in the Company’s Consolidated Statements of Income. (c) The amounts presented in the table above exclude the effect of income taxes. The tax benefit related to the Company’s non-cash stock compensation was $9.7 million, $2.8 million and $5.6 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. As of February 2, 2019, the Company had 2,337,316 options outstanding to purchase shares of common stock, and there was $35.5 million of unearned non-cash stock-based option compensation that the Company expects to recognize as expense over a weighted average period of 2.5 years. The awards are expensed on a straight-line basis over the requisite service period. Stock option transactions during Fiscal 2018 are summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Options outstanding, February 3, 2018 2,579,831 $ 39.79 Options granted 507,456 135.71 Options exercised (a) (684,011 ) 23.84 Options forfeited (65,960 ) 68.27 Options outstanding, February 2, 2019 2,337,316 $ 64.48 (a) Options exercised during Fiscal 2018 had a total intrinsic value of $87.8 million. The following table summarizes information about the options outstanding and exercisable as of February 2, 2019: Options Outstanding Options Exercisable Exercise Prices Number Outstanding at February 2, 2019 Weighted Average Remaining Contractual Life (Years) Number Exercisable at February 2, 2019 Weighted Average Remaining Contractual Life (Years) $0.79 - $5.02 744,871 4.2 315,871 4.0 $26.96+ 1,592,445 8.0 367,906 7.0 2,337,316 683,777 The following table summarizes information about the stock options vested and expected to vest during the contractual term: Options Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Vested and expected to vest 2,337,316 6.8 $ 64.48 $ 251.0 The fair value of each stock option granted was estimated on the date of grant using the Monte Carlo Simulation option pricing model prior to the date of the Company’s initial public offering and the Black Scholes option pricing model subsequent to the date of the initial public offering. The fair value of each stock option granted during Fiscal 2018 was estimated using the following assumptions: Fiscal Year Ended February 2, 2019 Risk-free interest rate 2.13% - 3.00% Expected volatility 32% - 34% Expected life (years) 5.92 - 6.25 Contractual life (years) 10.0 Expected dividend yield 0.0% Weighted average grant date fair value of options issued $ 50.80 The expected dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. Since the Company completed its initial public offering in October 2013, it does not have sufficient history as a publicly traded company to evaluate its volatility factor. As such, the expected stock price volatility is based upon the historical volatility of the stock price over the expected life of the options of peer companies that are publicly traded. The risk free interest rate was based on the U.S. Treasury rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the awards being valued. For grants issued during Fiscal 2018, Fiscal 2017 and Fiscal 2016, the expected life of the options was calculated using the simplified method, which defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches. This methodology was utilized due to the short length of time our common stock has been publicly traded. Restricted Stock Awards Restricted stock awards granted during Fiscal 2018 were all service-based awards. The fair value of each share of restricted stock granted during Fiscal 2018 was based upon the closing price of the Company’s common stock on the grant date. As of February 2, 2019, the Company had 220,000 awards outstanding that cliff vest at the end of the service periods ranging from three years to five years from the grant date. Awards granted to non-employee members of the Company’s Board of Directors before Fiscal 2018 have graded vesting provisions that generally vest in thirds over a three-year period. Awards granted to non-employee members of the Company’s Board of Directors during Fiscal 2018 vest 100% on the first anniversary of the grant date. The remaining awards outstanding as of February 2, 2019 have graded vesting provisions that generally vest in quarters over a four-year-period. As of February 2, 2019, there was approximately $33.8 million of unearned non-cash stock-based compensation that the Company expects to recognize as an expense over the next 2.3 years. The awards are expensed on a straight-line basis over the requisite service periods. Award grant, vesting and forfeiture transactions during Fiscal 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Per Awards Non-vested awards outstanding, February 3, 2018 748,894 $ 66.99 Awards granted 144,215 136.30 Awards vested (a) (200,763 ) 64.13 Awards forfeited (25,504 ) 90.81 Non-vested awards outstanding, February 2, 2019 666,842 81.93 (a) Restricted stock awards vested during Fiscal 2018 had a total intrinsic value of $28.9 million. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Lease Commitments | 13. Lease Commitments The Company leases stores, distribution facilities and office space under operating and capital leases that will expire principally during the next thirty years. The leases typically include renewal options and escalation clauses and provide for contingent rentals based on a percentage of gross sales. The following is a schedule of future minimum lease payments having an initial or remaining term in excess of one year: (in thousands) Fiscal Year Operating Leases(a) Capital Leases 2019 $ 383,877 $ 5,414 2020 405,370 5,120 2021 387,140 5,597 2022 369,068 5,725 2023 346,175 6,291 Thereafter 1,475,301 15,849 Total minimum lease payments 3,366,931 43,996 Amount representing interest — (11,290 ) Total future minimum lease payments $ 3,366,931 $ 32,706 (a) Total future minimum lease payments include $278.9 million related to options to extend lease terms that are reasonably assured of being exercised and $622.4 million of minimum lease payments for 76 stores that the Company has committed to open or relocate. The above schedule of future minimum lease payments has not been reduced by future minimum sublease rental income of $25.1 million relating to operating leases under non-cancelable subleases and other contingent rental agreements. The following is a schedule of net rent expense for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Rent expense: Minimum rental payments $ 364,637 $ 340,979 $ 310,332 Contingent rental payments 6,047 4,734 4,424 Straight-line rent expense 8,469 7,543 2,172 Lease incentives amortization (34,827 ) (32,618 ) (32,112 ) Amortization of purchased lease rights 844 499 680 Total rent expense(a) 345,170 321,137 285,496 Less all rental income(b) (6,164 ) (6,846 ) (7,167 ) Total net rent expense $ 339,006 $ 314,291 $ 278,329 (a) Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. (b) Included in the line item “Other revenue” in the Company’s Consolidated Statements of Income. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Feb. 02, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Retirement Plans | 14. Employee Retirement Plans The Company maintains separate defined contribution 401(k) retirement savings and profit-sharing plans covering employees in the United States and Puerto Rico who meet specified age and service requirements. The discretionary profit sharing component (which the Company has not utilized since 2005 and has no current plans to utilize) is entirely funded by the Company, and the Company also makes additional matching contributions to the 401(k) component of the plans. Participating employees can voluntarily elect to contribute a percentage of their earnings to the 401(k) component of the plans (up to certain prescribed limits) through a cash or deferred (salary deferral) feature qualifying under Section 401(k) of the Internal Revenue Code (401(k) Plan). The Company recorded $9.3 million, $8.4 million and $7.4 million of 401(k) Plan match expense during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively, which is included in the line item “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Income. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Income before income taxes was as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Domestic $ 503,290 $ 429,939 $ 330,106 Foreign 4,294 (959 ) 3,106 Total income before income taxes $ 507,584 $ 428,980 $ 333,212 Income tax expense was as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Current: Federal $ 69,007 $ 65,824 $ 104,934 State 19,642 8,824 14,957 Foreign 1,671 207 367 Subtotal 90,320 74,855 120,258 Deferred: Federal 8,337 (40,839 ) 1,655 State (8,409 ) 9,091 3,399 Foreign 2,591 1,021 (7,973 ) Subtotal 2,519 (30,727 ) (2,919 ) Total Income Tax Expense $ 92,839 $ 44,128 $ 117,339 The tax rate reconciliations were as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: Fiscal Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Tax at statutory rate 21.0 % 33.7 % 35.0 % State income taxes, net of federal 4.2 3.0 3.0 Excess tax benefit from stock compensation (5.2 ) (4.4 ) — Tax credits (1.2 ) (1.4 ) (1.7 ) Impact of federal tax reform — (21.1 ) — Other (0.5 ) 0.5 (1.1 ) Effective tax rate 18.3 % 10.3 % 35.2 % The increase in the effective tax rate was primarily due to a one-time impact of tax reform from the re-measurement of deferred tax liabilities in Fiscal 2017 to reflect the reduction in corporate tax rate from 35% to 21%, partially offset by the reduced federal tax rate in 2018. The 2017 U.S. Tax Cuts and Jobs Act (the Tax Act) was signed into law on December 22, 2017. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate income tax rate from 35% to 21%. Staff Accounting Bulletin No. 118 was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot exceed one year. As of February 3, 2018 the Company analyzed the Tax Act and made reasonable estimates of the effects on its Consolidated Financial Statements and tax disclosures. As of February 2, 2019, the Company completed its analysis of the Tax Act and determined there were no material changes from its initial analysis. The tax effects of temporary differences are included in deferred tax accounts as follows: (in thousands) February 2, 2019 February 3, 2018 Tax Assets Tax Liabilities Tax Assets Tax Liabilities Non-current deferred tax assets and liabilities: Property and equipment basis adjustments $ — $ 149,705 $ — $ 132,793 Deferred rent 19,496 — 18,926 — Intangibles—long-lived — 40,918 — 48,397 Intangibles—indefinite-lived — 65,197 — 65,748 Employee benefit compensation 15,186 — 13,071 — State net operating losses (net of federal benefit) 12,290 — 12,760 — Landlord allowances 35,907 — 30,057 — Tax credits 6,140 — 5,126 — Other 2,651 — 2,840 — Valuation allowance (10,268 ) — (8,376 ) — Total non-current deferred tax assets and liabilities $ 81,402 $ 255,820 $ 74,404 $ 246,938 Net deferred tax liability $ 174,418 $ 172,534 As of February 2, 2019, the Company has a deferred tax asset related to net operating losses of $12.3 million, inclusive of $10.4 million of state net operating losses which will expire at various dates between 2019 and 2038 and $1.9 million of deferred tax assets recorded for Puerto Rico net operating loss carry-forwards that will begin to expire in 2025. As of February 2, 2019, the Company had tax credit carry-forwards of $6.1 million, inclusive of state tax credit carry-forwards of $4.5 million that will begin to expire in 2022 and $1.6 million of Puerto Rico alternative minimum tax (AMT) credits that have an indefinite life. As of February 3, 2018, the Company had a deferred tax asset related to net operating losses of $12.8 million, inclusive of $10.8 million of state net operating losses, and $2.0 million of deferred tax assets recorded for Puerto Rico net operating loss carry-forwards. As of February 3, 2018, the Company had tax credit carry-forwards of $5.1 million, inclusive of state tax credit carry-forwards of $3.5 million, and $1.6 million of Puerto Rico AMT credits. We believe that it is more likely than not that the benefit from certain state net operating loss carry forwards and credits will not be realized. In recognition of this risk, we have provided a valuation allowance of $5.9 million on state net operating losses and $2.5 million on state tax credit carry forwards. In addition, the Company believes that it is more likely than not that the benefit from Puerto Rico net operating loss carry-forwards will not be realized as a result of Puerto Rico Act 257-2018 enacted in the fourth quarter of 2018. As a result, we have provided for a full valuation allowance of $1.9 million. If our assumptions change and we determine we will be able to realize these net operating losses or credits, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of February 2, 2019 will be recorded to the Company’s Consolidated Statement of Income. As of February 3, 2018, we provided a total valuation allowance of $8.4 million inclusive of $6.0 of valuation allowance related to state net operating losses, and $2.4 million related to tax credit carry-forwards. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (exclusive of interest and penalties) is as follows: (in thousands) Gross Unrecognized Tax Benefits, Exclusive of Interest and Penalties Balance at January 30, 2016 $ 10,578 Additions for tax positions of the current year 117 Additions for tax positions of prior years — Reduction for tax positions of prior years (1,270 ) Settlements — Lapse of statute of limitations (232 ) Balance at January 28, 2017 $ 9,193 Additions for tax positions of the current year 72 Additions for tax positions of prior years 882 Reduction for tax positions of prior years (973 ) Settlements — Lapse of statute of limitations (101 ) Balance at February 3, 2018 $ 9,073 Additions for tax positions of the current year 18 Additions for tax positions of prior years 698 Reduction for tax positions of prior years (782 ) Settlements — Lapse of statute of limitations (80 ) Balance at February 2, 2019 $ 8,927 As of February 2, 2019, the Company reported total unrecognized benefits of $8.9 million, of which $7.1 million would affect the Company’s effective tax rate if recognized. As a result of previous positions taken, the Company recorded an increase of $0.2 million of interest and penalties during Fiscal 2018 in the line item “Income tax expense” in the Company’s Consolidated Statements of Income. Cumulative interest and penalties of $12.3 million are recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets as of February 2, 2019. The Company recognizes interest and penalties related to unrecognized tax benefits as part of income taxes. Within the next twelve months, the Company does not expect any significant changes in its unrecognized tax benefits. As of February 3, 2018, the Company reported total unrecognized benefits of $9.1 million, of which $7.2 million would affect the Company’s effective tax rate if recognized. As a result of previous positions taken, the Company recorded an increase of $0.1 million of interest and penalties during Fiscal 2017 in the line item “Income tax expense” in the Company’s Consolidated Statements of Income. Cumulative interest and penalties of $12.1 million are recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets as of February 3, 2018. The Company recognizes interest and penalties related to unrecognized tax benefits as part of income taxes. Within the next twelve months, the Company does not expect any significant changes in its unrecognized tax benefits. The Company files tax returns in the U.S. federal jurisdiction, Puerto Rico, and various state jurisdictions. The Company is open to examination by the IRS under the applicable statutes of limitations for Fiscal Years 2015 through 2018. The Company or its subsidiaries’ state and Puerto Rico income tax returns are open to audit for Fiscal Years 2013 through 2018, with a few exceptions, under the applicable statutes of limitations. There are ongoing state audits in several jurisdictions, and the Company has accrued for possible exposures as required under Topic No. 740. The Company does not expect the settlement of these audits to have a material impact to its financial results. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 16. Fair Value of Financial Instruments The Company accounts for fair value measurements in accordance with Topic No. 820 which defines fair value, establishes a framework for measurement and expands disclosure about fair value measurements. Topic No. 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price), and classifies the inputs used to measure fair value into the following hierarchy: Level 1: Quoted prices for identical assets or liabilities in active markets. Level 2: Quoted market prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Pricing inputs that are unobservable for the assets and liabilities, and include situations where there is little, if any, market activity for the assets and liabilities. The inputs into the determination of fair value require significant management judgment or estimation. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term nature of these instruments. Refer to Note 8, “Derivative Instruments and Hedging Activities,” for further discussion regarding the fair value of the Company’s interest rate cap contracts. Financial Assets The fair values of the Company’s financial assets and the hierarchy of the level of inputs as of February 2, 2019 and February 3, 2018 are summarized below: (in thousands) Fair Value Measurements at February 2, February 3, 2019 2018 Level 1 Cash equivalents (including restricted cash) $ 22,416 $ 28,283 Financial Liabilities The fair values of the Company’s financial liabilities are summarized below: (in thousands) February 2, 2019 February 3, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term B-5 Loans $ 956,693 $ 947,126 $ 1,108,913 $ 1,108,913 ABL senior secured revolving facility — — — — Total debt $ 956,693 $ 947,126 $ 1,108,913 $ 1,108,913 (a) Capital lease obligations are excluded from the table above. The fair values presented herein are based on pertinent information available to management as of the respective year end dates. The estimated fair values of the Company’s debt are classified as Level 2 in the fair value hierarchy. Although management is not aware of any factors that could significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and current estimates of fair value may differ from amounts presented herein. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies Legal The Company establishes accruals relating to legal claims in connection with litigation to which the Company is party from time to time in the ordinary course of business. Like many retailers, the Company has been named in class or collective actions on behalf of various groups alleging violations of federal and state wage and hour and other labor statutes, and alleged violation of state consumer and/or privacy protection and other statutes. In the normal course of business, we are also party to various other lawsuits and regulatory proceedings including, among others, commercial, product, product safety, employee, customer, intellectual property and other claims. Actions against us are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties. To determine the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but the assessment process relies heavily on estimates and assumptions that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions. While no assurance can be given as to the ultimate outcome of these matters, the Company believes that the final resolution of these actions will not have a material adverse effect on the Company’s results of operations, financial position, liquidity or capital resources. Letters of Credit The Company had irrevocable letters of credit in the amounts of $56.7 million and $60.0 million as of February 2, 2019 and February 3, 2018, respectively. Letters of credit outstanding as of February 2, 2019 and February 3, 2018 amounted to $48.9 million and $51.9 million, respectively, guaranteeing performance under various lease agreements, insurance contracts, and utility agreements. The Company also had outstanding letters of credit arrangements in the aggregate amount of $7.8 million and $8.1 million at February 2, 2019 and February 3, 2018, respectively, related to certain merchandising agreements. Based on the terms of the Amended ABL Credit Agreement relating to the ABL Line of Credit, the Company had available letters of credit of $543.3 million and $455.8 million as of February 2, 2019 and February 3, 2018, respectively. Inventory Purchase Commitments The Company had $928.1 million of purchase commitments related to goods that were not received as of February 2, 2019. Death Benefits In November 2005, the Company entered into agreements with three of the Company’s former executives whereby, upon each of their deaths, the Company will pay $1.0 million to each respective designated beneficiary. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Feb. 02, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 18. Related Party Transactions The brother-in-law of one of the Company’s Executive Vice Presidents is an independent sales representative of one of the Company’s suppliers of merchandise inventory. This relationship predated the commencement of the Executive Vice President’s employment with the Company. The Company has determined that the dollar amount of purchases through such supplier represents an insignificant amount of its inventory purchases. |
Quarterly Results
Quarterly Results | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | 19. Quarterly Results (Unaudited) In the opinion of the Company’s management, the accompanying unaudited interim Consolidated Financial Statements contain all adjustments which are necessary for the fair presentation of the quarters presented. The operating results for any quarter are not necessarily indicative of the results of any future quarter. (in thousands, except share data) Year ended February 2, 2019: Quarter Ended (1) May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Net sales $ 1,518,446 $ 1,498,633 $ 1,634,489 $ 1,991,483 Gross margin(2)(3) $ 625,764 $ 621,159 $ 692,480 $ 835,529 Net income $ 82,588 $ 70,957 $ 76,849 $ 184,351 Net income per share—basic(4): Common stockholders $ 1.23 $ 1.06 $ 1.15 $ 2.77 Net income per share—diluted(4): Common stockholders $ 1.20 $ 1.03 $ 1.12 $ 2.70 (in thousands, except share data) Year ended February 3, 2018: Quarter Ended (1) April 29, 2017 July 29, 2017 October 28, 2017 February 3, 2018 Net sales $ 1,346,546 $ 1,363,224 $ 1,438,167 $ 1,936,829 Gross margin (2)(3) $ 550,150 $ 555,098 $ 606,439 $ 813,921 Net income $ 52,368 $ 46,902 $ 44,879 $ 240,703 Net income per share—basic(4): Common stockholders $ 0.76 $ 0.68 $ 0.66 $ 3.58 Net income per share—diluted(4): Common stockholders $ 0.73 $ 0.66 $ 0.65 $ 3.47 (1) The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. (2) Gross margin is equal to net sales less cost of sales. (3) During the quarterly periods ended February 2, 2019 and February 3, 2018 (4) Quarterly net income per share results may not equal full year amounts due to rounding. |
Schedule I-Condensed Financial
Schedule I-Condensed Financial Information of Registrant | 12 Months Ended |
Feb. 02, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule I-Condensed Financial Information of Registrant | Schedule I CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Information Burlington Stores, Inc. Balance Sheets As of February 2, 2019 February 3, 2018 (in thousands) ASSETS: Current assets $ 38 $ 144 Investment in subsidiaries 322,672 86,630 Total assets $ 322,710 $ 86,774 LIABILITIES AND STOCKHOLDERS’ EQUITY: Current liabilities $ — $ — Negative investment in subsidiaries — — Commitments and contingencies — — Total stockholders’ equity 322,710 86,774 Total liabilities and stockholders’ equity $ 322,710 $ 86,774 See Notes to Condensed Financial Statements CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Information Burlington Stores, Inc. Statements of Income Fiscal Years Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 (in thousands) REVENUES: Total revenue $ — $ — $ — COSTS AND EXPENSES: Income from equity investment — — — Total costs and expenses — — — Income before provision for income tax — — — Provision for income tax — — — Earnings from equity investment, net of income taxes $ 414,745 $ 384,852 $ 215,873 Net income $ 414,745 $ 384,852 $ 215,873 Total comprehensive income $ 414,745 $ 384,852 $ 215,873 See Notes to Condensed Financial Statements CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Information Burlington Stores, Inc. Statements of Cash Flows Fiscal Years Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 (in thousands) OPERATING ACTIVITIES: Net cash provided by operations $ — $ — $ — INVESTING ACTIVITIES: Receipt of dividends — — — Net cash used in investing activities — — — FINANCING ACTIVITIES: Proceeds from initial public offering — — — Offering costs — — — Receipt of dividends — — — Payment of dividends — — — Purchase of treasury shares (228,874 ) (289,777 ) (202,371 ) Intercompany financing transactions 212,462 280,701 197,910 Proceeds from stock option exercises 16,306 9,173 4,484 Net cash (used in) provided by financing activities (106 ) 97 23 (Decrease) increase in cash and cash equivalents (106 ) 97 23 Cash and cash equivalents at beginning of period 144 47 24 Cash and cash equivalents at end of period $ 38 $ 144 $ 47 See Notes to Condensed Financial Statements CONDENSED FINANCIAL INFORMATION OF REGISTRANT Parent Company Information Burlington Stores, Inc. Note 1. Basis of Presentation Burlington Stores, Inc. (the Parent Company) is a holding company that conducts substantially all of its business operations through its subsidiaries. The Parent Company’s ability to pay dividends on Parent Company’s common stock will be limited by restrictions on the ability of Parent Company and its subsidiaries to pay dividends or make distributions under the terms of current and future agreements governing the indebtedness of Parent Company’s subsidiaries. In addition to other baskets under the agreements governing its indebtedness, the Parent Company and its subsidiaries are permitted to make dividends and distributions under the Term Loan Facility so long as there is no event of default and the pro forma consolidated leverage ratio of the Parent Company and its subsidiaries does not exceed 3.50 to 1.00, and under the ABL Line of Credit as long as certain restricted payment conditions are satisfied. The accompanying Condensed Financial Statements include the accounts of the Parent Company and, on an equity basis, its consolidated subsidiaries and affiliates. Accordingly, these Condensed Financial Statements have been presented on a “parent-only” basis. Under a parent-only presentation, the Parent Company’s investments in its consolidated subsidiaries are presented under the equity method of accounting. These parent-only financial statements should be read in conjunction with Burlington Stores, Inc.’s audited Consolidated Financial Statements included elsewhere herein. Note 2. Dividends As discussed above, the terms of current and future agreements governing the indebtedness of the Parent Company and its subsidiaries include, or may include, limitations on the ability of such subsidiaries and the Parent Company to pay dividends, subject to certain exceptions set forth in such agreements. Note 3. Stock-Based Compensation Non-cash stock compensation expense of $35.5 million, $27.0 million and $16.0 million has been pushed down to Parent Company’s subsidiaries for Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Feb. 02, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts and Reserves | BURLINGTON STORES, INC. Schedule II—Valuation and Qualifying Accounts and Reserves (All amounts in thousands) Description Balance at Beginning of Period Charged to Costs & Expenses Charged to Other Accounts(1) Accounts Written Off or Deductions(2) Balance at End of Period Year ended February 2, 2019 Allowance for doubtful accounts $ 99 $ 122 $ — $ 143 $ 78 Sales reserves(3) $ 3,768 $ (19 ) $ 359,711 $ 354,009 $ 9,451 Valuation allowances on deferred tax assets $ 8,376 $ — $ 1,892 $ — $ 10,268 Year ended February 3, 2018 Allowance for doubtful accounts $ 262 $ 411 $ — $ 574 $ 99 Sales reserves(3) $ 3,419 $ (524 ) $ 335,675 $ 334,802 $ 3,768 Valuation allowances on deferred tax assets $ 7,388 $ — $ 988 $ — $ 8,376 Year ended January 28, 2017 Allowance for doubtful accounts $ 272 $ 508 $ — $ 518 $ 262 Sales reserves(3) $ 3,264 $ (230 ) $ 318,214 $ 317,829 $ 3,419 Valuation allowances on deferred tax assets $ 12,858 $ — $ (5,470 ) $ — $ 7,388 Notes: (1) Amounts related to sales reserves are charged to net sales and cost of sales, and amounts related to valuation allowances on deferred taxes are charged to income tax expense. (2) Actual returns and allowances. (3) During Fiscal 2018, the Company adopted Accounting Standard Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires the Company’s sales return reserve to be established at the gross sales value with an asset established for the value of the expected merchandise returned. The liability and asset related to the sales return reserve as of February 2, 2019 were $9.5 million and $5.7 million, respectively, and were included in the lines “Other current liabilities” and “Prepaid and other current assets,” respectively, on the Company’s Consolidated Balance Sheet. Prior period amounts have not been adjusted. As of February 3, 2018, the net sales return reserve was $3.8 million and was included in the line “Other current liabilities” on the Company’s Consolidated Balance Sheet. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Business | Business As of February 2, 2019, Burlington Stores, Inc., a Delaware corporation (collectively with its subsidiaries, the Company), through its indirect subsidiary Burlington Coat Factory Warehouse Corporation (BCFWC), has expanded its store base to 675 retail stores, inclusive of an internet store, in 45 |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Consolidated Financial Statements include the accounts of Burlington Stores, Inc. and its subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. |
Fiscal Years | Fiscal Years The Company defines its fiscal year as the 52 or 53-week period ending on the Saturday closest to January 31. The fiscal years ended February 2, 2019 (Fiscal 2018) and January 28, 2017 (Fiscal 2016) each consisted of 52 weeks. The fiscal year ended February 3, 2018 (Fiscal 2017) consisted of 53 weeks. |
Use of Estimates | Use of Estimates Certain amounts included in the Consolidated Financial Statements are estimated based on historical experience, currently available information and management’s judgment as to the expected outcome of future conditions and circumstances. While every effort is made to ensure the integrity of such estimates, actual results could differ from these estimates, and such differences could have a material impact on the Company’s Consolidated Financial Statements. |
Weather-Related Incidents | Weather-Related Incidents As a result of the effects of certain weather-related incidents, 82 of the Company’s stores were closed for at least one day during Fiscal 2017. The Company incurred losses during Fiscal 2017 of (i) $5.4 million related to the net book values of merchandise inventories and (ii) $17.7 million related to the net book values of property and equipment and other long-lived assets, as well as repair and maintenance costs related to the clean-up of its stores. These costs were recorded in the line items “Cost of sales” and “Selling general and administrative expenses” on the Company’s Consolidated Statement of Income for the year ended February 3, 2018. The Company is insured at the selling price of the inventory and at replacement costs for the property and equipment and other long-lived assets, less a deductible. During Fiscal 2017, the Company received approximately $11.7 million of insurance proceeds to offset some of the losses. The Company allocated $6.0 million of these proceeds to property and equipment, which is included in the line item “Proceeds from insurance recoveries related to property and equipment,” a component of cash flows from investing activities, on the Company’s Consolidated Statements of Cash Flows during the year ended February 3, 2018. During Fiscal 2018, the Company received $9.3 million of insurance proceeds related to these weather-related incidents. These proceeds resulted in a gain on insurance recovery of $3.3 million, which is included in “Other income – net” on the Company’s Consolidated Statement of Income for the year ended February 2, 2019. The Company allocated $2.8 million of these proceeds to property and equipment, which is included in the line item “Proceeds from insurance recoveries related to property and equipment,” a component of cash flows from investing activities, on the Company’s Consolidated Statement of Cash Flows for the year ended February 2, 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of three months or less at the time of purchase. Book cash overdrafts are included in the line item “Accounts payable” on the Company’s Consolidated Balance Sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of credit card receivables, lease incentive receivables, insurance receivables and other receivables. Accounts receivable are recorded at net realizable value, which approximates fair value. The Company provides an allowance for doubtful accounts for amounts deemed uncollectible. |
Inventories | Inventories Merchandise inventories are valued at the lower of cost or market, as determined by the retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. The Company regularly records a provision for estimated shortage, thereby reducing the carrying value of merchandise inventory. Complete physical inventories of all of the Company’s stores and warehouses are performed no less frequently than annually, with the recorded amount of merchandise inventory being adjusted to coincide with these physical counts. The Company records its cost of merchandise (net of purchase discounts and certain vendor allowances), certain merchandise acquisition costs (primarily commissions and import fees), inbound freight, outbound freight from distribution centers, and freight on internally transferred merchandise in the line item “Cost of sales” in the Company’s Consolidated Statements of Income. Costs associated with the Company’s distribution, buying, and store receiving functions (product sourcing costs) are included in the line items “Selling, general and administrative expenses” and “Depreciation and amortization” in the Company’s Consolidated Statements of Income. Product sourcing costs included within the line item “Selling, general and administrative expenses” amounted to $313.3 million, $283.6 million and $261.0 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. Depreciation and amortization related to the distribution and purchasing functions for the same periods amounted to $30.5 million, $26.6 million and $22.6 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from 20 to 40 years for buildings, depending upon the expected useful life of the facility, and 3 to 15 years for store fixtures and equipment. Leasehold improvements are amortized over the lease term, including any reasonably assured renewal options or the expected economic life of the improvement, whichever is less. Repairs and maintenance expenditures are expensed as incurred. Renewals and betterments, which significantly extend the useful lives of existing property and equipment, are capitalized. Assets recorded under capital leases are recorded at the present value of minimum lease payments and are amortized over the lease term. Amortization of assets recorded as capital leases is included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. The carrying value of all long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, in accordance with ASC Topic No. 360 “ |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to undiscounted pre-tax future net cash flows expected to be generated by that asset. If the undiscounted future cash flows are not adequate to recover the carrying value of the asset, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of such assets. Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. |
Capitalized Computer Software Costs | Capitalized Computer Software Costs The Company accounts for capitalized software in accordance with ASC Topic No. 350 “Intangibles—Goodwill and Other” (Topic No. 350) which requires the capitalization of certain costs incurred in connection with developing or obtaining software for internal use. The Company capitalized $15.7 million and $19.1 million relating to these costs during Fiscal 2018 and Fiscal 2017, respectively. |
Intangible Assets | Intangible Assets The Company accounts for intangible assets in accordance with Topic No. 350. The Company’s intangible assets primarily represent tradenames and favorable lease positions. The tradename asset “Burlington” is expected to generate cash flows indefinitely and, therefore, is accounted for as an indefinite-lived asset not subject to amortization. The values of favorable and unfavorable lease positions are amortized on a straight-line basis over the expected lease terms. Amortization of net favorable lease positions is included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. The Company evaluates its intangible assets for possible impairment as follows: Indefinite-lived intangible assets: The Company tests identifiable intangible assets with an indefinite life for impairment on an annual basis, or when a triggering event occurs, relying on a number of factors that include operating results, business plans and projected future cash flows. The impairment test consists of a comparison of the fair value of the indefinite-lived intangible asset with its carrying amount. The Company determines fair value through the relief of royalty method which is a widely accepted valuation technique. On the first business day of the second quarter, the Company’s annual assessment date, the Company performed a quantitative analysis and determined that the fair values of each of the Company’s identifiable intangible assets are greater than their respective carrying values. There were no impairment charges recorded during Fiscal 2018, Fiscal 2017 or Fiscal 2016 related to indefinite-lived intangible assets. Finite-lived intangible assets: Identifiable intangible assets that are subject to amortization are evaluated for impairment in accordance with Topic No. 360 using a process similar to that used to evaluate other long-lived assets as described in Note 6, “Impairment Charges.” An impairment charge is recognized for the amount by which the carrying value exceeds the fair value of the asset. For the favorable lease positions, if the carrying amount exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset to its fair value. The fair value is estimated by discounting expected future cash flows using the Company’s risk adjusted rate of interest. The Company recorded impairment charges of $2.9 million, $0.8 million and $1.6 million related to finite-lived intangible assets during Fiscal 2018, Fiscal 2017 and respectively. These charges are recorded in the line item “Impairment charges–long-lived assets” in the Company’s Consolidated Statements of . Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. |
Goodwill | Goodwill Goodwill represents the excess of the acquisition cost over the estimated fair value of tangible assets and other identifiable intangible assets acquired less liabilities assumed. Topic No. 350 requires a comparison, at least annually, of the carrying value of the assets and liabilities associated with a reporting unit, including goodwill, with the fair value of the reporting unit. The Company determines fair value through multiple widely accepted valuation techniques. These techniques use a variety of assumptions including projected market conditions, discount rates and future cash flows. If the carrying value of the assets and liabilities exceeds the fair value of the reporting unit, the Company would calculate the implied fair value of its reporting unit goodwill as compared with the carrying value of its reporting unit goodwill to determine the appropriate impairment charge. On the first business day of the second fiscal quarter, the Company’s annual assessment date, the Company performed a quantitative analysis and determined that the fair value of the Company’s reporting unit was greater than its carrying value. There were no impairment charges related to goodwill during Fiscal 2018, Fiscal 2017 or Fiscal 2016. |
Other Assets | Other Assets Other assets consist primarily of landlord-owned store assets that the Company has paid for as part of its lease, deferred financing costs associated with the Company’s senior secured asset-based revolving credit facility (the ABL Line of Credit) and purchased lease rights. Landlord-owned assets represent leasehold improvements at certain stores for which the Company has paid, but the landlord has retained title. These assets are amortized over the lease term inclusive of reasonably assured renewal options. Amortization of landlord-owned assets was $16.0 million, $14.5 million and $13.4 million, during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively, and was included in the line item “Depreciation and amortization” in the Company’s Consolidated Statements of Income. Deferred financing costs are amortized over the life of the ABL Line of Credit using the interest method of amortization. Amortization of deferred financing costs is recorded in the line item “Interest expense” in the Company’s Consolidated Statements of Income. Purchased lease rights are amortized over the lease term inclusive of reasonably assured renewal options and the amortization is recorded in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. Both landlord-owned assets and purchased lease rights are assessed for impairment in accordance with Topic No. 360. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, the Company recorded impairment charges of $0.1 million, $0.2 million and $0.1 million, respectively, related to purchased lease rights and landlord-owned assets. These charges are recorded in the line item “Impairment charges–long-lived assets” in the Company’s Consolidated Statements of Income. Refer to Note 6, “Impairment Charges,” for further discussion of the Company’s measurement of impairment of long-lived assets. |
Other Current Liabilities | Other Current Liabilities Other current liabilities primarily consist of sales tax payable, customer liabilities, accrued payroll costs, self-insurance reserves, accrued operating expenses, payroll taxes payable, current portion of straight line rent liability and other miscellaneous items. Customer liabilities totaled $33.7 million and $34.6 million as of February 2, 2019 and February 3, 2018, respectively. The Company has risk participation agreements with insurance carriers with respect to workers’ compensation, general liability insurance and health insurance. Pursuant to these arrangements, the Company is responsible for paying individual claims up to designated dollar limits. The amounts related to these claims are estimated and can vary based on changes in assumptions or claims experience included in the associated insurance programs. An increase in workers’ compensation claims, health insurance claims or general liability claims may result in a corresponding increase in costs related to these claims. Self-insurance reserves as of February 2, 2019 and February 3, 2018 were: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 Short-term self-insurance reserve(a) $ 29,918 $ 26,652 Long-term self-insurance reserve(b) 40,975 38,255 Total $ 70,893 $ 64,907 (a) Represents the portions of the self-insurance reserve expected to be paid in the next twelve months, which were recorded in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. (b) Represents the portions of the self-insurance reserve expected to be paid in excess of twelve months, which was recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets. |
Other Liabilities | Other Liabilities Other liabilities primarily consist of deferred lease incentives, the long term portion of straight line rent liability, the long term portion of self-insurance reserves, the excess of straight-line rent expense over actual rental payments and tax liabilities associated with the uncertain tax positions recognized by the Company in accordance with ASC Topic No. 740 “Income Taxes” (Topic No. 740). Deferred lease incentives are funds received or receivable from landlords used primarily to offset the costs incurred for remodeling of stores. These deferred lease incentives are amortized over the expected lease term, including rent holiday periods and option periods where the exercise of the option can be reasonably assured. Amortization of deferred lease incentives is included in the line item “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Income. At February 2, 2019 and February 3, 2018, deferred lease incentives were $216.2 million and $206.0 million, respectively. |
Revenue Recognition | Revenue Recognition Effective February 4, 2018, the Company adopted Accounting Standard Update 2014-09, “Revenue from Contracts with Customers,” which supersedes most preexisting revenue recognition guidance. The Company records revenue at the time of sale and delivery of merchandise, net of allowances for estimated future returns, which is estimated based on historical return rates. The Company presents sales, net of sales taxes, in its Consolidated Statements of Income. The Company accounts for layaway sales and leased department revenue in compliance with ASC Topic No. 606 “Revenue from Contracts with Customers” (Topic No. 606). Layaway sales are recognized upon delivery of merchandise to the customer. The amount of cash received upon initiation of the layaway is recorded as a deposit liability in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. Stored value cards (gift cards and store credits issued for merchandise returns) are recorded as a liability at the time of issuance, and the related sale is recorded upon redemption. The Company determines an estimated stored value card breakage rate by continuously evaluating historical redemption data. Breakage income is recognized monthly in proportion to the historical redemption patterns for those stored value cards for which the likelihood of redemption is remote. |
Other Revenue | Other Revenue Other revenue consists of service fees (layaway, shipping and handling, alteration, dormancy and other service charges), subleased rental income and rental income from leased departments as shown in the table below: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 January 28, 2017 (53 Weeks) Service fees $ 15,836 $ 16,207 $ 15,779 Subleased rental income and other 9,319 8,846 8,720 Rental income from leased departments 273 224 413 Total $ 25,428 $ 25,277 $ 24,912 Rental income from leased departments resulted from arrangements at some of the Company’s stores where the Company granted unaffiliated third parties the right to use designated store space solely for the purpose of selling such third parties’ goods, including such items as fragrances and designer handbags. Rental income was based on an agreed upon percentage of the lease departments’ total revenues. The Company did not own or have any rights to any tradenames, licenses or other intellectual property in connection with the brands sold by such unaffiliated third parties. The Company no longer has any such arrangements as of the end of Fiscal 2018. |
Advertising Costs | Advertising Costs The Company’s advertising costs consist primarily of national television, direct mail and digital costs. Advertising costs are expensed the first time the advertising takes place, and are included in the line item “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Income. During Fiscal 2018, Fiscal 2017 and Fiscal 2016, advertising costs were $77.1 million, $82.3 million and $81.8 million, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Topic No. 740. Deferred income taxes reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. A valuation allowance against the Company’s deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the need for a valuation allowance, management is required to make assumptions and to apply judgment, including forecasting future earnings, taxable income, and the mix of earnings in the jurisdictions in which the Company operates. Management periodically assesses the need for a valuation allowance based on the Company’s current and anticipated results of operations. The need for and the amount of a valuation allowance can change in the near term if operating results and projections change significantly. Topic No. 740 requires the recognition in the Company’s Consolidated Financial Statements of the impact of a tax position taken or expected to be taken in a tax return, if that position is “more likely than not” to be sustained upon examination by the relevant taxing authority, based on the technical merits of the position. The tax benefits recognized in the Company’s Consolidated Financial Statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company records interest and penalties related to unrecognized tax benefits as part of income taxes. |
Other Income, Net | Other Income, Net Other income, net, consists of breakage income, net gains and losses on disposition of assets, gains and losses on insurance proceeds and other miscellaneous items million, |
Comprehensive Income | Comprehensive Income Comprehensive income is comprised of net income and the effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges, less amounts reclassified into earnings. |
Lease Accounting | Lease Accounting The Company leases store locations, distribution centers and office space used in its operations. The Company accounts for these types of leases in accordance with ASC Topic No. 840, “Leases” (Topic No. 840), and subsequent amendments, which require that leases be evaluated and classified as operating or capital leases for financial reporting purposes. Assets held under capital leases are included in the line item “Property and equipment—net of accumulated depreciation and amortization” in the Company’s Consolidated Balance Sheets. For leases classified as operating, the Company calculates rent expense on a straight-line basis over the lesser of the lease term including renewal options, if reasonably assured, or the economic life of the leased premises, taking into consideration rent escalation clauses, rent holidays and other lease concessions. The Company commences recording rent expense during the store fixturing and merchandising phase of the leased property. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC Topic No. 718, “Stock Compensation” (Topic No. 718), which requires companies to record stock compensation expense for all non-vested and new awards beginning as of the grant date. Refer to Note 12, “Stock-Based Compensation,” for further details. |
Net Income Per Share | Net Income Per Share Net income per share is calculated using the treasury stock method. Refer to Note 11, “Net Income Per Share,” for further details. |
Credit Risk | Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and investments. The Company manages the credit risk associated with cash equivalents and investments by investing with high-quality institutions and, by policy, limiting investments only to those which meet prescribed investment guidelines. The Company maintains cash accounts that, at times, may exceed federally insured limits. The Company has not experienced any losses from maintaining cash accounts in excess of such limits. Management believes that it is not exposed to any significant risks on its cash and cash equivalent accounts. |
Segment Information | Segment Information The Company reports segment information in accordance with ASC Topic No. 280 “Segment Reporting.” The Company has one reportable segment. The Company is an off-price retailer that offers customers a complete line of value-priced apparel, including: women’s ready-to-wear apparel, accessories, footwear, menswear, youth apparel, baby, home, coats, beauty, toys and gifts Category Fiscal 2018(a) Fiscal 2017(a) Fiscal 2016(a) Women’s ready-to-wear apparel 23 % 23 % 24 % Accessories and footwear 22 % 22 % 22 % Menswear 20 % 20 % 20 % Youth apparel/baby 16 % 16 % 16 % Home 15 % 14 % 12 % Coats 5 % 5 % 6 % (a) Percentages may not foot due to rounding. |
Adopted Accounting Standards | Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which converges revenue recognition under GAAP and International Financial Reporting Standards. The new guidance supersedes most preexisting revenue recognition guidance, and provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard effective February 4, 2018 on a modified retrospective basis. Adoption of the standard did not result in any material change in the timing or amount of revenue recognized as it relates to revenue from point of sale at the registers in our stores, which constitutes more than 99% of the Company’s revenue. The new standard requires the Company’s sales return reserve to be established at the gross sales value with an asset established for the value of the expected merchandise returned. The liability and asset related to the sales return reserve as of February 2, 2019 were $9.5 million and $5.7 million, respectively, and were included in the lines “Other current liabilities” and “Prepaid and other current assets,” respectively, on the Company’s Consolidated Balance Sheet. Prior period amounts have not been adjusted. As of February 3, 2018, the net sales return reserve was $3.8 million and was included in the line “Other current liabilities” on the Company’s Consolidated Balance Sheet. The Company records revenue at the time of sale and delivery of merchandise, net of allowances for estimated future returns, which is estimated based on historical return rates. The Company presents sales, net of sales taxes, in its Consolidated Statements of Income. The Company accounts for layaway sales and leased department revenue in compliance with Topic No. 606. Layaway sales are recognized upon delivery of merchandise to the customer. The amount of cash received upon initiation of the layaway is recorded as a deposit liability in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. Stored value cards (gift cards and store credits issued for merchandise returns) are recorded as a liability at the time of issuance, and the related sale is recorded upon redemption. The Company determines an estimated stored value card breakage rate by continuously evaluating historical redemption data. Breakage income is recognized monthly in proportion to the historical redemption patterns for those stored value cards for which the likelihood of redemption is remote. Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” The primary purpose of this ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The Company adopted this standard effective February 4, 2018. Adoption of the new guidance did not have a significant impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows: Restricted Cash.” The primary purpose of this ASU is to reduce the diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this standard effective February 4, 2018. As a result of adoption, the Company has included $27.8 million of restricted cash and cash equivalents in both the beginning-of-period and end-of-period cash and cash equivalents balances on its Consolidated Statements of Cash Flows for both of the years ended February 3, 2018 and January 28, 2017. Hedging Activities In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” This ASU eliminates the concept of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges. As a result, changes in fair value for hedging instruments designated as a cash flow or net investment hedge will be recognized as a component of other comprehensive income, regardless of whether or not an economic mismatch exists in the hedging relationship. Additionally, the ASU eliminates the benchmark interest rate concept for variable-rate instruments in cash flow hedges. As a result, the contractually specified interest rate can now be designated as the hedged risk. The Company has elected to adopt the ASU as of February 4, 2018, using a modified retrospective transition method. Adoption of this ASU did not have a significant impact on the Company’s Consolidated Financial Statements. |
Pending Accounting Standards | Pending Accounting Standards Leases In February 2016, the FASB issued ASU 2016-02, “Leases.” The standard’s core principle is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company intends to adopt this ASU as of the beginning of the fiscal year ending February 1, 2020 (Fiscal 2019). The Company is in the process of finalizing the implementation of controls within its existing IT systems and changes to business processes to capture, calculate and account for leases under the new standard. The Company plans to apply the changes from the new guidance at the adoption date and recognize a cumulative effect adjustment to retained earnings in the period of adoption, as allowed under ASU 2018-11, “Leases: Targeted Improvements.” The Company intends to make an accounting policy election not to capitalize leases with a term of twelve months or less. The Company intends to elect the transition package of practical expedients, which allows the Company to carry forward for its existing leases: i) the historical lease classification as either operating or capital; ii) assessment of whether any expired or existing contracts are or contain leases; and iii) capitalization of initial direct costs. Additionally, the Company intends to elect the practical expedients to not separate lease and non-lease components, to not assess whether existing or expired land easements contain a lease, and to employ hindsight when determining lease terms for existing leases on the date of adoption. As a result of this standard, the Company will recognize approximately $2.1 billion of additional right-of-use assets (current and long-term combined) and approximately $2.2 billion of additional lease liabilities (current and long-term combined) on its consolidated balance sheet as of the first day of Fiscal 2019. The right-of-use lease liability for operating leases is based on the net present value of future minimum lease payments. The right-of-use asset for operating leases is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as favorable leases with remaining fixed rental payments in excess of 12 months, the long term portion of straight line rent liability, purchased lease rights and deferred lease incentives. In addition, the Company will also record an approximate $0.6 million cumulative-effect adjustment to retained earnings, related to a deferred gain on a previous sale-leaseback transaction that was being recognized into the line item “Other income” over a 13 year period. The Company also expects a change in the timing of expense recognition, primarily related to net favorable lease amortization, as well as a reclassification of favorable lease amortization from “depreciation and amortization” to “selling, general and administrative expenses” on the Company’s consolidated statements of income. This guidance is not expected to have a material impact on the Company's liquidity. Refer to Note 13, “Lease Commitments,” for further detail of the Company’s future minimum lease payments. Intangible Assets On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment,” which aims to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, goodwill impairment will be measured as the amount by which the carrying value exceeds the fair value. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The new guidance will be effective for annual reporting periods beginning after December 15, 2019, including interim periods. This ASU will be effective for the Company as of the beginning of Fiscal 2020. Early adoption is permitted for annual or interim goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not anticipate that the new guidance will have a significant impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” This ASU requires that implementation costs incurred in a hosting arrangement that is a service contract be assessed in accordance with the existing guidance in Subtopic 350-40, “Internal-Use Software.” Accordingly, costs incurred during the preliminary project stage must be expensed as incurred, while costs incurred during the application development stage must be capitalized. Capitalized implementation costs associated with a hosting arrangement that is a service contract must be expensed over the term of the hosting arrangement. Additionally, the new guidance requires that the expense of these capitalized costs be presented in the same line item in the statement of income as the fees associated with the hosting element of the arrangement. The new guidance will be effective for annual reporting periods beginning after December 15, 2019, including interim periods. This ASU will be effective for the Company as of the beginning of Fiscal 2020. Early adoption is permitted for annual or interim periods. While t he Company is still in the process of determining the impact of the adoption of this guidance on its consolidated financial statements or notes thereto, it There were no other new accounting standards that had a material impact on the Company’s Consolidated Financial Statements during the fiscal year ended February 2, 2019, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of February 2, 2019 that the Company expects to have a material impact on its financial position or results of operations upon becoming effective. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accounting Policies [Abstract] | |
Self Insurance Reserves | Self-insurance reserves as of February 2, 2019 and February 3, 2018 were: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 Short-term self-insurance reserve(a) $ 29,918 $ 26,652 Long-term self-insurance reserve(b) 40,975 38,255 Total $ 70,893 $ 64,907 (a) Represents the portions of the self-insurance reserve expected to be paid in the next twelve months, which were recorded in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. (b) Represents the portions of the self-insurance reserve expected to be paid in excess of twelve months, which was recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets. |
Other Revenue | Other revenue consists of service fees (layaway, shipping and handling, alteration, dormancy and other service charges), subleased rental income and rental income from leased departments as shown in the table below: (in thousands) Fiscal Years Ended February 2, 2019 February 3, 2018 January 28, 2017 (53 Weeks) Service fees $ 15,836 $ 16,207 $ 15,779 Subleased rental income and other 9,319 8,846 8,720 Rental income from leased departments 273 224 413 Total $ 25,428 $ 25,277 $ 24,912 |
Sales Percentage by Major Product Category | Sales percentage by major product category is as follows: Category Fiscal 2018(a) Fiscal 2017(a) Fiscal 2016(a) Women’s ready-to-wear apparel 23 % 23 % 24 % Accessories and footwear 22 % 22 % 22 % Menswear 20 % 20 % 20 % Youth apparel/baby 16 % 16 % 16 % Home 15 % 14 % 12 % Coats 5 % 5 % 6 % (a) Percentages may not foot due to rounding. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of: (in thousands) Useful Lives February 2, 2019 February 3, 2018 Land N/A $ 156,040 $ 159,465 Buildings 20 to 40 Years 485,265 465,207 Store fixtures and equipment 3 to 15 Years 927,081 831,963 Software 3 to 10 Years 256,610 235,799 Leasehold improvements Shorter of lease term or useful life 694,145 604,470 Construction in progress N/A 24,767 28,155 Total property and equipment at cost 2,543,908 2,325,059 Less: accumulated depreciation (1,290,203 ) (1,190,287 ) Total property and equipment, net of accumulated depreciation and amortization $ 1,253,705 $ 1,134,772 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets at February 2, 2019 and February 3, 2018 consist primarily of tradenames and favorable lease positions as follows: (in thousands) February 2, 2019 February 3, 2018 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Tradenames $ 238,000 $ — $ 238,000 $ 238,000 $ — $ 238,000 Favorable leases $ 420,537 (256,213 ) $ 164,324 $ 442,322 $ (253,375 ) $ 188,947 |
Amortization Expense of Favorable Leases | Amortization expense of favorable leases for each of the next five fiscal years and thereafter is estimated to be as follows: Fiscal Years: (in thousands) 2019 $ 21,024 2020 18,477 2021 17,968 2022 16,135 2023 15,251 Thereafter 75,469 Total $ 164,324 |
Impairment Charges (Tables)
Impairment Charges (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment Charges | Impairment charges during these periods related to the following: (in thousands) Fiscal Years Ended Asset Categories February 2, 2019 February 3, 2018 January 28, 2017 Favorable leases $ 2,894 $ 836 $ 1,550 Store fixtures and equipment 878 308 440 Leasehold improvements 195 306 387 Other assets 64 203 73 Buildings 1,262 227 — Land 1,551 247 — Total $ 6,844 $ 2,127 $ 2,450 |
Impairment Charges and Remaining Fair Value of Partially-Impaired Store | The table below sets forth, by level within the fair value hierarchy, the remaining fair value of the partially-impaired stores as of February 2, 2019: (in thousands) Quoted in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- Observable Inputs (Level 3) Total Total Impairment Losses Land $ — $ — $ 3,055 3,055 $ 1,551 Buildings — — 2,036 2,036 1,262 Store fixtures and equipment — — 801 801 878 Leasehold improvements — — 69 69 195 Favorable leases — — 896 896 2,894 Other assets — — 41 41 64 Total $ — $ — $ 6,898 $ 6,898 $ 6,844 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long term debt consists of: (in thousands) February 2, February 3, 2019 2018 $1,200,000 senior secured term loan facility (Term B-5 Loans), LIBOR (with a floor of 0.00%) plus 2.00%, matures on November 17, 2024 (a) $ 956,693 $ 1,108,913 $600,000 ABL senior secured revolving facility, LIBOR plus spread based on average outstanding balance, matures on June 29, 2023 — — Capital lease obligations 32,706 21,931 Unamortized deferred financing costs (2,832 ) (3,872 ) Total debt 986,567 1,126,972 Less: current maturities (2,924 ) (13,164 ) Long term debt, net of current maturities $ 983,643 $ 1,113,808 (a) Prior to November 2, 2018, the interest rate on the Term B-5 Loans was LIBOR (with a floor of 0.75%) plus 2.50%. |
Amortization Expense Related to Deferred Financing Fees | Amortization expense related to the deferred financing costs as of February 2, 2019 for each of the next five fiscal years and thereafter is estimated to be as follows: Fiscal Years (in thousands) 2019 $ 1,278 2020 1,249 2021 1,249 2022 1,249 2023 817 Thereafter 386 Total $ 6,228 |
Maturities of Long-Term Debt and Capital Lease Obligations | Scheduled maturities of the Company’s long term debt and capital lease obligations, as they exist as of February 2, 2019, in each of the next five fiscal years and thereafter are as follows: (in thousands) Long- Term Debt Capital Lease Obligations Total Fiscal Years: 2019 $ — $ 2,924 $ 2,924 2020 — 3,066 3,066 2021 — 3,638 3,638 2022 — 4,094 4,094 2023 — 4,944 4,944 Thereafter 961,415 14,040 975,455 Total 961,415 32,706 994,121 Less: unamortized discount (4,722 ) — (4,722 ) Less: unamortized deferred financing costs (2,832 ) — (2,832 ) Total 953,861 32,706 986,567 Less: current portion — (2,924 ) (2,924 ) Long term debt $ 953,861 $ 29,782 $ 983,643 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value of Company's Derivative Financial Instruments on Gross Basis as well as Classification | The tables below present the fair value of the Company’s derivative financial instruments on a gross basis, as well as their classification on the Company’s Consolidated Balance Sheets: (in thousands) Fair Values of Derivative Instruments February 2, 2019 February 3, 2018 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate cap contracts Prepaid and other current assets $ 2,213 Other assets $ 4,543 Interest rate swap contract Other liabilities $ 5,239 N/A N/A |
Summary of Unrealized Gains (Losses) Deferred to Accumulated Other Comprehensive Loss | The following table presents the unrealized gains (losses) deferred to accumulated other comprehensive loss resulting from the Company’s derivative instruments designated as cash flow hedging instruments for each of the reporting periods. (in thousands) Fiscal Year Ended Interest Rate Cap Contracts: February 2, 2019 February 3, 2018 January 28, 2017 Unrealized (losses) gains, before taxes $ (4,232 ) $ 3,460 $ 365 Income tax benefit (expense) 1,152 (1,718 ) (145 ) Unrealized (losses) gains, net of taxes $ (3,080 ) $ 1,742 $ 220 |
Reclassification of Losses from Accumulated Other Comprehensive Loss into Earnings | The following table presents information about the reclassification of losses from accumulated other comprehensive loss into earnings related to the Company’s derivative instruments designated as cash flow hedging instruments for each of the reporting periods. (in thousands) Fiscal Year Ended Component of Earnings: February 2, 2019 February 3, 2018 January 28, 2017 Interest expense $ 1,872 $ 5,931 $ 2,622 Income tax expense (518 ) (2,369 ) (1,041 ) Net income $ 1,354 $ 3,562 $ 1,581 |
Derivatives Designated as Hedging Instruments | |
Outstanding Interest Rate Derivatives in Qualifying Hedging Relationships | As of February 2, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Instruments Notional Aggregate Principal Amount Interest Cap/Swap Rate Maturity Date Interest rate cap contracts Two $ 800.0 million 1.00% May 31, 2019 Interest rate swap contract One $ 450.0 million 2.72% December 29, 2023 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The table below details the changes in accumulated other comprehensive loss for Fiscal 2018 and Fiscal 2017. (in thousands) Derivative Instruments Balance at January 28, 2017 $ (7,191 ) Unrealized gains, net of related taxes of $1.4 million 1,742 Amount reclassified into earnings, net of related taxes of $2.4 million 3,562 Balance at February 3, 2018 $ (1,887 ) Unrealized losses, net of related tax benefit of $1.2 million (3,080 ) Amount reclassified into earnings, net of related taxes of $0.5 million 1,354 Balance at February 2, 2019 $ (3,613 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted per Common Share | Basic net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding. Dilutive net income per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method. (in thousands, except per share data) Fiscal Year Ended February 2, February 3, January 28, 2019 2018 2017 (53 Weeks) Basic net income per share Net income $ 414,745 $ 384,852 $ 215,873 Weighted average number of common shares – basic 66,812 68,286 70,480 Net income per common share – basic $ 6.21 $ 5.64 $ 3.06 Diluted net income per share Net income $ 414,745 $ 384,852 $ 215,873 Shares for basic and diluted net income per share: Weighted average number of common shares – basic 66,812 68,286 70,480 Assumed exercise of stock options and vesting of restricted stock 1,867 2,002 1,241 Weighted average number of common shares – diluted 68,679 70,288 71,721 Net income per common share – diluted $ 6.04 $ 5.48 $ 3.01 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Exercise Price of Service-Based Stock Options Granted | Options granted during Fiscal 2018, Fiscal 2017 and Fiscal 2016 were all service-based awards granted under the Plans at the following exercise prices: Exercise Price Ranges From To Fiscal 2018 $ 113.80 $ 172.40 Fiscal 2017 $ 80.91 $ 110.50 Fiscal 2016 $ 54.11 $ 83.83 |
Non-Cash Stock Compensation Expense | Non-cash stock compensation expense is as follows: (in thousands) Fiscal Year Ended February 2, February 3, January 28, 2019 2018 2017 Type of Non-Cash Stock Compensation (53 Weeks) Restricted stock grants (a) $ 18,967 $ 15,864 $ 8,816 Stock option grants (a) 16,518 11,039 6,636 Stock option modification (b) — 131 501 Total (c) $ 35,485 $ 27,034 $ 15,953 (a) Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. (b) Represents non-cash compensation related to the May 2013 stock option modification as discussed above. Amounts are included in the line item “Stock option modification expense” in the Company’s Consolidated Statements of Income. (c) The amounts presented in the table above exclude the effect of income taxes. The tax benefit related to the Company’s non-cash stock compensation was $9.7 million, $2.8 million and $5.6 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. |
Stock Option Transactions | Stock option transactions during Fiscal 2018 are summarized as follows: Number of Shares Weighted Average Exercise Price Per Share Options outstanding, February 3, 2018 2,579,831 $ 39.79 Options granted 507,456 135.71 Options exercised (a) (684,011 ) 23.84 Options forfeited (65,960 ) 68.27 Options outstanding, February 2, 2019 2,337,316 $ 64.48 (a) Options exercised during Fiscal 2018 had a total intrinsic value of $87.8 million. |
Information about Options to Purchase Shares | The following table summarizes information about the options outstanding and exercisable as of February 2, 2019: Options Outstanding Options Exercisable Exercise Prices Number Outstanding at February 2, 2019 Weighted Average Remaining Contractual Life (Years) Number Exercisable at February 2, 2019 Weighted Average Remaining Contractual Life (Years) $0.79 - $5.02 744,871 4.2 315,871 4.0 $26.96+ 1,592,445 8.0 367,906 7.0 2,337,316 683,777 |
Stock Options Vested and Expected to Vest | The following table summarizes information about the stock options vested and expected to vest during the contractual term: Options Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value (in millions) Vested and expected to vest 2,337,316 6.8 $ 64.48 $ 251.0 |
Weighted Average Assumptions Used to Estimate Fair Value of Each Stock Option Granted | The fair value of each stock option granted during Fiscal 2018 was estimated using the following assumptions: Fiscal Year Ended February 2, 2019 Risk-free interest rate 2.13% - 3.00% Expected volatility 32% - 34% Expected life (years) 5.92 - 6.25 Contractual life (years) 10.0 Expected dividend yield 0.0% Weighted average grant date fair value of options issued $ 50.80 |
Award Grant and Vesting Transactions | Award grant, vesting and forfeiture transactions during Fiscal 2018 are summarized as follows: Number of Shares Weighted Average Grant Date Fair Value Per Awards Non-vested awards outstanding, February 3, 2018 748,894 $ 66.99 Awards granted 144,215 136.30 Awards vested (a) (200,763 ) 64.13 Awards forfeited (25,504 ) 90.81 Non-vested awards outstanding, February 2, 2019 666,842 81.93 (a) Restricted stock awards vested during Fiscal 2018 had a total intrinsic value of $28.9 million. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Payments | The following is a schedule of future minimum lease payments having an initial or remaining term in excess of one year: (in thousands) Fiscal Year Operating Leases(a) Capital Leases 2019 $ 383,877 $ 5,414 2020 405,370 5,120 2021 387,140 5,597 2022 369,068 5,725 2023 346,175 6,291 Thereafter 1,475,301 15,849 Total minimum lease payments 3,366,931 43,996 Amount representing interest — (11,290 ) Total future minimum lease payments $ 3,366,931 $ 32,706 (a) Total future minimum lease payments include $278.9 million related to options to extend lease terms that are reasonably assured of being exercised and $622.4 million of minimum lease payments for 76 stores that the Company has committed to open or relocate. |
Net Rent Expense | The following is a schedule of net rent expense for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Rent expense: Minimum rental payments $ 364,637 $ 340,979 $ 310,332 Contingent rental payments 6,047 4,734 4,424 Straight-line rent expense 8,469 7,543 2,172 Lease incentives amortization (34,827 ) (32,618 ) (32,112 ) Amortization of purchased lease rights 844 499 680 Total rent expense(a) 345,170 321,137 285,496 Less all rental income(b) (6,164 ) (6,846 ) (7,167 ) Total net rent expense $ 339,006 $ 314,291 $ 278,329 (a) Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. (b) Included in the line item “Other revenue” in the Company’s Consolidated Statements of Income. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Earnings Before Income Taxes | Income before income taxes was as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Domestic $ 503,290 $ 429,939 $ 330,106 Foreign 4,294 (959 ) 3,106 Total income before income taxes $ 507,584 $ 428,980 $ 333,212 |
Income Tax Expense | Income tax expense was as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: (in thousands) Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Current: Federal $ 69,007 $ 65,824 $ 104,934 State 19,642 8,824 14,957 Foreign 1,671 207 367 Subtotal 90,320 74,855 120,258 Deferred: Federal 8,337 (40,839 ) 1,655 State (8,409 ) 9,091 3,399 Foreign 2,591 1,021 (7,973 ) Subtotal 2,519 (30,727 ) (2,919 ) Total Income Tax Expense $ 92,839 $ 44,128 $ 117,339 |
Tax Rate Reconciliations | The tax rate reconciliations were as follows for Fiscal 2018, Fiscal 2017 and Fiscal 2016: Fiscal Year Ended February 2, 2019 February 3, 2018 (53 Weeks) January 28, 2017 Tax at statutory rate 21.0 % 33.7 % 35.0 % State income taxes, net of federal 4.2 3.0 3.0 Excess tax benefit from stock compensation (5.2 ) (4.4 ) — Tax credits (1.2 ) (1.4 ) (1.7 ) Impact of federal tax reform — (21.1 ) — Other (0.5 ) 0.5 (1.1 ) Effective tax rate 18.3 % 10.3 % 35.2 % |
Tax Effects of Temporary Differences Included in Deferred Tax Accounts | The tax effects of temporary differences are included in deferred tax accounts as follows: (in thousands) February 2, 2019 February 3, 2018 Tax Assets Tax Liabilities Tax Assets Tax Liabilities Non-current deferred tax assets and liabilities: Property and equipment basis adjustments $ — $ 149,705 $ — $ 132,793 Deferred rent 19,496 — 18,926 — Intangibles—long-lived — 40,918 — 48,397 Intangibles—indefinite-lived — 65,197 — 65,748 Employee benefit compensation 15,186 — 13,071 — State net operating losses (net of federal benefit) 12,290 — 12,760 — Landlord allowances 35,907 — 30,057 — Tax credits 6,140 — 5,126 — Other 2,651 — 2,840 — Valuation allowance (10,268 ) — (8,376 ) — Total non-current deferred tax assets and liabilities $ 81,402 $ 255,820 $ 74,404 $ 246,938 Net deferred tax liability $ 174,418 $ 172,534 |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (exclusive of interest and penalties) is as follows: (in thousands) Gross Unrecognized Tax Benefits, Exclusive of Interest and Penalties Balance at January 30, 2016 $ 10,578 Additions for tax positions of the current year 117 Additions for tax positions of prior years — Reduction for tax positions of prior years (1,270 ) Settlements — Lapse of statute of limitations (232 ) Balance at January 28, 2017 $ 9,193 Additions for tax positions of the current year 72 Additions for tax positions of prior years 882 Reduction for tax positions of prior years (973 ) Settlements — Lapse of statute of limitations (101 ) Balance at February 3, 2018 $ 9,073 Additions for tax positions of the current year 18 Additions for tax positions of prior years 698 Reduction for tax positions of prior years (782 ) Settlements — Lapse of statute of limitations (80 ) Balance at February 2, 2019 $ 8,927 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Assets and Hierarchy of Level of Inputs | The fair values of the Company’s financial assets and the hierarchy of the level of inputs as of February 2, 2019 and February 3, 2018 are summarized below: (in thousands) Fair Value Measurements at February 2, February 3, 2019 2018 Level 1 Cash equivalents (including restricted cash) $ 22,416 $ 28,283 |
Fair Values of Financial Liabilities | The fair values of the Company’s financial liabilities are summarized below: (in thousands) February 2, 2019 February 3, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Term B-5 Loans $ 956,693 $ 947,126 $ 1,108,913 $ 1,108,913 ABL senior secured revolving facility — — — — Total debt $ 956,693 $ 947,126 $ 1,108,913 $ 1,108,913 (a) Capital lease obligations are excluded from the table above. |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Operating Results | The operating results for any quarter are not necessarily indicative of the results of any future quarter. (in thousands, except share data) Year ended February 2, 2019: Quarter Ended (1) May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Net sales $ 1,518,446 $ 1,498,633 $ 1,634,489 $ 1,991,483 Gross margin(2)(3) $ 625,764 $ 621,159 $ 692,480 $ 835,529 Net income $ 82,588 $ 70,957 $ 76,849 $ 184,351 Net income per share—basic(4): Common stockholders $ 1.23 $ 1.06 $ 1.15 $ 2.77 Net income per share—diluted(4): Common stockholders $ 1.20 $ 1.03 $ 1.12 $ 2.70 (in thousands, except share data) Year ended February 3, 2018: Quarter Ended (1) April 29, 2017 July 29, 2017 October 28, 2017 February 3, 2018 Net sales $ 1,346,546 $ 1,363,224 $ 1,438,167 $ 1,936,829 Gross margin (2)(3) $ 550,150 $ 555,098 $ 606,439 $ 813,921 Net income $ 52,368 $ 46,902 $ 44,879 $ 240,703 Net income per share—basic(4): Common stockholders $ 0.76 $ 0.68 $ 0.66 $ 3.58 Net income per share—diluted(4): Common stockholders $ 0.73 $ 0.66 $ 0.65 $ 3.47 (1) The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. (2) Gross margin is equal to net sales less cost of sales. (3) During the quarterly periods ended February 2, 2019 and February 3, 2018 (4) Quarterly net income per share results may not equal full year amounts due to rounding. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Feb. 02, 2019USD ($)StoreStateSegment | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 675 | ||
Number of states stores operated | State | 45 | ||
Gain on insurance recovery | $ 3,300,000 | $ 0 | $ 0 |
Cash and short-term, highly liquid investments, maturities period | 3 months | ||
Selling, general and administrative expenses | $ 2,018,737,000 | 1,863,501,000 | 1,723,251,000 |
Depreciation and amortization | 217,884,000 | 201,103,000 | 183,586,000 |
Impairment Charges - Property and equipment | 3,900,000 | 1,100,000 | 800,000 |
Capitalized software | 15,700,000 | 19,100,000 | |
Impairment charges - indefinite lived intangible assets | 0 | 0 | 0 |
impairment charges - finite lived intangible assets | 2,900,000 | 800,000 | 1,600,000 |
Impairment charges goodwill | 0 | 0 | 0 |
Impairment charges of other assets | 100,000 | 200,000 | 100,000 |
Amortization of landlord-owned assets | 16,000,000 | 14,500,000 | 13,400,000 |
Customer liabilities | 33,700,000 | 34,600,000 | |
Deferred lease incentives | 216,200,000 | 206,000,000 | |
Advertising costs | 77,100,000 | 82,300,000 | 81,800,000 |
Breakage income | 4,200,000 | 3,300,000 | 3,300,000 |
Sale of certain state tax credit | $ 2,100,000 | 2,500,000 | 2,500,000 |
Reports segment | Segment | 1 | ||
Buildings | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Useful Lives | 20 years | ||
Buildings | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Useful Lives | 40 years | ||
Fixtures And Equipment | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Useful Lives | 3 years | ||
Fixtures And Equipment | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Useful Lives | 15 years | ||
Distribution and Purchasing Functions | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Selling, general and administrative expenses | $ 313,300,000 | 283,600,000 | 261,000,000 |
Depreciation and amortization | $ 30,500,000 | 26,600,000 | $ 22,600,000 |
Weather Related Incidents | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores closed at least one day | Store | 82 | ||
Insurance proceeds | $ 9,300,000 | 11,700,000 | |
Weather Related Incidents | Other income - net | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Gain on insurance recovery | 3,300,000 | ||
Weather Related Incidents | Merchandise Inventories | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Losses incurred related to significant damage to assets written-off | 5,400,000 | ||
Weather Related Incidents | Property and Equipment and Other Long-lived Assets, Repair and Maintenance Costs | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Losses incurred related to significant damage to assets written-off | 17,700,000 | ||
Weather Related Incidents | Property and Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Insurance proceeds | $ 2,800,000 | $ 6,000,000 | |
Burlington Stores | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 661 | ||
Cohoes Fashions | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 2 | ||
Super Baby Depot | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 2 | ||
MJM Designer Shoes | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 9 | ||
Online Stores | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of stores | Store | 1 |
Self Insurance Reserves (Detail
Self Insurance Reserves (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | |
Health Care Organizations [Abstract] | |||
Short-term self insurance reserve | [1] | $ 29,918 | $ 26,652 |
Long-term self insurance reserve | [2] | 40,975 | 38,255 |
Total | $ 70,893 | $ 64,907 | |
[1] | Represents the portions of the self-insurance reserve expected to be paid in the next twelve months, which were recorded in the line item “Other current liabilities” in the Company’s Consolidated Balance Sheets. | ||
[2] | Represents the portions of the self-insurance reserve expected to be paid in excess of twelve months, which was recorded in the line item “Other liabilities” in the Company’s Consolidated Balance Sheets. |
Other Revenue (Detail)
Other Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Revenue Recognition [Line Items] | |||||||||||||||||||
Other Revenue | $ 1,991,483 | $ 1,634,489 | $ 1,498,633 | $ 1,518,446 | $ 1,936,829 | $ 1,438,167 | $ 1,363,224 | $ 1,346,546 | $ 6,643,051 | $ 6,084,766 | $ 5,566,038 | ||||||||
Other Revenue | |||||||||||||||||||
Revenue Recognition [Line Items] | |||||||||||||||||||
Other Revenue | 25,428 | 25,277 | 24,912 | ||||||||||||||||
Other Revenue | Service Fees | |||||||||||||||||||
Revenue Recognition [Line Items] | |||||||||||||||||||
Other Revenue | 15,836 | 16,207 | 15,779 | ||||||||||||||||
Other Revenue | Subleased Rental Income and Other | |||||||||||||||||||
Revenue Recognition [Line Items] | |||||||||||||||||||
Other Revenue | 9,319 | 8,846 | 8,720 | ||||||||||||||||
Other Revenue | Rental Income from Leased Departments | |||||||||||||||||||
Revenue Recognition [Line Items] | |||||||||||||||||||
Other Revenue | $ 273 | $ 224 | $ 413 | ||||||||||||||||
[1] | The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. |
Sales Percentage by Major Produ
Sales Percentage by Major Product Category (Detail) - Sales Revenue, Net - Product Concentration Risk | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Women’s ready-to-wear apparel | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 23.00% | 23.00% | 24.00% |
Accessories and Footwear | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 22.00% | 22.00% | 22.00% |
Menswear | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 20.00% | 20.00% | 20.00% |
Youth Apparel/Baby | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 16.00% | 16.00% | 16.00% |
Home | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 15.00% | 14.00% | 12.00% |
Coats | ||||
Product Information [Line Items] | ||||
Sales Percentage | [1] | 5.00% | 5.00% | 6.00% |
[1] | Percentages may not foot due to rounding. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 03, 2019 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Recent Accounting Pronouncements [Line Items] | |||||
Restricted cash and cash equivalents | $ 21,882 | $ 27,800 | $ 27,800 | $ 27,800 | |
Other Current Liabilities | |||||
Recent Accounting Pronouncements [Line Items] | |||||
Sales return reserve | 9,500 | $ 3,800 | |||
Prepaid and Other Current Assets | |||||
Recent Accounting Pronouncements [Line Items] | |||||
Merchandise return asset | $ 5,700 | ||||
ASU 2014-09 | Stores | Minimum | |||||
Recent Accounting Pronouncements [Line Items] | |||||
Percentage of revenue recognized | 99.00% | ||||
ASU 2016-02 | Subsequent Event | |||||
Recent Accounting Pronouncements [Line Items] | |||||
Amount additional recognized as right of use asset | $ 2,100,000 | ||||
Additional current and long term lease liabilities | $ 2,200,000 | ||||
Favorable lease remaining fixed rental payment minimum term | 12 months | ||||
Cumulative-effect adjustment to retained earnings | $ 600 | ||||
Cumulative-effect adjustment to retained earnings recognition period | 13 years |
Restricted Cash and Cash Equi_2
Restricted Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | $ 21,882 | $ 27,800 | $ 27,800 | $ 27,800 |
Collateral for Certain Insurance Contracts | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and cash equivalents | $ 21,900 | $ 27,800 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | $ 2,543,908 | $ 2,325,059 |
Less: accumulated depreciation | (1,290,203) | (1,190,287) |
Total property and equipment, net of accumulated depreciation and amortization | 1,253,705 | 1,134,772 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | 156,040 | 159,465 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | 485,265 | 465,207 |
Store fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | 927,081 | 831,963 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | $ 256,610 | 235,799 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | Shorter of lease term or useful life | |
Total property and equipment at cost | $ 694,145 | 604,470 |
Construction in Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment at cost | $ 24,767 | $ 28,155 |
Minimum | Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 20 years | |
Minimum | Store fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 3 years | |
Minimum | Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 3 years | |
Maximum | Buildings | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 40 years | |
Maximum | Store fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 15 years | |
Maximum | Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, Useful Lives | 10 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Property Plant And Equipment [Line Items] | |||
Capital leases, accumulated amortization | $ 23,200 | $ 21,000 | |
Capital leases, net of accumulated amortization | 30,300 | 19,800 | |
Total amount of depreciation expense | 175,800 | 163,300 | $ 146,300 |
Impairment Charges - Property and equipment | 3,900 | 1,100 | 800 |
Depreciation and Amortization | 217,884 | 201,103 | 183,586 |
Property and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Impairment Charges - Property and equipment | 3,900 | 1,100 | 800 |
Software Development | |||
Property Plant And Equipment [Line Items] | |||
Depreciation and Amortization | $ 19,400 | $ 18,200 | $ 15,400 |
Software Development | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Internally developed software, amortization period | 3 years | ||
Software Development | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Internally developed software, amortization period | 10 years |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Tradenames, Net Amount | $ 238,000 | $ 238,000 |
Favorable Leases, Net Amount | 164,324 | 188,947 |
Favorable Leases | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Favorable Leases, Gross Carrying Amount | 420,537 | 442,322 |
Favorable Leases, Accumulated Amortization | (256,213) | (253,375) |
Favorable Leases, Net Amount | $ 164,324 | $ 188,947 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Schedule of Intangible Assets Disclosure [Line Items] | |||
Impairment charges | $ 6,844 | $ 2,127 | $ 2,450 |
Favorable Leases | |||
Schedule of Intangible Assets Disclosure [Line Items] | |||
Favorable lease amortization expense | 26,100 | 23,300 | 24,000 |
Impairment charges | $ 2,900 | $ 800 | $ 1,600 |
Remaining weighted average amortization period | 12 years |
Amortization Expense of Favorab
Amortization Expense of Favorable Leases (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Estimated Amortization Expense [Line Items] | ||
Favorable Leases, Net Amount | $ 164,324 | $ 188,947 |
Favorable Leases | ||
Estimated Amortization Expense [Line Items] | ||
2019 | 21,024 | |
2020 | 18,477 | |
2021 | 17,968 | |
2022 | 16,135 | |
2023 | 15,251 | |
Thereafter | 75,469 | |
Favorable Leases, Net Amount | $ 164,324 |
Impairment Charges - Additional
Impairment Charges - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($)Store | Feb. 03, 2018USD ($)Store | Jan. 28, 2017USD ($)Store | |
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment charges - long-lived assets | $ | $ 6,844 | $ 2,127 | $ 2,450 |
Impaired long-lived assets held and used, method for determining fair value | Long-lived assets are measured at fair value on a non-recurring basis for purposes of calculating impairment using the fair value hierarchy of ASC Topic No. 820 “Fair Value Measurements” (Topic No. 820). Refer to Note 16, “Fair Value of Financial Instruments,” for further discussion of the Company’s fair value hierarchy. The fair value of the Company’s long-lived assets is calculated using a discounted cash-flow model that used level 3 inputs. In calculating future cash flows, the Company makes estimates regarding future operating results based on its experience and knowledge of market factors in which the retail location is located. | ||
Number of fully impaired stores | 2 | ||
Number of remaining partially impaired stores | 6 | ||
Assets Impairments | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment of store level assets, number of stores | 8 | 4 | 5 |
Impairment Charges (Detail)
Impairment Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | $ 6,844 | $ 2,127 | $ 2,450 |
Favorable Leases | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | 2,894 | 836 | 1,550 |
Store fixtures and equipment | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | 878 | 308 | 440 |
Leasehold Improvements | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | 195 | 306 | 387 |
Other Assets | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | 64 | 203 | $ 73 |
Buildings | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | 1,262 | 227 | |
Land | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment Charges | $ 1,551 | $ 247 |
Remaining Fair Value of Partial
Remaining Fair Value of Partially-Impaired Store (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | $ 6,898 | ||
Total Impairment Losses | 6,844 | $ 2,127 | $ 2,450 |
Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 6,898 | ||
Land | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 3,055 | ||
Total Impairment Losses | 1,551 | 247 | |
Land | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 3,055 | ||
Favorable Leases | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 896 | ||
Total Impairment Losses | 2,894 | 836 | 1,550 |
Favorable Leases | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 896 | ||
Buildings | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 2,036 | ||
Total Impairment Losses | 1,262 | 227 | |
Buildings | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 2,036 | ||
Store fixtures and equipment | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 801 | ||
Total Impairment Losses | 878 | 308 | 440 |
Store fixtures and equipment | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 801 | ||
Leasehold improvements | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 69 | ||
Total Impairment Losses | 195 | 306 | 387 |
Leasehold improvements | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 69 | ||
Other assets | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | 41 | ||
Total Impairment Losses | 64 | $ 203 | $ 73 |
Other assets | Significant Un-Observable Inputs (Level 3) | |||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | |||
Long-Lived assets fair value, Total | $ 41 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | |
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 32,706 | $ 21,931 | |
Unamortized deferred financing costs | (2,832) | (3,872) | |
Total debt | 986,567 | 1,126,972 | |
Less: current maturities | (2,924) | (13,164) | |
Long term debt, net of current maturities | 983,643 | 1,113,808 | |
Senior Secured Term B-5 Loans | |||
Debt Instrument [Line Items] | |||
Long Term Debt | [1] | 956,693 | 1,108,913 |
ABL senior secured revolving facility | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | $ (3,400) | $ (2,100) | |
[1] | Prior to November 2, 2018, the interest rate on the Term B-5 Loans was LIBOR (with a floor of 0.75%) plus 2.50%. |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Nov. 01, 2018 | Jun. 29, 2018 | Nov. 17, 2017 | Feb. 02, 2019 | Feb. 03, 2018 |
Senior Secured Term B-5 Loans | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, maturity date | Nov. 17, 2024 | Nov. 17, 2024 | Nov. 17, 2024 | ||
Long-Term Debt, face amount | $ 1,200,000 | $ 1,200,000 | |||
ABL senior secured revolving facility | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, maturity date | Aug. 13, 2019 | Jun. 29, 2023 | Jun. 29, 2023 | ||
Long-Term Debt, face amount | $ 600,000 | $ 600,000 | |||
London Interbank Offered Rate Floor | Senior Secured Term B-5 Loans | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, interest rate | 0.75% | 0.00% | 0.00% | ||
London Interbank Offered Rate (LIBOR) | Senior Secured Term B-5 Loans | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, interest rate | 2.50% | 2.00% | 2.00% | ||
London Interbank Offered Rate (LIBOR) | ABL senior secured revolving facility | |||||
Debt Instrument [Line Items] | |||||
Long-Term Debt, interest rate | 1.25% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Nov. 02, 2018 | Nov. 01, 2018 | Jun. 29, 2018 | Nov. 17, 2017 | Nov. 16, 2017 | Jul. 29, 2016 | Jul. 28, 2016 | Jun. 30, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 24, 2011 |
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||||||||
Loss on extinguishment of debt | $ (1,823,000) | $ (2,881,000) | $ (3,805,000) | |||||||||
Costs related to debt amendments | 2,496,000 | 2,262,000 | 1,346,000 | |||||||||
Deferred financing cost | 2,832,000 | 3,872,000 | ||||||||||
Amortization of deferred financing costs | $ 1,596,000 | $ 2,463,000 | 2,679,000 | |||||||||
Deferred financing costs, weighted average amortization period | 5 years | |||||||||||
Capital lease obligations, interest charges for year fiscal year ended February 1, 2020 | $ 2,500,000 | |||||||||||
Capital lease obligations, interest charges for year fiscal year ended January 30, 2021 | 2,100,000 | |||||||||||
Capital lease obligations, interest charges for year fiscal year ended January 29, 2022 | 2,000,000 | |||||||||||
Capital lease obligations, interest charges for year fiscal year ended January 28, 2023 | 1,600,000 | |||||||||||
Capital lease obligations, interest charges for year fiscal year ended February 3, 2024 | 1,300,000 | |||||||||||
Thereafter | 1,800,000 | |||||||||||
Sixth Amendment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write-off in deferred financing costs | $ 900,000 | |||||||||||
Senior Secured Term B-3 Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, amount outstanding | $ 1,117,000,000 | |||||||||||
Senior Secured Term B-3 Loans | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.75% | 2.25% | ||||||||||
Senior Secured Term B-3 Loans | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 3.25% | |||||||||||
Senior Secured Term B-3 Loans | London Interbank Offered Rate Floor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.00% | |||||||||||
Senior Secured Term B-4 Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, amount outstanding | $ 1,117,000,000 | |||||||||||
Debt instrument maturity date | Aug. 13, 2021 | |||||||||||
Senior Secured Term B-4 Loans | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.50% | 1.75% | ||||||||||
Senior Secured Term B-4 Loans | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 2.50% | 2.75% | 2.75% | |||||||||
Senior Secured Term B-4 Loans | London Interbank Offered Rate Floor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.75% | 0.75% | ||||||||||
Senior Secured Term B4 And B3 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | (3,800,000) | |||||||||||
Costs related to debt amendments | 1,300,000 | |||||||||||
Senior Secured Term B-5 Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument maturity date | Nov. 17, 2024 | Nov. 17, 2024 | Nov. 17, 2024 | |||||||||
Senior Secured Term B-5 Loans | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 2.50% | 2.00% | 2.00% | |||||||||
Senior Secured Term B-5 Loans | London Interbank Offered Rate Floor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.75% | 0.00% | 0.00% | |||||||||
Senior Secured Term B4 And B5 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ (2,900,000) | |||||||||||
Costs related to debt amendments | $ 2,300,000 | |||||||||||
Senior Secured Term Loan Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing, interest rate | 4.50% | |||||||||||
Senior Secured Term Loan Facilities | Adjusted London Interbank Offered Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.00% | |||||||||||
Senior Secured Term Loan Facilities | Federal Funds Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.50% | |||||||||||
Senior Secured Term Loan Facilities | One Month Adjusted London Interbank Offered Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.00% | |||||||||||
ABL senior secured revolving facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000,000 | |||||||||||
Loss on extinguishment of debt | $ (200,000) | |||||||||||
Debt instrument maturity date | Aug. 13, 2019 | Jun. 29, 2023 | Jun. 29, 2023 | |||||||||
Line of Credit Facility, amount available | $ 543,300,000 | 455,800,000 | ||||||||||
Line of Credit Facility, maximum amount outstanding during period | 265,000,000 | $ 235,500,000 | ||||||||||
Line of Credit Facility, Average borrowings | $ 83,900,000 | $ 71,000,000 | ||||||||||
Line of Credit Facility, Average interest rate | 3.40% | 2.70% | ||||||||||
Deferred financing cost | $ 3,400,000 | $ 2,100,000 | ||||||||||
ABL senior secured revolving facility | Previously Reported | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Daily minimum average available credit facility percentage | 50.00% | |||||||||||
ABL senior secured revolving facility | Restated | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Daily minimum average available credit facility percentage | 40.00% | |||||||||||
ABL senior secured revolving facility | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.25% | |||||||||||
ABL senior secured revolving facility | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.25% | |||||||||||
Amended ABL senior secured revolving facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000,000 | |||||||||||
Line of Credit Facility, unused loan commitments | 0.20% | |||||||||||
Amended ABL senior secured revolving facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.25% | |||||||||||
Amended ABL senior secured revolving facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.50% | |||||||||||
Write-off in Deferred Financing Costs [Member] | Senior Secured Term B4 And B3 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | (2,500,000) | |||||||||||
Write-off in Deferred Financing Costs [Member] | Senior Secured Term B4 And B5 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ (1,500,000) | |||||||||||
Write-off of Unamortized Original Issue Discount [Member] | Senior Secured Term B4 And B3 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | (1,300,000) | |||||||||||
Write-off of Unamortized Original Issue Discount [Member] | Senior Secured Term B4 And B5 Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | (1,400,000) | |||||||||||
Long-term Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deferred financing cost | 2,832,000 | 3,900,000 | ||||||||||
Amortization of deferred financing costs | 1,600,000 | $ 2,500,000 | $ 2,700,000 | |||||||||
Long-term Debt | Deferred Financing Costs | Sixth Amendment | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Deferred financing cost | $ 2,700,000 | |||||||||||
Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on extinguishment of debt | $ (500,000) | $ (1,200,000) | ||||||||||
Costs related to debt amendments | $ 2,400,000 | |||||||||||
Long-Term Debt, payment | $ 150,000,000 | |||||||||||
Debt instrument frequency of periodic payments | quarterly | |||||||||||
Percentage of lender fee equal to aggregate principal amount | 0.125% | |||||||||||
Term Loan Facility | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 1.00% | 1.50% | ||||||||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 2.00% | 2.50% | ||||||||||
Term Loan Facility | London Interbank Offered Rate Floor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, interest rate | 0.00% | 0.75% |
Amortization Expense Related to
Amortization Expense Related to Deferred Financing Fees (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Debt Instrument [Line Items] | ||
Favorable Leases, Net Amount | $ 164,324 | $ 188,947 |
Deferred Financing Costs | ||
Debt Instrument [Line Items] | ||
2019 | 1,278 | |
2020 | 1,249 | |
2021 | 1,249 | |
2022 | 1,249 | |
2023 | 817 | |
Thereafter | 386 | |
Favorable Leases, Net Amount | $ 6,228 |
Maturities of Long-Term Debt an
Maturities of Long-Term Debt and Capital Lease Obligations (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019 | $ 2,924 | |
2020 | 3,066 | |
2021 | 3,638 | |
2022 | 4,094 | |
2023 | 4,944 | |
Thereafter | 975,455 | |
Total | 994,121 | |
Less: unamortized discount | (4,722) | |
Unamortized deferred financing costs | (2,832) | $ (3,872) |
Total debt | 986,567 | 1,126,972 |
Less: current maturities | (2,924) | (13,164) |
Long term debt | 983,643 | 1,113,808 |
Capital Lease Obligations | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
2019 | 2,924 | |
2020 | 3,066 | |
2021 | 3,638 | |
2022 | 4,094 | |
2023 | 4,944 | |
Thereafter | 14,040 | |
Total | 32,706 | |
Total debt | 32,706 | |
Less: current maturities | (2,924) | |
Long term debt | 29,782 | |
Long-term Debt | ||
Long Term Debt Maturities Repayments Of Principal [Line Items] | ||
Thereafter | 961,415 | |
Total | 961,415 | |
Less: unamortized discount | (4,722) | |
Unamortized deferred financing costs | (2,832) | $ (3,900) |
Total debt | 953,861 | |
Long term debt | $ 953,861 |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Additional Information (Detail) - Interest rate cap $ in Millions | Feb. 02, 2019USD ($) | Apr. 24, 2015Derivative |
Derivative [Line Items] | ||
Interest rate cap contracts, number | Derivative | 2 | |
Maximum | ||
Derivative [Line Items] | ||
Amounts reported in Accumulated Other Comprehensive Loss to be reclassified to interest expense, during the next twelve months | $ | $ 1 |
Outstanding Interest Rate Deriv
Outstanding Interest Rate Derivatives in Qualifying Hedging Relationships (Detail) - Cash Flow Hedging - Derivatives Designated as Hedging Instruments | 12 Months Ended |
Feb. 02, 2019USD ($)Derivative | |
Interest Rate Cap Contract One | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Number of Instruments | Derivative | 2 |
Notional Aggregate Principal Amount | $ | $ 800,000,000 |
Interest Cap Rate | 1.00% |
Maturity Date | May 31, 2019 |
Interest Rate Swap Contract | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Number of Instruments | Derivative | 1 |
Notional Aggregate Principal Amount | $ | $ 450,000,000 |
Interest Swap Rate | 2.72% |
Maturity Date | Dec. 29, 2023 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Interest rate cap | Prepaid and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Designated as Hedging Instruments Interest Rate Cap Contracts, Asset at Fair Value | $ 2,213 | |
Interest rate cap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Designated as Hedging Instruments Interest Rate Cap Contracts, Asset at Fair Value | $ 4,543 | |
Interest Rate Swap Contract | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Designated as Hedging Instruments Interest Rate Cap Contracts, Liability at Fair Value | $ 5,239 |
Summary of Unrealized Gains (Lo
Summary of Unrealized Gains (Losses) Deferred to Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Derivative Instruments Gain Loss [Line Items] | |||
Income tax benefit (expense) | $ (1,200) | $ (1,400) | $ 100 |
Unrealized gains (losses) on interest rate cap contracts, net of related taxes | (3,080) | 1,742 | 220 |
Derivatives Designated as Hedging Instruments | Interest rate cap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Unrealized (losses) gains, before taxes | (4,232) | 3,460 | 365 |
Income tax benefit (expense) | 1,152 | (1,718) | (145) |
Unrealized gains (losses) on interest rate cap contracts, net of related taxes | $ (3,080) | $ 1,742 | $ 220 |
Reclassification of Losses from
Reclassification of Losses from Accumulated Other Comprehensive Loss into Earnings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||||||
Interest expense | $ (55,990) | $ (58,777) | $ (56,161) | ||||||||||||||||
Income tax expense | (92,839) | (44,128) | (117,339) | ||||||||||||||||
Net income | $ 184,351 | $ 76,849 | $ 70,957 | $ 82,588 | $ 240,703 | $ 44,879 | $ 46,902 | $ 52,368 | 414,745 | 384,852 | 215,873 | ||||||||
Reclassification out of accumulated other comprehensive income | Derivatives Designated as Hedging Instruments | Accumulated net gain (loss) from cash flow hedges including portion attributable to noncontrolling interest | Interest rate cap | |||||||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||||||||||
Interest expense | 1,872 | 5,931 | 2,622 | ||||||||||||||||
Income tax expense | (518) | (2,369) | (1,041) | ||||||||||||||||
Net income | $ 1,354 | $ 3,562 | $ 1,581 | ||||||||||||||||
[1] | The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 86,774 | $ (49,812) |
Balance at end of period | 322,710 | 86,774 |
Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (1,887) | (7,191) |
Unrealized gains (losses), net of related taxes of $1.2 million for Fiscal 2018 and $1.4 million for Fiscal 2017 | (3,080) | 1,742 |
Amount reclassified into earnings, net of related taxes of $0.5 million for Fiscal 2018 and $2.4 million for Fiscal 2017 | 1,354 | 3,562 |
Balance at end of period | $ (3,613) | $ (1,887) |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - Derivative Instruments - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Unrealized gains (losses) on Interest Rate Cap Contracts, Tax | $ 1.2 | $ 1.4 |
Amount reclassified into earnings on Interest Rate Cap Contracts, Tax | $ 0.5 | $ 2.4 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Aug. 15, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Aug. 16, 2017 |
Statement Equity Components [Line Items] | |||||
Common Stock, Authorized | 500,000,000 | 500,000,000 | |||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 | |||
Undesignated preferred stock, Authorized | 50,000,000 | 50,000,000 | |||
Undesignated preferred stock, Par Value | $ 0.0001 | $ 0.0001 | |||
Preferred Stock, Issued | 0 | 0 | |||
Preferred Stock, Outstanding | 0 | 0 | |||
Shares Used for Tax Withholdings | $ 10,127,000 | $ 7,307,000 | $ 2,371,000 | ||
2018 Stock Repurchase Program | |||||
Statement Equity Components [Line Items] | |||||
Stock repurchase program, authorized amount | $ 300,000,000 | $ 300,000,000 | |||
Stock repurchase program, authorized execution month and year | 2020-08 | ||||
Common stock repurchased, shares | 1,459,861 | ||||
Common stock repurchased, value | $ 218,700,000 | ||||
Remaining authorized repurchase amount | $ 298,400,000 | ||||
Treasury Stock | |||||
Statement Equity Components [Line Items] | |||||
Shares Used for Tax Withholdings (in shares) | 69,489 | ||||
Shares Used for Tax Withholdings | $ 10,100,000 |
Computation of Basic and Dilute
Computation of Basic and Diluted per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 02, 2019 | [1],[2] | Nov. 03, 2018 | [1],[2] | Aug. 04, 2018 | [1],[2] | May 05, 2018 | [1],[2] | Feb. 03, 2018 | [1],[2] | Oct. 28, 2017 | [1],[2] | Jul. 29, 2017 | [1],[2] | Apr. 29, 2017 | [1],[2] | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Basic net income per share | |||||||||||||||||||
Net income | $ 414,745 | $ 384,852 | $ 215,873 | ||||||||||||||||
Weighted average number of common shares – basic | 66,812 | 68,286 | 70,480 | ||||||||||||||||
Net income per common share – basic | $ 2.77 | $ 1.15 | $ 1.06 | $ 1.23 | $ 3.58 | $ 0.66 | $ 0.68 | $ 0.76 | $ 6.21 | $ 5.64 | $ 3.06 | ||||||||
Diluted net income per share | |||||||||||||||||||
Net income | $ 414,745 | $ 384,852 | $ 215,873 | ||||||||||||||||
Weighted average number of common shares – basic | 66,812 | 68,286 | 70,480 | ||||||||||||||||
Assumed exercise of stock options and vesting of restricted stock | 1,867 | 2,002 | 1,241 | ||||||||||||||||
Weighted average number of common shares – diluted | 68,679 | 70,288 | 71,721 | ||||||||||||||||
Net income per common share – diluted | $ 2.70 | $ 1.12 | $ 1.03 | $ 1.20 | $ 3.47 | $ 0.65 | $ 0.66 | $ 0.73 | $ 6.04 | $ 5.48 | $ 3.01 | ||||||||
[1] | Quarterly net income per share results may not equal full year amounts due to rounding. | ||||||||||||||||||
[2] | The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from diluted net income per share | 425,000 | 150,000 | |
Maximum | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from diluted net income per share | 100,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Incremental compensation expense from modification | $ 0 | $ 0.1 | $ 0.6 |
Stock option modification payable | $ 0.1 | ||
Options outstanding | 2,337,316 | 2,579,831 | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option modification payable | $ 0.1 | ||
Stock Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding | 2,337,316 | ||
Unearned non-cash stock-based option compensation | $ 35.5 | ||
Unearned non-cash stock-based compensation expected to recognize as expense over period | 2 years 6 months | ||
Service-based awards, service period | The awards are expensed on a straight-line basis over the requisite service period. | ||
Restricted Stock Issuances | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards granted subsequent to offering vesting percentage on each of the first four anniversaries of the grant date | 100.00% | ||
Unearned non-cash stock-based option compensation | $ 33.8 | ||
Unearned non-cash stock-based compensation expected to recognize as expense over period | 2 years 3 months 18 days | ||
Restricted stock, outstanding | 220,000 | ||
Percentage of shares vested if change in control | 100.00% | ||
Restricted Stock Issuances | Board of Directors | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service-based awards, vesting period | 3 years | ||
Restricted Stock Issuances | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service-based awards, service period | 5 years | ||
Restricted Stock Issuances | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service-based awards, service period | 3 years | ||
Share Based Compensation Award Tranche One | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards granted subsequent to offering vesting percentage on each of the first four anniversaries of the grant date | 25.00% | 25.00% | 25.00% |
Graded Quarter Vesting | Restricted Stock Issuances | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service-based awards, vesting period | 4 years | ||
2006 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Plan termination date | Apr. 12, 2016 | ||
Unexercised vested options, exercisable period | 60 days | ||
2006 Plan | One Time Grant | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Service-based awards, vesting period | 2 years | ||
2013 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares available for grant equity awards | 4,228,635 |
Exercise Price of Service-Based
Exercise Price of Service-Based Stock Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options granted, exercise price lower range | $ 113.80 | $ 80.91 | $ 54.11 |
Options granted, exercise price upper range | $ 172.40 | $ 110.50 | $ 83.83 |
Non-Cash Stock Compensation Exp
Non-Cash Stock Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Non-Cash Stock Compensation | [1] | $ 35,485 | $ 27,034 | $ 15,953 |
Restricted Stock Grants | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Non-Cash Stock Compensation | [2] | 18,967 | 15,864 | 8,816 |
Stock Option Grants | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Non-Cash Stock Compensation | [2] | $ 16,518 | 11,039 | 6,636 |
Stock Option Modification | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Non-Cash Stock Compensation | [3] | $ 131 | $ 501 | |
[1] | The amounts presented in the table above exclude the effect of income taxes. The tax benefit related to the Company’s non-cash stock compensation was $9.7 million, $2.8 million and $5.6 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. | |||
[2] | Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. | |||
[3] | Represents non-cash compensation related to the May 2013 stock option modification as discussed above. Amounts are included in the line item “Stock option modification expense” in the Company’s Consolidated Statements of Income. |
Non-Cash Stock Compensation E_2
Non-Cash Stock Compensation Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Non-Cash Stock Compensation tax benefit | $ 9.7 | $ 2.8 | $ 5.6 |
Stock Option Transactions (Deta
Stock Option Transactions (Detail) | 12 Months Ended | |
Feb. 02, 2019$ / sharesshares | ||
Number of Shares | ||
Options Outstanding at Beginning of Period | shares | 2,579,831 | |
Options Granted | shares | 507,456 | |
Options Exercised | shares | (684,011) | [1] |
Options Forfeited | shares | (65,960) | |
Options Outstanding at End of Period | shares | 2,337,316 | |
Weighted Average Exercise Price Per Share | ||
Options Outstanding at Beginning of Period | $ / shares | $ 39.79 | |
Options Granted | $ / shares | 135.71 | |
Options Exercised | $ / shares | 23.84 | [1] |
Options Forfeited | $ / shares | 68.27 | |
Options Outstanding at End of Period | $ / shares | $ 64.48 | |
[1] | Options exercised during Fiscal 2018 had a total intrinsic value of $87.8 million. |
Stock Option Transactions (Pare
Stock Option Transactions (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share based compensation option exercised total intrinsic value | $ 87.8 |
Information about Options to Pu
Information about Options to Purchase Shares (Detail) - $ / shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted, exercise price lower range | $ 113.80 | $ 80.91 | $ 54.11 |
Options granted, exercise price upper range | 172.40 | $ 110.50 | $ 83.83 |
Options, Exercise price, average | $ 135.71 | ||
Options Outstanding, Number Outstanding | 2,337,316 | 2,579,831 | |
Options Exercisable, Number Exercisable | 683,777 | ||
Exercise prices $0.79 - $5.02 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted, exercise price lower range | $ 0.79 | ||
Options granted, exercise price upper range | $ 5.02 | ||
Options Outstanding, Number Outstanding | 744,871 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 2 months 12 days | ||
Options Exercisable, Number Exercisable | 315,871 | ||
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 4 years | ||
Exercise price $26.96 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options, Exercise price, average | $ 26.96 | ||
Options Outstanding, Number Outstanding | 1,592,445 | ||
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years | ||
Options Exercisable, Number Exercisable | 367,906 | ||
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 7 years |
Stock Options Vested and Expect
Stock Options Vested and Expected to Vest (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Vested and expected to vest, Options | shares | 2,337,316 |
Vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 6 years 9 months 18 days |
Vested and expected to vest, Weighted Average Exercise Price | $ / shares | $ 64.48 |
Vested and expected to vest, Aggregate Intrinsic Value | $ | $ 251 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Estimate Fair Value of Stock Option (Detail) | 12 Months Ended |
Feb. 02, 2019$ / shares | |
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |
Risk-free interest rate, minimum | 2.13% |
Risk-free interest rate, maximum | 3.00% |
Expected volatility, minimum | 32.00% |
Expected volatility, maximum | 34.00% |
Contractual life (years) | 10 years |
Expected dividend yield | 0.00% |
Weighted average grant date fair value of options issued | $ 50.80 |
Minimum | |
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |
Expected life (years) | 5 years 11 months 1 day |
Maximum | |
Share Based Compensation Arrangement Assumptions Used To Estimate Fair Values Of Share Options Granted [Line Items] | |
Expected life (years) | 6 years 3 months |
Award Grant, Vested and Forfeit
Award Grant, Vested and Forfeiture Transactions (Detail) - Non Vested Restricted Stock | 12 Months Ended | |
Feb. 02, 2019$ / sharesshares | ||
Number of Shares | ||
Non-Vested Awards Outstanding at Beginning of Period | shares | 748,894 | |
Awards Granted | shares | 144,215 | |
Awards Vested | shares | (200,763) | [1] |
Awards Forfeited | shares | (25,504) | |
Non-Vested Awards Outstanding at End of Period | shares | 666,842 | |
Weighted Average Grant Date Fair Value Per Awards | ||
Non-Vested Awards Outstanding at Beginning of Period | $ / shares | $ 66.99 | |
Awards Granted | $ / shares | 136.30 | |
Awards Vested | $ / shares | 64.13 | [1] |
Awards Forfeited | $ / shares | 90.81 | |
Non-Vested Awards Outstanding at End of Period | $ / shares | $ 81.93 | |
[1] | Restricted stock awards vested during Fiscal 2018 had a total intrinsic value of $28.9 million. |
Award Grant, Vested and Forfe_2
Award Grant, Vested and Forfeiture Transactions (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Restricted Stock Issuances | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share based compensation awards vested total intrinsic value | $ 28.9 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Leases [Abstract] | |
Operating and capital leases, expiration period | 30 years |
Future minimum sublease rental income | $ 25.1 |
Future Minimum Lease Payments (
Future Minimum Lease Payments (Detail) $ in Thousands | Feb. 02, 2019USD ($) | |
Operating Leases | ||
2019 | $ 383,877 | [1] |
2020 | 405,370 | [1] |
2021 | 387,140 | [1] |
2022 | 369,068 | [1] |
2023 | 346,175 | [1] |
Thereafter | 1,475,301 | [1] |
Total minimum lease payments | 3,366,931 | [1] |
Capital Leases | ||
2019 | 5,414 | |
2020 | 5,120 | |
2021 | 5,597 | |
2022 | 5,725 | |
2023 | 6,291 | |
Thereafter | 15,849 | |
Total minimum lease payments | 43,996 | |
Amount representing interest | (11,290) | |
Total future minimum lease payments | $ 32,706 | |
[1] | Total future minimum lease payments include $278.9 million related to options to extend lease terms that are reasonably assured of being exercised and $622.4 million of minimum lease payments for 76 stores that the Company has committed to open or relocate. |
Future Minimum Lease Payments_2
Future Minimum Lease Payments (Parenthetical) (Detail) $ in Thousands | Feb. 02, 2019USD ($)Store | |
Future Minimum Payments Receivable [Line Items] | ||
Minimum lease payments | $ 3,366,931 | [1] |
Other Capitalized Property Plant and Equipment | ||
Future Minimum Payments Receivable [Line Items] | ||
Number of stores committed to be opened | Store | 76 | |
Options to Extend Lease Terms | ||
Future Minimum Payments Receivable [Line Items] | ||
Minimum lease payments | $ 278,900 | |
New Stores | Other Capitalized Property Plant and Equipment | ||
Future Minimum Payments Receivable [Line Items] | ||
Minimum lease payments | $ 622,400 | |
[1] | Total future minimum lease payments include $278.9 million related to options to extend lease terms that are reasonably assured of being exercised and $622.4 million of minimum lease payments for 76 stores that the Company has committed to open or relocate. |
Net Rent Expense (Detail)
Net Rent Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Rent expense: | ||||
Minimum rental payments | $ 364,637 | $ 340,979 | $ 310,332 | |
Contingent rental payments | 6,047 | 4,734 | 4,424 | |
Straight-line rent expense | 8,469 | 7,543 | 2,172 | |
Lease incentives amortization | (34,827) | (32,618) | (32,112) | |
Amortization of purchased lease rights | 844 | 499 | 680 | |
Total rent expense(a) | [1] | 345,170 | 321,137 | 285,496 |
Less all rental income(b) | [2] | (6,164) | (6,846) | (7,167) |
Total net rent expense | $ 339,006 | $ 314,291 | $ 278,329 | |
[1] | Included in the line item “Selling, general and administrative expenses” in the Company’s Consolidated Statements of Income. | |||
[2] | Included in the line item “Other revenue” in the Company’s Consolidated Statements of Income. |
Employee Retirement Plans - Add
Employee Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
401(k) Plan Match Expense | $ 9.3 | $ 8.4 | $ 7.4 |
Earnings Before Income Taxes (D
Earnings Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 503,290 | $ 429,939 | $ 330,106 |
Foreign | 4,294 | (959) | 3,106 |
Total income before income taxes | $ 507,584 | $ 428,980 | $ 333,212 |
Income Tax Expense (Detail)
Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||
Federal | $ 69,007 | $ 65,824 | $ 104,934 |
State | 19,642 | 8,824 | 14,957 |
Foreign | 1,671 | 207 | 367 |
Subtotal | 90,320 | 74,855 | 120,258 |
Deferred: | |||
Federal | 8,337 | (40,839) | 1,655 |
State | (8,409) | 9,091 | 3,399 |
Foreign | 2,591 | 1,021 | (7,973) |
Subtotal | 2,519 | (30,727) | (2,919) |
Total Income Tax Expense | $ 92,839 | $ 44,128 | $ 117,339 |
Tax Rate Reconciliations (Detai
Tax Rate Reconciliations (Detail) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21.00% | 33.70% | 35.00% |
State income taxes, net of federal | 4.20% | 3.00% | 3.00% |
Excess tax benefit from stock compensation | (5.20%) | (4.40%) | |
Tax credits | (1.20%) | (1.40%) | (1.70%) |
Impact of federal tax reform | (21.10%) | ||
Other | (0.50%) | 0.50% | (1.10%) |
Effective tax rate | 18.30% | 10.30% | 35.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Line Items] | |||
Statutory corporate income tax rate | 21.00% | 33.70% | 35.00% |
Deferred tax asset for net operating loss | $ 12,290 | $ 12,760 | |
Tax credit carryforwards | 2,500 | 2,400 | |
Valuation allowances | 5,900 | 8,400 | |
Unrecognized benefits | 8,900 | 9,100 | |
Unrecognized benefits, affect effective tax rate | 7,100 | 7,200 | |
Unrecognized benefits, interest and penalties | 200 | 100 | |
Unrecognized benefits, interest and penalties | $ 12,300 | 12,100 | |
Earliest Tax Year | IRS | |||
Income Tax Disclosure [Line Items] | |||
Income tax year open to examination | 2015 | ||
Latest Tax Year | IRS | |||
Income Tax Disclosure [Line Items] | |||
Income tax year open to examination | 2018 | ||
State and local jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax asset for net operating loss | $ 10,400 | 10,800 | |
Tax credit expiration period | 2022 | ||
Tax credit carryforwards | $ 4,500 | 3,500 | |
Valuation allowances | 6,000 | ||
Puerto Rico | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax asset for net operating loss | 1,900 | 2,000 | |
Tax credit carryforwards | 6,100 | 5,100 | |
Amount of alternative minimum tax credits | $ 1,600 | $ 1,600 | |
Alternative minimum tax credits, expiration life | indefinite life | ||
Tax credit carryforward, full valuation allowance | $ 1,900 | ||
State and Puerto Rico | Earliest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Income tax year open to examination | 2013 | ||
State and Puerto Rico | Latest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Income tax year open to examination | 2018 | ||
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Statutory corporate income tax rate | 35.00% | ||
Maximum | State and local jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Net operating losses subject to expiration year | 2038 | ||
Minimum | State and local jurisdiction | |||
Income Tax Disclosure [Line Items] | |||
Net operating losses subject to expiration year | 2019 | ||
Minimum | Puerto Rico | |||
Income Tax Disclosure [Line Items] | |||
Net operating losses subject to expiration year | 2025 |
Tax Effects of Temporary Differ
Tax Effects of Temporary Differences Included in Deferred Tax Accounts (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Non-current deferred tax assets and liabilities: | ||
Deferred rent | $ 19,496 | $ 18,926 |
Intangibles—long-lived | 40,918 | 48,397 |
Intangibles—indefinite-lived | 65,197 | 65,748 |
State net operating losses (net of federal benefit) | 12,290 | 12,760 |
Landlord allowances | 35,907 | 30,057 |
Tax credits | 6,140 | 5,126 |
Valuation allowance | (10,268) | (8,376) |
Total non-current deferred tax assets and liabilities | 81,402 | 74,404 |
Property and equipment basis adjustments | 149,705 | 132,793 |
Total non-current deferred tax assets and liabilities | 255,820 | 246,938 |
Net deferred tax liability | 174,418 | 172,534 |
Deferred Tax Assets Noncurrent | ||
Non-current deferred tax assets and liabilities: | ||
Employee benefit compensation | 15,186 | 13,071 |
Other | $ 2,651 | $ 2,840 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Tax Disclosure [Abstract] | |||
Ending balance at beginning of period | $ 9,073 | $ 9,193 | $ 10,578 |
Additions for tax positions of the current year | 18 | 72 | 117 |
Additions for tax positions of prior years | 698 | 882 | |
Reduction for tax positions of prior years | (782) | (973) | (1,270) |
Lapse of statute of limitations | (80) | (101) | (232) |
Ending balance at beginning of period | $ 8,927 | $ 9,073 | $ 9,193 |
Fair Values of Financial Assets
Fair Values of Financial Assets and Hierarchy of Level of Inputs (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Fair Value, Inputs, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents (including restricted cash) | $ 22,416 | $ 28,283 |
Fair Values of Financial Liabil
Fair Values of Financial Liabilities (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | ||
Long-Term Debt, Carrying Amount | $ 956,693 | $ 1,108,913 |
Long-Term Debt, Fair Value | 947,126 | 1,108,913 |
Term B-5 Loans | ||
Carrying Amounts And Fair Values Of Financial Instruments [Line Items] | ||
Long-Term Debt, Carrying Amount | 956,693 | 1,108,913 |
Long-Term Debt, Fair Value | $ 947,126 | $ 1,108,913 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 | Nov. 30, 2005 |
Commitments And Contingencies Disclosure [Line Items] | |||
Letters of credit, outstanding amount | $ 56.7 | $ 60 | |
Purchase commitments related to goods or services | 928.1 | ||
Death benefits | $ 1 | ||
Guarantee Performance Under Insurance And Utility Agreement | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Letters of credit, outstanding amount | 48.9 | 51.9 | |
Merchandising Agreement | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Letters of credit, outstanding amount | 7.8 | 8.1 | |
Letter of Credit | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Letters of credit, outstanding amount | $ 543.3 | $ 455.8 |
Quarterly Result (Detail)
Quarterly Result (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Net sales | $ 1,991,483 | [1] | $ 1,634,489 | [1] | $ 1,498,633 | [1] | $ 1,518,446 | [1] | $ 1,936,829 | [1] | $ 1,438,167 | [1] | $ 1,363,224 | [1] | $ 1,346,546 | [1] | $ 6,643,051 | $ 6,084,766 | $ 5,566,038 | |
Type of Revenue [Extensible List] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | [1] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | |
Gross margin | [1],[2] | $ 835,529 | [3] | $ 692,480 | [3] | $ 621,159 | [3] | $ 625,764 | [3] | $ 813,921 | $ 606,439 | $ 555,098 | $ 550,150 | |||||||
Net income | $ 184,351 | [1] | $ 76,849 | [1] | $ 70,957 | [1] | $ 82,588 | [1] | $ 240,703 | [1] | $ 44,879 | [1] | $ 46,902 | [1] | $ 52,368 | [1] | $ 414,745 | $ 384,852 | $ 215,873 | |
Net income per share—basic | ||||||||||||||||||||
Common stockholders | $ 2.77 | [1],[4] | $ 1.15 | [1],[4] | $ 1.06 | [1],[4] | $ 1.23 | [1],[4] | $ 3.58 | [1],[4] | $ 0.66 | [1],[4] | $ 0.68 | [1],[4] | $ 0.76 | [1],[4] | $ 6.21 | $ 5.64 | $ 3.06 | |
Net income per share—diluted | ||||||||||||||||||||
Common stockholders | $ 2.70 | [1],[4] | $ 1.12 | [1],[4] | $ 1.03 | [1],[4] | $ 1.20 | [1],[4] | $ 3.47 | [1],[4] | $ 0.65 | [1],[4] | $ 0.66 | [1],[4] | $ 0.73 | [1],[4] | $ 6.04 | $ 5.48 | $ 3.01 | |
[1] | The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. | |||||||||||||||||||
[2] | During the quarterly periods ended February 2, 2019 and February 3, 2018, the Company recorded shortage adjustments of $1.9 million and $1.7 million, respectively, as a result of actual shortage being less than what the Company had estimated throughout the year. | |||||||||||||||||||
[3] | Gross margin is equal to net sales less cost of sales. | |||||||||||||||||||
[4] | Quarterly net income per share results may not equal full year amounts due to rounding. |
Quarterly Result (Parenthetical
Quarterly Result (Parenthetical) (Detail) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Quarterly Financial Information Disclosure [Abstract] | ||
Inventory shortage adjustment | $ 1.9 | $ 1.7 |
Balance Sheets (Detail)
Balance Sheets (Detail) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 |
ASSETS: | ||||
Current assets | $ 1,271,900 | $ 1,100,433 | ||
Total assets | 3,079,172 | 2,812,829 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | 1,247,742 | 1,119,631 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 322,710 | 86,774 | $ (49,812) | $ (99,022) |
Total liabilities and stockholders’ equity | 3,079,172 | 2,812,829 | ||
Parent Company | ||||
ASSETS: | ||||
Current assets | 38 | 144 | ||
Investment in subsidiaries | 322,672 | 86,630 | ||
Total assets | 322,710 | 86,774 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities | 0 | 0 | ||
Negative investment in subsidiaries | 0 | 0 | ||
Commitments and contingencies | ||||
Total stockholders' equity | 322,710 | 86,774 | ||
Total liabilities and stockholders’ equity | $ 322,710 | $ 86,774 |
Statements of Income (Detail)
Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 02, 2019 | [1] | Nov. 03, 2018 | [1] | Aug. 04, 2018 | [1] | May 05, 2018 | [1] | Feb. 03, 2018 | [1] | Oct. 28, 2017 | [1] | Jul. 29, 2017 | [1] | Apr. 29, 2017 | [1] | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
REVENUES: | |||||||||||||||||||
Total revenue | $ 6,668,479 | $ 6,110,043 | $ 5,590,950 | ||||||||||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Total costs and expenses | 6,160,895 | 5,681,063 | 5,257,738 | ||||||||||||||||
Total income before income taxes | 507,584 | 428,980 | 333,212 | ||||||||||||||||
Provision for income tax | 92,839 | 44,128 | 117,339 | ||||||||||||||||
Net income | $ 184,351 | $ 76,849 | $ 70,957 | $ 82,588 | $ 240,703 | $ 44,879 | $ 46,902 | $ 52,368 | 414,745 | 384,852 | 215,873 | ||||||||
Total comprehensive income | 413,019 | 390,156 | 217,674 | ||||||||||||||||
Parent Company | |||||||||||||||||||
REVENUES: | |||||||||||||||||||
Total revenue | 0 | 0 | 0 | ||||||||||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Income from equity investment | 0 | 0 | 0 | ||||||||||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||||||||||
Total income before income taxes | 0 | 0 | 0 | ||||||||||||||||
Provision for income tax | 0 | 0 | 0 | ||||||||||||||||
Earnings from equity investment, net of income taxes | 414,745 | 384,852 | 215,873 | ||||||||||||||||
Net income | 414,745 | 384,852 | 215,873 | ||||||||||||||||
Total comprehensive income | $ 414,745 | $ 384,852 | $ 215,873 | ||||||||||||||||
[1] | The fiscal quarter ended February 3, 2018 consisted of 14 weeks. All other fiscal quarters presented consisted of 13 weeks. |
Statements of Cash Flows (Detai
Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
OPERATING ACTIVITIES: | |||
Net cash provided by operations | $ 639,653 | $ 607,250 | $ 615,916 |
INVESTING ACTIVITIES: | |||
Net cash (used in) investing activities | (298,508) | (262,208) | (180,351) |
FINANCING ACTIVITIES: | |||
Purchase of treasury shares | (228,874) | (289,777) | (202,371) |
Proceeds from stock option exercises | 16,306 | 9,173 | 4,484 |
Net cash (used in) financing activities | (368,075) | (293,353) | (374,883) |
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (26,930) | 51,689 | 60,682 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 161,086 | 109,397 | 48,715 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 134,156 | 161,086 | 109,397 |
Parent Company | |||
OPERATING ACTIVITIES: | |||
Net cash provided by operations | 0 | 0 | 0 |
INVESTING ACTIVITIES: | |||
Receipt of dividends | 0 | 0 | 0 |
Net cash (used in) investing activities | 0 | 0 | 0 |
FINANCING ACTIVITIES: | |||
Purchase of treasury shares | (228,874) | (289,777) | (202,371) |
Intercompany financing transactions | 212,462 | 280,701 | 197,910 |
Proceeds from stock option exercises | 16,306 | 9,173 | 4,484 |
Net cash (used in) financing activities | (106) | 97 | 23 |
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (106) | 97 | 23 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 144 | 47 | 24 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 38 | $ 144 | $ 47 |
Condensed Financial Information
Condensed Financial Information Registrant - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 13, 2014 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Condensed Financial Statements Captions [Line Items] | |||||
Non-cash stock compensation expense | [1] | $ 35,485 | $ 27,034 | $ 15,953 | |
Parent Company | |||||
Condensed Financial Statements Captions [Line Items] | |||||
Line of Credit Facility, maximum consolidated leverage ratio | 350.00% | ||||
Non-cash stock compensation expense | $ 35,500 | $ 27,000 | $ 16,000 | ||
[1] | The amounts presented in the table above exclude the effect of income taxes. The tax benefit related to the Company’s non-cash stock compensation was $9.7 million, $2.8 million and $5.6 million during Fiscal 2018, Fiscal 2017 and Fiscal 2016, respectively. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | ||
Allowance for Doubtful Accounts | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 99 | $ 262 | $ 272 | |
Charged to Costs & Expenses | 122 | 411 | 508 | |
Accounts Written Off or Deductions | [1] | 143 | 574 | 518 |
Balance at End of Period | 78 | 99 | 262 | |
Sales Reserves | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | [2] | 3,768 | 3,419 | 3,264 |
Charged to Costs & Expenses | [2] | (19) | (524) | (230) |
Charged to Other Accounts | [2],[3] | 359,711 | 335,675 | 318,214 |
Accounts Written Off or Deductions | [1],[2] | 354,009 | 334,802 | 317,829 |
Balance at End of Period | [2] | 9,451 | 3,768 | 3,419 |
Valuation allowances on deferred tax assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 8,376 | 7,388 | 12,858 | |
Charged to Other Accounts | [3] | 1,892 | 988 | (5,470) |
Balance at End of Period | $ 10,268 | $ 8,376 | $ 7,388 | |
[1] | Actual returns and allowances. | |||
[2] | During Fiscal 2018, the Company adopted Accounting Standard Update (ASU) 2014-09, “Revenue from Contracts with Customers,” which requires the Company’s sales return reserve to be established at the gross sales value with an asset established for the value of the expected merchandise returned. The liability and asset related to the sales return reserve as of February 2, 2019 were $9.5 million and $5.7 million, respectively, and were included in the lines “Other current liabilities” and “Prepaid and other current assets,” respectively, on the Company’s Consolidated Balance Sheet. Prior period amounts have not been adjusted. As of February 3, 2018, the net sales return reserve was $3.8 million and was included in the line “Other current liabilities” on the Company’s Consolidated Balance Sheet. | |||
[3] | Amounts related to sales reserves are charged to net sales and cost of sales, and amounts related to valuation allowances on deferred taxes are charged to income tax expense. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Parenthetical) (Detail) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Other Current Liabilities | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Sales return reserve | $ 9.5 | $ 3.8 |
Prepaid and Other Current Assets | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Merchandise return asset | $ 5.7 |