Michaels Companies 10-Q 9 Dec 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Nov. 01, 2014	Dec. 02, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Michaels Companies, Inc.	'
Entity Central Index Key	'0001593936	'
Document Type	'10-Q	'
Document Period End Date	1-Nov-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--01-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	204,287,023
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
In Millions, except Per Share data, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME	'	'	'	'
Net sales	$1,130	$1,118	$3,130	$3,015
Cost of sales and occupancy expense	678	665	1,892	1,816
Gross profit	452	453	1,238	1,199
Selling, general, and administrative	304	309	856	835
Share-based compensation	4	4	10	15
Related party expenses	0	3	35	10
Store pre-opening costs	2	2	4	5
Operating income	142	135	333	334
Interest expense	41	62	159	154
Loss on early extinguishment of debt and refinancing costs	'	'	68	7
Other expense, net	1	'	1	1
Income before income taxes	100	73	105	172
Provision for income taxes	36	26	44	62
Net income	64	47	61	110
Other comprehensive income, net of tax:	'	'	'	'
Foreign currency translation adjustment and other	-3	'	-2	-2
Comprehensive income	$61	$47	$59	$108
Earnings per share:	'	'	'	'
Basic (in dollars per share)	$0.31	$0.27	$0.32	$0.63
Diluted (in dollars per share)	$0.31	$0.26	$0.32	$0.62
Basic (in shares)	203	175	188	175
Diluted (in shares)	207	179	192	179

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013
In Millions, unless otherwise specified
Current assets:	'	'	'
Cash and equivalents	$194	$239	$73
Merchandise inventories	1,116	901	1,119
Prepaid expenses and other	99	95	99
Deferred income taxes	37	39	38
Income tax receivables	42	2	20
Total current assets	1,488	1,276	1,349
Property and equipment, at cost	1,546	1,600	1,570
Less accumulated depreciation and amortization	-1,169	-1,242	-1,217
Property and equipment, net	377	358	353
Goodwill	94	94	94
Debt issuance costs, net	46	52	53
Deferred income taxes	24	28	29
Other assets	1	3	2
Total assets	2,030	1,811	1,880
Current liabilities:	'	'	'
Accounts payable	504	368	467
Accrued liabilities and other	369	411	361
Share-based compensation liability	'	'	21
Current portion of long-term debt	205	16	203
Deferred income taxes	'	1	4
Income taxes payable	1	30	'
Total current liabilities	1,079	826	1,056
Long-term debt	3,131	3,678	3,678
Deferred income taxes	1	2	2
Share-based compensation liability	'	'	28
Other liabilities	88	87	86
Total liabilities	4,299	4,593	4,850
Commitments and contingencies	'	'	'
Commitments and contingencies Stockholders' deficit:	'	'	'
Common stock, $0.06775 par value, 350 million shares authorized; 204 million shares issued and outstanding at November 1, 2014, 175 million shares issued and outstanding at February 1, 2014, and 175 million shares issued and outstanding at November 2, 2013	14	12	12
Additional paid-in capital	549	94	32
Accumulated deficit	-2,830	-2,888	-3,018
Accumulated other comprehensive (loss) income	-2	'	4
Total stockholders' deficit	-2,269	-2,782	-2,970
Total liabilities and stockholders' deficit	$2,030	$1,811	$1,880

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013
In Millions, except Per Share data, unless otherwise specified
CONSOLIDATED BALANCE SHEETS	'	'	'
Common Stock, par value (in dollars per share)	$0.07	$0.07	$0.07
Common Stock, shares authorized	350	350	350
Common Stock, shares issued	204	175	175
Common Stock, shares outstanding	204	175	175

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013
Cash flows from operating activities:	'	'
Net income	$61	$110
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	82	74
Share-based compensation	15	19
Debt issuance costs amortization	8	7
Accretion of long-term debt	'	-1
Losses on early extinguishment of debt and refinancing costs	68	7
Changes in operating assets and liabilities:	'	'
Merchandise inventories	-217	-254
Prepaid expenses and other	-4	-14
Deferred income taxes	5	'
Other assets	-2	'
Accounts payable	138	211
Accrued interest	-31	-12
Accrued liabilities and other	-17	-21
Income taxes	-70	-55
Other long-term liabilities	'	-2
Net cash provided by Operating Activities	36	69
Cash flows used in investing activities:	'	'
Additions to property and equipment	-103	-82
Cash flows from financing activities:	'	'
Issuance of senior subordinated notes due 2020	255	'
Payments of subordinated discount notes due 2016	'	-142
Payment of senior notes due 2018	-1,000	'
Redemption premium on senior notes due 2018	-57	'
Payment of PIK notes due 2018	-439	'
Redemption premium on PIK notes due 2018	-4	'
Issuance of PIK notes due 2018	'	800
Issuance of common stock	446	'
Borrowings on senior secured term loan facility	846	'
Payments on senior secured term loan facility	-14	-8
Borrowings on asset-based revolving credit facility	23	389
Payments on asset-based revolving credit facility	-23	-203
Payment of debt issuance costs	-11	-16
Payments of dividends	-1	-767
Change in cash overdraft	4	-9
Payment to option holders	'	-14
Other financing activities	-3	'
Net cash provided by financing activities	22	30
Net change in cash and equivalents	-45	17
Cash and equivalents at beginning of period	239	56
Cash and equivalents at end of period	194	73
Supplemental cash flow information:	'	'
Cash paid for interest	183	160
Cash paid for income taxes	$107	$115

Basis_of_Presentation

Basis of Presentation	9 Months Ended
	Nov. 01, 2014
BASIS OF PRESENTATION	'
Summary of Significant Accounting Policies	'
	1.  BASIS OF PRESENTATION
	The consolidated financial statements include the accounts of The Michaels Companies, Inc. and our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. All expressions of the “Company”, “us,” “we,” “our,” and all similar expressions are references to The Michaels Companies, Inc. and our consolidated, wholly-owned subsidiaries, unless otherwise expressly stated or the context otherwise requires. Disclosures for Michaels Stores, Inc. (“MSI”) have been included to meet the disclosure requirements of Rule 12-04 of Regulation S-X as further discussed in Note 10.
	In July 2013, the Company’s corporate structure was reorganized into a holding company structure (the “Reorganization”). The Michaels Companies, Inc. (“Parent”), Michaels FinCo Holdings, LLC (“FinCo Holdings”), Michaels FinCo, Inc. (“FinCo Inc.”) and Michaels Funding, Inc. (“Holdings”) and Michaels Stores MergerCo, Inc. (“MergerCo”) were formed in connection with the Reorganization and MergerCo was merged with and into MSI, with MSI being the surviving corporation.
	The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the audited consolidated financial statements and accompanying footnotes included in our prospectus filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on June 27, 2014 (“Prospectus”). In the opinion of management, all adjustments (consisting of normal recurring accruals and other items) considered necessary for a fair presentation have been included.
	We report on the basis of a 52- or 53-week fiscal year, which ends on the Saturday closest to January 31. All references herein to “fiscal 2014” relate to the 52 weeks ending January 31, 2015 and all references to “fiscal 2013” relate to the 52 weeks ended February 1, 2014. In addition, all references herein to “the third quarter of fiscal 2014” relate to the 13 weeks ended November 1, 2014, and all references to “the third quarter of fiscal 2013” relate to the 13 weeks ended November 2, 2013. Finally, all references to “the nine months ended November 1, 2014” relate to the 39 weeks ended November 1, 2014, and the “the nine months ended November 2, 2013” relate to the 39 weeks ended November 2, 2013.  Because of the seasonal nature of our business, the results of operations for the 13 and 39 weeks ended November 1, 2014 are not indicative of the results to be expected for the entire year.
	Stock Split
	On June 6, 2014, our stockholders approved a common stock split in the ratio of 1.476 to 1.00. All share and related option information presented in these financial statements and accompanying footnotes has been retroactively adjusted to reflect the increased number of shares resulting from this action.
	Initial Public Offering
	On July 2, 2014, the Company completed an initial public offering (“IPO”) in which we issued and sold 27.8 million shares of common stock at a public offering price of $17.00 per share.  After deducting for underwriting fees, the net proceeds of $446 million were used to redeem $439 million of our then outstanding 7.50%/8.25% Senior PIK Toggle Notes which were due in 2018 (‘‘PIK Notes’’) and to pay other expenses of the offering.
	Preferred Shares
	During the second quarter of fiscal 2014, the Board of Directors authorized 50 million shares of preferred stock. No preferred shares have been issued as of November 1, 2014.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”).  ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted.  We are evaluating the new standard, but do not anticipate a material impact to the financial statements once implemented.

Earnings_per_Share

Earnings per Share	9 Months Ended
	Nov. 01, 2014
EARNINGS PER SHARE	'
EARNINGS PER SHARE	'
	2.  EARNINGS PER SHARE
	Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing income available to common stockholders by the weighted average shares outstanding plus dilutive potential shares from the exercise of stock options and restricted shares. Common equivalent shares are excluded from the computation if their effect is anti-dilutive.  There were no material anti-dilutive shares during the periods presented.
	The following table presents a reconciliation of the diluted weighted average shares (in millions):
		13 Weeks Ended		39 Weeks Ended
		November 1,	November 2,	November 1,	November 2,
		2014	2013	2014	2013
	Basic weighted average shares	203	175	188	175
	Employee stock options	4	4	4	4
	Dilutive weighted average shares	207	179	192	179

Debt

Debt	9 Months Ended
	Nov. 01, 2014
DEBT	'
DEBT	'
	3.  DEBT
	We were in compliance with the terms and conditions of all debt agreements for all periods presented. Our outstanding debt is detailed in the table below (in millions):
			The Michaels Companies, Inc.									Michaels Stores, Inc.
		Interest	November 1,			February 1,			November 2,			November 1,			February 1,			November 2,
		Rate	2014			2014			2013			2014			2014			2013
	Senior secured term loan	Variable	$	2,460		$	1,628		$	1,632		$	2,460		$	1,628		$	1,632
	Senior notes	7.75%	—			1,006			1,007			—			1,006			1,007
	Senior subordinated notes	5.88%	515			260			—			515			260			—
	Senior subordinated notes	11.38%	—			—			255			—			—			255
	Asset-based revolving credit facility	Variable	—			—			187			—			—			187
	PIK notes	7.50% / 8.25%	361			800			800			—			—			—
	Total debt		3,336			3,694			3,881			2,975			2,894			3,081
	Less current portion		(205		)	(16		)	(203		)	(25		)	(16		)	(203		)
	Long-term debt		$	3,131		$	3,678		$	3,678		$	2,950		$	2,878		$	2,878
	Senior Notes, Additional Term Loan and Senior Subordinated Notes
	On June 16, 2014, MSI issued an additional $250 million of our 5.875% Senior Subordinated Notes maturing in 2020 (“2020 Senior Subordinated Notes”) at 102% of face value. On July 2, 2014, MSI also issued an additional $850 million of debt under our existing term loan facility at 99.5% of face value and maturing in 2020 (“Additional Term Loan”).  The net proceeds from these borrowings were used to fully redeem the outstanding 7.75% Senior Notes due 2018 (“Senior Notes”) and to pay the applicable make-whole premium and accrued interest on the Senior Notes.  In accordance with Accounting Standards Codification (“ASC”) 470, Debt (“ASC 470”),  the Company capitalized $19 million of costs related to the issuance of the 2020 Senior Subordinated Notes and the Additional Term Loan. In accordance with ASC 470, we recorded a loss on the early extinguishment of debt of $56 million related to the redemption of the Senior Notes.  The $56 million loss consisted of $51 million of redemption premiums and $10 million to write off related debt issuance costs.  This loss was partially offset by a $5 million write off of unamortized net premiums.
	PIK Toggle Notes
	On July 2, 2014, the Company completed an IPO and received net proceeds totaling $446 million.  The proceeds were used to redeem $439 million of our then outstanding PIK Notes and to pay other expenses of the offering. In accordance with ASC 470, we recorded a loss on the early extinguishment of debt of $12 million related to the redemption of the PIK Notes.  The $12 million loss consisted of a $4 million redemption premium and an $8 million write off of related debt issuance costs.
	On November 10, 2014, an irrevocable notice of redemption was delivered to the holders of the PIK Notes. Pursuant to the notice, $180 million in principal of the PIK Notes will be redeemed on December 10, 2014 and has been classified as current debt in the consolidated balance sheets.  We expect the debt extinguishment costs related to the redemption of the PIK Notes to be approximately $7 million.
	Restated Revolving Credit Facility
	As of November 1, 2014, the borrowing base of our restated senior secured asset-based revolving credit facility (“Restated Revolving Credit Facility”) totaled $650 million, of which we had no outstanding borrowings, $62 million of outstanding letters of credit and $588 million of unused borrowing capacity.
	Debt Issuance Costs
	Accumulated amortization of debt issuance costs was $53 million, $56 million, and $57 million as of November 1, 2014, February 1, 2014, and November 2, 2013, respectively.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Nov. 01, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	'
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	'
	4.  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
	The following table includes detail regarding changes in the composition of accumulated other comprehensive income (loss) (in millions):
		13 Weeks Ended					39 Weeks Ended
		November 1,			November 2,		November 1,			November 2,
		2014			2013		2014			2013
	Beginning of period	1			4		—			6
	Foreign currency translation adjustment and other	(3		)	—		(2		)	(2		)
	End of period	$	(2	)	$	4	$	(2	)	$	4

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Nov. 01, 2014
FAIR VALUE MEASUREMENTS	'
FAIR VALUE MEASUREMENTS	'
	5. FAIR VALUE MEASUREMENTS
	As defined in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  ASC 820 establishes a three-level valuation hierarchy for fair value measurements. These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect less transparent active market data, as well as internal assumptions. These two types of inputs create the following fair value hierarchy:
		·		Level 1 — Quoted prices for identical instruments in active markets;
		·		Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose significant inputs are observable; and
		·		Level 3 — Instruments with significant unobservable inputs.
	The table below provides the carrying and fair values of our senior secured term loan facility (“Restated Term Loan Credit Facility”), our 2020 Senior Subordinated Notes and our PIK Notes. The fair value of our Restated Term Loan Credit Facility was determined based on quoted market prices of similar instruments which are considered Level 2 inputs within the fair value hierarchy. The fair values of our notes were determined based on recent trades which are considered Level 1 inputs within the fair value hierarchy.
			November 1, 2014
			Carrying		Fair
			Value		Value
			(In millions)
	Senior secured term loan		$	2,460	$	2,427
	Senior subordinated notes		515		514
	PIK notes		361		367

Income_Taxes

Income Taxes	9 Months Ended
	Nov. 01, 2014
INCOME TAXES	'
INCOME TAXES	'
	6.  INCOME TAXES
	The effective tax rate was 36.0% and 35.6% for the third quarters of fiscal 2014 and fiscal 2013, respectively.  The increase in the effective tax rate in the third quarter of fiscal 2014 was due primarily to fewer credits under the Work Opportunity Tax Credit program.
	The effective tax rate for the first nine months of fiscal 2014 was 41.9% compared to 36.0% in the same period in the prior year.  The effective tax rate for the first nine months of fiscal 2014 is higher than the prior year primarily due to a change in status of our Canadian subsidiary, which resulted in the write off of certain deferred tax assets.  In addition, the prior year includes state tax credits due to a change in tax law. We currently estimate our annualized effective tax rate for fiscal 2014 to be approximately 39%.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 01, 2014
CONTINGENCIES	'
CONTINGENCIES	'
	7.  CONTINGENCIES
	Rea Claim
	On September 15, 2011, MSI was served with a lawsuit filed in the California Superior Court in and for the County of Orange (“Superior Court”) by four former store managers as a class action proceeding on behalf of themselves and certain former and current store managers employed by MSI in California. The lawsuit alleges that MSI improperly classified its store managers as exempt employees and as such failed to pay all wages, overtime and waiting time penalties and failed to provide accurate wage statements. The lawsuit also alleges that the foregoing conduct was in breach of various laws, including California’s unfair competition law. On December 3, 2013, the Superior Court entered an Order certifying a class of approximately 200 members. MSI successfully removed the case to the United States District Court for the Central District of California and on May 8, 2014, the class was de-certified. As a result of the decertification, we have approximately 50 individual claims pending. We believe we have meritorious defenses and intend to defend the lawsuits vigorously. We do not believe the resolution of the lawsuits will have a material effect on our consolidated financial statements.
	Data Security Incident
	Four putative class actions were filed against MSI relating to the January 2014 data breach. The plaintiffs generally allege MSI failed to secure and safeguard customers’ private information including credit and debit card information, and as such, breached an implied contract, and violated the Illinois Consumer Fraud Act (and other states’ similar laws) and are seeking damages including declaratory relief, actual damages, punitive damages, statutory damages, attorneys’ fees, litigation costs, remedial action, pre and post judgment interest and other relief as available. The cases are as follows: Christina Moyer v. Michaels Stores, Inc., was filed on January 27, 2014; Michael and Jessica Gouwens v. Michaels Stores, Inc., was filed on January 29, 2014; Nancy Maize and Jessica Gordon v. Michaels Stores, Inc., was filed on February 21, 2014; and Daniel Ripes v. Michaels Stores, Inc., was filed on March 14, 2014. All four of these cases were filed in the United States District Court-Northern District of Illinois, Eastern Division. On April 16, 2014, an order was entered consolidating the current actions. On July 14, 2014, the Company’s motion to dismiss the consolidated complaint was granted. On August 11, 2014, plaintiffs filed a motion to alter or amend the judgment, which was denied on October 14, 2014.  The deadline to file a notice of appeal expired on November 13, 2014.
	On March 18, 2014, an additional putative class action was filed related to the January 2014 data breach, Mary Jane Whalen v. Michaels Stores, Inc., but was voluntarily dismissed by the plaintiff on April 11, 2014 without prejudice to her right to re-file a complaint. On December 2, 2014, the plaintiff filed a new lawsuit against MSI related to the data breach in the United States District Court for the Eastern District of New York, Mary Jane Whalen v. Michaels Stores, Inc., seeking damages including declaratory relief, monetary damages, statutory damages, punitive damages, attorneys’ fees and costs, injunctive relief, pre and post judgment interest and other relief as available. The Company intends to defend the lawsuit vigorously. We cannot reasonably estimate the potential loss, or range of loss, related to the lawsuit, if any.
	In connection with the breach, payment card companies and associations may seek to require us to reimburse them for unauthorized card charges and costs to replace cards and may also impose fines or penalties in connection with the data breach, and enforcement authorities may also impose fines or other remedies against us. We have also incurred other costs associated with the data breach, including legal fees, investigative fees, costs of communications with customers and credit monitoring services provided to our customers. In addition, state and federal agencies, including states’ attorneys general and the Federal Trade Commission may investigate events related to the data breach, including how it occurred, its consequences and our responses. Although we intend to cooperate in these investigations, we may be subject to fines or other obligations, which may have an adverse effect on how we operate our business and our results of operations. We cannot reasonably estimate the potential loss or range of loss related to any reimbursement costs, fines or penalties that may be assessed, if any.
	California Zip Code Claims
	On August 15, 2008, Linda Carson, a consumer, filed a purported class action proceeding against MSI in the Superior Court of California, County of San Diego (“San Diego Superior Court”), on behalf of herself and all similarly-situated California consumers. The Carson lawsuit alleges that MSI unlawfully requested and recorded personally identifiable information (i.e., her zip code) as part of a credit card transaction. The plaintiff seeks statutory penalties, costs, interest, and attorneys’ fees. On February 10, 2011, the California Supreme Court ruled, in a similar matter, Williams-Sonoma v. Pineda, that zip codes are personally identifiable information and, therefore, the Song-Beverly Credit Card Act of 1971, as amended (“Song Act”), prohibits businesses from requesting or requiring zip codes in connection with a credit card transaction.
	Subsequent to the California Supreme Court decision, three additional purported class action lawsuits seeking similar relief have been filed against MSI: Carolyn Austin v. Michaels Stores, Inc. and Tiffany Heon v. Michaels Stores, Inc., both in the San Diego Superior Court, and Sandra A. Rubinstein v. Michaels Stores, Inc. in the Superior Court of California, County of Los Angeles, Central Division. An order coordinating the cases has been entered and plaintiffs filed a Consolidated Complaint on April 24, 2012. The parties settled the lawsuit for an amount that will not have a material effect on our consolidated financial statements. On August 6, 2014, the Court granted final approval of the settlement.
	General
	In addition to the litigation discussed above, we are now, and may be in the future, involved in various other lawsuits, claims and proceedings incident to the ordinary course of business. The results of litigation are inherently unpredictable. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in diversion of significant resources.
	For some of the matters disclosed above, as well as other matters previously disclosed in the Company’s filings with the SEC, the Company is able to estimate a range of losses in excess of the amounts recorded, if any, in the accompanying financial statements. The aggregate estimated loss is approximately $10 million, which includes amounts recorded by the Company.

Segments_and_Geographic_Inform

Segments and Geographic Information	9 Months Ended
	Nov. 01, 2014
SEGMENTS AND GEOGRAPHIC INFORMATION	'
SEGMENTS AND GEOGRAPHIC INFORMATION	'
	8.  SEGMENTS AND GEOGRAPHIC INFORMATION
	We consider our Michaels - U.S., Michaels - Canada, and Aaron Brothers stores to be our operating segments for purposes of determining reportable segments based on the criteria of ASC 280, Segment Reporting (“ASC 280”). We determined that each of our operating segments have similar economic characteristics and meet the aggregation criteria set forth in ASC 280. Therefore, we combine those operating segments into one reporting segment.
	Our net sales by country are as follows (in millions):
		13 Weeks Ended				39 Weeks Ended
		November 1,		November 2,		November 1,		November 2,
		2014		2013		2014		2013
	United States	$	1,018	$	1,013	$	2,829	$	2,731
	Canada	112		105		301		284
	Net sales	$	1,130	$	1,118	$	3,130	$	3,015
	Our chief operating decision makers evaluate historical operating performance and forecasted future periods’ operating performance based on operating income and earnings before interest, income taxes, depreciation, amortization and losses on early extinguishment of debt and refinancing costs (“EBITDA (excluding losses on early extinguishment of debt and refinancing costs)”). We believe these metrics more closely reflect the operating effectiveness of factors over which management has control. A reconciliation of net income to EBITDA (excluding losses on early extinguishment of debt and refinancing costs) is presented below (in millions).
		13 Weeks Ended				39 Weeks Ended
		November 1,		November 2,		November 1,		November 2,
		2014		2013		2014		2013
	Net income	$	64	$	47	$	61	$	110
	Interest expense	41		62		159		154
	Provision for income taxes	36		26		44		62
	Losses on early extinguishments of debt and refinancing cost	—		—		68		7
	Depreciation and amortization	29		24		82		74
	EBITDA (excluding losses on early extinguishments of debt and refinancing costs)	$	170	$	159	$	414	$	407

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Nov. 01, 2014
RELATED PARTY TRANSACTIONS	'
RELATED PARTY TRANSACTIONS	'
	9.  RELATED PARTY TRANSACTIONS
	Bain Capital Partners, LLC (“Bain Capital”) and The Blackstone Group L.P. (“The Blackstone Group”, together with Bain Capital, the “Sponsors”) owned approximately 80% of our outstanding common stock as of November 1, 2014. Prior to our IPO on July 2, 2014, the Sponsors and another common stockholder, Highfields Capital Management LP (“Highfields”), received annual management fees of $12 million and $1 million, respectively.  In connection with the IPO, the management agreement was terminated and the Company paid the Sponsors and Highfields an aggregate $30 million termination fee.  We recognized no related party expenses in the third quarter of fiscal 2014 and $3 million of expenses related to management fees during the third quarter of fiscal 2013. During the nine months ended November 1, 2014 and November 2, 2013, we recognized management fees totaling $35 million and $10 million, respectively. These expenses are included in related party expenses in the consolidated statements of comprehensive income.
	The Blackstone Group owns a majority equity position in Brixmor Properties Group, a vendor we utilize to lease certain properties. Payments associated with this vendor during each of the third quarters of fiscal 2014 and fiscal 2013 totaled $1 million.  Payments made during the nine months ended November 1, 2014 and November 2, 2013 totaled $2 million and $3 million, respectively.  These expenses are included in cost of sales and occupancy expense in the consolidated statements of comprehensive income.
	The Blackstone Group owns a majority equity position in RGIS, an external vendor we utilize to count our store inventory. Payments associated with this vendor during each of the third quarters of fiscal 2014 and fiscal 2013 totaled $2 million.  Payments made during the nine months ended November 1, 2014 and November 2, 2013 totaled $6 million and $5 million, respectively. These expenses are included in selling, general and administrative in the consolidated statements of comprehensive income.
	The Blackstone Group owns a majority equity position in Vistar, an external vendor we utilize for all of the candy-type items in our stores.  Payments associated with this vendor during the third quarters of fiscal 2014 and fiscal 2013 totaled $4 million and $5 million, respectively.  Payments made during the nine months ended November 1, 2014 and November 2, 2013 totaled $15 million and $17 million, respectively. These expenses are recognized in cost of sales as merchandise is sold.
	The Blackstone Group owns a majority equity position in Hilton Hotels, an external vendor we utilize for hospitality services.  Payments associated with this vendor during the third quarter of fiscal 2014 and the nine months ended November 1, 2014 totaled $1 million.  There were minimal payments made during fiscal 2013. These expenses are included in selling, general and administrative in the consolidated statements of comprehensive income.
	Six of our current directors, Joshua Bekenstein, Todd M. Cook, Nadim El Gabban, Lewis S. Klessel, Matthew S. Levin and Peter F. Wallace, are affiliates of Bain Capital or The Blackstone Group.  As such, some or all of such directors may have an indirect material interest in payments with respect to debt securities of the Company that have been purchased by affiliates of Bain Capital or The Blackstone Group.  As of November 1, 2014, affiliates of The Blackstone Group held approximately $56 million of our Restated Term Loan Credit Facility.

Condensed_Consolidating_Financ

Condensed Consolidating Financial Information	9 Months Ended
	Nov. 01, 2014
CONDENSED CONSOLIDATED FINANCIAL INFORMATION	'
CONDENSED CONSOLIDATED FINANCIAL INFORMATION	'
	10.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION
	Our debt covenants restrict MSI, and certain subsidiaries of MSI, from various activities including the incurrence of additional debt, payment of dividends and the repurchase of MSI’s capital stock (subject to certain exceptions), among other things.  The following condensed consolidated financial information represents the financial information of MSI and its wholly-owned subsidiaries.  The information is presented in accordance with the requirements of Rule 12-04 under the SEC’s Regulation S-X. In addition, disclosure requirements of Rule 12-04 of Regulation S-X regarding material contingencies and long-term obligations are included in Note 3. Debt, Note 6. Income taxes, and Note 7. Contingencies, where applicable.
	Michaels Stores, Inc.
	Condensed Consolidated Balance Sheets
		November 1,			February 1,			November 2,
		2014			2014			2013
		(In millions)
	ASSETS
	Current assets:
	Cash and equivalents	$	189		$	234		$	68
	Merchandise inventories	1,116			901			1,119
	Prepaid expenses and other	99			97			100
	Deferred income taxes	37			39			38
	Income tax receivables	11			2			20
	Total current assets	1,452			1,273			1,345
	Property and equipment, net	377			358			353
	Goodwill	94			94			94
	Debt issuance costs, net	40			37			38
	Deferred income taxes	23			28			29
	Long-term receivable from Parent	8			8			5
	Other assets	3			3			2
	Total assets	$	1,997		$	1,801		$	1,866
	LIABILITIES AND STOCKHOLDERS’ DEFICIT
	Current liabilities:
	Accounts payable	$	504		$	368		$	467
	Accrued liabilities and other	359			377			342
	Share-based compensation liability	—			—			21
	Current portion of long-term debt	25			16			203
	Dividend payable to Holdings	—			30			—
	Deferred income taxes	—			1			4
	Income taxes payable	1			42			6
	Total current liabilities	889			834			1,043
	Long-term debt	2,950			2,878			2,878
	Share-based compensation liability	—			—			28
	Other liabilities	89			90			88
	Total stockholders’ deficit	(1,931		)	(2,001		)	(2,171		)
	Total liabilities and stockholders’ deficit	$	1,997		$	1,801		$	1,866
	Michaels Stores, Inc.
	Condensed Consolidated Statements of Comprehensive Income
		13 Weeks Ended						39 Weeks Ended
		November 1,			November 2,			November 1,			November 2,
		2014			2013			2014			2013
		(In millions)
	Net sales	$	1,130		$	1,118		$	3,130		$	3,015
	Cost of sales and occupancy expense	678			665			1,892			1,816
	Gross profit	452			453			1,238			1,199
	Selling, general, and administrative	303			309			854			835
	Share-based compensation	4			4			10			15
	Related party expenses	—			3			35			10
	Store pre-opening costs	2			2			4			5
	Operating income	143			135			335			334
	Interest expense	35			45			121			137
	Losses on early extinguishment of debt and refinancing costs	—			—			56			7
	Other expense, net	1			—			1			1
	Income before income taxes	107			90			157			189
	Provision for income taxes	39			32			63			68
	Net income	68			58			94			121
	Other comprehensive income, net of tax:
	Foreign currency translation adjustment and other	(3		)	—			(2		)	(2		)
	Comprehensive income	$	65		$	58		$	92		$	119
	Michaels Stores, Inc.
	Condensed Consolidated Statement of Cash Flows
		39 Weeks Ended
	November 1,			November 2,
	2014			2013
	(In millions)
Cash flows provided by operating activities:
Net cash provided by operating activities	$	101		$	74
Cash flows used in investing activities:
Cash paid for property and equipment	(103		)	(82		)
Cash flows from financing activities:
Net repayments of debt	(1,095		)	(353		)
Net borrowings of debt	1,113			389
Payment of dividend to Holdings	(60		)	—
Other financing activities	(1		)	(16		)
Net cash (used in) provided by financing activities	(43		)	20
Net change in cash and equivalents	(45		)	12
Cash and equivalents at beginning of period	234			56
Cash and equivalents at end of period	$	189		$	68

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	9 Months Ended
	Nov. 01, 2014
BASIS OF PRESENTATION	'
Stock Split	'
	Stock Split
	On June 6, 2014, our stockholders approved a common stock split in the ratio of 1.476 to 1.00. All share and related option information presented in these financial statements and accompanying footnotes has been retroactively adjusted to reflect the increased number of shares resulting from this action.
Initial Public Offering	'
	Initial Public Offering
	On July 2, 2014, the Company completed an initial public offering (“IPO”) in which we issued and sold 27.8 million shares of common stock at a public offering price of $17.00 per share.  After deducting for underwriting fees, the net proceeds of $446 million were used to redeem $439 million of our then outstanding 7.50%/8.25% Senior PIK Toggle Notes which were due in 2018 (‘‘PIK Notes’’) and to pay other expenses of the offering.
Preferred Shares	'
	Preferred Shares
	During the second quarter of fiscal 2014, the Board of Directors authorized 50 million shares of preferred stock. No preferred shares have been issued as of November 1, 2014.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”).  ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted.  We are evaluating the new standard, but do not anticipate a material impact to the financial statements once implemented.

Earnings_per_Share_Tables

Earnings per Share (Tables)	9 Months Ended
	Nov. 01, 2014
EARNINGS PER SHARE	'
Schedule of reconciliation of the diluted weighted average shares	'
	The following table presents a reconciliation of the diluted weighted average shares (in millions):
		13 Weeks Ended		39 Weeks Ended
		November 1,	November 2,	November 1,	November 2,
		2014	2013	2014	2013
	Basic weighted average shares	203	175	188	175
	Employee stock options	4	4	4	4
	Dilutive weighted average shares	207	179	192	179

Debt_Tables

Debt (Tables)	9 Months Ended
	Nov. 01, 2014
DEBT	'
Schedule of outstanding debt	'
	Our outstanding debt is detailed in the table below (in millions):
			The Michaels Companies, Inc.									Michaels Stores, Inc.
		Interest	November 1,			February 1,			November 2,			November 1,			February 1,			November 2,
		Rate	2014			2014			2013			2014			2014			2013
	Senior secured term loan	Variable	$	2,460		$	1,628		$	1,632		$	2,460		$	1,628		$	1,632
	Senior notes	7.75%	—			1,006			1,007			—			1,006			1,007
	Senior subordinated notes	5.88%	515			260			—			515			260			—
	Senior subordinated notes	11.38%	—			—			255			—			—			255
	Asset-based revolving credit facility	Variable	—			—			187			—			—			187
	PIK notes	7.50% / 8.25%	361			800			800			—			—			—
	Total debt		3,336			3,694			3,881			2,975			2,894			3,081
	Less current portion		(205		)	(16		)	(203		)	(25		)	(16		)	(203		)
	Long-term debt		$	3,131		$	3,678		$	3,678		$	2,950		$	2,878		$	2,878

Comprehensive_Income_Tables

Comprehensive Income (Tables)	9 Months Ended
	Nov. 01, 2014
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	'
Schedule of accumulated other comprehensive income (loss)	'
	The following table includes detail regarding changes in the composition of accumulated other comprehensive income (loss) (in millions):
		13 Weeks Ended					39 Weeks Ended
		November 1,			November 2,		November 1,			November 2,
		2014			2013		2014			2013
	Beginning of period	1			4		—			6
	Foreign currency translation adjustment and other	(3		)	—		(2		)	(2		)
	End of period	$	(2	)	$	4	$	(2	)	$	4

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Nov. 01, 2014
FAIR VALUE MEASUREMENTS	'
Schedule of carrying and fair values of loan and notes	'
		November 1, 2014
		Carrying		Fair
		Value		Value
		(In millions)
	Senior secured term loan	$	2,460	$	2,427
	Senior subordinated notes	515		514
	PIK notes	361		367

Segments_and_Geographic_Inform1

Segments and Geographic Information (Tables)	9 Months Ended
	Nov. 01, 2014
SEGMENTS AND GEOGRAPHIC INFORMATION	'
Schedule of net sales by country	'
	Our net sales by country are as follows (in millions):
		13 Weeks Ended				39 Weeks Ended
		November 1,		November 2,		November 1,		November 2,
		2014		2013		2014		2013
	United States	$	1,018	$	1,013	$	2,829	$	2,731
	Canada	112		105		301		284
	Net sales	$	1,130	$	1,118	$	3,130	$	3,015
Schedule of reconciliation of net income to EBITDA (excluding losses on early extinguishments of debt and refinancing costs)	'
	A reconciliation of net income to EBITDA (excluding losses on early extinguishment of debt and refinancing costs) is presented below (in millions).
		13 Weeks Ended				39 Weeks Ended
		November 1,		November 2,		November 1,		November 2,
		2014		2013		2014		2013
	Net income	$	64	$	47	$	61	$	110
	Interest expense	41		62		159		154
	Provision for income taxes	36		26		44		62
	Losses on early extinguishments of debt and refinancing cost	—		—		68		7
	Depreciation and amortization	29		24		82		74
	EBITDA (excluding losses on early extinguishments of debt and refinancing costs)	$	170	$	159	$	414	$	407

Condensed_Consolidating_Financ1

Condensed Consolidating Financial Information (Tables)	9 Months Ended
	Nov. 01, 2014
CONDENSED CONSOLIDATED FINANCIAL INFORMATION	'
Schedule of Supplemental Condensed Consolidating Balance Sheet	'
	Condensed Consolidated Balance Sheets
		November 1,			February 1,			November 2,
		2014			2014			2013
		(In millions)
	ASSETS
	Current assets:
	Cash and equivalents	$	189		$	234		$	68
	Merchandise inventories	1,116			901			1,119
	Prepaid expenses and other	99			97			100
	Deferred income taxes	37			39			38
	Income tax receivables	11			2			20
	Total current assets	1,452			1,273			1,345
	Property and equipment, net	377			358			353
	Goodwill	94			94			94
	Debt issuance costs, net	40			37			38
	Deferred income taxes	23			28			29
	Long-term receivable from Parent	8			8			5
	Other assets	3			3			2
	Total assets	$	1,997		$	1,801		$	1,866
	LIABILITIES AND STOCKHOLDERS’ DEFICIT
	Current liabilities:
	Accounts payable	$	504		$	368		$	467
	Accrued liabilities and other	359			377			342
	Share-based compensation liability	—			—			21
	Current portion of long-term debt	25			16			203
	Dividend payable to Holdings	—			30			—
	Deferred income taxes	—			1			4
	Income taxes payable	1			42			6
	Total current liabilities	889			834			1,043
	Long-term debt	2,950			2,878			2,878
	Share-based compensation liability	—			—			28
	Other liabilities	89			90			88
	Total stockholders’ deficit	(1,931		)	(2,001		)	(2,171		)
	Total liabilities and stockholders’ deficit	$	1,997		$	1,801		$	1,866
Schedule of Supplemental Condensed Consolidating Statement of Comprehensive Income	'
	Condensed Consolidated Statements of Comprehensive Income
		13 Weeks Ended						39 Weeks Ended
		November 1,			November 2,			November 1,			November 2,
		2014			2013			2014			2013
		(In millions)
	Net sales	$	1,130		$	1,118		$	3,130		$	3,015
	Cost of sales and occupancy expense	678			665			1,892			1,816
	Gross profit	452			453			1,238			1,199
	Selling, general, and administrative	303			309			854			835
	Share-based compensation	4			4			10			15
	Related party expenses	—			3			35			10
	Store pre-opening costs	2			2			4			5
	Operating income	143			135			335			334
	Interest expense	35			45			121			137
	Losses on early extinguishment of debt and refinancing costs	—			—			56			7
	Other expense, net	1			—			1			1
	Income before income taxes	107			90			157			189
	Provision for income taxes	39			32			63			68
	Net income	68			58			94			121
	Other comprehensive income, net of tax:
	Foreign currency translation adjustment and other	(3		)	—			(2		)	(2		)
	Comprehensive income	$	65		$	58		$	92		$	119
Schedule of Supplemental Condensed Consolidating Statement of Cash Flows	'
	Condensed Consolidated Statement of Cash Flows
		39 Weeks Ended
		November 1,			November 2,
		2014			2013
		(In millions)
	Cash flows provided by operating activities:
	Net cash provided by operating activities	$	101		$	74
	Cash flows used in investing activities:
	Cash paid for property and equipment	(103		)	(82		)
	Cash flows from financing activities:
	Net repayments of debt	(1,095		)	(353		)
	Net borrowings of debt	1,113			389
	Payment of dividend to Holdings	(60		)	—
	Other financing activities	(1		)	(16		)
	Net cash (used in) provided by financing activities	(43		)	20
	Net change in cash and equivalents	(45		)	12
	Cash and equivalents at beginning of period	234			56
	Cash and equivalents at end of period	$	189		$	68

Basis_of_Presentation_Details

Basis of Presentation (Details) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

0 Months Ended

9 Months Ended

In Millions, except Per Share data, unless otherwise specified

Jul. 02, 2014

Jun. 06, 2014

Nov. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Nov. 02, 2013

Jan. 31, 2015

Feb. 01, 2014

Aug. 02, 2014

Jul. 02, 2014

Dec. 10, 2014

Jul. 02, 2014

Nov. 01, 2014

item

item

item

item

item

item

PIK Notes

PIK Notes

PIK Notes

Fiscal year

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of weeks in a fiscal year

'

'

13

13

39

39

52

52

'

'

'

'

'

Stock split ratio

'

1.476

'

'

'

'

'

'

'

'

'

'

'

Shares sold in initial public offering

27.8

'

'

'

'

'

'

'

'

'

'

'

'

Public offering price (in dollars per share)

'

'

'

'

'

'

'

'

'

$17

'

'

'

Net proceeds from initial public offering

$446

'

'

'

'

'

'

'

'

'

'

'

'

Extinguishment of Debt, Amount

'

'

'

'

'

'

'

'

'

'

$180

$439

'

PIK interest rate one (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

7.50%

PIK interest rate two (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

8.25%

Preferred stock, shares authorized

'

'

'

'

'

'

'

'

50

'

'

'

'

Preferred stock, shares issued

'

'

0

'

0

'

'

'

'

'

'

'

'

Earnings_per_Share_Details

Earnings per Share (Details)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Reconciliation of the diluted weighted average shares	'	'	'	'
Basic weighted average shares (in shares)	203	175	188	175
Employee stock options (in shares)	4	4	4	4
Diluted weighted average shares (in shares)	207	179	192	179

Debt_Details

Debt (Details) (USD $)

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 01, 2014

Nov. 02, 2013

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Nov. 01, 2014

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Jul. 02, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 01, 2014

Feb. 01, 2014

Nov. 02, 2013

Nov. 02, 2013

In Millions, unless otherwise specified

Senior secured term loan

Senior secured term loan

Senior secured term loan

Senior notes due 2018

Senior notes due 2018

Senior notes due 2018

5.875% Senior Subordinated Notes due 2020

5.875% Senior Subordinated Notes due 2020

Senior Subordinated Notes 11.375 Percent Due 2016 [Member]

Senior Subordinated Notes 11.375 Percent Due 2016 [Member]

Asset based revolving credit facility

PIK Notes

PIK Notes

PIK Notes

PIK Notes

PIK Notes

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Minimum

Maximum

Senior secured term loan

Senior secured term loan

Senior secured term loan

Senior notes due 2018

Senior notes due 2018

Senior notes due 2018

5.875% Senior Subordinated Notes due 2020

5.875% Senior Subordinated Notes due 2020

Senior Subordinated Notes 11.375 Percent Due 2016 [Member]

Asset based revolving credit facility

Debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Total debt

$3,336

$3,694

$3,881

$2,460

$1,628

$1,632

'

$1,006

$1,007

$515

$260

'

$255

$187

$361

$800

$800

'

'

$2,975

$2,894

$3,081

$2,460

$1,628

$1,632

'

$1,006

$1,007

$515

$260

$255

$187

Less current portion

205

16

203

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

25

16

203

'

'

'

'

'

'

'

'

'

'

Long-term debt

$3,131

$3,678

$3,678

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$2,950

$2,878

$2,878

'

'

'

'

'

'

'

'

'

'

Interest rate (as a percent)

'

'

'

'

'

'

7.75%

'

'

5.88%

'

11.38%

'

'

'

'

'

7.50%

8.25%

'

'

'

'

'

'

7.75%

'

'

'

'

'

'

Debt_Details_2

Debt (Details 2) (USD $)

0 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

0 Months Ended

0 Months Ended

In Millions, unless otherwise specified

Jul. 02, 2014

Nov. 01, 2014

Nov. 02, 2013

Dec. 10, 2014

Jul. 02, 2014

Nov. 01, 2014

Nov. 02, 2013

Jul. 02, 2014

Jun. 16, 2014

Jul. 02, 2014

Jun. 16, 2014

Nov. 01, 2014

Jun. 16, 2014

Jul. 02, 2014

PIK Notes

PIK Notes

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Senior Subordinated Notes 5.875 Percent Due And Term Loan Facility Maturing In 2020 Member

Senior Subordinated Notes 5.875Percent Due 2020 Member

Additional Term Loan

Senior notes due 2018

Senior notes due 2018

Senior notes due 2018

Senior notes due 2018

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Michaels Stores Inc [Member]

Debt

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Principal amount of notes issued

'

'

'

'

'

'

'

'

$250

'

'

'

'

'

Stated interest rate (as a percent)

'

'

'

'

'

'

'

'

5.88%

'

'

7.75%

'

7.75%

Issue price as a percentage of face value

'

'

'

'

'

'

'

'

102.00%

99.50%

'

'

'

'

Maximum borrowing capacity

'

'

'

'

'

'

'

'

'

850

'

'

'

'

Debts issuance cost capitalized

'

'

'

'

'

'

'

19

'

'

'

'

'

'

Loss on early extinguishment of debt and refinancing costs

'

68

7

7

12

56

7

'

'

'

56

'

'

'

Unamortized debt issuance costs written-off related to loss on early extinguishment of debt

'

'

'

'

8

'

'

'

'

'

10

'

'

'

Write off of unamortized net premiums

'

'

'

'

'

'

'

'

'

'

'

'

5

'

Net proceeds from initial public offering

446

'

'

'

'

'

'

'

'

'

'

'

'

'

Early extinguishment of debt

'

'

'

180

439

'

'

'

'

'

'

'

'

'

Redemption premiums included in loss on extinguishment of debt

'

'

'

'

$4

'

'

'

'

'

$51

'

'

'

Debt_Details_3

Debt (Details 3) (USD $)	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013
In Millions, unless otherwise specified
Asset-based Revolving Credit Facility	'	'	'
Current portion of long-term debt	$205	$16	$203
Accumulated Amortization of Noncurrent Deferred Finance Costs	53	56	57
Restated Revolving Credit Facility	'	'	'
Asset-based Revolving Credit Facility	'	'	'
Borrowing base amount	650	'	'
Outstanding borrowings	0	'	'
Outstanding letters of credit	62	'	'
Unused borrowing capacity	$588	'	'

Comprehensive_Income_Details

Comprehensive Income (Details) (USD $)	3 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 01, 2014	Nov. 02, 2013	Aug. 03, 2013
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	'	'	'	'
Balance at the beginning of the period	$1	'	$6	$4
Foreign currency translation adjustment and other	-3	-2	-2	'
Balance at the end of the period	($2)	($2)	$4	$4

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Nov. 01, 2014
In Millions, unless otherwise specified
Carrying Value | Senior secured term loan	'
Fair Value Measurements	'
Long-term loans and notes	$2,460
Carrying Value | Senior notes due 2018	'
Fair Value Measurements	'
Long-term loans and notes	515
Carrying Value | PIK Notes	'
Fair Value Measurements	'
Long-term loans and notes	361
Fair Value | Senior secured term loan	'
Fair Value Measurements	'
Long-term loans and notes	2,427
Fair Value | Senior notes due 2018	'
Fair Value Measurements	'
Long-term loans and notes	514
Fair Value | PIK Notes	'
Fair Value Measurements	'
Long-term loans and notes	$367

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013	Jan. 31, 2015
					Scenario, Forecast [Member]
Effective tax rate from continuing operations	'	'	'	'	'
Effective tax rate (as a percent)	36.00%	35.60%	41.90%	36.00%	39.00%
Tax expense	$36	$26	$44	$62	'

Contingencies_Details

Contingencies (Details) (USD $)	Nov. 01, 2014	Sep. 15, 2011	Dec. 03, 2013	Feb. 10, 2011	Mar. 29, 2014
In Millions, unless otherwise specified		Employee claims	Employee claims	Consumer Class Action Claims	Michaels Stores Inc [Member]
		Rea claims	Rea claims	Zip Code Claims [Member]	Consumer Class Action Claims
		item	item	item	Data security incident
					item
CONTINGENCIES	'	'	'	'	'
Aggregate estimate of possible loss	$10	'	'	'	'
Commitments and Contingencies	'	'	'	'	'
Number of plaintiffs	'	4	'	'	'
Number of certified members	'	'	200	'	'
Number of class actions filed	'	'	'	3	4
Additional purported class action lawsuits	'	'	'	3	4

Segments_and_Geographic_Inform2

Segments and Geographic Information (Details) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
			item
SEGMENTS AND GEOGRAPHIC INFORMATION	'	'	'	'
Number of reportable segments	'	'	1	'
Sales by country	'	'	'	'
Net sales	$1,130	$1,118	$3,130	$3,015
UNITED STATES	'	'	'	'
Sales by country	'	'	'	'
Net sales	1,018	1,013	2,829	2,731
CANADA	'	'	'	'
Sales by country	'	'	'	'
Net sales	$112	$105	$301	$284

Segments_and_Geographic_Inform3

Segments and Geographic Information (Detail 2) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
SEGMENTS AND GEOGRAPHIC INFORMATION	'	'	'	'
Net income	$64	$47	$61	$110
Interest expense	41	62	159	154
Provision for income taxes	36	26	44	62
Losses on early extinguishment of debt and refinancing costs	'	'	68	7
Depreciation and amortization	29	24	82	74
EBITDA (excluding losses on early extinguishments of debt and refinancing costs )	$170	$159	$414	$407

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	3 Months Ended		9 Months Ended
	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013	Feb. 01, 2014
Related Party Transactions	'	'	'	'	'
Expenses recognized	$0	$3,000,000	$35,000,000	$10,000,000	'
Long-term debt held	3,336,000,000	3,881,000,000	3,336,000,000	3,881,000,000	3,694,000,000
Candy Type Items [Member] | The Blackstone Group	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Expenses recognized	4,000,000	'	'	'	'
The Sponsors	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Percentage owned by related party	'	'	0.8	'	'
Annual management fees	'	'	12,000,000	'	'
Highfields Capital Management LP	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Annual management fees	'	'	1,000,000	'	'
The Blackstone Group | Senior secured term loan	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Long-term debt held	56,000,000	'	56,000,000	'	'
The Blackstone Group | Lease Services [Member]	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Expenses recognized	1,000,000	1,000,000	2,000,000	3,000,000	'
The Blackstone Group | Store Inventory Count Services [Member]	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Expenses recognized	2,000,000	2,000,000	6,000,000	5,000,000	'
The Blackstone Group | Candy Type Items [Member]	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Expenses recognized	'	5,000,000	15,000,000	17,000,000	'
The Blackstone Group | Hospitality Services [Member]	'	'	'	'	'
Related Party Transactions	'	'	'	'	'
Expenses recognized	$1,000,000	'	$1,000,000	'	'

Condensed_Consolidating_Financ2

Condensed Consolidating Financial Information (Details) (USD $)	Nov. 01, 2014	Feb. 01, 2014	Nov. 02, 2013	Feb. 02, 2013
In Millions, unless otherwise specified
Current assets:	'	'	'	'
Cash and equivalents	$194	$239	$73	$56
Merchandise inventories	1,116	901	1,119	'
Prepaid expenses and other	99	95	99	'
Deferred income taxes	37	39	38	'
Income tax receivables	42	2	20	'
Total current assets	1,488	1,276	1,349	'
Property and equipment, net	377	358	353	'
Goodwill	94	94	94	'
Debt issuance costs, net	46	52	53	'
Deferred income taxes	24	28	29	'
Other assets	1	3	2	'
Total assets	2,030	1,811	1,880	'
Current liabilities:	'	'	'	'
Accounts payable	504	368	467	'
Accrued liabilities and other	369	411	361	'
Share-based compensation	'	'	21	'
Current portion of long-term debt	205	16	203	'
Deferred income taxes	'	1	4	'
Income taxes payable	1	30	'	'
Total current liabilities	1,079	826	1,056	'
Long-term debt	3,131	3,678	3,678	'
Share-based compensation liability	'	'	28	'
Total stockholders' deficit	-2,269	-2,782	-2,970	'
Total liabilities and stockholders' deficit	2,030	1,811	1,880	'
Michaels Stores Inc [Member]	'	'	'	'
Current assets:	'	'	'	'
Cash and equivalents	189	234	68	56
Merchandise inventories	1,116	901	1,119	'
Prepaid expenses and other	99	97	100	'
Deferred income taxes	37	39	38	'
Income tax receivables	11	2	20	'
Total current assets	1,452	1,273	1,345	'
Property and equipment, net	377	358	353	'
Goodwill	94	94	94	'
Debt issuance costs, net	40	37	38	'
Deferred income taxes	23	28	29	'
Long-term receivable from Parent	8	8	5	'
Other assets	3	3	2	'
Total assets	1,997	1,801	1,866	'
Current liabilities:	'	'	'	'
Accounts payable	504	368	467	'
Accrued liabilities and other	359	377	342	'
Share-based compensation	'	'	21	'
Current portion of long-term debt	25	16	203	'
Dividend payable to Holdings	'	30	'	'
Deferred income taxes	'	1	4	'
Income taxes payable	1	42	6	'
Total current liabilities	889	834	1,043	'
Long-term debt	2,950	2,878	2,878	'
Share-based compensation liability	'	'	28	'
Other liabilities	89	90	88	'
Total stockholders' deficit	-1,931	-2,001	-2,171	'
Total liabilities and stockholders' deficit	$1,997	$1,801	$1,866	'

Condensed_Consolidating_Financ3

Condensed Consolidating Financial Information (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013	Nov. 01, 2014	Nov. 02, 2013
Condensed Consolidated Statement of Comprehensive (Loss) Income	'	'	'	'
Net sales	$1,130	$1,118	$3,130	$3,015
Cost of sales and occupancy expense	678	665	1,892	1,816
Gross profit	452	453	1,238	1,199
Selling, general and administrative expense	304	309	856	835
Share-based compensation	4	4	10	15
Related party expenses	0	3	35	10
Store pre-opening costs	2	2	4	5
Operating income	142	135	333	334
Interest expense	41	62	159	154
Loss on early extinguishment of debt and refinancing costs	'	'	68	7
Other expense, net	1	'	1	1
Income before income taxes	100	73	105	172
Provision for income taxes	36	26	44	62
Net income	64	47	61	110
Other comprehensive income, net of tax:	'	'	'	'
Foreign currency translation adjustment and other	-3	'	-2	-2
Comprehensive income	61	47	59	108
Michaels Stores Inc [Member]	'	'	'	'
Condensed Consolidated Statement of Comprehensive (Loss) Income	'	'	'	'
Net sales	1,130	1,118	3,130	3,015
Cost of sales and occupancy expense	678	665	1,892	1,816
Gross profit	452	453	1,238	1,199
Selling, general and administrative expense	303	309	854	835
Share-based compensation	4	4	10	15
Related party expenses	'	3	35	10
Store pre-opening costs	2	2	4	5
Operating income	143	135	335	334
Interest expense	35	45	121	137
Loss on early extinguishment of debt and refinancing costs	'	'	56	7
Other expense, net	1	'	1	1
Income before income taxes	107	90	157	189
Provision for income taxes	39	32	63	68
Net income	68	58	94	121
Other comprehensive income, net of tax:	'	'	'	'
Foreign currency translation adjustment and other	-3	'	-2	-2
Comprehensive income	$65	$58	$92	$119

Condensed_Consolidating_Financ4

Condensed Consolidating Financial Information (Details 3) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Nov. 01, 2014	Nov. 02, 2013
Operating activities:	'	'
Net cash provided by operating activities	$36	$69
Investing activities:	'	'
Cash paid for property and equipment	-103	-82
Financing activities:	'	'
Net cash provided by financing activities	22	30
Payments of dividends	-1	-767
Other financing activities	-3	'
Net change in cash and equivalents	-45	17
Cash and equivalents at beginning of period	239	56
Cash and equivalents at end of period	194	73
Michaels Stores Inc [Member]	'	'
Operating activities:	'	'
Net cash provided by operating activities	101	74
Investing activities:	'	'
Cash paid for property and equipment	-103	-82
Financing activities:	'	'
Net repayments of debt	-1,095	-353
Net borrowings of debt	1,113	389
Payment of dividend to Holdings	-60	'
Other financing activities	-1	-16
Net cash provided by financing activities	-43	20
Net change in cash and equivalents	-45	12
Cash and equivalents at beginning of period	234	56
Cash and equivalents at end of period	$189	$68