Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2016 | Mar. 15, 2016 | Jul. 31, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | DOLLAR GENERAL CORP | ||
Entity Central Index Key | 29,534 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 29, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 23,660 | ||
Entity Common Stock, Shares Outstanding | 286,468,872 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 29, 2016 | Jan. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 157,947 | $ 579,823 |
Merchandise inventories | 3,074,153 | 2,782,521 |
Income taxes receivable | 6,843 | |
Prepaid expenses and other current assets | 193,467 | 170,265 |
Total current assets | 3,432,410 | 3,532,609 |
Net property and equipment | 2,264,062 | 2,116,075 |
Goodwill | 4,338,589 | 4,338,589 |
Other intangible assets, net | 1,200,994 | 1,201,870 |
Other assets, net | 21,830 | 19,499 |
Total assets | 11,257,885 | 11,208,642 |
Current liabilities: | ||
Current portion of long-term obligations | 1,379 | 101,158 |
Accounts payable | 1,494,225 | 1,388,154 |
Accrued expenses and other | 467,122 | 413,760 |
Income taxes payable | 32,870 | 59,400 |
Total current liabilities | 1,995,596 | 1,962,472 |
Long-term obligations | 2,969,175 | 2,623,965 |
Deferred income taxes | 639,955 | 626,858 |
Other liabilities | $ 275,283 | $ 285,309 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, 1,000 shares authorized | ||
Common stock; $0.875 par value, 1,000,000 shares authorized, 286,694 and 303,447 shares issued and outstanding at January 29, 2016 and January 30, 2015, respectively | $ 250,855 | $ 265,514 |
Additional paid-in capital | 3,107,283 | 3,048,806 |
Retained earnings | 2,025,545 | 2,403,045 |
Accumulated other comprehensive loss | (5,807) | (7,327) |
Total shareholders' equity | 5,377,876 | 5,710,038 |
Total liabilities and shareholders' equity | $ 11,257,885 | $ 11,208,642 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Jan. 29, 2016 | Jan. 30, 2015 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, shares authorized | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.875 | $ 0.875 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 286,694 | 303,447 |
Common stock, shares outstanding | 286,694 | 303,447 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Net sales | $ 20,368,562 | $ 18,909,588 | $ 17,504,167 |
Cost of goods sold | 14,062,471 | 13,107,081 | 12,068,425 |
Gross profit | 6,306,091 | 5,802,507 | 5,435,742 |
Selling, general and administrative expenses | 4,365,797 | 4,033,414 | 3,699,557 |
Operating profit | 1,940,294 | 1,769,093 | 1,736,185 |
Interest expense | 86,944 | 88,232 | 88,984 |
Other (income) expense | 326 | 18,871 | |
Income before income taxes | 1,853,024 | 1,680,861 | 1,628,330 |
Income tax expense | 687,944 | 615,516 | 603,214 |
Net income | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 |
Earnings per share: | |||
Basic (in dollars per share) | $ 3.96 | $ 3.50 | $ 3.17 |
Diluted (in dollars per share) | $ 3.95 | $ 3.49 | $ 3.17 |
Weighted average shares outstanding: | |||
Basic (in shares) | 294,330 | 304,633 | 322,886 |
Diluted (in shares) | 295,211 | 305,681 | 323,854 |
Dividends per share (in dollars per share) | $ 0.88 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 |
Unrealized net gain (loss) on hedged transactions, net of related income tax expense (benefit) of $971, $1,671 and $(4,461), respectively | 1,520 | 2,583 | (6,972) |
Comprehensive income | $ 1,166,600 | $ 1,067,928 | $ 1,018,144 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Unrealized net gain (loss) on hedged transactions, income tax expense (benefit) | $ 971 | $ 1,671 | $ (4,461) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balances at Feb. 01, 2013 | $ 286,185 | $ 2,991,351 | $ 1,710,732 | $ (2,938) | $ 4,985,330 |
Balances (in shares) at Feb. 01, 2013 | 327,069 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 1,025,116 | 1,025,116 | |||
Unrealized net gain (loss) on hedged transactions | (6,972) | (6,972) | |||
Share-based compensation expense | 20,961 | 20,961 | |||
Repurchases of common stock | $ (9,657) | (610,395) | (620,052) | ||
Repurchases of common stock (in shares) | (11,037) | ||||
Tax benefit from stock option exercises | 24,151 | 24,151 | |||
Other equity and related transactions | $ 896 | (27,237) | (26,341) | ||
Other equity and related transactions (in shares) | 1,026 | ||||
Balances at Jan. 31, 2014 | $ 277,424 | 3,009,226 | 2,125,453 | (9,910) | 5,402,193 |
Balances (in shares) at Jan. 31, 2014 | 317,058 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 1,065,345 | 1,065,345 | |||
Unrealized net gain (loss) on hedged transactions | 2,583 | 2,583 | |||
Share-based compensation expense | 37,338 | 37,338 | |||
Repurchases of common stock | $ (12,342) | (787,753) | (800,095) | ||
Repurchases of common stock (in shares) | (14,106) | ||||
Tax benefit from stock option exercises | 5,047 | 5,047 | |||
Other equity and related transactions | $ 432 | (2,805) | (2,373) | ||
Other equity and related transactions (in shares) | 495 | ||||
Balances at Jan. 30, 2015 | $ 265,514 | 3,048,806 | 2,403,045 | (7,327) | $ 5,710,038 |
Balances (in shares) at Jan. 30, 2015 | 303,447 | 303,447 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 1,165,080 | $ 1,165,080 | |||
Cash dividends, $0.88 per common share | (258,328) | (258,328) | |||
Unrealized net gain (loss) on hedged transactions | 1,520 | 1,520 | |||
Share-based compensation expense | 38,547 | 38,547 | |||
Repurchases of common stock | $ (15,361) | (1,284,252) | (1,299,613) | ||
Repurchases of common stock (in shares) | (17,556) | ||||
Tax benefit from stock option exercises | 13,698 | 13,698 | |||
Other equity and related transactions | $ 702 | 6,232 | 6,934 | ||
Other equity and related transactions (in shares) | 803 | ||||
Balances at Jan. 29, 2016 | $ 250,855 | $ 3,107,283 | $ 2,025,545 | $ (5,807) | $ 5,377,876 |
Balances (in shares) at Jan. 29, 2016 | 286,694 | 286,694 |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May. 01, 2015 | Jan. 29, 2016 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.88 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 352,431 | 342,353 | 332,837 |
Deferred income taxes | 12,126 | (17,734) | (36,851) |
Tax benefit of share-based awards | (13,698) | (12,147) | (30,990) |
Loss on debt retirement, net | 326 | 18,871 | |
Noncash share-based compensation | 38,547 | 37,338 | 20,961 |
Other noncash (gains) and losses | 7,797 | 8,551 | (12,747) |
Change in operating assets and liabilities: | |||
Merchandise inventories | (290,001) | (233,559) | (144,943) |
Prepaid expenses and other current assets | (24,626) | (25,048) | (4,947) |
Accounts payable | 105,637 | 97,166 | 36,942 |
Accrued expenses and other liabilities | 44,949 | 41,635 | 16,265 |
Income taxes | (19,675) | 12,399 | (5,249) |
Other | (905) | (1,555) | (2,200) |
Net cash provided by (used in) operating activities | 1,377,988 | 1,314,744 | 1,213,065 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (504,806) | (373,967) | (538,444) |
Proceeds from sales of property and equipment | 1,423 | 2,268 | 288,466 |
Net cash provided by (used in) investing activities | (503,383) | (371,699) | (249,978) |
Cash flows from financing activities: | |||
Issuance of long-term obligations | 499,220 | 2,297,177 | |
Repayments of long-term obligations | (502,401) | (78,467) | (2,119,991) |
Borrowings under revolving credit facilities | 2,034,100 | 1,023,000 | 1,172,900 |
Repayments of borrowings under revolving credit facilities | (1,783,100) | (1,023,000) | (1,303,800) |
Debt issuance costs | (6,991) | (15,996) | |
Payments for cash flow hedge related to debt issuance | (13,217) | ||
Repurchases of common stock | (1,299,613) | (800,095) | (620,052) |
Payments of cash dividends | (258,328) | ||
Other equity and related transactions | 6,934 | (2,373) | (26,341) |
Tax benefit of share-based awards | 13,698 | 12,147 | 30,990 |
Net cash provided by (used in) financing activities | (1,296,481) | (868,788) | (598,330) |
Net increase (decrease) in cash and cash equivalents | (421,876) | 74,257 | 364,757 |
Cash and cash equivalents, beginning of year | 579,823 | 505,566 | 140,809 |
Cash and cash equivalents, end of year | 157,947 | 579,823 | 505,566 |
Cash paid for: | |||
Interest | 76,354 | 82,447 | 73,464 |
Income taxes | 697,357 | 631,483 | 646,811 |
Supplemental schedule of non-cash investing and financing activities: | |||
Purchases of property and equipment awaiting processing for payment, included in Accounts payable | $ 32,020 | $ 31,586 | $ 27,082 |
Basis of presentation and accou
Basis of presentation and accounting policies | 12 Months Ended |
Jan. 29, 2016 | |
Basis of presentation | |
Basis of presentation and accounting policies | 1. Basis of presentation and accounting policies Basis of presentation These notes contain references to the years 2015, 2014, and 2013, which represent fiscal years ended January 29, 2016, January 30, 2015, and January 31, 2014, respectively, each of which were 52-week accounting periods. The Company's fiscal year ends on the Friday closest to January 31. The consolidated financial statements include all subsidiaries of the Company, except for its not-for-profit subsidiary which the Company does not control. Intercompany transactions have been eliminated. The Company sells general merchandise on a retail basis through 12,483 stores (as of January 29, 2016) in 43 states covering most of the southern, southwestern, midwestern and eastern United States. The Company has owned distribution centers ("DCs") in Scottsville, Kentucky; South Boston, Virginia; Alachua, Florida; Zanesville, Ohio; Jonesville, South Carolina; Marion, Indiana; Bessemer, Alabama; Bethel, Pennsylvania; and San Antonio, Texas, and leased DCs in Ardmore, Oklahoma; Fulton, Missouri; Indianola, Mississippi; and Lebec, California. Cash and cash equivalents Cash and cash equivalents include highly liquid investments with insignificant interest rate risk and original maturities of three months or less when purchased. Such investments primarily consist of money market funds, bank deposits, certificates of deposit, and commercial paper. The carrying amounts of these items are a reasonable estimate of their fair value due to the short maturity of these investments. Payments due from processors for electronic tender transactions classified as cash and cash equivalents totaled approximately $59.5 million and $58.5 million at January 29, 2016 and January 30, 2015, respectively. At January 29, 2016, the Company maintained cash balances to meet a $20 million minimum threshold set by insurance regulators, as further described below under "Insurance liabilities." Investments in debt and equity securities The Company accounts for investments in debt and marketable equity securities as held-to-maturity, available-for-sale, or trading, depending on their classification. Debt securities categorized as held-to-maturity are stated at amortized cost. Debt and equity securities categorized as available-for-sale are stated at fair value, with any unrealized gains and losses, net of deferred income taxes, reported as a component of Accumulated other comprehensive loss. Trading securities are stated at fair value, with changes in fair value recorded as a component of Selling, general and administrative ("SG&A") expense. The cost of securities sold is based upon the specific identification method. Merchandise inventories Inventories are stated at the lower of cost or market with cost determined using the retail last-in, first-out ("LIFO") method as this method results in a better matching of costs and revenues. Under the Company's retail inventory method ("RIM"), the calculation of gross profit and the resulting valuation of inventories at cost are computed by applying a calculated cost-to-retail inventory ratio to the retail value of sales at a department level. The use of the RIM will result in valuing inventories at the lower of cost or market ("LCM") if markdowns are currently taken as a reduction of the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized into inventory. The excess of current cost over LIFO cost was approximately $92.9 million and $95.1 million at January 29, 2016 and January 30, 2015, respectively. Current cost is determined using the RIM on a first-in, first-out basis. Under the LIFO inventory method, the impacts of rising or falling market price changes increase or decrease cost of sales (the LIFO provision or benefit). The Company recorded a LIFO provision (benefit) of $(2.3) million in 2015, $4.2 million in 2014, and $(11.0) million in 2013, which is included in cost of goods sold in the consolidated statements of income. The Company purchases its merchandise from a wide variety of suppliers. The Company's largest and second largest suppliers each accounted for approximately 7% of the Company's purchases in 2015. Vendor rebates The Company accounts for all cash consideration received from vendors in accordance with applicable accounting standards pertaining to such arrangements. Cash consideration received from a vendor is generally presumed to be a rebate or an allowance and is accounted for as a reduction of merchandise purchase costs as earned. However, certain specific, incremental and otherwise qualifying SG&A expenses related to the promotion or sale of vendor products may be offset by cash consideration received from vendors, in accordance with arrangements such as cooperative advertising, when earned for dollar amounts up to but not exceeding actual incremental costs. Prepaid expenses and other current assets Prepaid expenses and other current assets include prepaid amounts for rent, maintenance, business licenses, advertising, and insurance, and amounts receivable for certain vendor rebates (primarily those expected to be collected in cash) and coupons. Property and equipment In 2007, the Company's property and equipment was recorded at estimated fair values as the result of a merger transaction. Property and equipment acquired subsequent to the merger has been recorded at cost. The Company records depreciation and amortization on a straight-line basis over the assets' estimated useful lives. The Company's property and equipment balances and depreciable lives are summarized as follows: (In thousands) Depreciable Life January 29, 2016 January 30, 2015 Land Indefinite $ $ Land improvements 20 Buildings 39 - 40 Leasehold improvements (a) Furniture, fixtures and equipment 3 - 10 Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net property and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset. Depreciation expense related to property and equipment was approximately $350.6 million, $335.9 million and $315.3 million for 2015, 2014 and 2013. Amortization of capital lease assets is included in depreciation expense. Interest on borrowed funds during the construction of property and equipment is capitalized where applicable. Interest costs of $1.4 million, $0.2 million and $1.2 million were capitalized in 2015, 2014 and 2013. Impairment of long-lived assets When indicators of impairment are present, the Company evaluates the carrying value of long-lived assets, other than goodwill and other indefinite-lived intangible assets, in relation to the operating performance and future cash flows or the appraised values of the underlying assets. Generally, the Company's policy is to review for impairment stores open more than three years for which current cash flows from operations are negative. Impairment results when the carrying value of the assets exceeds the undiscounted future cash flows expected to be generated by the assets. The Company's estimate of undiscounted future cash flows is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset's estimated fair value. The fair value is estimated based primarily upon estimated future cash flows over the asset's remaining useful life (discounted at the Company's credit adjusted risk-free rate) or other reasonable estimates of fair market value. Assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value. The Company recorded impairment charges included in SG&A expense of approximately $5.9 million in 2015, $1.9 million in 2014 and $0.5 million in 2013, to reduce the carrying value of certain of its stores' assets. Such action was deemed necessary based on the Company's evaluation that such amounts would not be recoverable primarily due to insufficient sales or excessive costs resulting in the carrying value of the assets exceeding the estimated undiscounted future cash flows generated by the assets at these locations. Goodwill and other intangible assets The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Goodwill and intangible assets with indefinite lives are tested for impairment annually or more frequently if indicators of impairment are present. Other intangible assets are tested for impairment if indicators of impairment are present. Impaired assets are written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented. In accordance with accounting standards for goodwill and indefinite-lived intangible assets, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill or an indefinite-lived intangible asset is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value as described in further detail below. The quantitative goodwill impairment test is a two-step process that would require management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of an entity's reporting units based on valuation techniques (including a discounted cash flow model using revenue and profit forecasts) and comparing that estimated fair value with the recorded carrying value, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the implied fair value of goodwill would require the entity to allocate the estimated fair value of its reporting unit to its assets and liabilities. Any unallocated fair value would represent the implied fair value of goodwill, which would be compared to its corresponding carrying value. The quantitative impairment test for intangible assets compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Other assets Noncurrent Other assets consist primarily of qualifying prepaid expenses for maintenance, beer and wine licenses, and utility, security and other deposits. Accrued expenses and other liabilities Accrued expenses and other consist of the following: (In thousands) January 29, 2016 January 30, 2015 Compensation and benefits $ $ Insurance Taxes (other than taxes on income) Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Included in other accrued expenses are liabilities such as interest expense, freight expense, and utilities. Insurance liabilities The Company retains a significant portion of risk for its workers' compensation, employee health, general liability, property and automobile claim exposures. Accordingly, provisions are made for the Company's estimates of such risks. The undiscounted future claim costs for the workers' compensation, general liability, and health claim risks are derived using actuarial methods and are recorded as self-insurance reserves pursuant to Company policy. To the extent that subsequent claim costs vary from those estimates, future results of operations will be affected as the reserves are adjusted. Ashley River Insurance Company ("ARIC"), a South Carolina-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiary companies premiums to insure the retained workers' compensation and non-property general liability exposures. Pursuant to South Carolina insurance regulations, ARIC maintains certain levels of cash and cash equivalents related to its self-insured exposures. ARIC currently insures no unrelated third-party risk. Operating leases and related liabilities Rent expense is recognized over the term of the lease. The Company records minimum rental expense on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which normally includes a period prior to the store opening to make necessary leasehold improvements and install store fixtures. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Tenant allowances, to the extent received, are recorded as deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. The difference between the calculated expense and the amounts paid result in a liability, with the current portion in Accrued expenses and other and the long-term portion in Other liabilities in the consolidated balance sheets, and totaled approximately $57.9 million and $54.6 million at January 29, 2016 and January 30, 2015, respectively. The Company recognizes contingent rental expense when the achievement of specified sales targets is considered probable. The amount expensed but not paid as of January 29, 2016 and January 30, 2015 was approximately $4.0 million and $4.8 million, respectively, and is included in Accrued expenses and other in the consolidated balance sheets. Other liabilities Noncurrent Other liabilities consist of the following: (In thousands) January 29, 2016 January 30, 2015 Insurance $ $ Deferred rent Deferred gain on sale leaseback Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value accounting The Company utilizes accounting standards for fair value, which include the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are based on an entity's own assumptions, as there is little, if any, observable market activity. In instances where the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The valuation of derivative financial instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis takes into account the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. The Company considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees, to adjust the fair value of outstanding derivative contracts for the effect of nonperformance risk. In connection with accounting standards for fair value measurement, the Company has made an accounting policy election to measure the credit risk of outstanding derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Derivative financial instruments The Company accounts for derivative financial instruments in accordance with applicable accounting standards for such instruments and hedging activities, which require that all derivatives are recorded on the balance sheet at fair value. 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 changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. 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. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or 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 a certain portion of its risk, even though hedge accounting does not apply or the Company elects not to apply the hedge accounting standards. Revenue and gain recognition The Company recognizes retail sales in its stores at the time the customer takes possession of merchandise. All sales are net of discounts and estimated returns and are presented net of taxes assessed by governmental authorities that are imposed concurrent with those sales. The liability for retail merchandise returns is based on the Company's prior experience. The Company records gain contingencies when realized. The Company recognizes gift card sales revenue at the time of redemption. The liability for the gift cards is established for the cash value at the time of purchase. The liability for outstanding gift cards was approximately $2.8 million and $2.5 million at January 29, 2016 and January 30, 2015, respectively, and is recorded in Accrued expenses and other liabilities. Estimated breakage revenue, a percentage of gift cards that will never be redeemed based on historical redemption rates, is recognized over time in proportion to actual gift card redemptions. The Company recorded breakage revenue of $0.6 million and $2.4 million in 2015 and 2014, respectively. Advertising costs Advertising costs are expensed upon performance, "first showing" or distribution, and are reflected in SG&A expenses net of earned cooperative advertising amounts provided by vendors which are specific, incremental and otherwise qualifying expenses related to the promotion or sale of vendor products for dollar amounts up to but not exceeding actual incremental costs. Advertising costs were $89.3 million, $77.3 million and $70.5 million in 2015, 2014 and 2013, respectively. These costs primarily include promotional circulars, targeted circulars supporting new stores, television and radio advertising, in-store signage, and costs associated with the sponsorships of certain automobile racing activities. Vendor funding for cooperative advertising offset reported expenses by $36.7 million, $35.0 million and $31.9 million in 2015, 2014 and 2013, respectively. Share-based payments The Company recognizes compensation expense for share-based compensation based on the fair value of the awards on the grant date. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate may be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the prior estimate. The forfeiture rate is the estimated percentage of share-based awards granted that are expected to be forfeited or canceled before becoming fully vested. The Company bases this estimate on historical experience or estimates of future trends, as applicable. An increase in the forfeiture rate will decrease compensation expense. The fair value of each option grant is separately estimated and amortized into compensation expense on a straight-line basis between the applicable grant date and each vesting date. The Company has estimated the fair value of all stock option awards as of the grant date by applying the Black-Scholes-Merton option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The Company calculates compensation expense for restricted stock, share units and similar awards as the difference between the market price of the underlying stock or similar award on the grant date and the purchase price, if any. Such expense is recognized on a straight-line basis for graded awards or an accelerated basis for performance awards over the period in which the recipient earns the awards. Store pre-opening costs Pre-opening costs related to new store openings and the related construction periods are expensed as incurred. Income taxes Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company's consolidated financial statements or income tax returns. Deferred income tax expense or benefit is the net change during the year in the Company's deferred income tax assets and liabilities. The Company includes income tax related interest and penalties as a component of the provision for income tax expense. Income tax reserves are determined using a methodology which requires companies to assess each income tax position taken using a two-step process. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company's determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company's future financial results. Management estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Accounting standards In May 2014, the Financial Accounting Standards Board ("FASB") issued comprehensive new accounting standards related to the recognition of revenue, which specified an effective date for annual reporting periods beginning after December 15, 2016, with early adoption not permitted. In August 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017, with earlier adoption permitted only for annual reporting periods beginning after December 15, 2016. The new guidance allows for companies to use either a full retrospective or a modified retrospective approach in the adoption of this guidance. The Company is currently evaluating these transition approaches, as well as the potential timing of adoption and the effect of adoption on its consolidated financial statements. In April 2015, the FASB issued new accounting guidance related to the presentation of debt issuance costs and requires such costs to be presented as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts and/or premiums. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The guidance must be applied retrospectively to all periods presented within the financial statements. The Company adopted this guidance in the third quarter of 2015. As a result, the presentation of $15.5 million of debt issuance costs (net of accumulated amortization) previously classified as Other assets, net are reflected in Long-term obligations on the consolidated balance sheet as of January 30, 2015. In November 2015, the FASB issued new accounting guidance which will require companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating them into current and noncurrent amounts. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. This guidance may be adopted on a prospective or retrospective basis. The Company adopted this guidance retrospectively in the fourth quarter of 2015. As a result, the presentation of $25.3 million of deferred income taxes previously classified as a current liability are reflected in noncurrent deferred income taxes on the consolidated balance sheet as of January 30, 2015. In February 2016, the FASB issued new guidance related to lease accounting. This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements and is anticipating a material impact because the Company is party to a significant number of lease contracts. Reclassifications Certain financial disclosures relating to prior periods have been reclassified to conform to the current year presentation where applicable. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Jan. 29, 2016 | |
Goodwill and other intangible assets | |
Goodwill and other intangible assets | 2. Goodwill and other intangible assets As of January 29, 2016 and January 30, 2015, the balances of the Company's intangible assets were as follows: As of January 29, 2016 (In thousands) Remaining Life Amount Accumulated Amortization Net Goodwill Indefinite $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other intangible assets: Leasehold interests 1 to 7 years $ $ $ Trade names and trademarks Indefinite — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of January 30, 2015 (In thousands) Remaining Life Amount Accumulated Amortization Net Goodwill Indefinite $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other intangible assets: Leasehold interests 1 to 8 years $ $ $ Trade names and trademarks Indefinite — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company recorded amortization expense related to amortizable intangible assets for 2015, 2014 and 2013 of $0.9 million, $5.8 million and $11.9 million, respectively, all of which is included in rent expense. Expected future cash flows associated with the Company's intangible assets are not expected to be materially affected by the Company's intent or ability to renew or extend the arrangements. The Company's goodwill balance is not expected to be deductible for tax purposes. For intangible assets subject to amortization, the estimated aggregate amortization expense for each of the five succeeding fiscal years is as follows: 2016—$0.3 million, 2017—$0.2 million, 2018—$0.2 million and 2019—$0.2 million and 2020—$0.1 million. |
Earnings per share
Earnings per share | 12 Months Ended |
Jan. 29, 2016 | |
Earnings per share | |
Earnings per share | 3. Earnings per share Earnings per share is computed as follows (in thousands except per share data): 2015 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2013 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share was computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share was determined based on the dilutive effect of share-based awards using the treasury stock method. Options to purchase shares of common stock that were outstanding at the end of the respective periods, but were not included in the computation of diluted earnings per share because the effect of exercising such options would be antidilutive, were 1.3 million, 1.2 million, and 1.2 million in 2015, 2014 and 2013, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Jan. 29, 2016 | |
Income taxes | |
Income taxes | 4. Income taxes The provision (benefit) for income taxes consists of the following: (In thousands) 2015 2014 2013 Current: Federal $ $ $ Foreign State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal ) ) State ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to income before income taxes is summarized as follows: (Dollars in thousands) 2015 2014 2013 U.S. federal statutory rate on earnings before income taxes $ % $ % $ % State income taxes, net of federal income tax benefit Jobs credits, net of federal income taxes ) ) ) ) ) ) Increase (decrease) in valuation allowances ) ) ) — Decrease in income tax reserves ) ) ) ) ) ) Other, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ % $ % $ % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The 2015 effective tax rate was an expense of 37.1%. This expense was greater than the federal statutory tax rate of 35% due primarily to the inclusion of state income taxes in the total effective tax rate. The 2015 effective income tax rate increased from 2014 due principally to federal and state reserve releases in 2014 that did not reoccur, to the same extent, in 2015. The 2014 effective tax rate was an expense of 36.6%. This expense was greater than the federal statutory tax rate of 35% due primarily to the inclusion of state income taxes in the total effective tax rate. The 2014 effective income tax rate decreased from 2013 due principally to the favorable resolution of state income tax examinations and a reduction in other state income tax reserve increases. The 2013 effective tax rate was an expense of 37.0%. This expense was greater than the federal statutory tax rate of 35% due primarily to the inclusion of state income taxes in the total effective tax rate. Deferred taxes reflect the effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: (In thousands) January 29, 2016 January 30, 2015 Deferred tax assets: Deferred compensation expense $ $ Accrued expenses Accrued rent Accrued insurance Accrued incentive compensation Share based compensation Interest rate hedges Tax benefit of income tax and interest reserves related to uncertain tax positions Deferred gain on sale-leaseback Other State tax credit carry forwards, net of federal tax ​ ​ ​ ​ ​ ​ ​ ​ Less valuation allowances ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Property and equipment ) ) Inventories ) ) Trademarks ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets (liabilities) at January 30, 2015 include the reclassification of current deferred tax assets and liabilities to noncurrent. See Note 1 for additional information. The Company has state tax credit carry forwards of approximately $16.5 million that will expire beginning in 2021 through 2024. A valuation allowance has been provided for state tax credit carry forwards. The 2015 decrease of $1.4 million was recorded as a reduction in income tax expense. The 2014 increase of $1.5 million and 2013 decrease of $0.4 million were recorded as an increase and a reduction in income tax expense, respectively. Based upon expected future income, management believes that it is more likely than not that the results of operations will generate sufficient taxable income to realize the deferred tax assets after giving consideration to the valuation allowance. The Company's 2010 and earlier tax years are not open for further examination by the Internal Revenue Service ("IRS"). Due to the filing of an amended federal income tax return for the 2011 tax year, the IRS may, to a limited extent, examine the Company's 2011 income tax filings. The IRS, at its discretion, may also choose to examine the Company's 2012 through 2014 fiscal year income tax filings. The Company has various state income tax examinations that are currently in progress. Generally, the Company's 2011 and later tax years remain open for examination by the various state taxing authorities. As of January 29, 2016, accruals for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $7.0 million, $0.9 million and $0.8 million, respectively, for a total of $8.7 million. This total amount is reflected in noncurrent Other liabilities in the consolidated balance sheet. As of January 30, 2015, accruals for uncertain tax benefits, interest expense related to income taxes and potential income tax penalties were $9.3 million, $1.0 million and $0.4 million, respectively, for a total of $10.7 million. This total amount is reflected in noncurrent Other liabilities in the consolidated balance sheet. The Company believes that it is reasonably possible that the reserve for uncertain tax positions may be reduced by approximately $2.6 million in the coming twelve months principally as a result of the effective settlement of outstanding issues. Also, as of January 29, 2016, approximately $7.0 million of the uncertain tax positions would impact the Company's effective income tax rate if the Company were to recognize the tax benefit for these positions. The amounts associated with uncertain tax positions included in income tax expense consists of the following: (In thousands) 2015 2014 2013 Income tax expense (benefit) $ ) $ ) $ ) Income tax related interest expense (benefit) ) ) Income tax related penalty expense (benefit) A reconciliation of the uncertain income tax positions from February 1, 2013 through January 29, 2016 is as follows: (In thousands) 2015 2014 2013 Beginning balance $ $ $ Increases—tax positions taken in the current year Increases—tax positions taken in prior years Decreases—tax positions taken in prior years ) ) ) Statute expirations ) ) ) Settlements — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Current and long-term obligatio
Current and long-term obligations | 12 Months Ended |
Jan. 29, 2016 | |
Current and long-term obligations | |
Current and long-term obligations | 5. Current and long-term obligations Current and long-term obligations consist of the following: (In thousands) January 29, 2016 January 30, 2015 Senior unsecured credit facilities Term Facility $ $ Revolving Facility — 4.125% Senior Notes due July 15, 2017 1.875% Senior Notes due April 15, 2018 (net of discount of $203 and $294) 3.250% Senior Notes due April 15, 2023 (net of discount of $1,775 and $1,991) 4.150% Senior Notes due November 1, 2025 (net of discount of $764) — Capital lease obligations Tax increment financing due February 1, 2035 Debt issuance costs, net ) ) ​ ​ ​ ​ ​ ​ ​ ​ Less: current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term portion $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Borrowing Facilities and 2015 Refinancing On October 20, 2015, the Company consummated a refinancing, pursuant to which the Company amended and restated its senior unsecured credit facilities (and refinanced all borrowings thereunder) and issued senior notes in an aggregate principal amount of $500.0 million, net of discount totaling $0.8 million. The amended and restated senior unsecured credit facilities (the "Facilities") consist of a $425.0 million senior unsecured term loan facility (the "Term Facility") and a $1.0 billion senior unsecured revolving credit facility (the "Revolving Facility") which provides for the issuance of letters of credit up to $175.0 million. The Facilities are scheduled to mature on October 20, 2020. The Company incurred $2.6 million of new debt issuance costs associated with the refinancing of the Facilities. Borrowings under the Facilities bear interest at a rate equal to an applicable interest rate margin plus, at the Company's option, either (a) LIBOR or (b) a base rate (which is usually equal to the prime rate). The applicable interest rate margin for borrowings as of January 29, 2016 was 1.10% for LIBOR borrowings and 0.10% for base-rate borrowings. The Company must also pay a facility fee, payable on any used and unused commitment amounts of the Facilities, and customary fees on letters of credit issued under the Revolving Facility. As of January 29, 2016, the commitment fee rate was 0.15%. The applicable interest rate margins for borrowings, the facility fees and the letter of credit fees under the Facilities are subject to adjustment from time to time based on the Company's long-term senior unsecured debt ratings. The weighted average all-in interest rate for borrowings under the Facilities was 1.65% as of January 29, 2016. The Facilities can be voluntarily prepaid in whole or in part at any time without penalty. There is no required principal amortization under the Facilities. The Facilities contain a number of customary affirmative and negative covenants that, among other things, restrict, subject to certain exceptions, the Company's and its subsidiaries' ability to: incur additional liens; sell all or substantially all of the Company's assets; consummate certain fundamental changes or change in the Company's lines of business; and incur additional subsidiary indebtedness. The Facilities also contain financial covenants which require the maintenance of a minimum fixed charge coverage ratio and a maximum leverage ratio. As of January 29, 2016, the Company was in compliance with all such covenants. The Facilities also contain customary events of default. As of January 29, 2016, under the Revolving Facility, the Company had borrowing availability of $722.0 million. In addition, the Company had outstanding letters of credit totaling $38.7 million, $27.0 million of which were issued under the Revolving Facility. The Company incurred a pretax loss of $0.3 million for the write off of debt issuance costs associated with the refinancing of its credit facilities, which is reflected in Other (income) expense in the consolidated statement of income for the year ended January 29, 2016. On October 20, 2015, the Company issued $500.0 million aggregate principal amount of 4.150% senior notes due 2025 (the "2025 Senior Notes"), net of discount of $0.8 million, which are scheduled to mature on November 1, 2025. Interest on the 2025 Senior Notes is payable in cash on May 1 and November 1 of each year, commencing on May 1, 2016. The Company incurred $4.4 million of debt issuance costs associated with the issuance of the 2025 Senior Notes. The net proceeds from the sale of the 2025 Senior Notes were used, together with borrowings under the Facilities, to repay all of the outstanding borrowings under the then-existing credit agreement and for general corporate purposes. Collectively, the 2025 Senior Notes and the Company's other Senior Notes due 2017, 2018 and 2023 as reflected in the table above comprise the "Senior Notes", each of which were issued pursuant to an indenture as supplemented and amended by supplemental indentures relating to each series of Senior Notes (as so supplemented and amended, the "Senior Indenture"). The Company may redeem some or all of its Senior Notes at any time at redemption prices set forth in the Senior Indenture. Upon the occurrence of a change of control triggering event, which is defined in the Senior Indenture, each holder of the Senior Notes has the right to require the Company to repurchase some or all of such holder's Senior Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The Senior Indenture contains covenants limiting, among other things, the ability of the Company and its subsidiaries to (subject to certain exceptions): consolidate, merge, sell or otherwise dispose of all or substantially all of the Company's assets; and to incur or guarantee indebtedness secured by liens on any shares of voting stock of significant subsidiaries. The Senior Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Senior Notes to become or to be declared due and payable, as applicable. Scheduled debt maturities, including capital lease obligations, for the Company's fiscal years listed below are as follows (in thousands): 2016—$1,379; 2017—$501,290; 2018—$400,892; 2019—$1,020; 2020—$676,980; thereafter—$1,409,835. |
Assets and liabilities measured
Assets and liabilities measured at fair value | 12 Months Ended |
Jan. 29, 2016 | |
Assets and liabilities measured at fair value | |
Assets and liabilities measured at fair value | 6. Assets and liabilities measured at fair value The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of January 29, 2016, aggregated by the level in the fair value hierarchy within which those measurements are classified. (In thousands) Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at January 29, 2016 Liabilities: Long-term obligations(a) $ $ $ — $ Deferred compensation(b) — — (a) Reflected at book value in the consolidated balance sheet as Current portion of long-term obligations of $1,379 and Long-term obligations of $2,969,175. (b) Reflected at fair value in the consolidated balance sheet as a component of Accrued expenses and other current liabilities of $8,307 and a component of noncurrent Other liabilities of $12,757. The carrying amounts reflected in the consolidated balance sheets for cash, cash equivalents, short-term investments, receivables and payables approximate their respective fair values. The Company does not have any recurring fair value measurements using significant unobservable inputs (Level 3) as of January 29, 2016. |
Derivatives and hedging activit
Derivatives and hedging activities | 12 Months Ended |
Jan. 29, 2016 | |
Derivative and hedging activities | |
Derivative and hedging activities | 7. Derivatives and hedging activities From time to time, the Company enters into certain financial instrument positions, all of which are intended to reduce risk by hedging an underlying economic exposure. Risk management objective of using derivatives 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, from time to time, through the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined primarily by interest rates. In addition, the Company is exposed to certain risks arising from uncertainties of future market values caused by the fluctuation in the prices of commodities. From time to time the Company may enter into derivative financial instruments to protect against future price changes related to these commodity prices. Cash flow hedges of interest rate risk The Company's objectives when using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate changes. To accomplish these objectives, the Company has from time to time used interest rate swaps as part of its interest rate risk management strategy. 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. The Company also previously entered into treasury locks that were designated as cash flow hedges of interest rate risk prior to the issuance of long-term debt in April 2013. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income (loss) (also referred to as "OCI") and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the interest rate swaps, if any, is recognized directly in earnings. The Company had interest rate swaps with a combined notional value of $875.0 million designated as cash flow hedges of interest rate risk that expired on May 31, 2015. Such interest rate swaps were used to hedge the variable cash flows associated with existing variable-rate debt prior to their maturity. Amounts reported in Accumulated other comprehensive income (loss) related to derivatives were reclassified to interest expense as interest payments were made on the Company's variable-rate debt. In April 2013, the Company recorded a loss on the settlement of treasury locks associated with the issuance of long-term debt which was deferred to OCI and is being amortized as an increase to interest expense over the period of the debt's maturity in 2023. During the 52-week period following January 29, 2016, the Company estimates that approximately $1.3 million will be reclassified as an increase to interest expense related to the amortization of the loss associated with the treasury locks. All of the amounts reflected in Accumulated other comprehensive income (loss) in the consolidated balance sheets for the periods presented are related to cash flow hedges. Non-designated hedges of commodity risk Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to commodity price risk but do not meet strict hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of January 29, 2016, the Company had no such non-designated hedges. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of January 29, 2016 and January 30, 2015: (in thousands) January 29, 2016 January 30, 2015 Derivatives Designated as Hedging Instruments Interest rate swaps classified as Accrued expenses and other current liabilities $ — $ The table below presents the pre-tax effect of the Company's derivative financial instruments as reflected in the consolidated statements of comprehensive income and shareholders' equity, as applicable: (in thousands) 2015 2014 2013 Derivatives in Cash Flow Hedging Relationships Loss related to effective portion of derivative recognized in OCI $ $ $ Loss related to effective portion of derivative reclassified from Accumulated OCI to Interest expense $ $ $ |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jan. 29, 2016 | |
Commitments and contingencies | |
Commitments and contingencies | 8. Commitments and contingencies Leases As of January 29, 2016, the Company was committed under operating lease agreements for most of its retail stores. Many of the Company's stores are subject to build-to-suit arrangements with landlords which typically carry a primary lease term of up to 15 years with multiple renewal options. The Company also has stores subject to shorter-term leases and many of these leases have renewal options. Certain of the Company's leased stores have provisions for contingent rentals based upon a specified percentage of defined sales volume. The land and buildings of the Company's DCs in Fulton, Missouri and Indianola, Mississippi are subject to operating lease agreements and the leased Ardmore, Oklahoma DC is subject to a financing arrangement. The entities involved in the ownership structure underlying these leases meet the accounting definition of a Variable Interest Entity ("VIE"). The Company is not the primary beneficiary of these VIEs and, accordingly, has not included these entities in its consolidated financial statements. Certain leases contain restrictive covenants, and as of January 29, 2016, the Company is not aware of any material violations of such covenants. In January 2014, the Company sold 233 store locations for cash and concurrent with the sale transaction, the Company leased the properties back for a period of 15 years. The transaction resulted in cash proceeds of approximately $281.6 million and a deferred gain of $67.2 million which is being recognized as a reduction of rent expense over the 15-year initial lease term of the properties. In January 1999, the Company sold its DC located in Ardmore, Oklahoma for cash and concurrent with the sale transaction, the Company leased the property back for a period of 23 years. The transaction is being accounted for as a financing obligation rather than a sale as a result of, among other things, the lessor's ability to put the property back to the Company under certain circumstances. The property and equipment, along with the related lease obligation associated with this transaction are recorded in the consolidated balance sheets. In August 2007, the Company purchased a secured promissory note (the "Ardmore Note") from an unrelated third party with a face value of $34.3 million at the date of purchase which approximated the remaining financing obligation. The Ardmore Note represents debt issued by the third party entity from which the Company leases the Ardmore DC and therefore the Company holds the debt instrument pertaining to its lease financing obligation. Because a legal right of offset exists, the Company is accounting for the Ardmore Note as a reduction of its outstanding financing obligation in its consolidated balance sheets. Future minimum payments as of January 29, 2016 for operating leases are as follows: (In thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total minimum payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total minimum payments for capital leases were $5.9 million, with a present value of $4.8 million, as of January 29, 2016. The gross amount of property and equipment recorded under capital leases and financing obligations at both January 29, 2016 and January 31, 2015, was $29.8 million. Accumulated depreciation on property and equipment under capital leases and financing obligations at January 29, 2016 and January 30, 2015, was $12.4 million and $10.6 million, respectively. Rent expense under all operating leases is as follows: (In thousands) 2015 2014 2013 Minimum rentals(a) $ $ $ Contingent rentals ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Excludes amortization of leasehold interests of $0.9 million, $5.8 million and $11.9 million included in rent expense for the years ended January 29, 2016, January 30, 2015, and January 31, 2014, respectively. Legal proceedings In September 2011, the Chicago Regional Office of the United States Equal Employment Opportunity Commission ("EEOC" or "Commission") notified the Company of a cause finding related to the Company's criminal background check policy. The cause finding alleges that the Company's criminal background check policy, which excludes from employment individuals with certain criminal convictions for specified periods, has a disparate impact on African-American candidates and employees in violation of Title VII of the Civil Rights Act of 1964, as amended ("Title VII"). The Company and the EEOC engaged in the statutorily required conciliation process, and despite the Company's good faith efforts to resolve the matter, the Commission notified the Company on July 26, 2012 of its view that conciliation had failed. On June 11, 2013, the EEOC filed a lawsuit in the United States District Court for the Northern District of Illinois entitled Equal Opportunity Commission v. Dolgencorp , LLC d/b/a Dollar General in which the Commission alleges that the Company's criminal background check policy has a disparate impact on "Black Applicants" in violation of Title VII and seeks to recover monetary damages and injunctive relief on behalf of a class of "Black Applicants." The Company filed its answer to the complaint on August 9, 2013. The Court has bifurcated the issues of liability and damages for purposes of discovery and trial. Fact discovery related to liability is to be completed on or before November 16, 2016. In response to various discovery motions, the court has entered orders requiring the Company's production of documents, information and electronic data for the period 2004 to present. Currently pending is the EEOC's Motion for Partial Summary Judgment relating to two of the Company's defenses challenging the sufficiency of the Commission's conciliation efforts and the scope of its investigation. The Company has opposed this motion as prematurely-filed in light of the status of various discovery issues. The Company believes that its criminal background check process is both lawful and necessary to a safe environment for its employees and customers and the protection of its assets and shareholders' investments. The Company also does not believe that this matter is amenable to class or similar treatment. However, at this time, it is not possible to predict whether the action will ultimately be permitted to proceed as a class or in a similar fashion or the size of any putative class. Likewise, at this time, it is not possible to estimate the value of the claims asserted, and no assurances can be given that the Company will be successful in its defense of this action on the merits or otherwise. For these reasons, the Company cannot estimate the potential exposure or range of potential loss. If the matter were to proceed successfully as a class or similar action or the Company is unsuccessful in its defense efforts as to the merits of the action, the resolution of this matter could have a material adverse effect on the Company's consolidated financial statements as a whole. On May 23, 2013, a lawsuit entitled Juan Varela v. Dolgen California and Does 1 through 50 ("Varela") was filed in the Superior Court of the State of California for the County of Riverside. In the original complaint, the Varela plaintiff alleges that he and other "key carriers" were not provided with meal and rest periods in violation of California law and seeks to recover alleged unpaid wages, injunctive relief, consequential damages, pre-judgment interest, statutory penalties and attorneys' fees and costs and seeks to represent a putative class of California "key carriers" as to these claims. The Varela plaintiff also asserts a claim for unfair business practices and seeks to proceed under California's Private Attorney General Act (the "PAGA"). The Company filed its answer to the complaint on July 1, 2013. On November 4, 2014, the Varela plaintiff filed an amended complaint to add Victoria Lee Dinger Main as a named plaintiff and to add putative class claims on behalf of "key carriers" for alleged inaccurate wage statements and failure to provide appropriate pay upon termination in violation of California law. The Company filed its answer to the amended complaint on December 23, 2014. The parties have been ordered to engage in informal discovery. A mediation was held in November 2015, which was unsuccessful. On January 15, 2015, a lawsuit entitled Kendra Pleasant v. Dollar General Corporation, Dolgen California, LLC, and Does 1 through 50 ("Pleasant") was filed in the Superior Court of the State of California for the County of San Bernardino in which the plaintiff seeks to proceed under the PAGA for various alleged violations of California's Labor Code. Specifically, the plaintiff alleges that she and other similarly situated non-exempt California store-level employees were not paid for all time worked, provided meal and rest breaks, reimbursed for necessary work related expenses, and provided with accurate wage statements and seeks to recover unpaid wages, civil and statutory penalties, interest, attorneys' fees and costs. On March 12, 2015, the Company filed a demurrer asking the court to stay all proceedings in the Pleasant matter pending an issuance of a final judgment in the Varela matter. The court granted the Company's demurrer and stayed proceedings until resolution of the Varela matter. Subsequently, the Pleasant plaintiff moved to transfer this matter to the Superior Court of the State of California for the County of Riverside where the Varela matter is pending, which the Company opposed. The court denied the Pleasant plaintiff's motion to transfer. On February 20, 2015, a lawsuit entitled Julie Sullivan v. Dolgen California and Does 1 through 100 ("Sullivan") was filed in the Superior Court of the State of California for the County of Alameda in which the plaintiff alleges that she and other similarly situated Dollar General Market store managers in the State of California were improperly classified as exempt employees and were not provided with meal and rest breaks and accurate wage statements in violation of California law. The Sullivan plaintiff also alleges that she and other California store employees were not provided with printed wage statements, purportedly in violation of California law. The plaintiff seeks to recover unpaid wages, including overtime pay, civil and statutory penalties, interest, injunctive relief, restitution, and attorneys' fees and costs. On April 8, 2015, the Company removed this matter to the United States District Court for the Northern District of California and filed its answer on the same date. On April 29, 2015, the Sullivan plaintiff amended her complaint to add a claim under the PAGA. The Company's response to the amended complaint was filed on May 14, 2015. The plaintiff's motion for class certification was filed on March 12, 2016. The matter has been set for trial on October 31, 2016. A mediation conducted in early March 2016 was unsuccessful. The Company believes that its policies and practices comply with California law and that the Varela, Pleasant , and Sullivan actions are not appropriate for class or similar treatment. The Company intends to vigorously defend these actions; however, at this time, it is not possible to predict whether the Varela, Pleasant, or Sullivan action ultimately will be permitted to proceed as a class, and no assurances can be given that the Company will be successful in its defense of these actions on the merits or otherwise. Similarly, at this time the Company cannot estimate either the size of any potential class or the value of the claims asserted in the Varela, Pleasant , or Sullivan action. For these reasons, the Company is unable to estimate any potential loss or range of loss in these matters; however, if the Company is not successful in its defense efforts, the resolution of any of these actions could have a material adverse effect on the Company's consolidated financial statements as a whole. In December 2015, the Company was notified of seven lawsuits in which the plaintiffs allege violation of state consumer protection laws relating to the labeling, marketing and sale of Dollar General private-label motor oil. Six of these lawsuits were filed in various federal district courts of the United States: Bradford Barfoot and Leonard Karpeichik v. Dolgencorp, LLC (filed in the Southern District of Florida on December 18, 2015) ("Barfoot"); Milton M. Cooke, Jr. v. Dollar General Corporation (filed in the Southern District of Texas on December 21, 2015) ("Cooke"); William Flinn v. Dolgencorp, LLC (filed in the District Court for New Jersey on December 17, 2015) ("Flinn"); John J. McCormick, III v. Dolgencorp, LLC (filed in the District Court of Maryland on December 23, 2015) ("McCormick "); David Sanchez v. Dolgencorp, LLC (filed in the Central District of California on December 17, 2015) ("Sanchez"); and Will Sisemore v. Dolgencorp, LLC (filed in the Northern District of Oklahoma on December 21, 2015) ("Sisemore"). The seventh matter, Chuck Hill v. Dolgencorp, LLC ("Hill"), was filed in Orleans County Superior Court in Vermont on December 22, 2015, and subsequently removed to the United States District Court for the District of Vermont on February 8, 2016. In February and March 2016, the Company was notified of thirteen additional lawsuits alleging similar claims concerning Dollar General private-label motor oil. All of these lawsuits were filed in various federal district courts of the United States: Allen Brown v. Dollar General Corporation and DG Retail, LLC (filed in the District of Colorado on February 10, 2016) ("Brown"); Miriam Fruhling v. Dollar General Corporation and Dolgencorp, LLC (filed in the Southern District of Ohio on February 10, 2016) ("Fruhling"); John Foppe v. Dollar General Corporation and Dolgencorp, LLC (filed in the Eastern District of Kentucky on February 10, 2016) ("Foppe"); Kevin Gadson v. Dolgencorp, LLC (filed in the Southern District of New York on February 8, 2016) ("Gadson"); Bruce Gooel v. Dolgencorp, LLC (filed in the Eastern District of Michigan on February 8, 2016) ("Gooel"); Janine Harvey v. Dollar General Corporation and Dolgencorp, LLC (filed in the District Court for Nebraska on February 10, 2016) ("Harvey"); Nicholas Meyer v. Dollar General Corporation and DG Retail, LLC (filed in the District of Kansas on February 9, 2016) ("Meyer"); Robert Oren v. Dollar General Corporation and Dolgencorp, LLC (filed in the Western District of Missouri on February 8, 2016) ("Oren"); Scott Sheehy v. Dollar General Corporation and DG Retail, LLC (filed in the District Court for Minnesota on February 9, 2016) ("Sheehy"); Gerardo Solis v. Dollar General Corporation and DG Retail, LLC (filed in the Northern District of Illinois on February 12, 2016) ("Solis"); Roberto Vega v. Dolgencorp, LLC (filed in the Central District of California on February 8, 2016) ("Vega"); Matthew Wait v. Dollar General Corporation and Dolgencorp, LLC (filed in the Western District of Arkansas on February 16, 2016) ("Wait"); and James Taschner v. Dollar General Corporation and Dolgencorp, LLC (filed in the Eastern District of Missouri on March 15, 2016) ("Taschner"). The plaintiffs in the Taschner, Vega and Sanchez matters seek to proceed on a nationwide and statewide class basis, while the plaintiffs in the other matters seek to proceed only on a statewide class basis. Each plaintiff seeks, for himself or herself and the putative class he or she seeks to represent, some or all of the following relief: compensatory damages, injunctive relief prohibiting the sale of the products at issue and requiring the dissemination of corrective advertising, certain statutory damages (including treble damages), punitive damages and attorneys' fees. On February 1, 2016, the Sanchez plaintiff voluntarily dismissed his complaint without prejudice. The Company filed a motion to dismiss the plaintiffs' claims and a motion to strike the class allegations in the Barfoot matter on February 4, 2016; in the Hill matter on February 8, 2016; in the Cooke matter on February 24, 2016; in the Sisemore matter on March 4, 2016; and in the Flinn matter on March 10, 2016. On March 7, 2016, the Company filed a motion with the United States Judicial Panel on Multidistrict Litigation requesting that all cases be transferred to the United States District Court for the Eastern District of Michigan, or, in the alternative to the Western District of Missouri or the Southern District of Florida, for consolidated pretrial proceedings ("Motion to Transfer"). After receiving notice of the Company's Motion to Transfer, the court stayed and administratively closed the Barfoot matter pending a transfer decision by the Judicial Panel on Multidistrict Litigation. The Company's responsive pleadings are due in the McCormick matter on March 21, 2016; in the Fruhling matter on April 4, 2016; in the Meyer matter on April 6, 2016; in the Sheehy matter on April 7, 2016; in the Solis matter on April 8, 2016; in the Foppe matter and Gooel matter on April 15, 2016; and in the Harvey , Oren and Vega matters on April 22, 2016. The Company believes that the labeling, marketing and sale of its private-label motor oil complies with applicable federal and state requirements and is not misleading. The Company further believes that these matters are not appropriate for class or similar treatment. The Company intends to vigorously defend these actions; however, at this time, it is not possible to predict whether any of these cases will be permitted to proceed as a class or the size of any putative class. Likewise, at this time, it is not possible to estimate the value of the claims asserted, and no assurances can be given that the Company will be successful in its defense of these actions on the merits or otherwise. For these reasons, the Company is unable to estimate the potential loss or range of loss in these matters; however if the Company is not successful in its defense efforts, the resolution of any of these actions could have a material adverse effect on the Company's consolidated financial statements as a whole. From time to time, the Company is a party to various other legal actions involving claims incidental to the conduct of its business, including actions by employees, consumers, suppliers, government agencies, or others through private actions, class actions, administrative proceedings, regulatory actions or other litigation, including without limitation under federal and state employment laws and wage and hour laws. The Company believes, based upon information currently available, that such other litigation and claims, both individually and in the aggregate, will be resolved without a material adverse effect on the Company's consolidated financial statements as a whole. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material adverse effect on the Company's results of operations, cash flows, or financial position. In addition, certain of these lawsuits, if decided adversely to the Company or settled by the Company, may result in liability material to the Company's financial position or may negatively affect operating results if changes to the Company's business operation are required. |
Benefit plans
Benefit plans | 12 Months Ended |
Jan. 29, 2016 | |
Benefit plans | |
Benefit plans | 9. Benefit plans The Dollar General Corporation 401(k) Savings and Retirement Plan, which became effective on January 1, 1998, is a safe harbor defined contribution plan and is subject to the Employee Retirement and Income Security Act ("ERISA"). A participant's right to claim a distribution of his or her account balance is dependent on the plan, ERISA guidelines and Internal Revenue Service regulations. All active participants are fully vested in all contributions to the 401(k) plan. During 2015, 2014 and 2013, the Company expensed approximately $15.0 million, $13.7 million and $13.0 million, respectively, for matching contributions. The Company also has a nonqualified supplemental retirement plan ("SERP") and compensation deferral plan ("CDP"), known as the Dollar General Corporation CDP/SERP Plan, for a select group of management and other key employees. The Company incurred compensation expense for these plans of approximately $1.1 million, $0.8 million and $1.2 million in 2015, 2014 and 2013, respectively. The CDP/SERP Plan assets are invested in accounts selected by the Company's Compensation Committee or its delegate, and the associated deferred compensation liability is reflected in the consolidated balance sheets as further discussed in Note 6. |
Share-based payments
Share-based payments | 12 Months Ended |
Jan. 29, 2016 | |
Share-based payments | |
Share-based payments | 10. Share-based payments The Company accounts for share-based payments in accordance with applicable accounting standards, under which the fair value of each award is separately estimated and amortized into compensation expense over the service period. The fair value of the Company's stock option grants are estimated on the grant date using the Black-Scholes-Merton valuation model. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. On July 6, 2007, the Company's Board of Directors adopted the 2007 Stock Incentive Plan for Key Employees, which plan was subsequently amended (as so amended, the "Plan"). The Plan allows the granting of stock options, stock appreciation rights, and other stock-based awards or dividend equivalent rights to key employees, directors, consultants or other persons having a service relationship with the Company, its subsidiaries and certain of its affiliates. The number of shares of Company common stock authorized for grant under the Plan is 31,142,858. As of January 29, 2016, 18,556,241 of such shares are available for future grants. Since May 2011, most of the share-based awards issued by the Company have been in the form of stock options, restricted stock, restricted stock units and performance share units. With limited exceptions, stock options and restricted stock units granted to employees generally vest ratably on an annual basis over four-year and three-year periods, respectively. Awards granted to board members generally vest ratably over a one or three-year period. Performance share units generally vest ratably over a three-year period, provided that certain minimum performance criteria are met in the year of grant. With limited exceptions, the performance share unit and restricted stock unit awards are payable in shares of common stock on the vesting date. From July 2007 through May 2011, a significant majority of the Company's share-based awards were a combination of stock options that vest solely upon the continued employment of the recipient ("MSA Time Options") and options that vest upon the achievement of predetermined annual or cumulative financial-based targets ("MSA Performance Options") (collectively, the "MSA Options"). MSA Options generally vest ratably on an annual basis over a period of approximately five years, with limited exceptions. The MSA Options are subject to various provisions set forth in a management stockholder's agreement ("MSA") entered into with each option holder. The MSA Options have a contractual term of 10 years and an exercise price equal to the fair value of the underlying common stock on the date of grant. The weighted average for key assumptions used in determining the fair value of all stock options granted in the years ended January 29, 2016, January 30, 2015, and January 31, 2014, and a summary of the methodology applied to develop each assumption, are as follows: January 29, 2016 January 30, 2015 January 31, 2014 Expected dividend yield % % % Expected stock price volatility % % % Weighted average risk-free interest rate % % % Expected term of options (years) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expected dividend yield—This is an estimate of the expected dividend yield on the Company's stock. An increase in the dividend yield will decrease compensation expense. Expected stock price volatility—This is a measure of the amount by which the price of the Company's common stock has fluctuated or is expected to fluctuate. Since November 2011, the expected volatilities for awards have been based on the historical volatility of the Company's publicly traded common stock. An increase in the expected volatility will increase compensation expense. Weighted average risk-free interest rate—This is the U.S. Treasury rate for the week of the grant having a term approximating the expected life of the option. An increase in the risk-free interest rate will increase compensation expense. Expected term of options—This is the period of time over which the options granted are expected to remain outstanding. The Company has estimated the expected term as the mid-point between the vesting date and the contractual term of the option. An increase in the expected term will increase compensation expense. A summary of the Company's stock option activity, exclusive of options subject to an MSA, during the year ended January 29, 2016 is as follows: (Intrinsic value amounts reflected in thousands) Options Issued Average Exercise Price Remaining Contractual Term in Years Intrinsic Value Balance, January 30, 2015 $ Granted Exercised ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at January 29, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average grant date fair value per share of non-MSA options granted was $18.48, $17.26 and $13.86 during 2015, 2014 and 2013, respectively. The intrinsic value of non-MSA options exercised during 2015, 2014, and 2013 was $20.8 million, $2.5 million and $0.8 million, respectively. The number of performance share unit awards earned is based upon the Company's annual financial performance in the year of grant as specified in the award agreement. A summary of performance share unit award activity during the year ended January 29, 2016 is as follows: (Intrinsic value amounts reflected in thousands) Units Issued Intrinsic Value Balance, January 30, 2015 Granted Converted to common stock ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average grant date fair value per share of performance share units granted was $74.72, $57.91 and $48.11 during 2015, 2014, and 2013, respectively. A summary of restricted stock unit award activity during the year ended January 29, 2016 is as follows: (Intrinsic value amounts reflected in thousands) Units Issued Intrinsic Value Balance, January 30, 2015 Granted Converted to common stock ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average grant date fair value per share of restricted stock units granted was $74.67, $57.87 and $48.20 during 2015, 2014 and 2013, respectively. At January 29, 2016, 173,091 MSA Time Options were outstanding, all of which were exercisable, with an average exercise price of $20.36, an average remaining contractual term of 3.8 years, and an aggregate intrinsic value of $9.5 million. The intrinsic value of MSA Time Options exercised during 2015, 2014 and 2013 was $6.6 million, $6.8 million and $39.4 million, respectively. At January 29, 2016, 151,097 MSA Performance Options were outstanding, all of which were exercisable, with an average exercise price of $21.23, an average remaining contractual term of 3.9 years, and an aggregate intrinsic value of $8.1 million. The intrinsic value of MSA Performance Options exercised during 2015, 2014 and 2013 was $4.9 million, $4.9 million and $39.1 million, respectively. In March 2012, the Company issued a performance-based award of 326,037 shares of restricted stock to its former Chairman and Chief Executive Officer. The restricted stock award had a fair value on the grant date of $45.25 per share, with the award scheduled to vest in one-half increments contingent upon, among other things, meeting certain specified earnings per share targets for 2014 and 2015. The target for 2014 was met and the applicable shares vested. Certain conditions relating to the 2015 tranche of the award were not satisfied and therefore the applicable shares did not vest. At January 29, 2016, the total unrecognized compensation cost related to nonvested stock-based awards was $48.2 million with an expected weighted average expense recognition period of 1.7 years. The fair value method of accounting for share-based awards resulted in share-based compensation expense (a component of SG&A expenses) and a corresponding reduction in net income before income taxes as follows: (In thousands) Stock Options Performance Share Units Restricted Stock Units Restricted Stock Total Year ended January 29, 2016 Pre-tax $ $ $ $ — $ Net of tax $ $ $ $ — $ Year ended January 30, 2015 Pre-tax $ $ $ $ $ Net of tax $ $ $ $ $ Year ended January 31, 2014 Pre-tax $ $ $ $ — $ Net of tax $ $ $ $ — $ |
Segment reporting
Segment reporting | 12 Months Ended |
Jan. 29, 2016 | |
Segment reporting | |
Segment reporting | 11. Segment reporting The Company manages its business on the basis of one reportable operating segment. See Note 1 for a brief description of the Company's business. As of January 29, 2016, all of the Company's operations were located within the United States with the exception of certain subsidiaries in Hong Kong and China and a liaison office in India, which collectively are not material with regard to assets, results of operations or otherwise, to the consolidated financial statements. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise. (In thousands) 2015 2014 2013 Classes of similar products: Consumables $ $ $ Seasonal Home products Apparel ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Common stock transactions
Common stock transactions | 12 Months Ended |
Jan. 29, 2016 | |
Common stock transactions | |
Common stock transactions | 12. Common stock transactions On August 29, 2012, the Company's Board of Directors authorized a common stock repurchase program, which the Board has increased on several occasions. Most recently, on December 2, 2015, the Company's Board of Directors authorized a $1.0 billion increase to the existing common stock repurchase program. As of January 29, 2016, a cumulative total of $4.0 billion had been authorized under the program since its inception and $923.8 million remained available for repurchase. The repurchase authorization has no expiration date and allows repurchases from time to time in the open market or in privately negotiated transactions. The timing and number of shares purchased depends on a variety of factors, such as price, market conditions, compliance with the covenants and restrictions under the Company's debt agreements and other factors. Repurchases under the program may be funded from available cash or borrowings under the Facilities discussed in further detail in Note 5. During the years ended January 29, 2016, January 30, 2015, and January 31, 2014, the Company repurchased approximately 17.6 million shares of its common stock at a total cost of $1.3 billion, approximately 14.1 million shares at a total cost of $0.8 billion and approximately 11.0 million shares of its common stock at a total cost of $0.6 billion, respectively, pursuant to its common stock repurchase programs. The Company paid quarterly cash dividends of $0.22 per share during each of the four quarters of 2015. On March 8, 2016, the Company's Board of Directors approved a quarterly cash dividend of $0.25 per share, which is payable on April 12, 2016 to shareholders of record as of March 29, 2016. The declaration of future cash dividends is subject to the discretion of the Company's Board of Directors and will depend upon, among other things, the Company's results of operations, cash requirements, financial condition, contractual restrictions and other factors that the Board may deem relevant in its sole discretion. |
Corporate restructuring
Corporate restructuring | 12 Months Ended |
Jan. 29, 2016 | |
Corporate restructuring | |
Corporate restructuring | 13. Corporate restructuring On October 13, 2015, the Company implemented a restructuring of its corporate support functions, including the elimination of approximately 255 positions, substantially all of which were at the Company's corporate headquarters and effective immediately. The restructuring is part of a broader initiative aimed at improving efficiencies and reducing expenses. The Company incurred pretax expense of $6.1 million associated with this restructuring for severance-related benefits. This expense is reflected in Selling, general, and administrative expenses on the Company's consolidated statements of income for the year ended January 29, 2016. As of January 29, 2016, the remaining liability related to these charges is $3.5 million. |
Quarterly financial data (unaud
Quarterly financial data (unaudited) | 12 Months Ended |
Jan. 29, 2016 | |
Quarterly financial data (unaudited) | |
Quarterly financial data (unaudited) | 14. Quarterly financial data (unaudited) The following is selected unaudited quarterly financial data for the fiscal years ended January 29, 2016 and January 30, 2015. Each quarterly period listed below was a 13-week accounting period. The sum of the four quarters for any given year may not equal annual totals due to rounding. (In thousands) First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Net sales $ $ $ $ Gross profit Operating profit Net income Basic earnings per share Diluted earnings per share (In thousands) First Quarter Second Quarter Third Quarter Fourth Quarter 2014: Net sales $ $ $ $ Gross profit Operating profit Net income Basic earnings per share Diluted earnings per share As discussed in Note 13, in the third quarter of 2015, the Company implemented a restructuring of its corporate support functions. As a result, the Company incurred expenses, primarily related to severance-related benefits, of $6.1 million ($3.7 million net of tax, or $0.01 per diluted share), which was recognized as Selling, general, and administrative expense. In the third and fourth quarters of 2014, the Company incurred expenses related to an attempted acquisition of $8.2 million ($7.4 million net of tax, or $0.02 per diluted share) and $6.1 million ($1.3 million net of tax, or $0.00 per diluted share), respectively, which were recognized as Selling, general and administrative expenses. |
Basis of presentation and acc24
Basis of presentation and accounting policies (Policies) | 12 Months Ended |
Jan. 29, 2016 | |
Accounting policies | |
Basis of presentation | Basis of presentation These notes contain references to the years 2015, 2014, and 2013, which represent fiscal years ended January 29, 2016, January 30, 2015, and January 31, 2014, respectively, each of which were 52-week accounting periods. The Company's fiscal year ends on the Friday closest to January 31. The consolidated financial statements include all subsidiaries of the Company, except for its not-for-profit subsidiary which the Company does not control. Intercompany transactions have been eliminated. The Company sells general merchandise on a retail basis through 12,483 stores (as of January 29, 2016) in 43 states covering most of the southern, southwestern, midwestern and eastern United States. The Company has owned distribution centers ("DCs") in Scottsville, Kentucky; South Boston, Virginia; Alachua, Florida; Zanesville, Ohio; Jonesville, South Carolina; Marion, Indiana; Bessemer, Alabama; Bethel, Pennsylvania; and San Antonio, Texas, and leased DCs in Ardmore, Oklahoma; Fulton, Missouri; Indianola, Mississippi; and Lebec, California. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include highly liquid investments with insignificant interest rate risk and original maturities of three months or less when purchased. Such investments primarily consist of money market funds, bank deposits, certificates of deposit, and commercial paper. The carrying amounts of these items are a reasonable estimate of their fair value due to the short maturity of these investments. Payments due from processors for electronic tender transactions classified as cash and cash equivalents totaled approximately $59.5 million and $58.5 million at January 29, 2016 and January 30, 2015, respectively. At January 29, 2016, the Company maintained cash balances to meet a $20 million minimum threshold set by insurance regulators, as further described below under "Insurance liabilities." |
Investments in debt and equity securities | Investments in debt and equity securities The Company accounts for investments in debt and marketable equity securities as held-to-maturity, available-for-sale, or trading, depending on their classification. Debt securities categorized as held-to-maturity are stated at amortized cost. Debt and equity securities categorized as available-for-sale are stated at fair value, with any unrealized gains and losses, net of deferred income taxes, reported as a component of Accumulated other comprehensive loss. Trading securities are stated at fair value, with changes in fair value recorded as a component of Selling, general and administrative ("SG&A") expense. The cost of securities sold is based upon the specific identification method. |
Merchandise inventories | Merchandise inventories Inventories are stated at the lower of cost or market with cost determined using the retail last-in, first-out ("LIFO") method as this method results in a better matching of costs and revenues. Under the Company's retail inventory method ("RIM"), the calculation of gross profit and the resulting valuation of inventories at cost are computed by applying a calculated cost-to-retail inventory ratio to the retail value of sales at a department level. The use of the RIM will result in valuing inventories at the lower of cost or market ("LCM") if markdowns are currently taken as a reduction of the retail value of inventories. Costs directly associated with warehousing and distribution are capitalized into inventory. The excess of current cost over LIFO cost was approximately $92.9 million and $95.1 million at January 29, 2016 and January 30, 2015, respectively. Current cost is determined using the RIM on a first-in, first-out basis. Under the LIFO inventory method, the impacts of rising or falling market price changes increase or decrease cost of sales (the LIFO provision or benefit). The Company recorded a LIFO provision (benefit) of $(2.3) million in 2015, $4.2 million in 2014, and $(11.0) million in 2013, which is included in cost of goods sold in the consolidated statements of income. The Company purchases its merchandise from a wide variety of suppliers. The Company's largest and second largest suppliers each accounted for approximately 7% of the Company's purchases in 2015. |
Vendor rebates | Vendor rebates The Company accounts for all cash consideration received from vendors in accordance with applicable accounting standards pertaining to such arrangements. Cash consideration received from a vendor is generally presumed to be a rebate or an allowance and is accounted for as a reduction of merchandise purchase costs as earned. However, certain specific, incremental and otherwise qualifying SG&A expenses related to the promotion or sale of vendor products may be offset by cash consideration received from vendors, in accordance with arrangements such as cooperative advertising, when earned for dollar amounts up to but not exceeding actual incremental costs. |
Property and equipment | Property and equipment In 2007, the Company's property and equipment was recorded at estimated fair values as the result of a merger transaction. Property and equipment acquired subsequent to the merger has been recorded at cost. The Company records depreciation and amortization on a straight-line basis over the assets' estimated useful lives. The Company's property and equipment balances and depreciable lives are summarized as follows: (In thousands) Depreciable Life January 29, 2016 January 30, 2015 Land Indefinite $ $ Land improvements 20 Buildings 39 - 40 Leasehold improvements (a) Furniture, fixtures and equipment 3 - 10 Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net property and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset. Depreciation expense related to property and equipment was approximately $350.6 million, $335.9 million and $315.3 million for 2015, 2014 and 2013. Amortization of capital lease assets is included in depreciation expense. Interest on borrowed funds during the construction of property and equipment is capitalized where applicable. Interest costs of $1.4 million, $0.2 million and $1.2 million were capitalized in 2015, 2014 and 2013. |
Impairment of long-lived assets | Impairment of long-lived assets When indicators of impairment are present, the Company evaluates the carrying value of long-lived assets, other than goodwill and other indefinite-lived intangible assets, in relation to the operating performance and future cash flows or the appraised values of the underlying assets. Generally, the Company's policy is to review for impairment stores open more than three years for which current cash flows from operations are negative. Impairment results when the carrying value of the assets exceeds the undiscounted future cash flows expected to be generated by the assets. The Company's estimate of undiscounted future cash flows is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset's estimated fair value. The fair value is estimated based primarily upon estimated future cash flows over the asset's remaining useful life (discounted at the Company's credit adjusted risk-free rate) or other reasonable estimates of fair market value. Assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value. The Company recorded impairment charges included in SG&A expense of approximately $5.9 million in 2015, $1.9 million in 2014 and $0.5 million in 2013, to reduce the carrying value of certain of its stores' assets. Such action was deemed necessary based on the Company's evaluation that such amounts would not be recoverable primarily due to insufficient sales or excessive costs resulting in the carrying value of the assets exceeding the estimated undiscounted future cash flows generated by the assets at these locations. |
Goodwill and other intangible assets | Goodwill and other intangible assets The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Goodwill and intangible assets with indefinite lives are tested for impairment annually or more frequently if indicators of impairment are present. Other intangible assets are tested for impairment if indicators of impairment are present. Impaired assets are written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented. In accordance with accounting standards for goodwill and indefinite-lived intangible assets, an entity has the option first to assess qualitative factors to determine whether events and circumstances indicate that it is more likely than not that goodwill or an indefinite-lived intangible asset is impaired. If after such assessment an entity concludes that the asset is not impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the asset using a quantitative impairment test, and if impaired, the associated assets must be written down to fair value as described in further detail below. The quantitative goodwill impairment test is a two-step process that would require management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of an entity's reporting units based on valuation techniques (including a discounted cash flow model using revenue and profit forecasts) and comparing that estimated fair value with the recorded carrying value, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of the implied fair value of goodwill would require the entity to allocate the estimated fair value of its reporting unit to its assets and liabilities. Any unallocated fair value would represent the implied fair value of goodwill, which would be compared to its corresponding carrying value. The quantitative impairment test for intangible assets compares the fair value of the intangible asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. |
Insurance liabilities | Insurance liabilities The Company retains a significant portion of risk for its workers' compensation, employee health, general liability, property and automobile claim exposures. Accordingly, provisions are made for the Company's estimates of such risks. The undiscounted future claim costs for the workers' compensation, general liability, and health claim risks are derived using actuarial methods and are recorded as self-insurance reserves pursuant to Company policy. To the extent that subsequent claim costs vary from those estimates, future results of operations will be affected as the reserves are adjusted. Ashley River Insurance Company ("ARIC"), a South Carolina-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiary companies premiums to insure the retained workers' compensation and non-property general liability exposures. Pursuant to South Carolina insurance regulations, ARIC maintains certain levels of cash and cash equivalents related to its self-insured exposures. ARIC currently insures no unrelated third-party risk. |
Operating leases and related liabilities | Operating leases and related liabilities Rent expense is recognized over the term of the lease. The Company records minimum rental expense on a straight-line basis over the base, non-cancelable lease term commencing on the date that the Company takes physical possession of the property from the landlord, which normally includes a period prior to the store opening to make necessary leasehold improvements and install store fixtures. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. Tenant allowances, to the extent received, are recorded as deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. The difference between the calculated expense and the amounts paid result in a liability, with the current portion in Accrued expenses and other and the long-term portion in Other liabilities in the consolidated balance sheets, and totaled approximately $57.9 million and $54.6 million at January 29, 2016 and January 30, 2015, respectively. The Company recognizes contingent rental expense when the achievement of specified sales targets is considered probable. The amount expensed but not paid as of January 29, 2016 and January 30, 2015 was approximately $4.0 million and $4.8 million, respectively, and is included in Accrued expenses and other in the consolidated balance sheets. |
Fair value accounting | Fair value accounting The Company utilizes accounting standards for fair value, which include the definition of fair value, the framework for measuring fair value, and disclosures about fair value measurements. Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are based on an entity's own assumptions, as there is little, if any, observable market activity. In instances where the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The valuation of derivative financial instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis takes into account the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The variable cash receipts (or payments) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. The Company considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees, to adjust the fair value of outstanding derivative contracts for the effect of nonperformance risk. In connection with accounting standards for fair value measurement, the Company has made an accounting policy election to measure the credit risk of outstanding derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Derivative financial instruments | Derivative financial instruments The Company accounts for derivative financial instruments in accordance with applicable accounting standards for such instruments and hedging activities, which require that all derivatives are recorded on the balance sheet at fair value. 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 changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. 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. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or 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 a certain portion of its risk, even though hedge accounting does not apply or the Company elects not to apply the hedge accounting standards. |
Revenue and gain recognition retail sales | Revenue and gain recognition The Company recognizes retail sales in its stores at the time the customer takes possession of merchandise. All sales are net of discounts and estimated returns and are presented net of taxes assessed by governmental authorities that are imposed concurrent with those sales. The liability for retail merchandise returns is based on the Company's prior experience. The Company records gain contingencies when realized. |
Revenue and gain recognition gift cards | The Company recognizes gift card sales revenue at the time of redemption. The liability for the gift cards is established for the cash value at the time of purchase. The liability for outstanding gift cards was approximately $2.8 million and $2.5 million at January 29, 2016 and January 30, 2015, respectively, and is recorded in Accrued expenses and other liabilities. Estimated breakage revenue, a percentage of gift cards that will never be redeemed based on historical redemption rates, is recognized over time in proportion to actual gift card redemptions. The Company recorded breakage revenue of $0.6 million and $2.4 million in 2015 and 2014, respectively. |
Advertising costs | Advertising costs Advertising costs are expensed upon performance, "first showing" or distribution, and are reflected in SG&A expenses net of earned cooperative advertising amounts provided by vendors which are specific, incremental and otherwise qualifying expenses related to the promotion or sale of vendor products for dollar amounts up to but not exceeding actual incremental costs. Advertising costs were $89.3 million, $77.3 million and $70.5 million in 2015, 2014 and 2013, respectively. These costs primarily include promotional circulars, targeted circulars supporting new stores, television and radio advertising, in-store signage, and costs associated with the sponsorships of certain automobile racing activities. Vendor funding for cooperative advertising offset reported expenses by $36.7 million, $35.0 million and $31.9 million in 2015, 2014 and 2013, respectively. |
Share-based payments | Share-based payments The Company recognizes compensation expense for share-based compensation based on the fair value of the awards on the grant date. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate may be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the prior estimate. The forfeiture rate is the estimated percentage of share-based awards granted that are expected to be forfeited or canceled before becoming fully vested. The Company bases this estimate on historical experience or estimates of future trends, as applicable. An increase in the forfeiture rate will decrease compensation expense. The fair value of each option grant is separately estimated and amortized into compensation expense on a straight-line basis between the applicable grant date and each vesting date. The Company has estimated the fair value of all stock option awards as of the grant date by applying the Black-Scholes-Merton option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The Company calculates compensation expense for restricted stock, share units and similar awards as the difference between the market price of the underlying stock or similar award on the grant date and the purchase price, if any. Such expense is recognized on a straight-line basis for graded awards or an accelerated basis for performance awards over the period in which the recipient earns the awards. |
Store pre-opening costs | Store pre-opening costs Pre-opening costs related to new store openings and the related construction periods are expensed as incurred. |
Income taxes | Income taxes Under the accounting standards for income taxes, the asset and liability method is used for computing the future income tax consequences of events that have been recognized in the Company's consolidated financial statements or income tax returns. Deferred income tax expense or benefit is the net change during the year in the Company's deferred income tax assets and liabilities. The Company includes income tax related interest and penalties as a component of the provision for income tax expense. Income tax reserves are determined using a methodology which requires companies to assess each income tax position taken using a two-step process. A determination is first made as to whether it is more likely than not that the position will be sustained, based upon the technical merits, upon examination by the taxing authorities. If the tax position is expected to meet the more likely than not criteria, the benefit recorded for the tax position equals the largest amount that is greater than 50% likely to be realized upon ultimate settlement of the respective tax position. Uncertain tax positions require determinations and estimated liabilities to be made based on provisions of the tax law which may be subject to change or varying interpretation. If the Company's determinations and estimates prove to be inaccurate, the resulting adjustments could be material to the Company's future financial results. |
Management estimates | Management estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Accounting standards | Accounting standards In May 2014, the Financial Accounting Standards Board ("FASB") issued comprehensive new accounting standards related to the recognition of revenue, which specified an effective date for annual reporting periods beginning after December 15, 2016, with early adoption not permitted. In August 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017, with earlier adoption permitted only for annual reporting periods beginning after December 15, 2016. The new guidance allows for companies to use either a full retrospective or a modified retrospective approach in the adoption of this guidance. The Company is currently evaluating these transition approaches, as well as the potential timing of adoption and the effect of adoption on its consolidated financial statements. In April 2015, the FASB issued new accounting guidance related to the presentation of debt issuance costs and requires such costs to be presented as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts and/or premiums. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The guidance must be applied retrospectively to all periods presented within the financial statements. The Company adopted this guidance in the third quarter of 2015. As a result, the presentation of $15.5 million of debt issuance costs (net of accumulated amortization) previously classified as Other assets, net are reflected in Long-term obligations on the consolidated balance sheet as of January 30, 2015. In November 2015, the FASB issued new accounting guidance which will require companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating them into current and noncurrent amounts. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years, with early adoption permitted. This guidance may be adopted on a prospective or retrospective basis. The Company adopted this guidance retrospectively in the fourth quarter of 2015. As a result, the presentation of $25.3 million of deferred income taxes previously classified as a current liability are reflected in noncurrent deferred income taxes on the consolidated balance sheet as of January 30, 2015. In February 2016, the FASB issued new guidance related to lease accounting. This guidance requires a dual approach for lessee accounting under which a lessee will account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability on its balance sheet, with differing methodology for income statement recognition. This guidance is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The Company is currently assessing the impact that adoption of this guidance will have on its consolidated financial statements and is anticipating a material impact because the Company is party to a significant number of lease contracts. |
Reclassifications | Reclassifications Certain financial disclosures relating to prior periods have been reclassified to conform to the current year presentation where applicable. |
Basis of presentation and acc25
Basis of presentation and accounting policies (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Basis of presentation | |
Schedule of property and equipment balances and depreciable lives | (In thousands) Depreciable Life January 29, 2016 January 30, 2015 Land Indefinite $ $ Land improvements 20 Buildings 39 - 40 Leasehold improvements (a) Furniture, fixtures and equipment 3 - 10 Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net property and equipment $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Amortized over the lesser of the life of the applicable lease term or the estimated useful life of the asset. |
Schedule of accrued expenses and other liabilities | (In thousands) January 29, 2016 January 30, 2015 Compensation and benefits $ $ Insurance Taxes (other than taxes on income) Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of noncurrent other liabilities | (In thousands) January 29, 2016 January 30, 2015 Insurance $ $ Deferred rent Deferred gain on sale leaseback Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and other intangible26
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Goodwill and other intangible assets | |
Schedule of the balances of the Company's intangible assets | As of January 29, 2016 (In thousands) Remaining Life Amount Accumulated Amortization Net Goodwill Indefinite $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other intangible assets: Leasehold interests 1 to 7 years $ $ $ Trade names and trademarks Indefinite — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of January 30, 2015 (In thousands) Remaining Life Amount Accumulated Amortization Net Goodwill Indefinite $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other intangible assets: Leasehold interests 1 to 8 years $ $ $ Trade names and trademarks Indefinite — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Earnings per share | |
Schedule of computation of earnings per share | Earnings per share is computed as follows (in thousands except per share data): 2015 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2013 Net Income Weighted Average Shares Per Share Amount Basic earnings per share $ $ Effect of dilutive share-based awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Income taxes | |
Schedule of provision (benefit) for income taxes | (In thousands) 2015 2014 2013 Current: Federal $ $ $ Foreign State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal ) ) State ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation between actual income taxes and amounts computed by applying the federal statutory rate to income before income taxes | (Dollars in thousands) 2015 2014 2013 U.S. federal statutory rate on earnings before income taxes $ % $ % $ % State income taxes, net of federal income tax benefit Jobs credits, net of federal income taxes ) ) ) ) ) ) Increase (decrease) in valuation allowances ) ) ) — Decrease in income tax reserves ) ) ) ) ) ) Other, net — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ % $ % $ % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of deferred tax assets and liabilities | (In thousands) January 29, 2016 January 30, 2015 Deferred tax assets: Deferred compensation expense $ $ Accrued expenses Accrued rent Accrued insurance Accrued incentive compensation Share based compensation Interest rate hedges Tax benefit of income tax and interest reserves related to uncertain tax positions Deferred gain on sale-leaseback Other State tax credit carry forwards, net of federal tax ​ ​ ​ ​ ​ ​ ​ ​ Less valuation allowances ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Property and equipment ) ) Inventories ) ) Trademarks ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of amounts associated with uncertain tax positions included in income tax expense | (In thousands) 2015 2014 2013 Income tax expense (benefit) $ ) $ ) $ ) Income tax related interest expense (benefit) ) ) Income tax related penalty expense (benefit) |
Schedule of reconciliation of uncertain income tax positions | (In thousands) 2015 2014 2013 Beginning balance $ $ $ Increases—tax positions taken in the current year Increases—tax positions taken in prior years Decreases—tax positions taken in prior years ) ) ) Statute expirations ) ) ) Settlements — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Current and long-term obligat29
Current and long-term obligations (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Current and long-term obligations | |
Schedule of current and long-term debt obligations | (In thousands) January 29, 2016 January 30, 2015 Senior unsecured credit facilities Term Facility $ $ Revolving Facility — 4.125% Senior Notes due July 15, 2017 1.875% Senior Notes due April 15, 2018 (net of discount of $203 and $294) 3.250% Senior Notes due April 15, 2023 (net of discount of $1,775 and $1,991) 4.150% Senior Notes due November 1, 2025 (net of discount of $764) — Capital lease obligations Tax increment financing due February 1, 2035 Debt issuance costs, net ) ) ​ ​ ​ ​ ​ ​ ​ ​ Less: current portion ) ) ​ ​ ​ ​ ​ ​ ​ ​ Long-term portion $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Assets and liabilities measur30
Assets and liabilities measured at fair value (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Assets and liabilities measured at fair value | |
Schedule of assets and liabilities measured at fair value | (In thousands) Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at January 29, 2016 Liabilities: Long-term obligations(a) $ $ $ — $ Deferred compensation(b) — — (a) Reflected at book value in the consolidated balance sheet as Current portion of long-term obligations of $1,379 and Long-term obligations of $2,969,175. (b) Reflected at fair value in the consolidated balance sheet as a component of Accrued expenses and other current liabilities of $8,307 and a component of noncurrent Other liabilities of $12,757. |
Derivatives and hedging activ31
Derivatives and hedging activities (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Derivative and hedging activities | |
Schedule of fair value of derivative financial instruments as well as their classification on the consolidated balance sheets | (in thousands) January 29, 2016 January 30, 2015 Derivatives Designated as Hedging Instruments Interest rate swaps classified as Accrued expenses and other current liabilities $ — $ |
Schedule of the pre-tax effect of derivative financial instruments in the consolidated statements of comprehensive income and shareholders' equity | (in thousands) 2015 2014 2013 Derivatives in Cash Flow Hedging Relationships Loss related to effective portion of derivative recognized in OCI $ $ $ Loss related to effective portion of derivative reclassified from Accumulated OCI to Interest expense $ $ $ |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Commitments and contingencies | |
Schedule of future minimum payments for operating leases | (In thousands) 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total minimum payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of rent expenses under operating leases | (In thousands) 2015 2014 2013 Minimum rentals(a) $ $ $ Contingent rentals ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Excludes amortization of leasehold interests of $0.9 million, $5.8 million and $11.9 million included in rent expense for the years ended January 29, 2016, January 30, 2015, and January 31, 2014, respectively. |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Share-based payments | |
Schedule of weighted averages for key assumptions used in determining the fair value of all stock option grants | January 29, 2016 January 30, 2015 January 31, 2014 Expected dividend yield % % % Expected stock price volatility % % % Weighted average risk-free interest rate % % % Expected term of options (years) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of performance share unit award activity | (Intrinsic value amounts reflected in thousands) Units Issued Intrinsic Value Balance, January 30, 2015 Granted Converted to common stock ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of restricted stock unit award activity | (Intrinsic value amounts reflected in thousands) Units Issued Intrinsic Value Balance, January 30, 2015 Granted Converted to common stock ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of share-based compensation expense | (In thousands) Stock Options Performance Share Units Restricted Stock Units Restricted Stock Total Year ended January 29, 2016 Pre-tax $ $ $ $ — $ Net of tax $ $ $ $ — $ Year ended January 30, 2015 Pre-tax $ $ $ $ $ Net of tax $ $ $ $ $ Year ended January 31, 2014 Pre-tax $ $ $ $ — $ Net of tax $ $ $ $ — $ |
Other Options | |
Share-based payments | |
Schedule of options activity | (Intrinsic value amounts reflected in thousands) Options Issued Average Exercise Price Remaining Contractual Term in Years Intrinsic Value Balance, January 30, 2015 $ Granted Exercised ) Canceled ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance, January 29, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at January 29, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Segment reporting | |
Schedule of net sales grouped by classes of similar products | (In thousands) 2015 2014 2013 Classes of similar products: Consumables $ $ $ Seasonal Home products Apparel ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Quarterly financial data (una35
Quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Jan. 29, 2016 | |
Quarterly financial data (unaudited) | |
Schedule of selected unaudited quarterly financial data | (In thousands) First Quarter Second Quarter Third Quarter Fourth Quarter 2015: Net sales $ $ $ $ Gross profit Operating profit Net income Basic earnings per share Diluted earnings per share (In thousands) First Quarter Second Quarter Third Quarter Fourth Quarter 2014: Net sales $ $ $ $ Gross profit Operating profit Net income Basic earnings per share Diluted earnings per share |
Basis of presentation and acc36
Basis of presentation and accounting policies - Fiscal year, Cash, Inventory (Details) $ in Millions | 12 Months Ended | ||
Jan. 29, 2016USD ($)storestateperiod | Jan. 30, 2015USD ($)period | Jan. 31, 2014USD ($)period | |
Basis of presentation | |||
Fiscal year, number of weeks | period | 52 | 52 | 52 |
Number of stores through which entity sells general merchandise on a retail basis | store | 12,483 | ||
Number of states which entity covers | state | 43 | ||
Cash and cash equivalents | |||
Maximum original maturity period at time of purchase of liquid investments classified as cash equivalents | 3 months | ||
Payments due from processors for electronic tender transactions classified as cash and cash equivalents | $ 59.5 | $ 58.5 | |
Minimum threshold of cash balances to be maintained as set by insurance regulators | 20 | ||
Merchandise inventories | |||
Excess of current cost over LIFO cost | 92.9 | 95.1 | |
LIFO provision (benefit) | $ (2.3) | $ 4.2 | $ (11) |
Basis of presentation and acc37
Basis of presentation and accounting policies - Supplier concentration (Detail) - Purchases - Supplier concentration | 12 Months Ended |
Jan. 29, 2016 | |
Largest supplier | |
Concentration of risk | |
Concentration risk, percentage | 7.00% |
Second largest supplier | |
Concentration of risk | |
Concentration risk, percentage | 7.00% |
Basis of presentation and acc38
Basis of presentation and accounting policies - Property and equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 4,170,486 | $ 3,753,557 | |
Less accumulated depreciation and amortization | 1,906,424 | 1,637,482 | |
Net property and equipment | 2,264,062 | 2,116,075 | |
Depreciation | |||
Depreciation expense | 350,600 | 335,900 | $ 315,300 |
Capitalized interest | |||
Interest costs capitalized | 1,400 | 200 | $ 1,200 |
Land | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | 188,532 | 172,329 | |
Land improvements | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 66,955 | 55,375 | |
Depreciable Life | 20 years | ||
Buildings | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 834,884 | 800,346 | |
Buildings | Minimum | |||
Property and equipment recorded at cost | |||
Depreciable Life | 39 years | ||
Buildings | Maximum | |||
Property and equipment recorded at cost | |||
Depreciable Life | 40 years | ||
Leasehold improvements | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 402,997 | 361,557 | |
Furniture, fixtures and equipment | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 2,526,843 | 2,295,590 | |
Furniture, fixtures and equipment | Minimum | |||
Property and equipment recorded at cost | |||
Depreciable Life | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and equipment recorded at cost | |||
Depreciable Life | 10 years | ||
Construction in progress | |||
Property and equipment recorded at cost | |||
Property and equipment, gross | $ 150,275 | $ 68,360 |
Basis of presentation and acc39
Basis of presentation and accounting policies - Impairment, Goodwill, Balance sheet detail (Detail) - USD ($) | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Impairment of long-lived assets | |||
Minimum period for which stores are open to be reviewed for impairment | 3 years | ||
Impairment charges included in SG&A expense | $ 5,900,000 | $ 1,900,000 | $ 500,000 |
Goodwill and other intangible assets | |||
Impairment of intangible assets | 0 | 0 | $ 0 |
Accrued expenses and other liabilities | |||
Compensation and benefits | 111,191,000 | 78,645,000 | |
Insurance | 82,182,000 | 81,944,000 | |
Taxes (other than taxes on income) | 136,762,000 | 124,893,000 | |
Other | 136,987,000 | 128,278,000 | |
Accrued expenses and other | 467,122,000 | 413,760,000 | |
Operating leases and related liabilities | |||
Deferred rent liability | 57,900,000 | 54,600,000 | |
Contingent rent liability | 4,000,000 | 4,800,000 | |
Noncurrent Other liabilities | |||
Insurance | 137,798,000 | 140,916,000 | |
Deferred rent | 57,017,000 | 53,975,000 | |
Deferred gain on sale leaseback | 53,737,000 | 58,215,000 | |
Other | 26,731,000 | 32,203,000 | |
Noncurrent other liabilities | $ 275,283,000 | $ 285,309,000 |
Basis of presentation and acc40
Basis of presentation and accounting policies - Revenue, Advertising (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Revenue and gain recognition | |||
Liability for outstanding gift cards | $ 2,800 | $ 2,500 | |
Breakage income related to the gift card program | 600 | 2,400 | |
Advertising costs | |||
Advertising costs | 89,300 | 77,300 | $ 70,500 |
Expenses related to vendor funding for cooperative advertising offset | 36,700 | 35,000 | $ 31,900 |
Debt issue costs | |||
Deferred Finance Costs, Noncurrent, Net | 18,100 | 15,462 | |
Deferred income taxes | |||
Deferred income taxes | $ 639,955 | 626,858 | |
Adjustment for 2015-03 accounting standards update | |||
Debt issue costs | |||
Deferred Finance Costs, Noncurrent, Net | 15,500 | ||
Adjustment for 2015-17 accounting standards update | |||
Deferred income taxes | |||
Deferred income taxes | $ 25,300 |
Goodwill and other intangible41
Goodwill and other intangible assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Goodwill and other intangible assets | |||
Goodwill | $ 4,338,589 | $ 4,338,589 | |
Other intangible assets: | |||
Leasehold interests, gross amount | 4,379 | 18,218 | |
Leasehold interests, accumulated amortization | 3,085 | 16,048 | |
Leasehold interests, net | 1,294 | 2,170 | |
Trade names and trademarks | 1,199,700 | 1,199,700 | |
Total other intangible assets, gross | 1,204,079 | 1,217,918 | |
Total other intangible assets, accumulated amortization | 3,085 | 16,048 | |
Total other intangible assets, net | 1,200,994 | 1,201,870 | |
Goodwill and other intangible assets | |||
Amortization expense | 900 | $ 5,800 | $ 11,900 |
Estimated aggregate amortization expense | |||
2,016 | 300 | ||
2,017 | 200 | ||
2,018 | 200 | ||
2,019 | 200 | ||
2,020 | $ 100 | ||
Minimum | |||
Goodwill and other intangible assets | |||
Leasehold interests, remaining life | 1 year | 1 year | |
Maximum | |||
Goodwill and other intangible assets | |||
Leasehold interests, remaining life | 7 years | 8 years |
Earnings per share (Detail)
Earnings per share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May. 01, 2015 | Jan. 30, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | May. 02, 2014 | Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Net Income | |||||||||||
Basic Earnings | $ 376,175 | $ 253,321 | $ 282,349 | $ 253,235 | $ 355,371 | $ 236,316 | $ 251,260 | $ 222,398 | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 |
Diluted Earnings | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 | ||||||||
Shares | |||||||||||
Shares outstanding, basic | 294,330 | 304,633 | 322,886 | ||||||||
Effect of dilutive share-based awards | 881 | 1,048 | 968 | ||||||||
Shares outstanding, diluted | 295,211 | 305,681 | 323,854 | ||||||||
Per Share Amount | |||||||||||
Basic earnings per share (in dollars per share) | $ 1.30 | $ 0.87 | $ 0.95 | $ 0.84 | $ 1.17 | $ 0.78 | $ 0.83 | $ 0.72 | $ 3.96 | $ 3.50 | $ 3.17 |
Diluted earnings per share (in dollars per share) | $ 1.30 | $ 0.86 | $ 0.95 | $ 0.84 | $ 1.17 | $ 0.78 | $ 0.83 | $ 0.72 | $ 3.95 | $ 3.49 | $ 3.17 |
Share-based awards outstanding excluded from computation of diluted earnings per share | 1,300 | 1,200 | 1,200 |
Income taxes (Detail)
Income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | Jan. 29, 2016 | Jan. 30, 2015 | |
Current: | |||||
Federal | $ 590,120 | $ 543,089 | $ 530,728 | ||
Foreign | 1,678 | 1,245 | 1,324 | ||
State | 84,021 | 81,816 | 101,174 | ||
Total current income taxes | 675,819 | 626,150 | 633,226 | ||
Deferred: | |||||
Federal | 6,410 | (7,697) | (16,132) | ||
State | 5,715 | (2,937) | (13,880) | ||
Total deferred income taxes | 12,125 | (10,634) | (30,012) | ||
Total provision (benefit) for income taxes | 687,944 | 615,516 | 603,214 | ||
Reconciliation between actual income taxes and amounts computed by applying federal statutory rate | |||||
U.S. federal statutory rate on earnings before income taxes | 648,558 | 588,303 | 569,916 | ||
State income taxes, net of federal income tax benefit | 59,700 | 49,819 | 56,822 | ||
Jobs credits, net of federal income taxes | (21,366) | (18,961) | (19,348) | ||
Increase (decrease) in valuation allowances | (1,371) | 1,453 | (437) | ||
Decrease in income tax reserves | (2,037) | (6,449) | (6,391) | ||
Other, net | 4,460 | 1,351 | 2,652 | ||
Total provision (benefit) for income taxes | $ 687,944 | $ 615,516 | $ 603,214 | ||
Reconciliation between actual income taxes rate and federal statutory rate | |||||
U.S. federal statutory rate on earnings before income taxes (as a percent) | 35.00% | 35.00% | 35.00% | ||
State income taxes, net of federal income tax benefit (as a percent) | 3.20% | 3.00% | 3.50% | ||
Jobs credits, net of federal income taxes (as a percent) | (1.20%) | (1.10%) | (1.20%) | ||
Increase (decrease) in valuation allowances (as a percent) | (0.10%) | 0.10% | |||
Decrease in income tax reserves (as a percent) | (0.10%) | (0.40%) | (0.40%) | ||
Other, net (as a percent) | 0.30% | 0.10% | |||
Total provision (benefit) for income taxes (as a percent) | 37.10% | 36.60% | 37.00% | ||
Deferred tax assets: | |||||
Deferred compensation expense | $ 8,200 | $ 8,842 | |||
Accrued expenses | 8,139 | 5,146 | |||
Accrued rent | 20,793 | 19,360 | |||
Accrued insurance | 72,676 | 76,197 | |||
Accrued incentive compensation | 19,902 | 14,866 | |||
Share based compensation | 17,988 | 17,623 | |||
Interest rate hedges | 3,702 | 4,318 | |||
Tax benefit of income tax and interest reserves related to uncertain tax positions | 1,371 | 1,502 | |||
Deferred gain on sale- leaseback | 22,637 | 24,385 | |||
Other | 9,440 | 3,550 | |||
State tax credit carry forwards, net of federal tax | 10,711 | 11,039 | |||
Total deferred tax assets, gross | 195,559 | 186,828 | |||
Less valuation allowances | (1,474) | (2,845) | |||
Total deferred tax assets | 194,085 | 183,983 | |||
Deferred tax liabilities: | |||||
Property and equipment | (320,619) | (302,531) | |||
Inventories | (72,456) | (73,188) | |||
Trademarks | (433,548) | (433,328) | |||
Other | (7,417) | (1,794) | |||
Total deferred tax liabilities | (834,040) | (810,841) | |||
Net deferred tax liabilities | (639,955) | (626,858) | |||
State tax credit carryforwards that will expire beginning in 2021 through 2024 | 16,500 | ||||
Increase (decrease) in valuation allowance for state tax credit carryforwards | $ (1,400) | $ 1,500 | $ (400) | ||
Reserves for uncertain tax benefits | 9,343 | 19,583 | 22,237 | 6,964 | 9,343 |
Interest accrued related to uncertain tax benefits | 900 | 1,000 | |||
Potential penalties accrued related to uncertain tax benefits | 800 | 400 | |||
Reserve for uncertain tax positions for which a reduction is reasonably possible in the next twelve months | 2,600 | ||||
Reserve for uncertain tax positions that would impact effective tax rate if recognized | 7,000 | ||||
Reserves for uncertain tax benefits included in noncurrent Other liabilities | $ 8,700 | $ 10,700 | |||
Income tax amounts associated with uncertain tax positions | |||||
Income tax expense (benefit) | (2,379) | (9,497) | (3,915) | ||
Income tax related interest expense (benefit) | (23) | (1,445) | 590 | ||
Income tax related penalty expense (benefit) | 373 | 51 | 30 | ||
Reconciliation of the uncertain income tax positions | |||||
Beginning Balance | 9,343 | 19,583 | 22,237 | ||
Increases - tax positions taken in the current year | 214 | 198 | 3,484 | ||
Increases - tax positions taken in prior years | 17 | 62 | 3,000 | ||
Decreases - tax positions taken in prior years | (106) | (8,636) | (608) | ||
Statute expirations | (2,504) | (1,121) | (7,622) | ||
Settlements | (743) | (908) | |||
Ending Balance | $ 6,964 | $ 9,343 | $ 19,583 |
Current and long-term obligat44
Current and long-term obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 29, 2016 | Jan. 31, 2014 | Oct. 20, 2015 | Jan. 30, 2015 | |
Current and long-term obligations | ||||
Debt issuance costs, net | $ (18,100) | $ (15,462) | ||
Current and long-term obligations | 2,970,554 | 2,725,123 | ||
Less: current portion | (1,379) | (101,158) | ||
Long-term obligations | 2,969,175 | 2,623,965 | ||
Letters of credit outstanding | 38,700 | |||
Loss on debt retirement, net | 326 | $ 18,871 | ||
Scheduled debt maturities including capital lease obligations | ||||
2,016 | 1,379 | |||
2,017 | 501,290 | |||
2,018 | 400,892 | |||
2,019 | 1,020 | |||
2,020 | 676,980 | |||
Thereafter | $ 1,409,835 | |||
Senior unsecured credit facility, maturity October 20, 2020 | ||||
Current and long-term obligations | ||||
Debt issue costs | $ 2,600 | |||
Commitment fee rate | 0.15% | |||
Weighted average interest rate (as a percent) | 1.65% | |||
Loss on debt retirement, net | $ 300 | |||
Senior unsecured credit facility, maturity October 20, 2020 | LIBOR loans | ||||
Current and long-term obligations | ||||
Variable rate basis | LIBOR | |||
Spread on variable rate (as a percent) | 1.10% | |||
Senior unsecured credit facility, maturity October 20, 2020 | Base-rate loans | ||||
Current and long-term obligations | ||||
Variable rate basis | base-rate | |||
Spread on variable rate (as a percent) | 0.10% | |||
Senior unsecured credit facility, maturity October 20, 2020, Term Facility | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 425,000 | 925,000 | ||
Amount borrowed | 425,000 | |||
Senior unsecured credit facility, maturity October 20, 2020, Revolving Facility | ||||
Current and long-term obligations | ||||
Current and long-term obligations | 251,000 | |||
Maximum financing under credit agreements | 1,000,000 | 1,000,000 | ||
Borrowing availability under credit facility | 722,000 | |||
Senior unsecured credit facility, maturity October 20, 2020, Revolving Facility | Letters of credit | ||||
Current and long-term obligations | ||||
Maximum financing under credit agreements | 175,000 | 175,000 | ||
Letters of credit outstanding | $ 27,000 | |||
Senior notes | ||||
Current and long-term obligations | ||||
Redemption price as a percentage of principal amount | 101.00% | |||
4.125% Senior Notes due July 15, 2017 | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 500,000 | $ 500,000 | ||
Stated interest rate (as a percent) | 4.125% | 4.125% | ||
1.875% Senior Notes due April 15, 2018 | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 399,797 | $ 399,706 | ||
Discount on debt issuance | $ 203 | $ 294 | ||
Stated interest rate (as a percent) | 1.875% | 1.875% | ||
3.25% Senior Notes due April 15, 2023 | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 898,225 | $ 898,009 | ||
Discount on debt issuance | $ 1,775 | $ 1,991 | ||
Stated interest rate (as a percent) | 3.25% | 3.25% | ||
4.150% Senior Notes due Nov 1, 2025 | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 499,236 | |||
Discount on debt issuance | $ 764 | 800 | ||
Debt issue costs | 4,400 | |||
Amount borrowed | $ 500,000 | |||
Stated interest rate (as a percent) | 4.15% | 4.15% | ||
Capital lease obligations | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 4,806 | $ 5,875 | ||
Tax increment financing due February 1, 2035 | ||||
Current and long-term obligations | ||||
Current and long-term obligations | $ 10,590 | $ 11,995 |
Assets and liabilities measur45
Assets and liabilities measured at fair value (Detail) $ in Thousands | Jan. 29, 2016USD ($) |
Reported amount | Current portion of long-term debt obligations | |
Liabilities: | |
Long-term obligations | $ 1,379 |
Reported amount | Long-term obligations | |
Liabilities: | |
Long-term obligations | 2,969,175 |
Reported amount | Accrued expenses and other current liabilities | |
Liabilities: | |
Deferred compensation | 8,307 |
Reported amount | Noncurrent Other liabilities | |
Liabilities: | |
Deferred compensation | 12,757 |
Fair value measurements on recurring basis | Balance at the end of the period | |
Liabilities: | |
Long-term obligations | 2,980,929 |
Deferred compensation | 21,064 |
Fair value measurements on recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | |
Liabilities: | |
Long-term obligations | 2,305,470 |
Deferred compensation | 21,064 |
Fair value measurements on recurring basis | Significant Other Observable Inputs (Level 2) | |
Liabilities: | |
Long-term obligations | $ 675,459 |
Derivatives and hedging activ46
Derivatives and hedging activities - Interest rate swaps (Detail) - Cash flow hedge - USD ($) $ in Millions | Jan. 29, 2016 | May. 31, 2015 |
Interest rate swaps | ||
Cash flow hedges of interest rate risk | ||
Combined notional value | $ 875 | |
Treasury locks | ||
Cash flow hedges of interest rate risk | ||
Estimated amount to be reclassified during the next 52 week period | $ 1.3 |
Derivatives and hedging activ47
Derivatives and hedging activities - Fair value of derivatives (Detail) $ in Thousands | 12 Months Ended | ||
Jan. 29, 2016USD ($)item | Jan. 30, 2015USD ($) | Jan. 31, 2014USD ($) | |
Pre-tax effect of derivative financial instruments on the consolidated statements of comprehensive income and shareholders' equity | |||
Loss related to effective portion of derivatives recognized in OCI | $ 3 | $ 876 | $ 16,036 |
Loss related to effective portion of derivatives reclassified from Accumulated OCI to Interest expense | $ 2,494 | 5,130 | $ 4,604 |
Derivatives not designated as hedges | |||
Derivative instruments held | |||
Number of derivative instruments which are non-designated hedges | item | 0 | ||
Accrued expenses and other current liabilities | |||
Derivatives designated as hedging instruments | |||
Derivative financial instruments | $ 1,173 |
Commitments and contingencies48
Commitments and contingencies (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 29, 1999 | Jan. 29, 2016USD ($) | Jan. 30, 2015USD ($) | Jan. 31, 2014USD ($)item | Aug. 31, 2007USD ($) | |
Commitments and contingencies | |||||
Number of store locations sold and leased back | item | 233 | ||||
Period for which asset was taken on lease under sale and leaseback transaction | 23 years | 15 years | |||
Cash proceeds under sale and leaseback transaction | $ 281,600 | ||||
Deferred gain under sale and leaseback transaction | 67,200 | ||||
Face value of promissory note purchased | $ 34,300 | ||||
Future minimum payments for operating leases | |||||
2,016 | $ 866,444 | ||||
2,017 | 831,367 | ||||
2,018 | 783,564 | ||||
2,019 | 720,569 | ||||
2,020 | 632,998 | ||||
Thereafter | 3,394,301 | ||||
Total minimum payments | 7,229,243 | ||||
Total minimum payments for capital leases | 5,900 | ||||
Present value of net minimum capital lease payments | 4,800 | ||||
Gross property and equipment recorded under capital lease | 29,800 | $ 29,800 | |||
Accumulated depreciation on property and equipment recorded under capital lease | 12,400 | 10,600 | |||
Operating lease rent expenses | |||||
Minimum rentals | 849,115 | 776,103 | 674,849 | ||
Contingent rentals | 7,793 | 9,099 | 12,058 | ||
Operating lease rent expenses | 856,908 | 785,202 | 686,907 | ||
Amortization of leasehold interests | $ 900 | $ 5,800 | $ 11,900 | ||
Maximum | |||||
Commitments and contingencies | |||||
Typical period of primary lease term for operating lease, build-to-suit, maximum | 15 years |
Commitments and contingencies -
Commitments and contingencies - Legal proceedings (Detail) | 1 Months Ended | 2 Months Ended | |
Jan. 01, 2016lawsuit | Apr. 01, 2016lawsuit | Jan. 29, 2016item | |
Commission cause finding related to the criminal background check policy | |||
Legal proceedings | |||
Number Of Defenses | item | 2 | ||
Alleged violation of state consumer protection laws | |||
Legal proceedings | |||
Number of suits filed | 7 | ||
Alleged violation of state consumer protection laws federal district courts | |||
Legal proceedings | |||
Number of suits filed | 6 | 13 |
Benefit plans (Detail)
Benefit plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Benefit plans | |||
Matching contribution expense related to the Company's 401(k) plan | $ 15 | $ 13.7 | $ 13 |
Compensation expense for the Dollar General Corporation CDP/SERP Plan | $ 1.1 | $ 0.8 | $ 1.2 |
Share-based payments (Detail)
Share-based payments (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 06, 2012 | Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 | |
Share-based payments | ||||
Number of shares of common stock authorized for grant | 31,142,858 | |||
Shares available for future grants | 18,556,241 | |||
Share-based compensation expense | ||||
Pre-tax | $ 38,547 | $ 37,338 | $ 20,961 | |
Net of tax | 23,513 | 22,780 | 12,765 | |
Total unrecognized compensation cost | $ 48,200 | |||
Expected weighted average expense recognition period (in years) | 1 year 8 months 12 days | |||
Board members | Minimum | ||||
Share-based payments | ||||
Vesting period | 1 year | |||
Board members | Maximum | ||||
Share-based payments | ||||
Vesting period | 3 years | |||
Other stock option | Employee | ||||
Share-based payments | ||||
Vesting period | 4 years | |||
MSA Time Options | ||||
Options Issued | ||||
Balance, at the end of the period (in shares) | 173,091 | |||
Exercisable at the end of the period (in shares) | 173,091 | |||
Average Exercise Price | ||||
Balance at the end of the period (in dollars per share) | $ 20.36 | |||
Remaining Contractual Term | ||||
Balance, at the end of the period | 3 years 9 months 18 days | |||
Intrinsic Value | ||||
Balance at the end of the period | $ 9,500 | |||
Intrinsic value of options exercised | $ 6,600 | 6,800 | 39,400 | |
MSA Performance Options | ||||
Options Issued | ||||
Balance, at the end of the period (in shares) | 151,097 | |||
Exercisable at the end of the period (in shares) | 151,097 | |||
Average Exercise Price | ||||
Balance at the end of the period (in dollars per share) | $ 21.23 | |||
Remaining Contractual Term | ||||
Balance, at the end of the period | 3 years 10 months 24 days | |||
Intrinsic Value | ||||
Balance at the end of the period | $ 8,100 | |||
Intrinsic value of options exercised | $ 4,900 | $ 4,900 | $ 39,100 | |
Stock options | ||||
Weighted average for key assumptions used in determining the fair value | ||||
Expected dividend yield (as a percent) | 1.20% | 0.00% | 0.00% | |
Expected stock price volatility (as a percent) | 25.30% | 25.60% | 26.20% | |
Weighted average risk-free interest rate (as a percent) | 1.80% | 1.90% | 1.20% | |
Expected term of options | 6 years 4 months 24 days | 6 years 3 months 18 days | 6 years 3 months 18 days | |
Share-based compensation expense | ||||
Pre-tax | $ 11,113 | $ 8,533 | $ 7,634 | |
Net of tax | $ 6,779 | $ 5,206 | $ 4,649 | |
Stock options | Other stock option | ||||
Options Issued | ||||
Balance at the beginning of the period (in shares) | 2,399,124 | |||
Granted (in shares) | 1,247,557 | |||
Exercise of share-based awards (in shares) | (703,956) | |||
Canceled (in shares) | (512,760) | |||
Balance, at the end of the period (in shares) | 2,429,965 | 2,399,124 | ||
Exercisable at the end of the period (in shares) | 517,375 | |||
Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ 49.69 | |||
Granted (in dollars per share) | 74.73 | |||
Exercised (in dollars per share) | 45.66 | |||
Canceled (in dollars per share) | 61.67 | |||
Balance at the end of the period (in dollars per share) | 61.19 | $ 49.69 | ||
Exercisable at the end of the period (in dollars per share) | $ 47.31 | |||
Remaining Contractual Term | ||||
Balance, at the end of the period | 8 years 1 month 6 days | |||
Exercisable at the end of the period | 6 years 8 months 12 days | |||
Intrinsic Value | ||||
Balance at the end of the period | $ 33,701 | |||
Exercisable at the end of the period | $ 14,355 | |||
Weighted average grant date fair value (in dollars per share) | $ 18.48 | $ 17.26 | $ 13.86 | |
Intrinsic value of options exercised | $ 20,800 | $ 2,500 | $ 800 | |
Stock options | MSA Time Options and MSA Performance Options | ||||
Share-based payments | ||||
Vesting period | 5 years | |||
Weighted average for key assumptions used in determining the fair value | ||||
Contractual term of options | 10 years | |||
Performance Share Units | ||||
Share-based payments | ||||
Vesting period | 3 years | |||
Weighted average grant date fair value of awards issued (in dollars per share) | $ 74.72 | $ 57.91 | $ 48.11 | |
Intrinsic Value | ||||
Balance at the end of the period | $ 10,816 | |||
Units Issued | ||||
Awards outstanding at the beginning of the period (in shares or rights) | 212,583 | |||
Granted (in shares or rights) | 103,666 | |||
Converted to common stock (in shares or rights) | (120,417) | |||
Canceled (in shares or rights) | (51,735) | |||
Awards outstanding at the end of the period (in shares or rights) | 144,097 | 212,583 | ||
Share-based compensation expense | ||||
Pre-tax | $ 4,856 | $ 5,461 | $ 3,448 | |
Net of tax | $ 2,962 | $ 3,332 | $ 2,100 | |
Restricted Stock Units | ||||
Share-based payments | ||||
Weighted average grant date fair value of awards issued (in dollars per share) | $ 74.67 | $ 57.87 | $ 48.20 | |
Intrinsic Value | ||||
Balance at the end of the period | $ 48,107 | |||
Units Issued | ||||
Awards outstanding at the beginning of the period (in shares or rights) | 714,858 | |||
Granted (in shares or rights) | 383,134 | |||
Converted to common stock (in shares or rights) | (326,383) | |||
Canceled (in shares or rights) | (130,699) | |||
Awards outstanding at the end of the period (in shares or rights) | 640,910 | 714,858 | ||
Share-based compensation expense | ||||
Pre-tax | $ 22,578 | $ 15,968 | $ 9,879 | |
Net of tax | $ 13,772 | 9,742 | $ 6,016 | |
Restricted Stock Units | Employee | ||||
Share-based payments | ||||
Vesting period | 3 years | |||
Restricted Stock | Chairman and chief executive officer | ||||
Share-based payments | ||||
Weighted average grant date fair value of awards issued (in dollars per share) | $ 45.25 | |||
Units Issued | ||||
Granted (in shares or rights) | 326,037 | |||
Share-based compensation expense | ||||
Pre-tax | 7,376 | |||
Net of tax | $ 4,500 |
Segment reporting (Detail)
Segment reporting (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2016USD ($) | Oct. 30, 2015USD ($) | Jul. 31, 2015USD ($) | May. 01, 2015USD ($) | Jan. 30, 2015USD ($) | Oct. 31, 2014USD ($) | Aug. 01, 2014USD ($) | May. 02, 2014USD ($) | Jan. 29, 2016USD ($)segment | Jan. 30, 2015USD ($)segment | Jan. 31, 2014USD ($)segment | |
Segment reporting | |||||||||||
Number of reportable operating segments | segment | 1 | 1 | 1 | ||||||||
Net sales data for classes of similar products | |||||||||||
Net sales | $ 5,286,938 | $ 5,067,048 | $ 5,095,904 | $ 4,918,672 | $ 4,939,059 | $ 4,724,409 | $ 4,724,039 | $ 4,522,081 | $ 20,368,562 | $ 18,909,588 | $ 17,504,167 |
Consumables | |||||||||||
Net sales data for classes of similar products | |||||||||||
Net sales | 15,457,611 | 14,321,080 | 13,161,825 | ||||||||
Seasonal | |||||||||||
Net sales data for classes of similar products | |||||||||||
Net sales | 2,522,701 | 2,344,993 | 2,259,516 | ||||||||
Home products | |||||||||||
Net sales data for classes of similar products | |||||||||||
Net sales | 1,289,423 | 1,205,373 | 1,115,648 | ||||||||
Apparel | |||||||||||
Net sales data for classes of similar products | |||||||||||
Net sales | $ 1,098,827 | $ 1,038,142 | $ 967,178 |
Common stock transactions (Deta
Common stock transactions (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Mar. 08, 2016 | Dec. 02, 2015 | Jan. 29, 2016 | Oct. 30, 2015 | Jul. 31, 2015 | May. 01, 2015 | Jan. 29, 2016 | Jan. 30, 2015 | Jan. 31, 2014 |
Common stock transactions | |||||||||
Aggregate purchase price | $ 1,299,613 | $ 800,095 | $ 620,052 | ||||||
Cash dividend paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.88 | ||||
Cash dividend declared (in dollars per share) | $ 0.25 | ||||||||
Common Stock | |||||||||
Common stock transactions | |||||||||
Shares acquired under share repurchase program | 17,556 | 14,106 | 11,037 | ||||||
Aggregate purchase price | $ 15,361 | $ 12,342 | $ 9,657 | ||||||
Common Stock | Pursuant to Authorized Repurchase Program | |||||||||
Common stock transactions | |||||||||
Common stock repurchase program, increase in the authorized amount | $ 1,000,000 | ||||||||
Common stock repurchase authorization | $ 4,000,000 | 4,000,000 | |||||||
Remaining authorization available under the common stock repurchase program | $ 923,800 | $ 923,800 | |||||||
Shares acquired under share repurchase program | 17,600 | 14,100 | 11,000 | ||||||
Aggregate purchase price | $ 1,300,000 | $ 800,000 | $ 600,000 |
Corporate restructuring (Detail
Corporate restructuring (Details) $ in Millions | Oct. 13, 2015position | Oct. 30, 2015USD ($) | Jan. 29, 2016USD ($) |
Corporate restructuring | |||
Approximate number positions eliminated | position | 255 | ||
Restructuring expenses | $ 6.1 | $ 6.1 | |
Remaining restructuring liability | $ 3.5 |
Quarterly financial data (una55
Quarterly financial data (unaudited) (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 29, 2016USD ($)item$ / shares | Oct. 30, 2015USD ($)item$ / shares | Jul. 31, 2015USD ($)item$ / shares | May. 01, 2015USD ($)item$ / shares | Jan. 30, 2015USD ($)item$ / shares | Oct. 31, 2014USD ($)item$ / shares | Aug. 01, 2014USD ($)item$ / shares | May. 02, 2014USD ($)item$ / shares | Jan. 29, 2016USD ($)item$ / shares | Jan. 30, 2015USD ($)item$ / shares | Jan. 31, 2014USD ($)item$ / shares | |
Selected unaudited quarterly financial data | |||||||||||
Number of weeks in a quarter | item | 13 | 13 | 13 | 13 | 13 | 13 | 13 | 13 | |||
Number of quarters in a year | item | 4 | 4 | 4 | ||||||||
Net sales | $ 5,286,938 | $ 5,067,048 | $ 5,095,904 | $ 4,918,672 | $ 4,939,059 | $ 4,724,409 | $ 4,724,039 | $ 4,522,081 | $ 20,368,562 | $ 18,909,588 | $ 17,504,167 |
Gross profit | 1,682,269 | 1,536,962 | 1,588,155 | 1,498,705 | 1,565,439 | 1,423,748 | 1,455,574 | 1,357,746 | 6,306,091 | 5,802,507 | 5,435,742 |
Operating profit | 612,429 | 423,859 | 475,812 | 428,194 | 566,716 | 394,143 | 428,526 | 379,708 | 1,940,294 | 1,769,093 | 1,736,185 |
Net income | $ 376,175 | $ 253,321 | $ 282,349 | $ 253,235 | $ 355,371 | $ 236,316 | $ 251,260 | $ 222,398 | $ 1,165,080 | $ 1,065,345 | $ 1,025,116 |
Basic earnings per share (in dollars per share) | $ / shares | $ 1.30 | $ 0.87 | $ 0.95 | $ 0.84 | $ 1.17 | $ 0.78 | $ 0.83 | $ 0.72 | $ 3.96 | $ 3.50 | $ 3.17 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 1.30 | $ 0.86 | $ 0.95 | $ 0.84 | $ 1.17 | $ 0.78 | $ 0.83 | $ 0.72 | $ 3.95 | $ 3.49 | $ 3.17 |
Restructuring Charges | $ 6,100 | $ 6,100 | |||||||||
Restructuring charges, net of tax | $ 3,700 | ||||||||||
Effect of pre-tax restructuring charges on earnings per diluted share (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Attempted acquisition, Transaction Costs | $ 6,100 | $ 8,200 | |||||||||
Attempted acquisition, related expenses, net of tax | $ 1,300 | $ 7,400 | |||||||||
Effect of pre-tax expenses incurred from attempted acquisition activities on earnings per diluted share (in dollars per share) | $ / shares | $ 0 | $ 0.02 |