Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 03, 2018 | Nov. 21, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ROSS STORES INC | |
Entity Central Index Key | 745,732 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 370,588,820 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018USD ($)stores$ / sharesshares | Oct. 28, 2017USD ($)stores$ / sharesshares | Nov. 03, 2018USD ($)stores$ / sharesshares | Oct. 28, 2017USD ($)stores$ / sharesshares | ||
Income Statement [Abstract] | |||||
Sales | $ 3,549,608 | $ 3,328,894 | $ 10,876,153 | $ 10,066,926 | |
Costs and Expenses | |||||
Cost of goods sold | 2,547,331 | 2,369,148 | 7,736,533 | 7,120,056 | |
Selling, general and administrative | 561,577 | 517,297 | 1,640,581 | 1,490,392 | |
Interest (income) expense, net | (2,953) | 1,780 | (4,849) | 7,290 | |
Total costs and expenses | 3,105,955 | 2,888,225 | 9,372,265 | 8,617,738 | |
Earnings before taxes | 443,653 | 440,669 | 1,503,888 | 1,449,188 | |
Provision for taxes on earnings | 105,545 | 166,220 | 358,124 | 537,182 | |
Net earnings | $ 338,108 | $ 274,449 | $ 1,145,764 | $ 912,006 | [1] |
Earnings per share | |||||
Basic (in dollars per share) | $ / shares | $ 0.92 | $ 0.72 | $ 3.09 | $ 2.38 | |
Diluted (in dollars per share) | $ / shares | $ 0.91 | $ 0.72 | $ 3.06 | $ 2.36 | |
Weighted average shares outstanding | |||||
Basic (in shares) | shares | 368,102 | 379,432 | 370,977 | 382,959 | |
Diluted (in shares) | shares | 371,061 | 382,132 | 373,936 | 385,823 | |
Dividends | |||||
Stores open at end of period (in number of stores) | stores | 1,720 | 1,627 | 1,720 | 1,627 | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 338,108 | $ 274,449 | $ 1,145,764 | $ 912,006 | [1] |
Other comprehensive (loss) income: | |||||
Change in unrealized loss on investments, net of tax | (4) | (19) | (27) | (51) | |
Comprehensive income | $ 338,104 | $ 274,430 | $ 1,145,737 | $ 911,955 | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Current Assets | |||
Cash and cash equivalents | $ 1,349,196 | $ 1,290,294 | $ 1,144,169 |
Short-term investments | 0 | 512 | 518 |
Accounts receivable | 117,825 | 87,868 | 103,071 |
Merchandise inventory | 1,979,080 | 1,641,735 | 1,840,225 |
Prepaid expenses and other | 177,206 | 130,748 | 147,962 |
Total current assets | 3,623,307 | 3,151,157 | 3,235,945 |
Property and Equipment | |||
Land and buildings | 1,117,801 | 1,109,173 | 1,112,212 |
Fixtures and equipment | 2,719,545 | 2,603,318 | 2,538,349 |
Leasehold improvements | 1,150,142 | 1,093,634 | 1,065,910 |
Construction-in-progress | 146,323 | 102,054 | 92,264 |
Property and equipment, gross | 5,133,811 | 4,908,179 | 4,808,735 |
Less accumulated depreciation and amortization | 2,715,585 | 2,525,715 | 2,460,549 |
Property and equipment, net | 2,418,226 | 2,382,464 | 2,348,186 |
Long-term investments | 475 | 712 | 715 |
Other long-term assets | 193,759 | 187,718 | 182,132 |
Total assets | 6,235,767 | 5,722,051 | 5,766,978 |
Current Liabilities | |||
Accounts payable | 1,394,029 | 1,059,844 | 1,289,620 |
Accrued expenses and other | 455,743 | 431,706 | 445,728 |
Accrued payroll and benefits | 317,525 | 349,879 | 320,894 |
Current portion of long-term debt | 84,997 | 84,973 | 0 |
Total current liabilities | 2,252,294 | 1,926,402 | 2,056,242 |
Long-term debt | 312,328 | 311,994 | 396,848 |
Other long-term liabilities | 371,844 | 348,541 | 325,587 |
Deferred income taxes | 112,138 | 85,806 | 129,782 |
Commitments and contingencies | |||
Stockholders’ Equity | |||
Common stock, par value $.01 per share Authorized 1,000,000,000 shares Issued and outstanding 371,058,000, 379,618,000 and 382,437,000 shares, respectively | 3,711 | 3,796 | 3,824 |
Additional paid-in capital | 1,354,669 | 1,292,364 | 1,272,056 |
Treasury stock | (371,959) | (318,279) | (318,279) |
Accumulated other comprehensive income | 0 | 27 | 40 |
Retained earnings | 2,200,742 | 2,071,400 | 1,900,878 |
Total stockholders’ equity | 3,187,163 | 3,049,308 | 2,858,519 |
Total liabilities and stockholders’ equity | $ 6,235,767 | $ 5,722,051 | $ 5,766,978 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Statement of Financial Position [Abstract] | |||
Par value per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Shares issued (in shares) | 371,058,000 | 379,618,000 | 382,437,000 |
Shares outstanding (in shares) | 371,058,000 | 379,618,000 | 382,437,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | |||
Cash Flows From Operating Activities | ||||
Net earnings | $ 1,145,764 | $ 912,006 | [1] | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 246,151 | 227,255 | [1] | |
Stock-based compensation | 71,361 | 64,937 | [1] | |
Deferred income taxes | 19,607 | 9,074 | [1] | |
Change in assets and liabilities: | ||||
Merchandise inventory | (337,345) | (327,339) | [1] | |
Other current assets | (76,489) | (62,610) | [1] | |
Accounts payable | 328,062 | 271,526 | [1] | |
Other current liabilities | 35,758 | 51,567 | [1] | |
Other long-term, net | 17,203 | 19,270 | [1] | |
Net cash provided by operating activities | 1,450,072 | 1,165,686 | [1] | |
Cash Flows From Investing Activities | ||||
Additions to property and equipment | (293,366) | (266,863) | [1] | |
Proceeds from investments | 739 | 0 | [1] | |
Net cash used in investing activities | (292,627) | (266,863) | [1] | |
Cash Flows From Financing Activities | ||||
Issuance of common stock related to stock plans | 14,915 | 13,668 | [1] | |
Treasury stock purchased | (53,680) | (45,440) | [1] | |
Repurchase of common stock | (806,500) | (648,835) | [1] | |
Dividends paid | (253,863) | (186,459) | [1] | |
Net cash used in financing activities | (1,099,128) | (867,066) | [1] | |
Net increase in cash, cash equivalents, and restricted cash and cash equivalents | 58,317 | 31,757 | [1] | |
Cash, cash equivalents, and restricted cash and cash equivalents: | ||||
Beginning of period | [1] | 1,353,272 | 1,176,180 | |
End of period | 1,411,589 | 1,207,937 | [1] | |
Supplemental Cash Flow Disclosures | ||||
Interest paid | 13,271 | 13,271 | [1] | |
Income taxes paid | $ 343,848 | $ 552,720 | [1] | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 03, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of November 3, 2018 and October 28, 2017 , the results of operations and comprehensive income for the three and nine month periods ended November 3, 2018 and October 28, 2017 , and cash flows for the nine month periods ended November 3, 2018 and October 28, 2017 . The Condensed Consolidated Balance Sheet as of February 3, 2018 , presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018 . The results of operations and comprehensive income for the three and nine month periods ended November 3, 2018 and October 28, 2017 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. Recently adopted accounting standards. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification "ASC" 606) which, along with subsequent amendments, supersedes the revenue recognition requirements in “Revenue Recognition (ASC 605).” This guidance provides a five-step analysis of transactions to determine when and how revenue is recognized and requires entities to recognize revenue when the customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Company adopted ASC 606 as of February 4, 2018, using the modified retrospective method. Results for reporting periods beginning on or after February 4, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with ASC 605. Upon adoption of ASC 606, the Company recorded a cumulative-effect adjustment to increase beginning retained earnings by $20 million as of February 4, 2018, primarily due to the change in the timing of the recognition of stored value card breakage. The impact of applying ASC 606 was not material to the Company's condensed consolidated financial statements for the three and nine month periods ended November 3, 2018 . In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts on the statement of cash flows. The standard also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. The Company adopted ASU 2016-18 as of February 4, 2018, using the retrospective method. Significant accounting policies. Except for the updates to accounting policies for revenue recognition and allowance for sales returns as a result of adopting ASC 606 described below, there have been no significant changes to the accounting policies followed by the Company as described in Note A to the audited consolidated financial statements for the fiscal year ended February 3, 2018. Revenue recognition. The Company recognizes revenue at the point of sale, net of sales taxes collected and an allowance for estimated future returns. Sales taxes collected that are outstanding and the allowance for estimated future returns are included in Accrued expenses and other in the Condensed Consolidated Balance Sheets. Sales of stored value cards are deferred until they are redeemed for the purchase of Company merchandise. The Company’s stored value cards do not have expiration dates. Based upon historical redemption rates, a small percentage of stored value cards will never be redeemed, which represents breakage. As a result of adopting ASC 606, breakage is estimated and recognized as revenue based upon the historical pattern of customer redemptions. In prior periods, breakage was recorded as a reduction of operating expense when customer redemption was considered remote. Breakage was not material to the condensed consolidated financial statements for the three and nine month periods ended November 3, 2018 and October 28, 2017 . The following sales mix table disaggregates revenue by merchandise category for the three and nine month periods ended November 3, 2018 and October 28, 2017 : Three Months Ended Nine Months Ended November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Ladies 27 % 28 % 28 % 28 % Home Accents and Bed and Bath 25 % 25 % 24 % 25 % Men's 14 % 13 % 13 % 13 % Shoes 13 % 13 % 14 % 14 % Accessories, Lingerie, Fine Jewelry, and Fragrances 13 % 13 % 13 % 12 % Children's 8 % 8 % 8 % 8 % Total 100 % 100 % 100 % 100 % Allowance for sales returns. As a result of the adoption of ASC 606, the Company recognizes allowances for estimated sales returns on a gross basis. This results in (i) an asset recorded for the expected recovery of merchandise inventory and a liability recorded for the refund due to the customer and (ii) a change in sales and related cost of goods sold based on the required reserve for estimated returns. Prior to the adoption of ASC 606, the Company recognized allowances for sales returns on a net basis. Cash, restricted cash, and restricted investments. Restricted cash, cash equivalents, and investments serve as collateral for certain insurance obligations of the Company. These restricted funds are invested in bank deposits, money market mutual funds, U.S. Government and agency securities, and corporate securities and cannot be withdrawn from the Company’s account without the prior written consent of the secured parties. The classification between current and long-term is based on the timing of expected payments of the insurance obligations. The following table provides a reconciliation of cash, cash equivalents, restricted cash and equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Cash and cash equivalents $ 1,349,196 $ 1,290,294 $ 1,144,169 Restricted cash and cash equivalents included in: Prepaid expenses and other 8,933 9,412 12,776 Other long-term assets 53,460 53,566 50,992 Total restricted cash and cash equivalents 62,393 62,978 63,768 Total cash, cash equivalents and restricted cash and equivalents $ 1,411,589 $ 1,353,272 $ 1,207,937 In addition to the restricted cash and equivalents in the table above, the Company had restricted investments included in the Condensed Consolidated Balance Sheets as shown below: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Prepaid expenses and other $ 2,801 $ 2,435 $ 688 Other long-term assets — 403 2,862 Total restricted investments $ 2,801 $ 2,838 $ 3,550 Property and equipment. As of November 3, 2018 and October 28, 2017 , the Company had $13.0 million and $6.4 million , respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and Equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. Cash dividends. Dividends included in the Condensed Consolidated Statements of Cash Flows reflect cash dividends paid during the periods shown. Dividends per share reported on the Condensed Consolidated Statements of Earnings reflect cash dividends declared during the periods shown. The Company’s Board of Directors declared a cash dividend of $0.225 per common share in March, May, and August 2018 and $0.160 per common share in February, May, August, and November 2017, respectively. In November 2018 , the Company’s Board of Directors declared a cash dividend of $0.225 per common share, payable on December 28, 2018 . Litigation, claims, and assessments. Like many retailers, the Company has been named in class action lawsuits, primarily in California, alleging violation of wage and hour/employment laws and consumer protection laws. Class action litigation remains pending as of November 3, 2018 . The Company is also party to various other legal and regulatory proceedings arising in the normal course of business. Actions filed against the Company may include commercial, product and product safety, consumer, intellectual property, and labor and employment-related claims, including lawsuits in which private plaintiffs or governmental agencies allege that the Company violated federal, state, and/or local laws. Actions against the Company are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties. In the opinion of management, the resolution of pending class action litigation and other currently pending legal and regulatory proceedings will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Recently issued accounting standards. The Company considers the applicability and impact of all ASUs issued by the FASB. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's condensed consolidated financial results. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires balance sheet recognition for all leases with lease terms greater than one year including a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for the Company’s annual and interim reporting periods beginning in fiscal 2019. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements .” This update provides an additional (and optional) transition method to adopt the new leases standard, which allows entities to initially apply the new standard at the effective date with a cumulative-effect adjustment to the opening balance of retained earnings and does not require restatement of prior periods. The Company plans to adopt the new leases standard using the optional transition method. In addition, the Company does not plan to elect the transitional package of practical expedients or the use of hindsight upon adoption. The Company is finalizing the expected effect adoption of this new guidance will have on its consolidated financial statements. Due to the substantial number of leases that it has, the Company believes this ASU will increase assets and liabilities by a material amount on its consolidated balance sheet. The Company’s current undiscounted minimum commitments under noncancelable operating leases is approximately $3.9 billion . The Company does not believe adoption of this ASU will have a significant impact to its consolidated statements of earnings, stockholders’ equity, and cash flows. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Nov. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying value of cash and cash equivalents, short- and long-term investments, restricted cash and cash equivalents, restricted investments, accounts receivable, other long-term assets, accounts payable, and other long-term liabilities approximates their estimated fair value. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions and maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. There were no transfers between Level 1 and Level 2 categories during the three and nine month periods ended November 3, 2018 . The fair value of the Company’s financial instruments are as follows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Cash and cash equivalents (Level 1) $ 1,349,196 $ 1,290,294 $ 1,144,169 Restricted cash and cash equivalents (Level 1) $ 62,393 $ 62,978 $ 63,768 Investments (Level 2) $ 475 $ 1,224 $ 1,233 Restricted investments (Level 2) $ 2,801 $ 2,838 $ 3,550 The underlying assets in the Company’s non-qualified deferred compensation program as of November 3, 2018 , February 3, 2018 , and October 28, 2017 (included in Other long-term assets and in Other long-term liabilities) primarily consist of participant-directed money market, stable value, stock, and bond funds. The fair value measurement for funds with quoted market prices in active markets (Level 1) and for funds without quoted market prices in active markets (Level 2) are as follows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Level 1 $ 111,490 $ 104,590 $ 99,387 Level 2 12,218 16,023 16,787 Total $ 123,708 $ 120,613 $ 116,174 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Nov. 03, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation. For the three and nine month periods ended November 3, 2018 and October 28, 2017 , the Company recognized stock-based compensation expense as follows: Three Months Ended Nine Months Ended ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Restricted stock $ 12,288 $ 11,207 $ 36,224 $ 32,927 Performance awards 10,593 10,215 32,504 29,668 Employee stock purchase plan 900 796 2,633 2,342 Total $ 23,781 $ 22,218 $ 71,361 $ 64,937 Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three and nine month periods ended November 3, 2018 and October 28, 2017 , is as follows: Three Months Ended Nine Months Ended Statements of Earnings Classification ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Cost of goods sold $ 11,434 $ 10,377 $ 33,481 $ 30,488 Selling, general and administrative 12,347 11,841 37,880 34,449 Total $ 23,781 $ 22,218 $ 71,361 $ 64,937 The tax benefits related to stock-based compensation expense for the three and nine month periods ended November 3, 2018 were $5.1 million and $15.0 million , respectively. The tax benefits related to stock-based compensation expense for the three and nine month periods ended October 28, 2017 were $7.9 million and $22.7 million , respectively. Restricted stock awards. The Company grants shares of restricted stock to directors, officers, and key employees. The market value of shares of restricted stock at the date of grant is amortized to expense over the vesting period of generally three to five years. During the three and nine month periods ended November 3, 2018 and October 28, 2017 , shares purchased by the Company for tax withholding totaled 27,234 and 688,613 , and 37,214 and 683,961 , respectively, and are considered treasury shares which are available for reissuance. Performance share awards. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock on a specified settlement date based on the Company’s attainment of a profitability-based performance goal during the performance period, which is the Company’s fiscal year. If attained, the restricted stock then vests over a service period, generally two to three years from the date the performance award was granted. As of November 3, 2018 , shares related to unvested restricted stock and performance share awards totaled 4.8 million shares. A summary of restricted stock and performance share award activity for the nine month period ended November 3, 2018 , is presented below: (000, except per share data) Number of shares Weighted average grant date fair value Unvested at February 3, 2018 5,483 $ 51.19 Awarded 1,179 75.88 Released (1,751 ) 44.10 Forfeited (69 ) 59.25 Unvested at November 3, 2018 4,842 $ 60.98 The unamortized compensation expense at November 3, 2018 , was $137.2 million , which is expected to be recognized over a weighted-average remaining period of 2.0 years. The unamortized compensation expense at October 28, 2017 , was $123.0 million , which was expected to be recognized over a weighted-average remaining period of 2.0 years. Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to have up to the lesser of 10% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value to purchase the Company’s common stock. The purchase price of the stock is 85% of the closing market price on the date of purchase. Purchases occur on a quarterly basis (on the last trading day of each calendar quarter). The Company recognizes expense for ESPP purchase rights equal to the value of the 15% discount given on the purchase date. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes and reports both basic earnings per share ("EPS") and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards, including unexercised stock options, and unvested shares of both performance and non-performance based awards of restricted stock. For the three and nine month periods ended November 3, 2018 , approximately 4,800 and 10,000 weighted average shares were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive for the period presented. For the three and nine month periods ended October 28, 2017 , approximately 14,600 and 446,500 weighted average shares were excluded from the calculation of diluted EPS because their effect would have been anti-dilutive for the periods presented. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations: Three Months Ended Nine Months Ended Shares in (000s) Basic EPS Effect of dilutive common stock equivalents Diluted EPS Basic EPS Effect of dilutive common stock equivalents Diluted EPS November 3, 2018 Shares 368,102 2,959 371,061 370,977 2,959 373,936 Amount $ 0.92 $ (0.01 ) $ 0.91 $ 3.09 $ (0.03 ) $ 3.06 October 28, 2017 Shares 379,432 2,700 382,132 382,959 2,864 385,823 Amount $ 0.72 $ — $ 0.72 $ 2.38 $ (0.02 ) $ 2.36 |
Debt
Debt | 9 Months Ended |
Nov. 03, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior notes. Unsecured senior debt, net of unamortized discounts and debt issuance costs, consisted of the following: ($000) November 3, 2018 February 3, 2018 October 28, 2017 6.38% Series A Senior Notes due 2018 $ 84,997 $ 84,973 $ 84,964 6.53% Series B Senior Notes due 2021 64,937 64,922 64,917 3.375% Senior Notes due 2024 247,391 247,072 246,967 Total long-term debt $ 397,325 $ 396,967 $ 396,848 Less: current portion 84,997 84,973 — Total due beyond one year $ 312,328 $ 311,994 $ 396,848 As of November 3, 2018 , the Company had outstanding unsecured 3.375% Senior Notes due September 2024 (the “2024 Notes”) with an aggregate principal amount of $250 million . Interest on the 2024 Notes is payable semi-annually. As of November 3, 2018 , the Company also had outstanding two other series of unsecured senior notes in the aggregate principal amount of $150 million , held by various institutional investors. The Series A notes totaling $85 million are due in December 2018 , and bear interest at 6.38% . The Series B notes totaling $65 million are due in December 2021 , and bear interest at 6.53% . Borrowings under these senior notes are subject to certain financial covenants, including interest coverage and other financial ratios. As of November 3, 2018 , the Company was in compliance with these covenants. As of November 3, 2018 , February 3, 2018 , and October 28, 2017 , total unamortized discount and debt issuance costs were $2.7 million , $3.0 million , and $3.2 million , respectively, and were classified as a reduction of Long-term debt. The 2024 Notes, Series A, and Series B senior notes are all subject to prepayment penalties for early payment of principal. The aggregate fair value of the three outstanding senior note issuances was approximately $402 million , $411 million , and $415 million as of November 3, 2018 , February 3, 2018 , and October 28, 2017 , respectively. The fair value is estimated by obtaining comparable market quotes which are considered to be Level 1 inputs under the fair value measurements and disclosures guidance. The table below shows the components of interest expense and income for the three and nine month periods ended November 3, 2018 and October 28, 2017 : Three Months Ended Nine Months Ended ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Interest expense on long-term debt $ 4,646 $ 4,645 $ 13,937 $ 13,933 Other interest expense 233 233 768 735 Capitalized interest (700 ) (205 ) (1,832 ) (387 ) Interest income (7,132 ) (2,893 ) (17,722 ) (6,991 ) Interest (income) expense, net $ (2,953 ) $ 1,780 $ (4,849 ) $ 7,290 Revolving credit facility. The Company’s $600 million unsecured revolving credit facility expires in April 2021 and contains a $300 million sublimit for issuance of standby letters of credit (subject to increase in proportion to any increase in the size of the credit facility). The facility also contains an option allowing the Company to increase the size of its credit facility by up to an additional $200 million , with the agreement of the lenders. Interest on any borrowings under this facility is based on LIBOR plus an applicable margin (currently 100 basis points) and is payable quarterly and upon maturity. As of November 3, 2018 , the Company had no borrowings or standby letters of credit outstanding under this facility and the $600 million credit facility remains in place and available. The revolving credit facility is subject to a financial leverage ratio covenant. As of November 3, 2018 , the Company was in compliance with this covenant. |
Taxes on Earnings
Taxes on Earnings | 9 Months Ended |
Nov. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings The Tax Cuts and Jobs Act (the “Tax Act” or "tax reform") was signed into law on December 22, 2017. The Tax Act made significant changes to U.S. corporate taxation, including reducing the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018. For the three and nine month periods ended November 3, 2018 , the Company’s provision for taxes on earnings differed from the Company’s federal corporate income tax rate of 21%, primarily because of the effects of state and local taxes, the net tax benefit associated with share-based compensation, and resolution of tax positions with taxing authorities. These items resulted in an effective tax rate for the three and nine month periods ended November 3, 2018 of 24% as compared to 38% and 37% for the three and nine month periods ended October 28, 2017 , respectively. Also on December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which provides guidance on accounting for the impact of the Tax Act. As permitted by SAB 118, the Company recorded provisional amounts for both current and deferred income taxes related to the reduced U.S. federal corporate income tax rate in fiscal 2017. The recorded provisional amounts totaling $80.1 million of tax benefit reflected assumptions made based upon the Company’s interpretation of the Tax Act. As of November 3, 2018, the Company has not recorded any adjustment to the provisional amounts recorded in fiscal 2017. With the completion and filing of the 2017 federal return during the quarter ended November 3, 2018, the Company considers the deferred tax remeasurements and other adjustments related to the Tax Act to be complete. As of November 3, 2018 , February 3, 2018 , and October 28, 2017 , the reserves for unrecognized tax benefits were $130.5 million , $121.3 million , and $109.3 million , inclusive of $25.4 million , $22.6 million , and $20.8 million of related interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $87.8 million would impact the Company’s effective tax rate. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred income tax assets and liabilities. These amounts are net of federal and state income taxes. Certain federal and state tax returns are under audit by various tax authorities. Subsequent to the three month period ended November 3, 2018, the Company received notice that uncertain tax positions related to fiscal 2015 were resolved with the Internal Revenue Service. As a result, the Company expects to recognize a tax benefit of an approximate $26.2 million in the Consolidated Statement of Earnings, and a decrease in unrecognized tax benefits of approximately $53.3 million , inclusive of $12.8 million of interest and penalties, in the three month period ending February 2, 2019. It is reasonably possible that certain tax matters may be concluded or statutes of limitations may lapse during the next twelve months. Accordingly, excluding the impact of the aforementioned IRS tax resolution to be recognized in the quarter ended February 2, 2019, the total amount of unrecognized tax benefits may decrease by up to $8.2 million . The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2015 through 2017 . The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2013 through 2017 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 03, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of November 3, 2018 and October 28, 2017 , the results of operations and comprehensive income for the three and nine month periods ended November 3, 2018 and October 28, 2017 , and cash flows for the nine month periods ended November 3, 2018 and October 28, 2017 . The Condensed Consolidated Balance Sheet as of February 3, 2018 , presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended February 3, 2018 . The results of operations and comprehensive income for the three and nine month periods ended November 3, 2018 and October 28, 2017 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. Significant accounting policies. Except for the updates to accounting policies for revenue recognition and allowance for sales returns as a result of adopting ASC 606 described below, there have been no significant changes to the accounting policies followed by the Company as described in Note A to the audited consolidated financial statements for the fiscal year ended February 3, 2018. |
Revenue recognition and allowance for sales returns | Allowance for sales returns. As a result of the adoption of ASC 606, the Company recognizes allowances for estimated sales returns on a gross basis. This results in (i) an asset recorded for the expected recovery of merchandise inventory and a liability recorded for the refund due to the customer and (ii) a change in sales and related cost of goods sold based on the required reserve for estimated returns. Prior to the adoption of ASC 606, the Company recognized allowances for sales returns on a net basis. Revenue recognition. The Company recognizes revenue at the point of sale, net of sales taxes collected and an allowance for estimated future returns. Sales taxes collected that are outstanding and the allowance for estimated future returns are included in Accrued expenses and other in the Condensed Consolidated Balance Sheets. Sales of stored value cards are deferred until they are redeemed for the purchase of Company merchandise. The Company’s stored value cards do not have expiration dates. Based upon historical redemption rates, a small percentage of stored value cards will never be redeemed, which represents breakage. As a result of adopting ASC 606, breakage is estimated and recognized as revenue based upon the historical pattern of customer redemptions. In prior periods, breakage was recorded as a reduction of operating expense when customer redemption was considered remote. Breakage was not material to the condensed consolidated financial statements for the three and nine month periods ended November 3, 2018 and October 28, 2017 . |
Cash, restricted cash, and restricted investments | Cash, restricted cash, and restricted investments. Restricted cash, cash equivalents, and investments serve as collateral for certain insurance obligations of the Company. These restricted funds are invested in bank deposits, money market mutual funds, U.S. Government and agency securities, and corporate securities and cannot be withdrawn from the Company’s account without the prior written consent of the secured parties. The classification between current and long-term is based on the timing of expected payments of the insurance obligations. |
Property and equipment | Property and equipment. As of November 3, 2018 and October 28, 2017 , the Company had $13.0 million and $6.4 million , respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and Equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. |
Recently issued and adopted accounting standards | Recently adopted accounting standards. In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification "ASC" 606) which, along with subsequent amendments, supersedes the revenue recognition requirements in “Revenue Recognition (ASC 605).” This guidance provides a five-step analysis of transactions to determine when and how revenue is recognized and requires entities to recognize revenue when the customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The Company adopted ASC 606 as of February 4, 2018, using the modified retrospective method. Results for reporting periods beginning on or after February 4, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with ASC 605. Upon adoption of ASC 606, the Company recorded a cumulative-effect adjustment to increase beginning retained earnings by $20 million as of February 4, 2018, primarily due to the change in the timing of the recognition of stored value card breakage. The impact of applying ASC 606 was not material to the Company's condensed consolidated financial statements for the three and nine month periods ended November 3, 2018 . In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 requires restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts on the statement of cash flows. The standard also requires companies who report cash and restricted cash separately on the balance sheet to reconcile those amounts to the statement of cash flows. The Company adopted ASU 2016-18 as of February 4, 2018, using the retrospective method. Recently issued accounting standards. The Company considers the applicability and impact of all ASUs issued by the FASB. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's condensed consolidated financial results. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU requires balance sheet recognition for all leases with lease terms greater than one year including a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for the Company’s annual and interim reporting periods beginning in fiscal 2019. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements .” This update provides an additional (and optional) transition method to adopt the new leases standard, which allows entities to initially apply the new standard at the effective date with a cumulative-effect adjustment to the opening balance of retained earnings and does not require restatement of prior periods. The Company plans to adopt the new leases standard using the optional transition method. In addition, the Company does not plan to elect the transitional package of practical expedients or the use of hindsight upon adoption. The Company is finalizing the expected effect adoption of this new guidance will have on its consolidated financial statements. Due to the substantial number of leases that it has, the Company believes this ASU will increase assets and liabilities by a material amount on its consolidated balance sheet. The Company’s current undiscounted minimum commitments under noncancelable operating leases is approximately $3.9 billion . The Company does not believe adoption of this ASU will have a significant impact to its consolidated statements of earnings, stockholders’ equity, and cash flows. |
Fair value measurement | Fair Value Measurements The carrying value of cash and cash equivalents, short- and long-term investments, restricted cash and cash equivalents, restricted investments, accounts receivable, other long-term assets, accounts payable, and other long-term liabilities approximates their estimated fair value. Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions and maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. |
Earnings per share | Earnings Per Share The Company computes and reports both basic earnings per share ("EPS") and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards, including unexercised stock options, and unvested shares of both performance and non-performance based awards of restricted stock. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following sales mix table disaggregates revenue by merchandise category for the three and nine month periods ended November 3, 2018 and October 28, 2017 : Three Months Ended Nine Months Ended November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Ladies 27 % 28 % 28 % 28 % Home Accents and Bed and Bath 25 % 25 % 24 % 25 % Men's 14 % 13 % 13 % 13 % Shoes 13 % 13 % 14 % 14 % Accessories, Lingerie, Fine Jewelry, and Fragrances 13 % 13 % 13 % 12 % Children's 8 % 8 % 8 % 8 % Total 100 % 100 % 100 % 100 % |
Schedule of restricted cash reconciliation | The following table provides a reconciliation of cash, cash equivalents, restricted cash and equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Cash and cash equivalents $ 1,349,196 $ 1,290,294 $ 1,144,169 Restricted cash and cash equivalents included in: Prepaid expenses and other 8,933 9,412 12,776 Other long-term assets 53,460 53,566 50,992 Total restricted cash and cash equivalents 62,393 62,978 63,768 Total cash, cash equivalents and restricted cash and equivalents $ 1,411,589 $ 1,353,272 $ 1,207,937 |
Schedule of restricted investments | In addition to the restricted cash and equivalents in the table above, the Company had restricted investments included in the Condensed Consolidated Balance Sheets as shown below: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Prepaid expenses and other $ 2,801 $ 2,435 $ 688 Other long-term assets — 403 2,862 Total restricted investments $ 2,801 $ 2,838 $ 3,550 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values | The fair value of the Company’s financial instruments are as follows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Cash and cash equivalents (Level 1) $ 1,349,196 $ 1,290,294 $ 1,144,169 Restricted cash and cash equivalents (Level 1) $ 62,393 $ 62,978 $ 63,768 Investments (Level 2) $ 475 $ 1,224 $ 1,233 Restricted investments (Level 2) $ 2,801 $ 2,838 $ 3,550 |
Schedule of fair value, assets and liabilities measured on recurring basis | The fair value measurement for funds with quoted market prices in active markets (Level 1) and for funds without quoted market prices in active markets (Level 2) are as follows: ($000) November 3, 2018 February 3, 2018 October 28, 2017 Level 1 $ 111,490 $ 104,590 $ 99,387 Level 2 12,218 16,023 16,787 Total $ 123,708 $ 120,613 $ 116,174 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of stock-based compensation expense by award type | For the three and nine month periods ended November 3, 2018 and October 28, 2017 , the Company recognized stock-based compensation expense as follows: Three Months Ended Nine Months Ended ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Restricted stock $ 12,288 $ 11,207 $ 36,224 $ 32,927 Performance awards 10,593 10,215 32,504 29,668 Employee stock purchase plan 900 796 2,633 2,342 Total $ 23,781 $ 22,218 $ 71,361 $ 64,937 |
Total stock-based compensation recognized in the condensed consolidated statements of earnings | Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three and nine month periods ended November 3, 2018 and October 28, 2017 , is as follows: Three Months Ended Nine Months Ended Statements of Earnings Classification ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Cost of goods sold $ 11,434 $ 10,377 $ 33,481 $ 30,488 Selling, general and administrative 12,347 11,841 37,880 34,449 Total $ 23,781 $ 22,218 $ 71,361 $ 64,937 |
Unvested restricted stock activity | A summary of restricted stock and performance share award activity for the nine month period ended November 3, 2018 , is presented below: (000, except per share data) Number of shares Weighted average grant date fair value Unvested at February 3, 2018 5,483 $ 51.19 Awarded 1,179 75.88 Released (1,751 ) 44.10 Forfeited (69 ) 59.25 Unvested at November 3, 2018 4,842 $ 60.98 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations | The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations: Three Months Ended Nine Months Ended Shares in (000s) Basic EPS Effect of dilutive common stock equivalents Diluted EPS Basic EPS Effect of dilutive common stock equivalents Diluted EPS November 3, 2018 Shares 368,102 2,959 371,061 370,977 2,959 373,936 Amount $ 0.92 $ (0.01 ) $ 0.91 $ 3.09 $ (0.03 ) $ 3.06 October 28, 2017 Shares 379,432 2,700 382,132 382,959 2,864 385,823 Amount $ 0.72 $ — $ 0.72 $ 2.38 $ (0.02 ) $ 2.36 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Unsecured senior debt, net of unamortized discounts and debt issuance costs, consisted of the following: ($000) November 3, 2018 February 3, 2018 October 28, 2017 6.38% Series A Senior Notes due 2018 $ 84,997 $ 84,973 $ 84,964 6.53% Series B Senior Notes due 2021 64,937 64,922 64,917 3.375% Senior Notes due 2024 247,391 247,072 246,967 Total long-term debt $ 397,325 $ 396,967 $ 396,848 Less: current portion 84,997 84,973 — Total due beyond one year $ 312,328 $ 311,994 $ 396,848 |
Interest income and interest expense disclosure | The table below shows the components of interest expense and income for the three and nine month periods ended November 3, 2018 and October 28, 2017 : Three Months Ended Nine Months Ended ($000) November 3, 2018 October 28, 2017 November 3, 2018 October 28, 2017 Interest expense on long-term debt $ 4,646 $ 4,645 $ 13,937 $ 13,933 Other interest expense 233 233 768 735 Capitalized interest (700 ) (205 ) (1,832 ) (387 ) Interest income (7,132 ) (2,893 ) (17,722 ) (6,991 ) Interest (income) expense, net $ (2,953 ) $ 1,780 $ (4,849 ) $ 7,290 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |||||||||
Nov. 30, 2018 | Aug. 31, 2018 | May 30, 2018 | Mar. 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 04, 2018 | |
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.160 | $ 0.160 | $ 0.160 | $ 0.160 | ||||
Operating leases, future minimum payments due | $ 3,900 | ||||||||||
Property, Plant and Equipment | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Property and equipment purchased but not yet paid | $ 13 | $ 6.4 | |||||||||
Subsequent Event | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.225 | ||||||||||
Retained Earnings | Accounting Standards Update 2014-09 | |||||||||||
Summary of Significant Accounting Policies [Line Items] | |||||||||||
Cumulative-effect adjustment | $ 20 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Ladies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 27.00% | 28.00% | 28.00% | 28.00% |
Home Accents and Bed and Bath | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 25.00% | 25.00% | 24.00% | 25.00% |
Men's | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 14.00% | 13.00% | 13.00% | 13.00% |
Shoes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 13.00% | 13.00% | 14.00% | 14.00% |
Accessories, Lingerie, Fine Jewelry, and Fragrances | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 13.00% | 13.00% | 13.00% | 12.00% |
Children's | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue by merchandise category | 8.00% | 8.00% | 8.00% | 8.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Restricted Cash Reconciliation) (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jan. 28, 2017 | [1] | ||
Accounting Policies [Abstract] | |||||||
Cash and cash equivalents | $ 1,349,196 | $ 1,290,294 | $ 1,144,169 | ||||
Prepaid expenses and other | 8,933 | 9,412 | 12,776 | ||||
Other long-term assets | 53,460 | 53,566 | 50,992 | ||||
Total restricted cash and cash equivalents | 62,393 | 62,978 | 63,768 | ||||
Total cash, cash equivalents and restricted cash and equivalents | $ 1,411,589 | $ 1,353,272 | [1] | $ 1,207,937 | [1] | $ 1,176,180 | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Restricted Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Accounting Policies [Abstract] | |||
Prepaid expenses and other | $ 2,801 | $ 2,435 | $ 688 |
Other long-term assets | 0 | 403 | 2,862 |
Total restricted investments | $ 2,801 | $ 2,838 | $ 3,550 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Items (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 1,349,196 | $ 1,290,294 | $ 1,144,169 |
Restricted cash and cash equivalents | 62,393 | 62,978 | 63,768 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | 475 | 1,224 | 1,233 |
Restricted investments | $ 2,801 | $ 2,838 | $ 3,550 |
Fair Value Measurements - Under
Fair Value Measurements - Underlying Asset Value (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Investment [Line Items] | |||
Underlying assets in non-qualified deferred compensation program | $ 123,708 | $ 120,613 | $ 116,174 |
Level 1 | |||
Investment [Line Items] | |||
Underlying assets in non-qualified deferred compensation program | 111,490 | 104,590 | 99,387 |
Level 2 | |||
Investment [Line Items] | |||
Underlying assets in non-qualified deferred compensation program | $ 12,218 | $ 16,023 | $ 16,787 |
Stock-Based Compensation (Recog
Stock-Based Compensation (Recognized Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 23,781 | $ 22,218 | $ 71,361 | $ 64,937 | [1] |
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 12,288 | 11,207 | 36,224 | 32,927 | |
Performance awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 10,593 | 10,215 | 32,504 | 29,668 | |
Employee stock purchase plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 900 | $ 796 | $ 2,633 | $ 2,342 | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Stock-Based Compensation Recognized In The Consolidated Statements Of Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation | $ 23,781 | $ 22,218 | $ 71,361 | $ 64,937 | [1] |
Cost of goods sold | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation | 11,434 | 10,377 | 33,481 | 30,488 | |
Selling, general and administrative | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Stock-based compensation | $ 12,347 | $ 11,841 | $ 37,880 | $ 34,449 | |
[1] | As the result of the adoption of ASU 2016-18, Statement of Cash Flow (Topic 230): Restricted Cash, the prior year amounts were retrospectively adjusted to include restricted cash and cash equivalents. See Note A. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax benefit related to stock-based compensation | $ 5,100,000 | $ 7,900,000 | $ 15,000,000 | $ 22,700,000 | |
Plan participant's annual percentage ceiling for ESPP (up to) | 10.00% | 10.00% | |||
Plan participant's annual dollar amount ceiling for ESPP (up to) | $ 25,000 | ||||
Purchase price for shares under the ESPP (as a percentage) | 85.00% | ||||
Discount rate under the ESPP (as a percentage) | 15.00% | ||||
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Treasury shares purchased for tax withholding and available for reissuance (in shares) | 27,234 | 37,214 | 688,613 | 683,961 | |
Unvested restricted stock (in shares) | 4,842,000 | 4,842,000 | 5,483,000 | ||
Unamortized compensation expense | $ 137,200,000 | $ 123,000,000 | $ 137,200,000 | $ 123,000,000 | |
Unamortized compensation expense, remaining weighted-average period of recognition (in years) | 2 years | 2 years | |||
Minimum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock vesting period (in years) | 3 years | ||||
Minimum | Performance Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period (in years) | 2 years | ||||
Maximum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock vesting period (in years) | 5 years | ||||
Maximum | Performance Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period (in years) | 3 years |
Stock-Based Compensation (Unves
Stock-Based Compensation (Unvested Restricted Stock Activity) (Details) - Restricted stock shares in Thousands | 9 Months Ended |
Nov. 03, 2018$ / sharesshares | |
Number of shares | |
Beginning Balance (in shares) | shares | 5,483 |
Awarded (in shares) | shares | 1,179 |
Released (in shares) | shares | (1,751) |
Forfeited (in shares) | shares | (69) |
Ending Balance (in shares) | shares | 4,842 |
Weighted average grant date fair value | |
Beginning Balance (in dollars per share) | $ / shares | $ 51.19 |
Awarded (in dollars per share) | $ / shares | 75.88 |
Released (in dollars per share) | $ / shares | 44.10 |
Forfeited (in dollars per share) | $ / shares | 59.25 |
Ending Balance (in dollars per share) | $ / shares | $ 60.98 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares excluded from calculation of diluted EPS (in shares) | 4,800 | 14,600 | 10,000 | 446,500 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted EPS Computations (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Earnings Per Share [Abstract] | ||||
Basic EPS (in shares) | 368,102 | 379,432 | 370,977 | 382,959 |
Basic EPS (in dollars per share) | $ 0.92 | $ 0.72 | $ 3.09 | $ 2.38 |
Effect of dilutive common stock equivalents, (in shares) | 2,959 | 2,700 | 2,959 | 2,864 |
Effect of dilutive common stock equivalents, (in dollars per share) | $ (0.01) | $ 0 | $ (0.03) | $ (0.02) |
Diluted EPS (in shares) | 371,061 | 382,132 | 373,936 | 385,823 |
Diluted EPS (in dollars per share) | $ 0.91 | $ 0.72 | $ 3.06 | $ 2.36 |
Debt - Unsecured Senior Debt, N
Debt - Unsecured Senior Debt, Net of Unamortized Discounts and Issuance Costs (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 | Oct. 28, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 397,325 | $ 396,967 | $ 396,848 |
Less: current portion | 84,997 | 84,973 | 0 |
Total due beyond one year | $ 312,328 | 311,994 | 396,848 |
6.38% Series A Senior Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.38% | ||
Long-term debt | $ 84,997 | 84,973 | 84,964 |
6.53% Series B Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.53% | ||
Long-term debt | $ 64,937 | 64,922 | 64,917 |
3.375% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.375% | ||
Long-term debt | $ 247,391 | $ 247,072 | $ 246,967 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended | ||
Nov. 03, 2018USD ($)note | Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Total unamortized discount and debt issuance costs | $ 2,700,000 | $ 3,000,000 | $ 3,200,000 |
Unsecured Series A and B Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument | $ 150,000,000 | ||
6.38% Series A Senior Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes interest rate | 6.38% | ||
6.53% Series B Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes interest rate | 6.53% | ||
Unsecured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Current borrowing capacity | $ 600,000,000 | ||
Sublimit for issuance of standby letters of credit | 300,000,000 | ||
Maximum borrowing capacity (up to) | $ 200,000,000 | ||
Basis points margin over LIBOR | 1.00% | ||
Borrowings or standby letters of credit | $ 0 | ||
Level 1 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes estimated fair value | $ 402,000,000 | $ 411,000,000 | $ 415,000,000 |
3.375% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes interest rate | 3.375% | ||
Debt instrument | $ 250,000,000 | ||
Senior Note Held by Various Investors | |||
Debt Instrument [Line Items] | |||
Number of unsecured senior notes held | note | 2 | ||
6.38% Series A Senior Notes due 2018 | 6.38% Series A Senior Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes interest rate | 6.38% | ||
Debt instrument | $ 85,000,000 | ||
6.53% Series B Senior Notes due 2021 | 6.53% Series B Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes interest rate | 6.53% | ||
Debt instrument | $ 65,000,000 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest expense on long-term debt | $ 4,646 | $ 4,645 | $ 13,937 | $ 13,933 |
Other interest expense | 233 | 233 | 768 | 735 |
Capitalized interest | (700) | (205) | (1,832) | (387) |
Interest income | (7,132) | (2,893) | (17,722) | (6,991) |
Interest (income) expense, net | $ (2,953) | $ 1,780 | $ (4,849) | $ 7,290 |
Taxes on Earnings (Details)
Taxes on Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 02, 2019 | Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | |
Income Tax Contingency [Line Items] | ||||||
Effective income tax rate | 24.00% | 38.00% | 24.00% | 37.00% | ||
Provisional tax benefit | $ 80,100 | |||||
Unrecognized tax benefits | $ 130,500 | $ 109,300 | $ 130,500 | $ 109,300 | 121,300 | |
Income tax penalties and interest accrued | 25,400 | 20,800 | 25,400 | 20,800 | $ 22,600 | |
Impact of recognizing taxes and interest related to unrecognized tax benefits | 87,800 | 87,800 | ||||
Tax benefit | $ (105,545) | $ (166,220) | $ (358,124) | $ (537,182) | ||
Maximum | Internal Revenue Service | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2,017 | |||||
Maximum | State | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2,017 | |||||
Minimum | Internal Revenue Service | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2,015 | |||||
Minimum | State | ||||||
Income Tax Contingency [Line Items] | ||||||
Open tax year | 2,013 | |||||
Scenario, Forecast | Subsequent Event | ||||||
Income Tax Contingency [Line Items] | ||||||
Tax benefit | $ 26,200 | |||||
Decrease in unrecognized tax benefits | 53,300 | |||||
Interest and penalties | 12,800 | |||||
Unrecognized tax benefits reduction resulting from lapse of applicable statute of limitations (up to) | $ 8,200 |