Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Mar. 29, 2019 | Aug. 04, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | BIG LOTS INC | ||
Entity Central Index Key | 0000768835 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 40,142,960 | ||
Entity Public Float | $ 1,807,128,260 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 5,238,105 | $ 5,264,362 | $ 5,193,995 |
Cost of sales (exclusive of depreciation expense shown separately below) | 3,116,210 | 3,121,920 | 3,094,576 |
Gross margin | 2,121,895 | 2,142,442 | 2,099,419 |
Selling and administrative expenses | 1,778,416 | 1,723,996 | 1,730,956 |
Depreciation expense | 124,970 | 117,093 | 120,460 |
Operating profit | 218,509 | 301,353 | 248,003 |
Interest expense | (10,338) | (6,711) | (5,091) |
Other income (expense) | (558) | 712 | 1,387 |
Income before income taxes | 207,613 | 295,354 | 244,299 |
Income tax expense | 50,719 | 105,522 | 91,471 |
Net income | $ 156,894 | $ 189,832 | $ 152,828 |
Earnings per common share | |||
Earnings per common share - basic (in dollars per share) | $ 3.84 | $ 4.43 | $ 3.37 |
Earnings per common share - diluted (in dollars per share) | $ 3.83 | $ 4.38 | $ 3.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Net income | $ 156,894 | $ 189,832 | $ 152,828 |
Other comprehensive income: | |||
Amortization of pension, net of tax benefit of $0, $0, and $(886), respectively | 0 | 0 | 1,355 |
Valuation adjustment of pension, net of tax benefit of $0, $0, and $(9,556), respectively | 0 | 0 | 14,622 |
Total other comprehensive income | 0 | 0 | 15,977 |
Comprehensive income | $ 156,894 | $ 189,832 | $ 168,805 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Other comprehensive income | |||
Amortization of pension, tax | $ 0 | $ 0 | $ (866) |
Valuation adjustment of pension, tax | $ 0 | $ 0 | $ (9,556) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 46,034 | $ 51,176 |
Inventories | 969,561 | 872,790 |
Other current assets | 112,408 | 98,007 |
Total current assets | 1,128,003 | 1,021,973 |
Property and equipment - net | 822,338 | 565,977 |
Deferred income taxes | 8,633 | 13,986 |
Other assets | 64,373 | 49,790 |
Total assets | 2,023,347 | 1,651,726 |
Current liabilities: | ||
Accounts payable | 396,903 | 351,226 |
Property, payroll, and other taxes | 75,317 | 80,863 |
Accrued operating expenses | 99,422 | 72,013 |
Insurance reserves | 38,883 | 38,517 |
Accrued salaries and wages | 26,798 | 39,321 |
Income taxes payable | 1,237 | 7,668 |
Total current liabilities | 638,560 | 589,608 |
Long-term obligations | 374,100 | 199,800 |
Deferred rent | 60,700 | 58,246 |
Insurance reserves | 54,507 | 55,015 |
Unrecognized tax benefits | 14,189 | 14,929 |
Synthetic lease obligation | 144,477 | 15,606 |
Other liabilities | 43,773 | 48,935 |
Shareholders' equity: | ||
Preferred shares - authorized 2,000 shares; $0.01 par value; none issued | 0 | 0 |
Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 40,042 shares and 41,925 shares, respectively | 1,175 | 1,175 |
Treasury shares - 77,453 shares and 75,570 shares, respectively, at cost | (2,506,086) | (2,422,396) |
Additional paid-in capital | 622,685 | 622,550 |
Retained earnings | 2,575,267 | 2,468,258 |
Accumulated other comprehensive loss | 0 | 0 |
Total shareholders' equity | 693,041 | 669,587 |
Total liabilities and shareholders' equity | $ 2,023,347 | $ 1,651,726 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Shareholders' equity: | ||
Preferred shares - authorized shares (in shares) | 2,000 | 2,000 |
Preferred shares - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares - shares issued (in shares) | 0 | 0 |
Common shares - authorized shares (in shares) | 298,000 | 298,000 |
Common shares - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares - shares issued (in shares) | 117,495 | 117,495 |
Common shares - outstanding shares (in shares) | 40,042 | 41,925 |
Treasury shares - shares (in shares) | 77,453 | 75,570 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Performance Shares [Member] | Performance Shares [Member]Common Stock [Member] | Performance Shares [Member]Treasury Stock [Member] | Performance Shares [Member]Additional Paid-in Capital [Member] | Performance Shares [Member]Retained Earnings [Member] | Performance Shares [Member]Accumulated Other Comprehensive Loss [Member] |
Balance at Jan. 30, 2016 | $ 720,470 | $ 1,175 | $ (2,063,091) | $ 588,124 | $ 2,210,239 | $ (15,977) | ||||||
Balance (in shares) at Jan. 30, 2016 | 49,101,000 | |||||||||||
Treasury stock (in shares) at Jan. 30, 2016 | 68,394,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | 168,805 | $ 0 | $ 0 | 0 | 152,828 | 15,977 | ||||||
Dividends declared | (39,749) | 0 | 0 | 0 | (39,749) | 0 | ||||||
Purchases of common shares | (254,304) | $ 0 | $ (254,304) | 0 | 0 | 0 | ||||||
Purchases of common shares, (in shares) | (5,685,000) | 5,685,000 | ||||||||||
Exercise of stock options | $ 21,656 | $ 0 | $ 17,834 | 3,822 | 0 | 0 | ||||||
Exercise of stock options (in shares) | 572,727 | 573,000 | (573,000) | |||||||||
Restricted shares vested | $ 0 | $ 0 | $ 7,649 | (7,649) | 0 | 0 | ||||||
Restricted shares vested, (in shares) | 252,000 | (252,000) | ||||||||||
Performance shares vested | $ 0 | $ 0 | $ 394 | $ (394) | $ 0 | $ 0 | ||||||
Performance share vested, (in shares) | 13,000 | (13,000) | ||||||||||
Tax benefit from share-based awards | 510 | $ 0 | $ 0 | 510 | 0 | 0 | ||||||
Share activity related to deferred compensation plan | 9 | $ 0 | $ 3 | 6 | 0 | 0 | ||||||
Share activity related to deferred compensation plan (in shares) | 0 | 0 | ||||||||||
Other | 204 | $ 0 | $ 136 | 68 | 0 | 0 | ||||||
Other, (in shares) | 5,000 | (5,000) | ||||||||||
Share-based employee compensation expense | 33,029 | $ 0 | $ 0 | 33,029 | 0 | 0 | ||||||
Balance at Jan. 28, 2017 | 650,630 | $ 1,175 | $ (2,291,379) | 617,516 | 2,323,318 | 0 | ||||||
Balance (in shares) at Jan. 28, 2017 | 44,259,000 | |||||||||||
Treasury stock (in shares) at Jan. 28, 2017 | 73,236,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | 189,832 | $ 0 | $ 0 | 0 | 189,832 | 0 | ||||||
Dividends declared | (44,746) | 0 | 0 | 0 | (44,746) | 0 | ||||||
Purchases of common shares | (165,757) | $ 0 | $ (165,757) | 0 | 0 | 0 | ||||||
Purchases of common shares, (in shares) | (3,437,000) | 3,437,000 | ||||||||||
Exercise of stock options | $ 11,712 | $ 0 | $ 9,659 | 2,053 | 0 | 0 | ||||||
Exercise of stock options (in shares) | 304,049 | 304,000 | (304,000) | |||||||||
Restricted shares vested | $ 0 | $ 0 | $ 11,562 | (11,562) | 0 | 0 | ||||||
Restricted shares vested, (in shares) | 368,000 | (368,000) | ||||||||||
Performance shares vested | 0 | $ 0 | $ 13,523 | (13,523) | 0 | 0 | ||||||
Performance share vested, (in shares) | 431,000 | (431,000) | ||||||||||
Share activity related to deferred compensation plan | (4) | $ 0 | $ (4) | 0 | 0 | 0 | ||||||
Share activity related to deferred compensation plan (in shares) | 0 | 0 | ||||||||||
Other | 0 | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Other, (in shares) | 0 | 0 | ||||||||||
Share-based employee compensation expense | 27,825 | $ 0 | $ 0 | 27,825 | 0 | 0 | ||||||
Balance at Feb. 03, 2018 | $ 669,587 | $ 1,175 | $ (2,422,396) | 622,550 | 2,468,258 | 0 | ||||||
Balance (in shares) at Feb. 03, 2018 | 41,925,000 | 41,925,000 | ||||||||||
Treasury stock (in shares) at Feb. 03, 2018 | 75,570,000 | 75,570,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-09 [Member] | $ 95 | $ 0 | $ 0 | 241 | (146) | 0 | ||||||
Comprehensive income | 156,894 | 0 | 0 | 0 | 156,894 | 0 | ||||||
Dividends declared | (49,885) | 0 | 0 | 0 | (49,885) | 0 | ||||||
Purchases of common shares | (111,750) | $ 0 | $ (107,830) | 3,920 | 0 | 0 | ||||||
Purchases of common shares, (in shares) | (2,635,000) | 2,635,000 | ||||||||||
Exercise of stock options | $ 1,859 | $ 0 | $ 1,395 | 464 | 0 | 0 | ||||||
Exercise of stock options (in shares) | 43,125 | 43,000 | (43,000) | |||||||||
Restricted shares vested | $ 0 | $ 0 | $ 13,271 | (13,271) | 0 | 0 | ||||||
Restricted shares vested, (in shares) | 413,000 | (413,000) | ||||||||||
Performance shares vested | $ 0 | $ 0 | $ 9,475 | $ (9,475) | $ 0 | $ 0 | ||||||
Performance share vested, (in shares) | 296,000 | (296,000) | ||||||||||
Share activity related to deferred compensation plan | 1 | $ 0 | $ (1) | 2 | 0 | 0 | ||||||
Share activity related to deferred compensation plan (in shares) | 0 | 0 | ||||||||||
Other | 0 | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Other, (in shares) | 0 | 0 | ||||||||||
Share-based employee compensation expense | 26,335 | $ 0 | $ 0 | 26,335 | 0 | 0 | ||||||
Balance at Feb. 02, 2019 | $ 693,041 | $ 1,175 | $ (2,506,086) | $ 622,685 | $ 2,575,267 | $ 0 | ||||||
Balance (in shares) at Feb. 02, 2019 | 40,042,000 | 40,042,000 | ||||||||||
Treasury stock (in shares) at Feb. 02, 2019 | 77,453,000 | 77,453,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating activities: | |||
Net income | $ 156,894 | $ 189,832 | $ 152,828 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 114,025 | 106,004 | 108,315 |
Deferred income taxes | 5,353 | 32,578 | (9,171) |
Non-cash share-based compensation expense | 26,335 | 27,825 | 33,029 |
Excess tax benefit from share-based awards | 0 | 0 | (1,111) |
Non-cash impairment charge | 141 | 0 | 100 |
Loss (gain) on disposition of property and equipment | 732 | 483 | (2,899) |
Unrealized loss (gain) on fuel derivatives | 1,075 | (1,398) | (3,657) |
Pension expense, net of contributions | 0 | 0 | 6,644 |
Change in assets and liabilities: | |||
Inventories | (96,772) | (14,100) | (8,707) |
Accounts payable | 45,677 | (49,269) | 18,217 |
Current income taxes | (14,108) | (26,368) | 12,391 |
Other current assets | (7,055) | (12,144) | 34 |
Other current liabilities | (11,637) | (15,342) | (4,789) |
Other assets | 1,985 | (9,335) | (3,976) |
Other liabilities | 11,415 | 21,602 | 14,677 |
Net cash provided by operating activities | 234,060 | 250,368 | 311,925 |
Investing activities: | |||
Capital expenditures | (232,402) | (142,745) | (89,782) |
Cash proceeds from sale of property and equipment | 519 | 1,854 | 5,061 |
Assets acquired under synthetic lease | (128,872) | (15,606) | 0 |
Payments to Acquire Intangible Assets | (15,750) | 0 | 0 |
Other | 32 | (11) | 20 |
Net cash used in investing activities | (376,473) | (156,508) | (84,701) |
Financing activities: | |||
Net proceeds from borrowings under bank credit facility | 174,300 | 93,400 | 44,100 |
Payment of capital lease obligations | (3,908) | (4,134) | (4,514) |
Dividends paid | (50,608) | (44,671) | (38,466) |
Proceeds from the exercise of stock options | 1,859 | 11,712 | 21,656 |
Excess tax benefit from share-based awards | 0 | 0 | 1,111 |
Payment for treasury shares acquired | (111,750) | (165,757) | (254,304) |
Proceeds from synthetic lease | 128,872 | 15,606 | 0 |
Deferred bank credit facility fees paid | (1,495) | 0 | 0 |
Other | 1 | (4) | 213 |
Net cash provided by (used in) financing activities | 137,271 | (93,848) | (230,204) |
(Decrease) increase in cash and cash equivalents | (5,142) | 12 | (2,980) |
Cash and cash equivalents: | |||
Beginning of period | 51,176 | 51,164 | 54,144 |
End of period | $ 46,034 | $ 51,176 | $ 51,164 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business We are a discount retailer in the United States (“U.S.”). At February 2, 2019 , we operated 1,401 stores in 47 states and an e-commerce platform. We are dedicated to friendly service, trustworthy value, and affordable solutions in every season and category – furniture, food, décor, and more. We exist to provide a better shopping experience for our customers by providing great savings on value-priced merchandise, which includes tasteful and “trend-right” import merchandise, consistent and replenishable “never out” offerings, and brand-name closeouts. Basis of Presentation The consolidated financial statements include Big Lots, Inc. and all of its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all of our accounts. We consolidate all majority-owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates, judgments, and assumptions creates a level of uncertainty with respect to reported or disclosed amounts in our consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, judgments, and assumptions, including those that management considers critical to the accurate presentation and disclosure of our consolidated financial statements and accompanying notes. Management bases its estimates, judgments, and assumptions on historical experience, current trends, and various other factors that it believes are reasonable under the circumstances. Because of the inherent uncertainty in using estimates, judgments, and assumptions, actual results may differ from these estimates. Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks . Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2018 (“ 2018 ”) was comprised of the 52 weeks that began on February 4, 2018 and ended on February 2, 2019 . Fiscal year 2017 (“ 2017 ”) was comprised of the 53 weeks that began on January 29, 2017 and ended on February 3, 2018 . Fiscal year 2016 (“ 2016 ”) was comprised of the 52 weeks that began on January 31, 2016 and ended on January 28, 2017 . Segment Reporting We manage our business based on one segment, discount retailing. Our entire operation is located in the U.S. Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, credit and debit card receivables, and highly liquid investments, including money market funds, which are unrestricted to withdrawal or use and which have an original maturity of three months or less. We review cash and cash equivalent balances on a bank by bank basis in order to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a given bank. We reclassify book overdrafts, if any, to accounts payable on our consolidated balance sheets. Amounts due from banks for credit and debit card transactions are typically settled in less than five days, and at February 2, 2019 and February 3, 2018 , totaled $23.6 million and $27.0 million , respectively. Investments Investment securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase. Investments are recorded at fair value as either current assets or non-current assets based on the stated maturity or our plans to either hold or sell the investment. Unrealized holding gains and losses on trading securities are recognized in earnings. Unrealized holding gains and losses on available-for-sale securities are recognized in other comprehensive income, until realized. We did not own any held-to-maturity or available-for-sale securities as of February 2, 2019 and February 3, 2018 . Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the average cost retail inventory method. Cost includes any applicable inbound shipping and handling costs associated with the receipt of merchandise into our distribution centers (see the discussion below under the caption “Selling and Administrative Expenses” for additional information regarding outbound shipping and handling costs to our stores). Market is determined based on the estimated net realizable value, which generally is the merchandise selling price. Under the average cost retail inventory method, inventory is segregated into classes of merchandise having similar characteristics at its current retail selling value. Current retail selling values are converted to a cost basis by applying an average cost factor to each specific merchandise class’s retail selling value. Cost factors represent the average cost-to-retail ratio computed using beginning inventory and all fiscal year-to-date purchase activity specific to each merchandise class. Under the average cost retail inventory method, permanent sales price markdowns result in cost reductions in inventory. Our permanent sales price markdowns are typically related to end of season clearance events and are recorded as a charge to cost of sales in the period of management’s decision to initiate sales price reductions with the intent not to return the price to regular retail. Promotional markdowns are recorded as a charge to net sales in the period the merchandise is sold. Promotional markdowns are typically related to specific marketing efforts with respect to products maintained continuously in our stores or products that are only available in limited quantities but represent substantial value to our customers. Promotional markdowns are principally used to drive higher sales volume during a defined promotional period. We record a reduction to inventories and charge to cost of sales for a shrinkage inventory allowance. The shrinkage allowance is calculated as a percentage of sales for the period from the last physical inventory date to the end of the reporting period. Such estimates are based on a combination of our historical experience and current year physical inventory results. We record a reduction to inventories and charge to cost of sales for any excess or obsolete inventory. The excess or obsolete inventory is estimated based on a review of our aged inventory and takes into account any items that have already received a cost reduction as a result of the permanent markdown process discussed above. We estimate the reduction for excess or obsolete inventory based on historical sales trends, age and quantity of product on hand, and anticipated future sales. Payments Received from Vendors Payments received from vendors relate primarily to rebates and reimbursement for markdowns and are recognized in our consolidated statements of operations as a reduction to cost of inventory purchases in the period that the rebate or reimbursement is earned or realized and, consequently, result in a reduction in cost of sales when the related inventory is sold. Store Supplies When opening a new store, a portion of the initial shipment of supplies (which primarily includes display materials, signage, security-related items, and miscellaneous store supplies) is capitalized at the store opening date. These capitalized supplies represent more durable types of items for which we expect to receive future economic benefit. Subsequent replenishments of capitalized store supplies are expensed. The consumable/non-durable type items for which the future economic benefit is less measurable are expensed upon shipment to the store. Capitalized store supplies are adjusted periodically for changes in estimated quantities or costs and are included in other current assets in our consolidated balance sheets. Property and Equipment - Net Depreciation and amortization expense of property and equipment are recorded on a straight‑line basis using estimated service lives. The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 years Store fixtures and equipment 3 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 5 - 8 years Company vehicles 3 years Leasehold improvements are amortized on a straight-line basis using the shorter of their estimated service lives or the lease term. Because many initial lease terms range from five to ten years and the majority of our lease options have a term of five years, we estimate the useful life of leasehold improvements at five years. This amortization period is reasonably consistent with the amortization period for any lease incentives that we would typically receive when initially entering into a new lease that are recognized as deferred rent and amortized over the initial lease term. Assets acquired under noncancellable leases, which meet the criteria of a capital lease, are capitalized in property and equipment - net and amortized over the estimated service life of the asset or the applicable lease term, whichever is shorter. Depreciation estimates are revised prospectively to reflect the remaining depreciation or amortization of the asset over the shortened estimated service life when a decision is made to dispose of property and equipment prior to the end of its previously estimated service life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in selling and administrative expenses. Major repairs that extend service lives are capitalized. Maintenance and repairs are charged to expense as incurred. Capitalized interest was not significant in any period presented. Long-Lived Assets Our long-lived assets primarily consist of property and equipment - net. In order to determine if impairment indicators are present for store property and equipment, we review historical operating results at the store level on an annual basis, or when other impairment indicators are present. Generally, all other property and equipment is reviewed for impairment at the enterprise level. If the net book value of a store’s long-lived assets is not recoverable by the expected undiscounted future cash flows of the store, we estimate the fair value of the store’s assets and recognize an impairment charge for the excess net book value of the store’s long-lived assets over their fair value. Our assumptions related to estimates of undiscounted future cash flows are based on historical results of cash flows adjusted for management projections for future periods. We estimate the fair value of our long-lived assets using expected cash flows, including salvage value, which is based on readily available market information for similar assets. Intangible Assets During the fourth quarter of 2018, we acquired the Broyhill trademark and trade name for $15.8 million . This trademark and trade name have indefinite lives, which will be tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. We will estimate the fair value of these intangible assets based on an income approach. We would recognize an impairment charge if the estimated fair value of the intangible asset becomes less than the carrying value. Closed Store Accounting We recognize an obligation for the fair value of lease termination costs when we cease using the leased property in our operations. In measuring fair value of these lease termination obligations, we consider the remaining minimum lease payments, estimated sublease rentals that could be reasonably obtained, and other potentially mitigating factors. We discount the estimated obligation using the applicable credit adjusted interest rate, which results in accretion expense in periods subsequent to the period of initial measurement. We monitor the estimated obligation for lease termination liabilities in subsequent periods and revise our estimated liabilities, if necessary. Severance and benefits associated with terminating employees from employment are recognized ratably from the communication date through the estimated future service period, unless the estimated future service period is less than 60 days, in which case we recognize the impact at the communication date. Generally all other store closing costs are recognized when incurred. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement basis and tax basis of assets and liabilities using enacted law and tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We assess the adequacy and need for a valuation allowance for deferred tax assets. In making such assessment, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. We have established a valuation allowance to reduce our deferred tax assets to the balance that is more likely than not to be realized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. The effective income tax rate in any period may be materially impacted by the overall level of income (loss) before income taxes, the jurisdictional mix and magnitude of income (loss), changes in the income tax laws (which may be retroactive to the beginning of the fiscal year), subsequent recognition, de-recognition and/or measurement of an uncertain tax benefit, changes in a deferred tax valuation allowance, and adjustments of a deferred tax asset or liability for enacted changes in tax laws or rates. Insurance and Insurance-Related Reserves We are self-insured for certain losses relating to property, general liability, workers’ compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees. We purchase stop-loss coverage to limit significant exposure in these areas. Accrued insurance-related liabilities and related expenses are based on actual claims filed and estimates of claims incurred but not reported and are reliably determinable. The accruals are determined by applying actuarially-based calculations. General liability and workers’ compensation liabilities are recorded at our estimate of their net present value, using a 3.5% discount rate, while other liabilities for insurance-related reserves are not discounted. Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Level 1, defined as observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2, defined as observable inputs other than Level 1 inputs. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximates fair value because of the relatively short maturity of these items. Commitments and Contingencies We are subject to various claims and contingencies including legal actions and other claims arising out of the normal course of business. In connection with such claims and contingencies, we estimate the likelihood and amount of any potential obligation, where it is possible to do so, using management's judgment. Management uses various internal and external specialists to assist in the estimating process. We accrue a liability if the likelihood of a loss is probable and the amount is estimable. If the likelihood of a loss is only reasonably possible (as opposed to probable), or if it is probable but an estimate is not determinable, disclosure of a material claim or contingency is made in the notes to our consolidated financial statements and no accrual is made. Revenue Recognition We recognize sales revenue at the time the customer takes possession of the merchandise (i.e., the point at which we transfer the goods). Sales are recorded net of discounts (i.e., the amount of consideration we expect to receive for the goods) and estimated returns and exclude any sales tax. The reserve for merchandise returns is estimated based on our prior return experience. We sell gift cards in our stores and issue merchandise credits, typically as a result of customer returns, on stored value cards. We do not charge administrative fees on unused gift card or merchandise credit balances and our gift cards and merchandise credits do not expire. We recognize sales revenue related to gift cards and merchandise credits (1) when the gift card or merchandise credit is redeemed in a sales transaction by the customer or (2) as breakage occurs. We recognize gift card and merchandise credit breakage when we estimate that the likelihood of the card or credit being redeemed by the customer is remote and we determine that we do not have a legal obligation to remit the value of unredeemed cards or credits to the relevant regulatory authority. We estimate breakage based upon historical redemption patterns. The liability for the unredeemed cash value of gift cards and merchandise credits is recorded in accrued operating expenses. We offer price hold contracts on merchandise. Revenue for price hold contracts is recognized when the customer makes the final payment and takes possession of the merchandise. Amounts paid by customers under price hold contracts are recorded in accrued operating expenses until a sale is consummated. Cost of Sales Cost of sales includes the cost of merchandise, net of cash discounts and rebates, markdowns, and inventory shrinkage. Cost of merchandise includes related inbound freight to our distribution centers, duties, and commissions. We classify warehousing, distribution and outbound transportation costs as selling and administrative expenses. Due to this classification, our gross margin rates may not be comparable to those of other retailers that include warehousing, distribution and outbound transportation costs in cost of sales. Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $180.5 million , $161.5 million , and $151.9 million for 2018 , 2017 , and 2016 , respectively. Rent Expense Rent expense is recognized over the term of the lease and is included in selling and administrative expenses. We recognize minimum rent starting when possession of the property is taken from the landlord, which normally includes a construction or set-up period prior to store opening. When a lease contains a predetermined fixed escalation of the minimum rent, we recognize the related rent expense on a straight-line basis and record the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. We also receive tenant allowances, which are recorded in deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. Our leases generally obligate us for our applicable portion of real estate taxes, CAM, and property insurance that has been incurred by the landlord with respect to the leased property. We maintain accruals for our estimated applicable portion of real estate taxes, CAM, and property insurance incurred but not settled at each reporting date. We estimate these accruals based on historical payments made and take into account any known trends. Inherent in these estimates is the risk that actual costs incurred by landlords and the resulting payments by us may be higher or lower than the amounts we have recorded on our books. Certain of our leases provide for contingent rents that are not measurable at the lease inception date. Contingent rent includes rent based on a percentage of sales that are in excess of a predetermined level. Contingent rent is excluded from minimum rent but is included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, internet and social media marketing and advertising, e-mail, and in-store point-of-purchase presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $93.6 million , $92.0 million , and $92.3 million for 2018 , 2017 , and 2016 , respectively. Store Pre-opening Costs Pre-opening costs incurred during the construction periods for new store openings are expensed as incurred and included in our selling and administrative expenses. Share-Based Compensation Share-based compensation expense is recognized in selling and administrative expense in our consolidated statements of operations for all awards that we expect to vest. Non-vested Restricted Stock Awards Compensation expense for our performance-based non-vested restricted stock awards is recorded based on fair value of the award on the grant date and the estimated achievement date of the performance criteria. An estimated target achievement date is determined at the time of the award grant based on historical and forecasted performance of similar measures. Non-vested Restricted Stock Units We expense our non-vested restricted stock units with graded vesting as a single award with an average estimated life over the entire term of the award. The expense for the non-vested restricted stock units is recorded on a straight-line basis over the vesting period. Performance Share Units Compensation expense for performance share units (“PSUs”) is recorded based on fair value of the award on the grant date and the estimated achievement of financial performance objectives. From an accounting perspective, the grant date is established once all financial performance targets have been set. We monitor the estimated achievement of the financial performance objectives at each reporting period and will potentially adjust the estimated expense on a cumulative basis. The expense for the PSUs is recorded on a straight-line basis from the grant date through the end of the performance period. Earnings per Share Basic earnings per share is based on the weighted-average number of shares outstanding during each period. Diluted earnings per share is based on the weighted-average number of shares outstanding during each period and the additional dilutive effect of stock options, restricted stock awards, restricted stock units, and PSUs, calculated using the treasury stock method. Derivative Instruments We use derivative instruments to mitigate the risk of market fluctuations in diesel fuel prices. We do not enter into derivative instruments for speculative purposes. Our derivative instruments may consist of collar or swap contracts. Our current derivative instruments do not meet the requirements for cash flow hedge accounting. Instead, our derivative instruments are marked-to-market to determine their fair value and any gains or losses are recognized currently in other income (expense) on our consolidated statements of operations. Other Comprehensive Income Our other comprehensive income included the impact of the amortization of our pension actuarial loss, net of tax, and the revaluation of our pension actuarial loss, net of tax. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Supplemental disclosure of cash flow information: Cash paid for interest, including capital leases $ 10,292 $ 5,991 $ 4,486 Cash paid for income taxes, excluding impact of refunds $ 59,691 $ 99,693 $ 103,323 Gross proceeds from borrowings under the bank credit facility $ 1,861,900 $ 1,656,100 $ 1,673,700 Gross repayments of borrowings under the bank credit facility $ 1,687,600 $ 1,562,700 $ 1,629,600 Non-cash activity: Assets acquired under capital leases $ 902 $ 238 $ 286 Accrued property and equipment $ 32,264 $ 11,236 $ 9,295 Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) . The update requires a lessee to recognize, on the balance sheet, a liability to make lease payments and a right-of-use asset representing a right to use the underlying asset for the lease term. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The ASU allows for the modified retrospective method of adoption. The FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which allows entities to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the consolidated financial statements. ASU 2018-11 will allow entities to continue to apply the legacy guidance in Topic 840, Leases , including its disclosure requirements, in the comparative periods presented in the year the new leases standard is adopted. Entities that elect this option to adopt the new leases standard would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We did not early adopt this standard, but rather we will adopt this standard on February 3, 2019, which is in the first quarter of 2019. We have elected to use the modified retrospective method as of the effective date of the standard as allowed by ASU 2018-11. We will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. We will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. Adoption of the standard is expected to result in the recognition of right-of-use assets and lease liabilities for operating leases of approximately $1.1 billion . We are finalizing the impact of the standard to our accounting policies, processes, disclosures, and internal control over financial reporting and have implemented a new lease administration and accounting system. We are evaluating the disclosure requirements and are incorporating the collection of relevant data into our processes in preparation for disclosure in 2019. The Company does not expect the adoption of this guidance to have a material impact on its statements of operations, shareholders’ equity, or cash flows. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provided a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance expanded related disclosure requirements. During the first quarter of 2018, we adopted the new standard on the retrospective method. The adoption had no impact on the timing of the recognition of our revenue or costs. The adoption resulted in an immaterial adjustment to the amount of gross revenue and costs that we had previously reported, as certain of our vendor relationships had different principal versus agent treatment under the new standard. Additionally, we considered the disclosure requirements of the standard and determined that no additional disclosures were necessary. Subsequent Events We have evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, we are not aware of any events or transactions (other than those disclosed in notes 10 and 16) that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in our consolidated financial statements. |
Property and Equipment - Net
Property and Equipment - Net | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT - NET | PROPERTY AND EQUIPMENT - NET Property and equipment - net consist of: (In thousands) February 2, 2019 February 3, 2018 Land and land improvements $ 61,200 $ 60,416 Buildings and leasehold improvements 1,078,142 881,077 Fixtures and equipment 784,170 772,711 Computer software costs 179,071 172,539 Construction-in-progress 78,580 35,084 Property and equipment - cost 2,181,163 1,921,827 Less accumulated depreciation and amortization 1,358,825 1,355,850 Property and equipment - net $ 822,338 $ 565,977 Property and equipment - cost includes $29.5 million and $28.6 million at February 2, 2019 and February 3, 2018 , respectively, to recognize assets from capital leases. Accumulated depreciation and amortization includes $17.9 million and $13.2 million at February 2, 2019 and February 3, 2018 , respectively, related to capital leases. Additionally, we had $144.5 million and $15.6 million in assets from a synthetic lease for our distribution center in Apple Valley, California at February 2, 2019 and February 3, 2018, respectively. During 2018 , 2017 , and 2016 , respectively, we invested $232.4 million , $142.7 million , and $89.8 million of cash in capital expenditures and we recorded $125.0 million , $117.1 million , and $120.5 million of depreciation expense. We incurred $0.1 million , $0.0 million , and $0.1 million in asset impairment charges in 2018 , 2017 , and 2016 , respectively. During 2018, we wrote down the value of an asset held for sale. In 2018 and 2017, we did no t impair the value of long-lived assets at any stores as a result of our annual store impairment review. In 2016, we wrote down the value of long-lived assets at one store identified as part of our annual store impairment review. Asset impairment charges are included in selling and administrative expenses in our accompanying consolidated statements of operations. We perform annual impairment reviews of our long-lived assets at the store level. When we perform the annual impairment reviews, we first determine which stores had impairment indicators present. We generally use actual historical cash flows to determine if stores had negative cash flows within the past two years. For each store with negative cash flows, we estimate future cash flows based on operating performance estimates specific to each store’s operations that are based on assumptions currently being used to develop our company level operating plans. If the net book value of a store’s long-lived assets is not recoverable by the expected future cash flows of the store, we estimate the fair value of the store’s assets and recognize an impairment charge for the excess net book value of the store’s long-lived assets over their fair value. |
Bank Credit Facility
Bank Credit Facility | 12 Months Ended |
Feb. 02, 2019 | |
Debt Disclosure [Abstract] | |
BANK CREDIT FACILITY | BANK CREDIT FACILITY On August 31, 2018, we entered into a $700 million five -year unsecured credit facility (“2018 Credit Agreement”) that replaces our prior credit facility entered into in July 2011 and most recently amended in May 2015 (“2011 Credit Agreement”) and, among other things, amends certain of the representations and covenants applicable to the facility. The 2018 Credit Agreement expires on August 31, 2023. In connection with our entry into the 2018 Credit Agreement, we paid bank fees and other expenses in the aggregate amount of $1.5 million , which are being amortized over the term of the agreement. Borrowings under the 2018 Credit Agreement are available for general corporate purposes, working capital, and to repay certain of our indebtedness. The 2018 Credit Agreement includes a $30 million swing loan sublimit, a $75 million letter of credit sublimit, a $75 million sublimit for loans to foreign borrowers, and a $200 million optional currency sublimit. The interest rates, pricing and fees under the 2018 Credit Agreement fluctuate based on our debt rating. The 2018 Credit Agreement allows us to select our interest rate for each borrowing from multiple interest rate options. The interest rate options are generally derived from the prime rate or LIBOR. We may prepay revolving loans made under the 2018 Credit Agreement. The 2018 Credit Agreement contains financial and other covenants, including, but not limited to, limitations on indebtedness, liens and investments, as well as the maintenance of two financial ratios - a leverage ratio and a fixed charge coverage ratio. A violation of any of the covenants could result in a default under the 2018 Credit Agreement that would permit the lenders to restrict our ability to further access the 2018 Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2018 Credit Agreement. At February 2, 2019 , we had $374.1 million of borrowings outstanding under the 2018 Credit Agreement and $5.0 million was committed to outstanding letters of credit, leaving $320.9 million available under the 2018 Credit Agreement. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In connection with our nonqualified deferred compensation plan, we had mutual fund investments of $31.6 million and $33.0 million at February 2, 2019 and February 3, 2018 , respectively, which were recorded in other assets. These investments were classified as trading securities and were recorded at their fair value. The fair values of mutual fund investments were Level 1 valuations under the fair value hierarchy because each fund’s quoted market value per share was available in an active market. The fair values of our long-term obligations under our bank credit facility are estimated based on the quoted market prices for the same or similar issues and the current interest rates offered for similar instruments. These fair value measurements are classified as Level 2 within the fair value hierarchy. Given the variable rate features and relatively short maturity of the instruments underlying our long-term obligations, the carrying value of these instruments approximates the fair value. |
Leases
Leases | 12 Months Ended |
Feb. 02, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Leased property consisted primarily of 1,348 of our retail stores, our new corporate office, our new California distribution center, and certain transportation, information technology and other office equipment. After entering into a lease in 2016 for our new corporate office, we moved into the new office during the second quarter of 2018. In late 2017, we entered into a synthetic lease arrangement for a new distribution center in California. We are the construction agent for the new distribution center in California and construction began in December 2017. We expect the lease term to commence and to begin operations in 2019 for the new distribution center in California. Many of the store leases obligate us to pay for our applicable portion of real estate taxes, CAM, and property insurance. Certain store leases provide for contingent rents, have rent escalations, and have tenant allowances or other lease incentives. Many of our leases contain provisions for options to renew or extend the original term for additional periods. Total rent expense, including real estate taxes, CAM, and property insurance for operating leases consisted of the following: (In thousands) 2018 2017 2016 Minimum rents $ 346,067 $ 330,229 $ 321,248 Contingent rents 168 469 607 Total rent expense $ 346,235 $ 330,698 $ 321,855 Future minimum rental commitments for leases, excluding closed store leases, real estate taxes, CAM, and property insurance, at February 2, 2019 , were as follows: Fiscal Year (In thousands) 2019 $ 279,844 2020 244,978 2021 204,362 2022 159,479 2023 120,023 Thereafter 310,474 Total leases $ 1,319,160 We have obligations for capital leases primarily for store asset protection equipment and office equipment, included in accrued operating expenses and other liabilities on our consolidated balance sheet. Additionally, we have recorded the obligation for our synthetic lease arrangement in California in the synthetic lease obligation caption on our consolidated balance sheet. Scheduled payments for all capital leases at February 2, 2019 , were as follows: Fiscal Year (In thousands) 2019 $ 9,050 2020 10,815 2021 9,725 2022 6,992 2023 6,512 Thereafter 127,864 Total lease payments $ 170,958 Less amount to discount to present value (14,758 ) Capital lease obligation per balance sheet $ 156,200 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Feb. 02, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Earnings per Share There were no adjustments required to be made to weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share and there were no securities outstanding in any year presented, which were excluded from the computation of earnings per share other than antidilutive stock options, restricted stock awards, restricted stock units, and PSUs. Stock options outstanding that were excluded from the diluted share calculation because their impact was antidilutive at the end of 2018 , 2017 , and 2016 were as follows: (In millions) 2018 2017 2016 Antidilutive stock options excluded from dilutive share calculation 0.1 — — Antidilutive options are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. Antidilutive stock options are generally outstanding options where the exercise price per share is greater than the weighted-average market price per share for our common shares for each period. The restricted stock awards, restricted stock units, and PSUs that were antidilutive, as determined under the treasury stock method, were immaterial for all years presented. A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted earnings per share computations is as follows: (In thousands) 2018 2017 2016 Weighted-average common shares outstanding: Basic 40,809 42,818 45,316 Dilutive effect of share-based awards 153 482 658 Diluted 40,962 43,300 45,974 Share Repurchase Programs On March 7, 2018, our Board of Directors authorized a share repurchase program providing for the repurchase of up to $100 million of our common shares (“2018 Repurchase Program”). The 2018 Repurchase Program was exhausted during the second quarter of 2018. On June 5, 2018, we utilized the entire authorization under our 2018 Repurchase Program to execute a $100 million accelerated share repurchase transaction (“ASR Transaction”), which reduced our common shares outstanding by 2.4 million during the second quarter of 2018. Common shares acquired through repurchase programs are held in treasury at cost and are available to meet obligations under equity compensation plans and for general corporate purposes. Dividends The Company declared and paid cash dividends per common share during the periods presented as follows: Dividends Amount Declared Amount Paid 2017: (In thousands) (In thousands) First quarter $ 0.25 $ 11,547 $ 12,683 Second quarter 0.25 11,289 10,872 Third quarter 0.25 11,007 10,638 Fourth quarter 0.25 10,903 10,478 Total $ 1.00 $ 44,746 $ 44,671 2018: (In thousands) (In thousands) First quarter $ 0.30 $ 12,744 $ 14,386 Second quarter 0.30 12,474 12,141 Third quarter 0.30 12,321 12,065 Fourth quarter 0.30 12,346 12,016 Total $ 1.20 $ 49,885 $ 50,608 The amount of dividends declared may vary from the amount of dividends paid in a period based on certain instruments with restrictions on payment, including restricted stock awards, restricted stock units, and PSUs. The payment of future dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by our Board of Directors. |
Share-Based Plans
Share-Based Plans | 12 Months Ended |
Feb. 02, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED PLANS | SHARE-BASED PLANS Our shareholders approved the Big Lots 2017 Long-Term Incentive Plan (“2017 LTIP”) in May 2017. The 2017 LTIP authorizes the issuance of incentive and nonqualified stock options, restricted stock, restricted stock units, deferred stock awards, PSUs, stock appreciation rights, cash-based awards, and other share-based awards. We have issued restricted stock units and PSUs under the 2017 LTIP. The number of common shares available for issuance under the 2017 LTIP consists of an initial allocation of 5,500,000 common shares plus any common shares subject to the 1,743,116 outstanding awards as of January 28, 2017 under the Big Lots 2012 Long-Term Incentive Plan (“2012 LTIP”) that, on or after January 28, 2017, cease for any reason to be subject to such awards (other than by reason of exercise or settlement). The Compensation Committee of our Board of Directors (“Committee”), which is charged with administering the 2017 LTIP, has the authority to determine the terms of each award. Our former equity compensation plan, the 2012 LTIP, approved by our shareholders in May 2012, expired on May 24, 2017. The 2012 LTIP authorized the issuance of incentive and nonqualified stock options, restricted stock, restricted stock units, deferred stock awards, PSUs, stock appreciation rights, cash-based awards, and other share-based awards. We issued nonqualified stock options, restricted stock, restricted stock units, and PSUs under the 2012 LTIP. The Committee, which was charged with administering the 2012 LTIP, had the authority to determine the terms of each award. Nonqualified stock options granted to employees under the 2012 LTIP, the exercise price of which was not less than the fair market value of the underlying common shares on the grant date, generally expire on the earlier of: (1) the seven year term set by the Committee; or (2) one year following termination of employment, death, or disability. The nonqualified stock options generally vest ratably over a four -year period; however, upon a change in control, all awards outstanding automatically vest. Our other former equity compensation plan, the 2005 LTIP, approved by our shareholders in May 2005, expired on May 16, 2012. The 2005 LTIP authorized the issuance of nonqualified stock options, restricted stock, and other award types. We issued only nonqualified stock options and restricted stock under the 2005 LTIP. The Committee, which was charged with administering the 2005 LTIP, had the authority to determine the terms of each award. Nonqualified stock options granted to employees under the 2005 LTIP, the exercise price of which was not less than the fair market value of the underlying common shares on the grant date, generally expire on the earlier of: (1) the seven year term set by the Committee; or (2) one year following termination of employment, death, or disability. The nonqualified stock options generally vest ratably over a four -year period; however, upon a change in control, all awards outstanding automatically vest. Share-based compensation expense was $26.3 million , $27.8 million and $33.0 million in 2018 , 2017 , and 2016 , respectively. Non-vested Restricted Stock The following table summarizes the non-vested restricted stock awards and restricted stock units activity for fiscal years 2016 , 2017 , and 2018 : Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock at January 30, 2016 785,149 $ 40.96 Granted 261,792 45.62 Vested (252,156 ) 42.03 Forfeited (23,264 ) 43.63 Outstanding non-vested restricted stock at January 28, 2017 771,521 $ 42.12 Granted 205,819 51.16 Vested (368,408 ) 42.84 Forfeited (19,089 ) 44.02 Outstanding non-vested restricted stock at February 3, 2018 589,843 $ 44.77 Granted 354,457 45.38 Vested (413,261 ) 42.60 Forfeited (47,857 ) 44.49 Outstanding non-vested restricted stock at February 2, 2019 483,182 $ 46.50 The non-vested restricted stock units granted in 2016, 2017 and 2018 generally vest, and are expensed, on a ratable basis over three years from the grant date of the award, if certain threshold financial performance objectives are achieved and the grantee remains employed by us through the vesting dates. The non-vested restricted stock awards granted to employees in 2013 have met the applicable threshold financial performance objective and vested in 2018. Performance Share Units In 2013, in connection with our former CEO's appointment, he was awarded 37,800 PSUs, which vested based on the achievement of share price performance goals and had a weighted average grant-date fair value per share of $34.68 . In 2014, Mr. Campisi’s first two tranches for a total of 25,200 PSUs vested. In 2016, Mr. Campisi's third and final tranche of 12,600 PSUs vested. In 2016, 2017, and 2018, we issued PSUs to certain members of management, which vest if certain financial performance objectives are achieved over a three -year performance period and the grantee remains employed by us through that performance period. At February 2, 2019 , 744,331 non-vested PSUs were outstanding in the aggregate. The financial performance objectives for each fiscal year within the three-year performance period are approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year. As a result of the process used to establish the financial performance objectives, we will only meet the requirements of establishing a grant date for the PSUs when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. If we meet the applicable threshold financial performance objectives over the three-year performance period and the grantee remains employed by us through the end of the performance period, the PSUs will vest on the first trading day after we file our Annual Report on Form 10-K for the last fiscal year in the performance period. We have begun or expect to begin recognizing expense related to PSUs as follows: Issue Year Outstanding PSUs at Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2016 282,083 March 2018 Fiscal 2018 2017 222,323 March 2019 Fiscal 2019 2018 239,925 March 2020 Fiscal 2020 Total 744,331 The number of shares to be distributed upon vesting of the PSUs depends on our average performance attained during the three-year performance period as compared to the targets defined by the Compensation Committee, and may result in the distribution of an amount of shares that is greater or less than the number of PSUs granted, as defined in the award agreement. The PSUs issued in 2015 performed above the average targets and more shares were distributed than initially granted. The PSUs issued in 2016 performed below the average targets and fewer shares will be distributed than outstanding at February 2, 2019 . At February 2, 2019 , we estimate the attainment of an average performance that is less than the average targets established for the PSUs issued in 2017. In 2018, 2017, and 2016, we recognized $14.9 million , $15.4 million and $17.5 million , respectively, in share-based compensation expense related to PSUs. The following table summarizes the activity related to PSUs for fiscal years 2016 , 2017 , and 2018 : PSUs, excluding 2013 CEO PSUs Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs at January 30, 2016 — $ — Granted 379,794 41.04 Vested — — Forfeited (19,437 ) 41.04 Outstanding PSUs at January 28, 2017 360,357 $ 41.04 Granted 259,042 51.49 Vested (360,357 ) 41.04 Forfeited (9,718 ) 51.49 Outstanding PSUs at February 3, 2018 249,324 $ 51.49 Granted 337,421 55.67 Vested (249,324 ) 51.49 Forfeited (55,338 ) 46.31 Outstanding PSUs at February 2, 2019 282,083 $ 55.67 Board of Directors' Awards In 2016, we granted to each non-employee member of our Board of Directors a restricted stock award. In 2018 and 2017, we granted (1) the chairman of our Board of Directors an annual restricted stock unit award having a grant date fair value of approximately $200,000 , and (2) the remaining non-employees directors an annual restricted stock unit award having a grant date fair value of approximately $135,000 . These awards vest on the earlier of (1) the trading day immediately preceding the next annual meeting of our shareholders or (2) the death or disability of the grantee. However, the restricted stock units will not vest if the non-employee director ceases to serve on our Board of Directors before either vesting event occurs. Additionally, we allow our non-employee directors to defer all or a portion of their restricted stock unit award and by such election, the non-employee director can defer receipt of the restricted stock units until the earlier of the first to occur of; (1) the specified date by the non-employee director in the deferral agreement, (2) the non-employee director’s death or disability, or (3) the date the non-employee director ceases to serve as a member of the Board of Directors. Stock Options The following table summarizes information about our stock options outstanding and exercisable at February 2, 2019 : Range of Prices Options Outstanding Options Exercisable Greater Than Less Than or Equal to Options Outstanding Weighted-Average Remaining Life (Years) Weighted-Average Exercise Price Options Exercisable Weighted-Average Exercise Price $ 30.01 $ 40.00 160,001 1.1 $ 35.62 160,001 $ 35.62 $ 40.01 $ 50.00 77,500 0.1 43.85 77,500 43.85 237,501 0.8 $ 38.30 237,501 $ 38.30 A summary of the annual stock option activity for fiscal years 2016 , 2017 , and 2018 is as follows: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000's) Outstanding stock options at January 30, 2016 1,174,902 $ 38.26 Exercised (572,727 ) 37.81 Forfeited (12,500 ) 35.83 Outstanding stock options at January 28, 2017 589,675 $ 38.75 Exercised (304,049 ) 38.51 Forfeited (5,000 ) 36.93 Outstanding stock options at February 3, 2018 280,626 $ 39.04 Exercised (43,125 ) 43.11 Forfeited — — Outstanding stock options at February 2, 2019 237,501 $ 38.30 0.8 $ 5 Vested or expected to vest at February 2, 2019 237,501 $ 38.30 0.8 $ 5 Exercisable at February 2, 2019 237,501 $ 38.30 0.8 $ 5 The stock options granted in prior years vested in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years. During 2018 , 2017 , and 2016 , the following activity occurred under our share-based compensation plans: (In thousands) 2018 2017 2016 Total intrinsic value of stock options exercised $ 228 $ 4,423 $ 7,392 Total fair value of restricted stock vested $ 19,240 $ 19,015 $ 11,510 Total fair value of performance shares vested $ 12,792 $ 21,026 $ 621 The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2017 and 2018, at February 2, 2019 was approximately $13.2 million . This compensation cost is expected to be recognized through October 2021 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.8 years from February 2, 2019 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Benefits In prior years, we maintained the Pension Plan and Supplemental Pension Plan covering certain employees whose hire date was on or before April 1, 1994. Benefits under each plan were based on credited years of service and the employee’s compensation during the last five years of employment. On October 31, 2015, our Board of Directors approved amendments to freeze benefits and terminate the Pension Plan. The Pension Plan discontinued accruing benefits on December 31, 2015, and the termination was effective January 31, 2016. On December 2, 2015, our Board of Directors approved amendments to freeze benefits and terminate the Supplemental Pension Plan. The Supplemental Pension Plan discontinued accruing benefits on December 31, 2015, and the termination was effective December 31, 2015. During 2016, we completed the termination proceedings for the Pension Plan, including seeking and receiving a favorable IRS determination letter, conducting a lump sum offering to our active and terminated vested participants, and conducting an insurance placement for the annuity purchasers. Additionally, we funded the Pension Plan and reduced our liability thereunder to zero. In January 2017, we completed the termination proceedings for the Supplemental Pension Plan and paid all accrued balances to participants through lump sum settlements. The components of net periodic pension expense were comprised of the following: (In thousands) 2016 Interest cost on projected benefit obligation $ 879 Expected investment return on plan assets (1,536 ) Amortization of actuarial loss 2,241 Settlement loss 24,483 Net periodic pension cost $ 26,067 The weighted-average assumptions used to determine net periodic pension expense were: 2016 Discount rate 1.2 % Expected long-term rate of return 2.8 % Savings Plans We have a savings plan with a 401(k) deferral feature and a nonqualified deferred compensation plan with a similar deferral feature for eligible employees. We contribute a matching percentage of employee contributions. Our matching contributions are subject to Internal Revenue Service (“IRS”) regulations. For 2018 , 2017 , and 2016 , we expensed $8.5 million , $7.7 million , and $6.6 million , respectively, related to our matching contributions. In connection with our nonqualified deferred compensation plan, we had liabilities of $31.8 million and $33.4 million at February 2, 2019 and February 3, 2018 , respectively, which are recorded in other liabilities. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the President of the United States signed into law legislation commonly referred to as the Tax Cut and Jobs Act (“TCJA”). The legislation significantly changed U.S. tax law, including permanently lowering the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, expanding the disallowance of deductions for executive compensation and accelerating tax depreciation for certain assets placed in service after September 27, 2017. The provision for income taxes was comprised of the following: (In thousands) 2018 2017 2016 Current: U.S. Federal $ 35,025 $ 63,743 $ 87,521 U.S. State and local 10,341 9,201 13,122 Total current tax expense 45,366 72,944 100,643 Deferred: U.S. Federal 5,300 28,336 (7,965 ) U.S. State and local 53 4,242 (1,207 ) Total deferred tax expense 5,353 32,578 (9,172 ) Income tax provision $ 50,719 $ 105,522 $ 91,471 In 2017, we estimated the effects of the corporate income tax rate reduction on our net deferred tax assets resulting in the provisional recognition of an additional $4.5 million of income tax expense in our consolidated statement of operations. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the TCJA. As noted above, we recorded the provisional tax impacts of the TCJA on existing current and deferred tax amounts in 2017. The ultimate impact differed from those provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions we made, and additional regulatory guidance that was issued. During the third quarter of 2018, we made approximately $0.6 million in adjustments to our previously recorded provisional amounts related to the TCJA. During the fourth quarter of 2018, we finalized our estimate related to the TCJA and the adjustment was immaterial. Net deferred tax assets fluctuated by items that are not reflected in deferred tax expense in the above table in 2017 and 2016. In 2017, net deferred tax assets increased by $0.1 million as a result of ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Net deferred tax assets decreased by $10.4 million in 2016 , principally from pension-related charges recorded in accumulated other comprehensive loss. Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows: 2018 2017 2016 Statutory federal income tax rate 21.0 % 33.7 % 35.0 % Effect of: State and local income taxes, net of federal tax benefit 4.0 3.0 3.2 Executive compensation limitations - permanent difference 0.7 — — Provisional effect of the TCJA (0.3 ) 1.5 — Work opportunity tax and other employment tax credits (1.4 ) (1.0 ) (1.1 ) Excess tax detriment (benefit) from share-based compensation 0.4 (1.3 ) — Other, net — (0.2 ) 0.3 Effective income tax rate 24.4 % 35.7 % 37.4 % Since the TCJA rate reduction was effective on January 1, 2018, our 2017 federal statutory tax rate was a blended rate of 33.7%. In 2017, we adopted ASU 2016-09 . Prior to the adoption of ASU 2016-09, differences between the tax deduction ultimately realized from an equity award and the deferred tax asset recognized as compensation cost were generally credited (“excess tax benefits”) or charged (“deficiencies”) to equity. Under ASU 2016-09, all tax effects of share-based compensation, including excess tax benefits and tax deficiencies, are recognized in income tax expense. In 2018, we recognized net tax deficiencies which increased income tax expense by $1.0 million . In 2017, we recognized net excess tax benefits which reduced income tax expense by $4.3 million . Income tax payments and refunds were as follows: (In thousands) 2018 2017 2016 Income taxes paid $ 59,691 $ 99,693 $ 103,323 Income taxes refunded (474 ) (888 ) (16,187 ) Net income taxes paid $ 59,217 $ 98,805 $ 87,136 Deferred taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax, including income tax uncertainties. Significant components of our deferred tax assets and liabilities were as follows: (In thousands) February 2, 2019 February 3, 2018 Deferred tax assets: Workers’ compensation and other insurance reserves $ 20,841 $ 21,106 Uniform inventory capitalization 18,454 13,591 Compensation related 17,218 14,308 Accrued rent 16,208 15,292 Depreciation and fixed asset basis differences 10,497 8,435 State tax credits, net of federal tax benefit 3,856 4,246 Accrued state taxes 3,416 3,749 Accrued operating liabilities 1,316 537 Other 11,767 11,623 Valuation allowances, net of federal tax benefit (2,940 ) (2,311 ) Total deferred tax assets 100,633 90,576 Deferred tax liabilities: Accelerated depreciation and fixed asset basis differences 66,016 51,310 Lease construction reimbursements 13,917 11,542 Prepaid expenses 4,285 5,559 Workers’ compensation and other insurance reserves 2,477 2,424 Other 5,305 5,755 Total deferred tax liabilities 92,000 76,590 Net deferred tax assets $ 8,633 $ 13,986 We have the following income tax loss and credit carryforwards at February 2, 2019 (amounts are shown net of tax excluding the federal income tax effect of the state and local items): (In thousands) U.S. State and local: State net operating loss carryforwards $ 15 Expires fiscal years 2020 California enterprise zone credits 4,566 Predominately expires fiscal year 2023 Other state credits 315 Expires fiscal years through 2025 Total income tax loss and credit carryforwards $ 4,896 The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Unrecognized tax benefits - beginning of year $ 11,673 $ 13,121 $ 13,772 Gross increases - tax positions in current year 1,649 361 822 Gross increases - tax positions in prior period 1,025 1,329 171 Gross decreases - tax positions in prior period (1,827 ) (1,385 ) (80 ) Settlements 403 (319 ) (236 ) Lapse of statute of limitations (937 ) (1,434 ) (1,328 ) Unrecognized tax benefits - end of year $ 11,986 $ 11,673 $ 13,121 At the end of 2018 and 2017 , the total amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is $9.4 million and $9.2 million , respectively, after considering the federal tax benefit of state and local income taxes of $1.8 million and $2.1 million , respectively. Unrecognized tax benefits of $0.8 million and $0.6 million in 2018 and 2017, respectively, relate to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The uncertain timing items could result in the acceleration of the payment of cash to the taxing authority to an earlier period. We recognized an expense (benefit) associated with interest and penalties on unrecognized tax benefits of approximately $(0.7) million , $0.1 million , and $0.2 million during 2018 , 2017 , and 2016 , respectively, as a component of income tax expense. The amount of accrued interest and penalties recognized in the accompanying consolidated balance sheets at February 2, 2019 and February 3, 2018 was $5.4 million and $6.1 million , respectively. We are subject to U.S. federal income tax, and income tax of multiple state and local jurisdictions. The statute of limitations for assessments on our federal income tax returns for periods prior to 2015 has lapsed. In addition, the state income tax returns filed by us are subject to examination generally for periods beginning with 2006, although state income tax carryforward attributes generated prior to 2006 and non-filing positions may still be adjusted upon examination. We have various state returns in the process of examination or administrative appeal. After acquiring Canadian operations on July 18, 2011 and prior to dissolution on June 10, 2014, we also were subject to Canadian and provincial taxes. Generally, the time limit for reassessing returns for Canadian and provincial income taxes for periods prior to the fiscal year ended February 2, 2013 have lapsed. We have estimated the reasonably possible expected net change in unrecognized tax benefits through February 1, 2020, based on expected cash and noncash settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations for unrecognized tax benefits. The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $4.0 million . Actual results may differ materially from this estimate. |
Contingencies
Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND LEGAL PROCEEDINGS | COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS Shareholder and Derivative Matters On May 21, May 22 and July 2, 2012, three shareholder derivative lawsuits were filed in the U.S. District Court for the Southern District of Ohio against us and certain of our current and former outside directors and executive officers. The lawsuits were consolidated, and, on August 13, 2012, plaintiffs filed a consolidated complaint captioned In re Big Lots, Inc. Shareholder Litigation , No. 2:12-cv-00445 (S.D. Ohio) (the “Consolidated Derivative Action”). The consolidated complaint asserted various claims under Ohio law, including for breach of fiduciary duty. On October 18, 2013, a different shareholder filed an additional derivative lawsuit captioned Brosz v. Fishman et al. , No. 1:13-cv-00753 (S.D. Ohio) (the “Brosz Action”), in the U.S. District Court for the Southern District of Ohio against us and each of the current and former outside directors and executive officers originally named in the 2012 shareholder derivative lawsuit. On December 29, 2016, the Court ordered that the Brosz Action be consolidated with the Consolidated Derivative Action. On December 14, 2017, the parties entered into a Stipulation and Agreement of Settlement and plaintiffs filed an Unopposed Motion for Preliminary Approval of Derivative Settlement with the Court. On August 28, 2018, the Court issued an Order granting final approval of the Settlement. On July 9, 2012, a putative securities class action lawsuit captioned Willis, et al. v. Big Lots, Inc., et al. , 2:12-cv-00604 (S.D. Ohio) was filed in the U.S. District Court for the Southern District of Ohio on behalf of persons who acquired our common shares between February 2, 2012 and April 23, 2012. Effective May 16, 2018, the parties executed a Stipulation of Settlement. On November 9, 2018, the Court issued an Order granting final approval of the Settlement. On November 9, 2018, the Court issued an Order granting final approval of the settlement. In connection with the settlement of the Willis class action and the Consolidated Derivative Action, during the first quarter of 2018, we recorded a net charge of $3.5 million related to the expected cost of the settlements for the funds in excess of our insurance coverage. During the second quarter of 2018, the settlement associated with the Willis class action was paid into escrow and has since been released. California Hazardous Materials Matter On October 1, 2013, we received a subpoena from the District Attorney for the County of Alameda, State of California, seeking information concerning our handling of hazardous materials and hazardous waste in the State of California. We provided information and cooperated with the authorities from multiple counties and cities in California in connection with this matter. In the first quarter of 2016, we entered into settlement negotiations related to this matter. We settled this matter in the first quarter of 2017. During the first quarter of 2016, we recorded accruals totaling $4.7 million associated with pending legal and regulatory matters, including this matter related to hazardous materials and hazardous waste. Tabletop Torches Matter In 2013, we sold certain tabletop torch and citronella products manufactured by third parties. In August 2013, we recalled the tabletop torches and discontinued their sale in our stores. In 2014, we were named as a defendant in a number of lawsuits relating to these products alleging personal injuries suffered as a result of negligent shelving and pairing of the products, product design, manufacturing and marketing defects and/or breach of warranties. In the second quarter of 2015, we settled one of the lawsuits and settled another lawsuit in the third quarter of 2015. We settled an additional lawsuit in the first quarter of 2017. In the second quarter of 2017, we reached a settlement with the plaintiff in the final lawsuit. Additionally, we have brought a separate lawsuit in the United States District Court of Massachusetts against the company that tested the tabletop torch and an additional lawsuit in the United States District Court for the Southern District of Ohio against the third-party manufacturers and the company that tested the tabletop torch. In the second quarter of 2017, we reached a settlement in principle with our primary and excess insurance carriers. In the third quarter of 2017, we finalized the settlement with our insurance carriers and collected the associated settlement funds, which resulted in a $3.0 million gain. In addition, our excess insurance carrier has negotiated a settlement with each of the third-party manufacturers and the company that tested the tabletop torch. All pending actions have now been dismissed. During the second quarter of 2015, we recorded a $4.5 million charge related to these matters. California Wage and Hour Matters We currently are defending five purported wage and hour class actions in California, including several that have been brought since January 2018. The cases were brought by various current and/or former California associates alleging various violations of California wage and hour laws. We intend to defend ourselves vigorously against the allegations levied in these lawsuits. While a loss from these lawsuits is reasonably possible, at this time, we cannot reasonably estimate the amount of any loss that may result or whether the lawsuits will have a material adverse effect on our financial condition, results of operation or cash flows. Other Matters We are involved in other legal actions and claims arising in the ordinary course of business. We currently believe that each such action and claim will be resolved without a material effect on our financial condition, results of operations, or liquidity. However, litigation involves an element of uncertainty. Future developments could cause these actions or claims to have a material effect on our financial condition, results of operations, and liquidity. We are self-insured for certain losses relating to property, general liability, workers' compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees, and we have purchased stop-loss coverage in order to limit significant exposure in these areas. Accrued insurance liabilities are actuarially determined based on claims filed and estimates of claims incurred but not reported. We use letters of credit, which amounted to $55.9 million at February 2, 2019 , as collateral to back certain of our self-insured losses with our claims administrators. We have purchase obligations for outstanding purchase orders for merchandise issued in the ordinary course of our business that are valued at $401.4 million , the entirety of which represents obligations due within one year of February 2, 2019 . In addition, we have purchase commitments for future inventory purchases totaling $1.3 million at February 2, 2019 . We paid $10.5 million , $11.0 million , and $18.2 million related to these commitments during 2018 , 2017 , and 2016 , respectively. We are not required to meet any periodic minimum purchase requirements under this commitment. The term of the commitment extends until the purchase requirement is satisfied, which we anticipated will occur in the first quarter of 2019. We have additional purchase obligations in the amount of $338.9 million primarily related to distribution and transportation, information technology, print advertising, energy procurement, and other store security, supply, and maintenance commitments. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Feb. 02, 2019 | |
Derivative [Line Items] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS In the first quarter of 2015, our Board of Directors authorized our management to enter into derivative instruments designed to mitigate certain risks; and we entered into collar contracts to mitigate our risk associated with market fluctuations in diesel fuel prices. These contracts are used strictly to limit our risk exposure and not as speculative transactions. Our derivative instruments associated with diesel fuel do not meet the requirements for cash flow hedge accounting. Therefore, our derivative instruments associated with diesel fuel will be marked-to-market to determine their fair value, and the associated gains and losses will be recognized currently in other income (expense) on our consolidated statements of operations. Our outstanding derivative instrument contracts were comprised of the following: (In thousands) February 2, 2019 February 3, 2018 Diesel fuel collars (in gallons) 7,200 3,600 The fair value of our outstanding derivative instrument contracts was as follows: (In thousands) Assets (Liabilities) Derivative Instrument Balance Sheet Location February 2, 2019 February 3, 2018 Diesel fuel collars Other current assets $ 523 $ 312 Other assets 203 262 Accrued operating expenses (586 ) (77 ) Other liabilities (825 ) (107 ) Total derivative instruments $ (685 ) $ 390 The effect of derivative instruments on the consolidated statements of operations was as follows: (In thousands) Amount of Gain (Loss) Derivative Instrument Statements of Operations Location 2018 2017 2016 Diesel fuel collars Realized Other income (expense) $ 455 $ (756 ) $ (2,299 ) Unrealized Other income (expense) (1,075 ) 1,398 3,657 Total derivative instruments $ (620 ) $ 642 $ 1,358 The fair values of our derivative instruments are determined using observable inputs from commonly quoted markets. These fair value measurements are classified as Level 2 within the fair value hierarchy. |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Income | 12 Months Ended |
Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the components of accumulated other comprehensive loss, net of tax, during 2016 : (In thousands) 2016 Beginning of Period $ (15,977 ) Other comprehensive income before reclassifications (185 ) Amounts reclassified from accumulated other comprehensive loss 16,162 Net period change 15,977 End of Period — The amounts reclassified from accumulated other comprehensive loss associated with our pension plans have been reclassified to selling and administrative expenses in our statements of operations. Please see note 8 to the consolidated financial statements for further information on our pension plans. |
Sale of Real Estate
Sale of Real Estate | 12 Months Ended |
Feb. 02, 2019 | |
Sale of Real Estate [Abstract] | |
SALE OF REAL ESTATE | SALE OF REAL ESTATE In January 2017, we sold real property in California, on a component of which we operated a store, for $4.6 million . Based on the terms of the transaction, we recognized a pre-tax gain of $3.8 million during the fourth quarter of 2016. |
Business Segment Data
Business Segment Data | 12 Months Ended |
Feb. 02, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT DATA | BUSINESS SEGMENT DATA We use the following seven merchandise categories, which match our internal management and reporting of merchandise net sales: Furniture, Seasonal, Soft Home, Food, Consumables, Hard Home, and Electronics, Toys, & Accessories. The Furniture category includes our upholstery, mattress, case goods, and ready-to-assemble departments. The Seasonal category includes our Christmas trim, lawn & garden, summer, and other holiday departments. The Soft Home category includes our fashion bedding, utility bedding, bath, window, decorative textile, home organization, area rugs, home décor, and frames departments. The Food category includes our beverage & grocery, candy & snacks, and specialty foods departments. The Consumables category includes our health, beauty and cosmetics, plastics, paper, chemical, and pet departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments. The Electronics, Toys, & Accessories category includes our electronics, toys, jewelry, and hosiery departments. We periodically assess, and potentially enact minor adjustments to, our product hierarchy, which can impact the roll-up of our merchandise categories. Our financial reporting process utilizes the most current product hierarchy in reporting net sales by merchandise category for all periods presented. Therefore, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. The following table presents net sales data by merchandise category: (In thousands) 2018 2017 2016 Furniture $ 1,289,133 $ 1,236,737 $ 1,195,365 Soft Home 826,313 789,596 750,814 Consumables 799,038 822,533 817,747 Food 782,988 818,387 824,414 Seasonal 765,619 765,674 738,756 Hard Home 407,596 428,788 437,575 Electronics, Toys, & Accessories 367,418 402,647 429,324 Net sales $ 5,238,105 $ 5,264,362 $ 5,193,995 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized fiscal quarterly financial data for 2018 and 2017 is as follows: Fiscal Year 2018 First Second Third Fourth Year (In thousands, except per share amounts) (a) Net sales $ 1,267,983 $ 1,222,169 $ 1,149,402 $ 1,598,551 $ 5,238,105 Gross margin 511,958 491,419 459,174 659,344 2,121,895 Net income 31,239 24,164 (6,556 ) 108,047 156,894 Earnings per share: Basic $ 0.74 $ 0.59 $ (0.16 ) $ 2.70 $ 3.84 Diluted 0.74 0.59 (0.16 ) 2.68 3.83 Fiscal Year 2017 First Second Third Fourth Year (In thousands, except per share amounts) (a) Net sales $ 1,294,970 $ 1,219,597 $ 1,109,184 $ 1,640,611 $ 5,264,362 Gross margin 524,275 492,500 443,626 682,041 2,142,442 Net income 51,512 29,120 4,372 104,828 189,832 Earnings per share: Basic $ 1.16 $ 0.68 $ 0.10 $ 2.50 $ 4.43 Diluted 1.15 0.67 0.10 2.46 4.38 (a) Earnings per share calculations for each fiscal quarter are based on the applicable weighted-average shares outstanding for each period, and the sum of the earnings per share for the four fiscal quarters may not necessarily be equal to the full year earnings per share amount. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Event [Line Items] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On March 6, 2019, our Board of Directors authorized the repurchase of up to $50.0 million of our common shares (“2019 Repurchase Program”). Pursuant to the 2019 Repurchase Program, we may repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. Common shares acquired through the 2019 Repurchase Program will be available to meet obligations under our equity compensation plans and for general corporate purposes. The 2019 Repurchase Program has no scheduled termination date and will be funded with cash and cash equivalents, cash generated from operations or, if needed, by drawing on the 2018 Credit Agreement. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business We are a discount retailer in the United States (“U.S.”). At February 2, 2019 , we operated 1,401 stores in 47 states and an e-commerce platform. We are dedicated to friendly service, trustworthy value, and affordable solutions in every season and category – furniture, food, décor, and more. We exist to provide a better shopping experience for our customers by providing great savings on value-priced merchandise, which includes tasteful and “trend-right” import merchandise, consistent and replenishable “never out” offerings, and brand-name closeouts. Basis of Presentation The consolidated financial statements include Big Lots, Inc. and all of its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all of our accounts. We consolidate all majority-owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates, judgments, and assumptions creates a level of uncertainty with respect to reported or disclosed amounts in our consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, judgments, and assumptions, including those that management considers critical to the accurate presentation and disclosure of our consolidated financial statements and accompanying notes. Management bases its estimates, judgments, and assumptions on historical experience, current trends, and various other factors that it believes are reasonable under the circumstances. Because of the inherent uncertainty in using estimates, judgments, and assumptions, actual results may differ from these estimates. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks . Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2018 (“ 2018 ”) was comprised of the 52 weeks that began on February 4, 2018 and ended on February 2, 2019 . Fiscal year 2017 (“ 2017 ”) was comprised of the 53 weeks that began on January 29, 2017 and ended on February 3, 2018 . Fiscal year 2016 (“ 2016 ”) was comprised of the 52 weeks that began on January 31, 2016 and ended on January 28, 2017 . |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting We manage our business based on one segment, discount retailing. Our entire operation is located in the U.S. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, credit and debit card receivables, and highly liquid investments, including money market funds, which are unrestricted to withdrawal or use and which have an original maturity of three months or less. We review cash and cash equivalent balances on a bank by bank basis in order to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a given bank. We reclassify book overdrafts, if any, to accounts payable on our consolidated balance sheets. Amounts due from banks for credit and debit card transactions are typically settled in less than five days, and at February 2, 2019 and February 3, 2018 , totaled $23.6 million and $27.0 million , respectively. |
Investment, Policy [Policy Text Block] | Investments Investment securities are classified as available-for-sale, held-to-maturity, or trading at the date of purchase. Investments are recorded at fair value as either current assets or non-current assets based on the stated maturity or our plans to either hold or sell the investment. Unrealized holding gains and losses on trading securities are recognized in earnings. Unrealized holding gains and losses on available-for-sale securities are recognized in other comprehensive income, until realized. We did not own any held-to-maturity or available-for-sale securities as of February 2, 2019 and February 3, 2018 . |
Inventory, Policy [Policy Text Block] | Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the average cost retail inventory method. Cost includes any applicable inbound shipping and handling costs associated with the receipt of merchandise into our distribution centers (see the discussion below under the caption “Selling and Administrative Expenses” for additional information regarding outbound shipping and handling costs to our stores). Market is determined based on the estimated net realizable value, which generally is the merchandise selling price. Under the average cost retail inventory method, inventory is segregated into classes of merchandise having similar characteristics at its current retail selling value. Current retail selling values are converted to a cost basis by applying an average cost factor to each specific merchandise class’s retail selling value. Cost factors represent the average cost-to-retail ratio computed using beginning inventory and all fiscal year-to-date purchase activity specific to each merchandise class. Under the average cost retail inventory method, permanent sales price markdowns result in cost reductions in inventory. Our permanent sales price markdowns are typically related to end of season clearance events and are recorded as a charge to cost of sales in the period of management’s decision to initiate sales price reductions with the intent not to return the price to regular retail. Promotional markdowns are recorded as a charge to net sales in the period the merchandise is sold. Promotional markdowns are typically related to specific marketing efforts with respect to products maintained continuously in our stores or products that are only available in limited quantities but represent substantial value to our customers. Promotional markdowns are principally used to drive higher sales volume during a defined promotional period. We record a reduction to inventories and charge to cost of sales for a shrinkage inventory allowance. The shrinkage allowance is calculated as a percentage of sales for the period from the last physical inventory date to the end of the reporting period. Such estimates are based on a combination of our historical experience and current year physical inventory results. We record a reduction to inventories and charge to cost of sales for any excess or obsolete inventory. The excess or obsolete inventory is estimated based on a review of our aged inventory and takes into account any items that have already received a cost reduction as a result of the permanent markdown process discussed above. We estimate the reduction for excess or obsolete inventory based on historical sales trends, age and quantity of product on hand, and anticipated future sales. |
Cost of Sales, Vendor Allowances, Policy [Policy Text Block] | Payments Received from Vendors Payments received from vendors relate primarily to rebates and reimbursement for markdowns and are recognized in our consolidated statements of operations as a reduction to cost of inventory purchases in the period that the rebate or reimbursement is earned or realized and, consequently, result in a reduction in cost of sales when the related inventory is sold. |
Store Supplies Policy [Policy Text Block] | Store Supplies When opening a new store, a portion of the initial shipment of supplies (which primarily includes display materials, signage, security-related items, and miscellaneous store supplies) is capitalized at the store opening date. These capitalized supplies represent more durable types of items for which we expect to receive future economic benefit. Subsequent replenishments of capitalized store supplies are expensed. The consumable/non-durable type items for which the future economic benefit is less measurable are expensed upon shipment to the store. Capitalized store supplies are adjusted periodically for changes in estimated quantities or costs and are included in other current assets in our consolidated balance sheets. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment - Net Depreciation and amortization expense of property and equipment are recorded on a straight‑line basis using estimated service lives. The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 years Store fixtures and equipment 3 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 5 - 8 years Company vehicles 3 years Leasehold improvements are amortized on a straight-line basis using the shorter of their estimated service lives or the lease term. Because many initial lease terms range from five to ten years and the majority of our lease options have a term of five years, we estimate the useful life of leasehold improvements at five years. This amortization period is reasonably consistent with the amortization period for any lease incentives that we would typically receive when initially entering into a new lease that are recognized as deferred rent and amortized over the initial lease term. Assets acquired under noncancellable leases, which meet the criteria of a capital lease, are capitalized in property and equipment - net and amortized over the estimated service life of the asset or the applicable lease term, whichever is shorter. Depreciation estimates are revised prospectively to reflect the remaining depreciation or amortization of the asset over the shortened estimated service life when a decision is made to dispose of property and equipment prior to the end of its previously estimated service life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in selling and administrative expenses. Major repairs that extend service lives are capitalized. Maintenance and repairs are charged to expense as incurred. Capitalized interest was not significant in any period presented. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets Our long-lived assets primarily consist of property and equipment - net. In order to determine if impairment indicators are present for store property and equipment, we review historical operating results at the store level on an annual basis, or when other impairment indicators are present. Generally, all other property and equipment is reviewed for impairment at the enterprise level. If the net book value of a store’s long-lived assets is not recoverable by the expected undiscounted future cash flows of the store, we estimate the fair value of the store’s assets and recognize an impairment charge for the excess net book value of the store’s long-lived assets over their fair value. Our assumptions related to estimates of undiscounted future cash flows are based on historical results of cash flows adjusted for management projections for future periods. We estimate the fair value of our long-lived assets using expected cash flows, including salvage value, which is based on readily available market information for similar assets. |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Intangible Assets During the fourth quarter of 2018, we acquired the Broyhill trademark and trade name for $15.8 million . This trademark and trade name have indefinite lives, which will be tested for impairment annually or whenever circumstances indicate that a decline in value may have occurred. We will estimate the fair value of these intangible assets based on an income approach. We would recognize an impairment charge if the estimated fair value of the intangible asset becomes less than the carrying value. |
Closed Store Poilcy [Policy Text Block] | Closed Store Accounting We recognize an obligation for the fair value of lease termination costs when we cease using the leased property in our operations. In measuring fair value of these lease termination obligations, we consider the remaining minimum lease payments, estimated sublease rentals that could be reasonably obtained, and other potentially mitigating factors. We discount the estimated obligation using the applicable credit adjusted interest rate, which results in accretion expense in periods subsequent to the period of initial measurement. We monitor the estimated obligation for lease termination liabilities in subsequent periods and revise our estimated liabilities, if necessary. Severance and benefits associated with terminating employees from employment are recognized ratably from the communication date through the estimated future service period, unless the estimated future service period is less than 60 days, in which case we recognize the impact at the communication date. Generally all other store closing costs are recognized when incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement basis and tax basis of assets and liabilities using enacted law and tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We assess the adequacy and need for a valuation allowance for deferred tax assets. In making such assessment, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. We have established a valuation allowance to reduce our deferred tax assets to the balance that is more likely than not to be realized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. The effective income tax rate in any period may be materially impacted by the overall level of income (loss) before income taxes, the jurisdictional mix and magnitude of income (loss), changes in the income tax laws (which may be retroactive to the beginning of the fiscal year), subsequent recognition, de-recognition and/or measurement of an uncertain tax benefit, changes in a deferred tax valuation allowance, and adjustments of a deferred tax asset or liability for enacted changes in tax laws or rates. |
Self Insurance Policy [Policy Text Block] | Insurance and Insurance-Related Reserves We are self-insured for certain losses relating to property, general liability, workers’ compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees. We purchase stop-loss coverage to limit significant exposure in these areas. Accrued insurance-related liabilities and related expenses are based on actual claims filed and estimates of claims incurred but not reported and are reliably determinable. The accruals are determined by applying actuarially-based calculations. General liability and workers’ compensation liabilities are recorded at our estimate of their net present value, using a 3.5% discount rate, while other liabilities for insurance-related reserves are not discounted. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Level 1, defined as observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2, defined as observable inputs other than Level 1 inputs. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximates fair value because of the relatively short maturity of these items. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and Contingencies We are subject to various claims and contingencies including legal actions and other claims arising out of the normal course of business. In connection with such claims and contingencies, we estimate the likelihood and amount of any potential obligation, where it is possible to do so, using management's judgment. Management uses various internal and external specialists to assist in the estimating process. We accrue a liability if the likelihood of a loss is probable and the amount is estimable. If the likelihood of a loss is only reasonably possible (as opposed to probable), or if it is probable but an estimate is not determinable, disclosure of a material claim or contingency is made in the notes to our consolidated financial statements and no accrual is made. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition We recognize sales revenue at the time the customer takes possession of the merchandise (i.e., the point at which we transfer the goods). Sales are recorded net of discounts (i.e., the amount of consideration we expect to receive for the goods) and estimated returns and exclude any sales tax. The reserve for merchandise returns is estimated based on our prior return experience. We sell gift cards in our stores and issue merchandise credits, typically as a result of customer returns, on stored value cards. We do not charge administrative fees on unused gift card or merchandise credit balances and our gift cards and merchandise credits do not expire. We recognize sales revenue related to gift cards and merchandise credits (1) when the gift card or merchandise credit is redeemed in a sales transaction by the customer or (2) as breakage occurs. We recognize gift card and merchandise credit breakage when we estimate that the likelihood of the card or credit being redeemed by the customer is remote and we determine that we do not have a legal obligation to remit the value of unredeemed cards or credits to the relevant regulatory authority. We estimate breakage based upon historical redemption patterns. The liability for the unredeemed cash value of gift cards and merchandise credits is recorded in accrued operating expenses. We offer price hold contracts on merchandise. Revenue for price hold contracts is recognized when the customer makes the final payment and takes possession of the merchandise. Amounts paid by customers under price hold contracts are recorded in accrued operating expenses until a sale is consummated. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of sales includes the cost of merchandise, net of cash discounts and rebates, markdowns, and inventory shrinkage. Cost of merchandise includes related inbound freight to our distribution centers, duties, and commissions. We classify warehousing, distribution and outbound transportation costs as selling and administrative expenses. Due to this classification, our gross margin rates may not be comparable to those of other retailers that include warehousing, distribution and outbound transportation costs in cost of sales. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $180.5 million , $161.5 million , and $151.9 million for 2018 , 2017 , and 2016 , respectively. |
Lessee, Leases [Policy Text Block] | Rent Expense Rent expense is recognized over the term of the lease and is included in selling and administrative expenses. We recognize minimum rent starting when possession of the property is taken from the landlord, which normally includes a construction or set-up period prior to store opening. When a lease contains a predetermined fixed escalation of the minimum rent, we recognize the related rent expense on a straight-line basis and record the difference between the recognized rental expense and the amounts payable under the lease as deferred rent. We also receive tenant allowances, which are recorded in deferred incentive rent and are amortized as a reduction to rent expense over the term of the lease. Our leases generally obligate us for our applicable portion of real estate taxes, CAM, and property insurance that has been incurred by the landlord with respect to the leased property. We maintain accruals for our estimated applicable portion of real estate taxes, CAM, and property insurance incurred but not settled at each reporting date. We estimate these accruals based on historical payments made and take into account any known trends. Inherent in these estimates is the risk that actual costs incurred by landlords and the resulting payments by us may be higher or lower than the amounts we have recorded on our books. Certain of our leases provide for contingent rents that are not measurable at the lease inception date. Contingent rent includes rent based on a percentage of sales that are in excess of a predetermined level. Contingent rent is excluded from minimum rent but is included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, internet and social media marketing and advertising, e-mail, and in-store point-of-purchase presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $93.6 million , $92.0 million , and $92.3 million for 2018 , 2017 , and 2016 , respectively. |
Store Pre-opening Costs [Policy Text Block] | Store Pre-opening Costs Pre-opening costs incurred during the construction periods for new store openings are expensed as incurred and included in our selling and administrative expenses. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation Share-based compensation expense is recognized in selling and administrative expense in our consolidated statements of operations for all awards that we expect to vest. Non-vested Restricted Stock Awards Compensation expense for our performance-based non-vested restricted stock awards is recorded based on fair value of the award on the grant date and the estimated achievement date of the performance criteria. An estimated target achievement date is determined at the time of the award grant based on historical and forecasted performance of similar measures. Non-vested Restricted Stock Units We expense our non-vested restricted stock units with graded vesting as a single award with an average estimated life over the entire term of the award. The expense for the non-vested restricted stock units is recorded on a straight-line basis over the vesting period. Performance Share Units Compensation expense for performance share units (“PSUs”) is recorded based on fair value of the award on the grant date and the estimated achievement of financial performance objectives. From an accounting perspective, the grant date is established once all financial performance targets have been set. We monitor the estimated achievement of the financial performance objectives at each reporting period and will potentially adjust the estimated expense on a cumulative basis. The expense for the PSUs is recorded on a straight-line basis from the grant date through the end of the performance period. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share is based on the weighted-average number of shares outstanding during each period. Diluted earnings per share is based on the weighted-average number of shares outstanding during each period and the additional dilutive effect of stock options, restricted stock awards, restricted stock units, and PSUs, calculated using the treasury stock method. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments We use derivative instruments to mitigate the risk of market fluctuations in diesel fuel prices. We do not enter into derivative instruments for speculative purposes. Our derivative instruments may consist of collar or swap contracts. Our current derivative instruments do not meet the requirements for cash flow hedge accounting. Instead, our derivative instruments are marked-to-market to determine their fair value and any gains or losses are recognized currently in other income (expense) on our consolidated statements of operations. |
Stockholders' Equity, Policy [Policy Text Block] | Other Comprehensive Income Our other comprehensive income included the impact of the amortization of our pension actuarial loss, net of tax, and the revaluation of our pension actuarial loss, net of tax. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) . The update requires a lessee to recognize, on the balance sheet, a liability to make lease payments and a right-of-use asset representing a right to use the underlying asset for the lease term. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. The ASU allows for the modified retrospective method of adoption. The FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which allows entities to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the consolidated financial statements. ASU 2018-11 will allow entities to continue to apply the legacy guidance in Topic 840, Leases , including its disclosure requirements, in the comparative periods presented in the year the new leases standard is adopted. Entities that elect this option to adopt the new leases standard would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. We did not early adopt this standard, but rather we will adopt this standard on February 3, 2019, which is in the first quarter of 2019. We have elected to use the modified retrospective method as of the effective date of the standard as allowed by ASU 2018-11. We will elect the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. We will not elect the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of right-of-use assets. Further, we will elect a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. Adoption of the standard is expected to result in the recognition of right-of-use assets and lease liabilities for operating leases of approximately $1.1 billion . We are finalizing the impact of the standard to our accounting policies, processes, disclosures, and internal control over financial reporting and have implemented a new lease administration and accounting system. We are evaluating the disclosure requirements and are incorporating the collection of relevant data into our processes in preparation for disclosure in 2019. The Company does not expect the adoption of this guidance to have a material impact on its statements of operations, shareholders’ equity, or cash flows. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provided a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Additionally, this guidance expanded related disclosure requirements. During the first quarter of 2018, we adopted the new standard on the retrospective method. The adoption had no impact on the timing of the recognition of our revenue or costs. The adoption resulted in an immaterial adjustment to the amount of gross revenue and costs that we had previously reported, as certain of our vendor relationships had different principal versus agent treatment under the new standard. Additionally, we considered the disclosure requirements of the standard and determined that no additional disclosures were necessary. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events We have evaluated events and transactions subsequent to the balance sheet date. Based on this evaluation, we are not aware of any events or transactions (other than those disclosed in notes 10 and 16) that occurred subsequent to the balance sheet date but prior to filing that would require recognition or disclosure in our consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment [Table Text Block] | The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 years Store fixtures and equipment 3 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 5 - 8 years Company vehicles 3 years |
Supplemental disclosure of cash flow information [Table Text Block] | The following table provides supplemental cash flow information for 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Supplemental disclosure of cash flow information: Cash paid for interest, including capital leases $ 10,292 $ 5,991 $ 4,486 Cash paid for income taxes, excluding impact of refunds $ 59,691 $ 99,693 $ 103,323 Gross proceeds from borrowings under the bank credit facility $ 1,861,900 $ 1,656,100 $ 1,673,700 Gross repayments of borrowings under the bank credit facility $ 1,687,600 $ 1,562,700 $ 1,629,600 Non-cash activity: Assets acquired under capital leases $ 902 $ 238 $ 286 Accrued property and equipment $ 32,264 $ 11,236 $ 9,295 |
Property and Equipment - Net (T
Property and Equipment - Net (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment - net consist of: (In thousands) February 2, 2019 February 3, 2018 Land and land improvements $ 61,200 $ 60,416 Buildings and leasehold improvements 1,078,142 881,077 Fixtures and equipment 784,170 772,711 Computer software costs 179,071 172,539 Construction-in-progress 78,580 35,084 Property and equipment - cost 2,181,163 1,921,827 Less accumulated depreciation and amortization 1,358,825 1,355,850 Property and equipment - net $ 822,338 $ 565,977 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Leases, Operating [Abstract] | |
Schedule of Rent Expense [Table Text Block] | Total rent expense, including real estate taxes, CAM, and property insurance for operating leases consisted of the following: (In thousands) 2018 2017 2016 Minimum rents $ 346,067 $ 330,229 $ 321,248 Contingent rents 168 469 607 Total rent expense $ 346,235 $ 330,698 $ 321,855 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Future minimum rental commitments for leases, excluding closed store leases, real estate taxes, CAM, and property insurance, at February 2, 2019 , were as follows: Fiscal Year (In thousands) 2019 $ 279,844 2020 244,978 2021 204,362 2022 159,479 2023 120,023 Thereafter 310,474 Total leases $ 1,319,160 |
Leases, Capital [Abstract] | |
Schedule of Capital Leased Asssets [Table Text Block] | Scheduled payments for all capital leases at February 2, 2019 , were as follows: Fiscal Year (In thousands) 2019 $ 9,050 2020 10,815 2021 9,725 2022 6,992 2023 6,512 Thereafter 127,864 Total lease payments $ 170,958 Less amount to discount to present value (14,758 ) Capital lease obligation per balance sheet $ 156,200 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Stock options outstanding that were excluded from the diluted share calculation because their impact was antidilutive at the end of 2018 , 2017 , and 2016 were as follows: (In millions) 2018 2017 2016 Antidilutive stock options excluded from dilutive share calculation 0.1 — — |
Schedule of Stock by Class [Table Text Block] | A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted earnings per share computations is as follows: (In thousands) 2018 2017 2016 Weighted-average common shares outstanding: Basic 40,809 42,818 45,316 Dilutive effect of share-based awards 153 482 658 Diluted 40,962 43,300 45,974 |
Dividends Declared [Table Text Block] | The Company declared and paid cash dividends per common share during the periods presented as follows: Dividends Amount Declared Amount Paid 2017: (In thousands) (In thousands) First quarter $ 0.25 $ 11,547 $ 12,683 Second quarter 0.25 11,289 10,872 Third quarter 0.25 11,007 10,638 Fourth quarter 0.25 10,903 10,478 Total $ 1.00 $ 44,746 $ 44,671 2018: (In thousands) (In thousands) First quarter $ 0.30 $ 12,744 $ 14,386 Second quarter 0.30 12,474 12,141 Third quarter 0.30 12,321 12,065 Fourth quarter 0.30 12,346 12,016 Total $ 1.20 $ 49,885 $ 50,608 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes the non-vested restricted stock awards and restricted stock units activity for fiscal years 2016 , 2017 , and 2018 : Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock at January 30, 2016 785,149 $ 40.96 Granted 261,792 45.62 Vested (252,156 ) 42.03 Forfeited (23,264 ) 43.63 Outstanding non-vested restricted stock at January 28, 2017 771,521 $ 42.12 Granted 205,819 51.16 Vested (368,408 ) 42.84 Forfeited (19,089 ) 44.02 Outstanding non-vested restricted stock at February 3, 2018 589,843 $ 44.77 Granted 354,457 45.38 Vested (413,261 ) 42.60 Forfeited (47,857 ) 44.49 Outstanding non-vested restricted stock at February 2, 2019 483,182 $ 46.50 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs for fiscal years 2016 , 2017 , and 2018 : PSUs, excluding 2013 CEO PSUs Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs at January 30, 2016 — $ — Granted 379,794 41.04 Vested — — Forfeited (19,437 ) 41.04 Outstanding PSUs at January 28, 2017 360,357 $ 41.04 Granted 259,042 51.49 Vested (360,357 ) 41.04 Forfeited (9,718 ) 51.49 Outstanding PSUs at February 3, 2018 249,324 $ 51.49 Granted 337,421 55.67 Vested (249,324 ) 51.49 Forfeited (55,338 ) 46.31 Outstanding PSUs at February 2, 2019 282,083 $ 55.67 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | The following table summarizes information about our stock options outstanding and exercisable at February 2, 2019 : Range of Prices Options Outstanding Options Exercisable Greater Than Less Than or Equal to Options Outstanding Weighted-Average Remaining Life (Years) Weighted-Average Exercise Price Options Exercisable Weighted-Average Exercise Price $ 30.01 $ 40.00 160,001 1.1 $ 35.62 160,001 $ 35.62 $ 40.01 $ 50.00 77,500 0.1 43.85 77,500 43.85 237,501 0.8 $ 38.30 237,501 $ 38.30 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the annual stock option activity for fiscal years 2016 , 2017 , and 2018 is as follows: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000's) Outstanding stock options at January 30, 2016 1,174,902 $ 38.26 Exercised (572,727 ) 37.81 Forfeited (12,500 ) 35.83 Outstanding stock options at January 28, 2017 589,675 $ 38.75 Exercised (304,049 ) 38.51 Forfeited (5,000 ) 36.93 Outstanding stock options at February 3, 2018 280,626 $ 39.04 Exercised (43,125 ) 43.11 Forfeited — — Outstanding stock options at February 2, 2019 237,501 $ 38.30 0.8 $ 5 Vested or expected to vest at February 2, 2019 237,501 $ 38.30 0.8 $ 5 Exercisable at February 2, 2019 237,501 $ 38.30 0.8 $ 5 |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | During 2018 , 2017 , and 2016 , the following activity occurred under our share-based compensation plans: (In thousands) 2018 2017 2016 Total intrinsic value of stock options exercised $ 228 $ 4,423 $ 7,392 Total fair value of restricted stock vested $ 19,240 $ 19,015 $ 11,510 Total fair value of performance shares vested $ 12,792 $ 21,026 $ 621 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | We have begun or expect to begin recognizing expense related to PSUs as follows: Issue Year Outstanding PSUs at Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2016 282,083 March 2018 Fiscal 2018 2017 222,323 March 2019 Fiscal 2019 2018 239,925 March 2020 Fiscal 2020 Total 744,331 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic pension expense were comprised of the following: (In thousands) 2016 Interest cost on projected benefit obligation $ 879 Expected investment return on plan assets (1,536 ) Amortization of actuarial loss 2,241 Settlement loss 24,483 Net periodic pension cost $ 26,067 |
Schedule of Assumptions Used [Table Text Block] | The weighted-average assumptions used to determine net periodic pension expense were: 2016 Discount rate 1.2 % Expected long-term rate of return 2.8 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes was comprised of the following: (In thousands) 2018 2017 2016 Current: U.S. Federal $ 35,025 $ 63,743 $ 87,521 U.S. State and local 10,341 9,201 13,122 Total current tax expense 45,366 72,944 100,643 Deferred: U.S. Federal 5,300 28,336 (7,965 ) U.S. State and local 53 4,242 (1,207 ) Total deferred tax expense 5,353 32,578 (9,172 ) Income tax provision $ 50,719 $ 105,522 $ 91,471 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows: 2018 2017 2016 Statutory federal income tax rate 21.0 % 33.7 % 35.0 % Effect of: State and local income taxes, net of federal tax benefit 4.0 3.0 3.2 Executive compensation limitations - permanent difference 0.7 — — Provisional effect of the TCJA (0.3 ) 1.5 — Work opportunity tax and other employment tax credits (1.4 ) (1.0 ) (1.1 ) Excess tax detriment (benefit) from share-based compensation 0.4 (1.3 ) — Other, net — (0.2 ) 0.3 Effective income tax rate 24.4 % 35.7 % 37.4 % |
Schedule of Income Taxes Paid [Table Text Block] | Income tax payments and refunds were as follows: (In thousands) 2018 2017 2016 Income taxes paid $ 59,691 $ 99,693 $ 103,323 Income taxes refunded (474 ) (888 ) (16,187 ) Net income taxes paid $ 59,217 $ 98,805 $ 87,136 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of our deferred tax assets and liabilities were as follows: (In thousands) February 2, 2019 February 3, 2018 Deferred tax assets: Workers’ compensation and other insurance reserves $ 20,841 $ 21,106 Uniform inventory capitalization 18,454 13,591 Compensation related 17,218 14,308 Accrued rent 16,208 15,292 Depreciation and fixed asset basis differences 10,497 8,435 State tax credits, net of federal tax benefit 3,856 4,246 Accrued state taxes 3,416 3,749 Accrued operating liabilities 1,316 537 Other 11,767 11,623 Valuation allowances, net of federal tax benefit (2,940 ) (2,311 ) Total deferred tax assets 100,633 90,576 Deferred tax liabilities: Accelerated depreciation and fixed asset basis differences 66,016 51,310 Lease construction reimbursements 13,917 11,542 Prepaid expenses 4,285 5,559 Workers’ compensation and other insurance reserves 2,477 2,424 Other 5,305 5,755 Total deferred tax liabilities 92,000 76,590 Net deferred tax assets $ 8,633 $ 13,986 |
Summary of Tax Credit Carryforwards [Table Text Block] | We have the following income tax loss and credit carryforwards at February 2, 2019 (amounts are shown net of tax excluding the federal income tax effect of the state and local items): (In thousands) U.S. State and local: State net operating loss carryforwards $ 15 Expires fiscal years 2020 California enterprise zone credits 4,566 Predominately expires fiscal year 2023 Other state credits 315 Expires fiscal years through 2025 Total income tax loss and credit carryforwards $ 4,896 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for 2018 , 2017 , and 2016 : (In thousands) 2018 2017 2016 Unrecognized tax benefits - beginning of year $ 11,673 $ 13,121 $ 13,772 Gross increases - tax positions in current year 1,649 361 822 Gross increases - tax positions in prior period 1,025 1,329 171 Gross decreases - tax positions in prior period (1,827 ) (1,385 ) (80 ) Settlements 403 (319 ) (236 ) Lapse of statute of limitations (937 ) (1,434 ) (1,328 ) Unrecognized tax benefits - end of year $ 11,986 $ 11,673 $ 13,121 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Derivative [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Our outstanding derivative instrument contracts were comprised of the following: (In thousands) February 2, 2019 February 3, 2018 Diesel fuel collars (in gallons) 7,200 3,600 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair value of our outstanding derivative instrument contracts was as follows: (In thousands) Assets (Liabilities) Derivative Instrument Balance Sheet Location February 2, 2019 February 3, 2018 Diesel fuel collars Other current assets $ 523 $ 312 Other assets 203 262 Accrued operating expenses (586 ) (77 ) Other liabilities (825 ) (107 ) Total derivative instruments $ (685 ) $ 390 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of derivative instruments on the consolidated statements of operations was as follows: (In thousands) Amount of Gain (Loss) Derivative Instrument Statements of Operations Location 2018 2017 2016 Diesel fuel collars Realized Other income (expense) $ 455 $ (756 ) $ (2,299 ) Unrealized Other income (expense) (1,075 ) 1,398 3,657 Total derivative instruments $ (620 ) $ 642 $ 1,358 |
Components of Accumulated Oth_2
Components of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME | The following table summarizes the components of accumulated other comprehensive loss, net of tax, during 2016 : (In thousands) 2016 Beginning of Period $ (15,977 ) Other comprehensive income before reclassifications (185 ) Amounts reclassified from accumulated other comprehensive loss 16,162 Net period change 15,977 End of Period — |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: (In thousands) 2018 2017 2016 Furniture $ 1,289,133 $ 1,236,737 $ 1,195,365 Soft Home 826,313 789,596 750,814 Consumables 799,038 822,533 817,747 Food 782,988 818,387 824,414 Seasonal 765,619 765,674 738,756 Hard Home 407,596 428,788 437,575 Electronics, Toys, & Accessories 367,418 402,647 429,324 Net sales $ 5,238,105 $ 5,264,362 $ 5,193,995 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Summarized fiscal quarterly financial data for 2018 and 2017 is as follows: Fiscal Year 2018 First Second Third Fourth Year (In thousands, except per share amounts) (a) Net sales $ 1,267,983 $ 1,222,169 $ 1,149,402 $ 1,598,551 $ 5,238,105 Gross margin 511,958 491,419 459,174 659,344 2,121,895 Net income 31,239 24,164 (6,556 ) 108,047 156,894 Earnings per share: Basic $ 0.74 $ 0.59 $ (0.16 ) $ 2.70 $ 3.84 Diluted 0.74 0.59 (0.16 ) 2.68 3.83 Fiscal Year 2017 First Second Third Fourth Year (In thousands, except per share amounts) (a) Net sales $ 1,294,970 $ 1,219,597 $ 1,109,184 $ 1,640,611 $ 5,264,362 Gross margin 524,275 492,500 443,626 682,041 2,142,442 Net income 51,512 29,120 4,372 104,828 189,832 Earnings per share: Basic $ 1.16 $ 0.68 $ 0.10 $ 2.50 $ 4.43 Diluted 1.15 0.67 0.10 2.46 4.38 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 02, 2019USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Component of Operating Other Cost and Expense [Abstract] | ||||
Number of Stores | 1,401 | 1,401 | ||
Number of States in which Entity Operates | 47 | 47 | ||
Operating Cycle | 52 or 53 weeks | |||
Fiscal Period | P52W | P53W | P52W | |
Credit and Debit Card Receivables, at Carrying Value | $ 23,600 | $ 23,600 | $ 27,000 | |
Distribution and Outbound Transportation Costs | 180,500 | 161,500 | $ 151,900 | |
Advertising Expense | 93,600 | 92,000 | 92,300 | |
Payments for purchase of intangible assets | 15,800 | 15,750 | $ 0 | $ 0 |
Accounting Standards Update 2016-02 [Member] | ||||
Item Effected [Line Items] | ||||
Operating Lease, Right-of-Use Asset | $ 1,100,000 | $ 1,100,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Useful Lives of Fixed Assets (Details) | 12 Months Ended |
Feb. 02, 2019 | |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Store Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Store Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Distribution and Transportation Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Distribution and Transportation Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Office and Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office and Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer software costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer software costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Company Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, including capital leases | $ 10,292 | $ 5,991 | $ 4,486 |
Cash paid for income taxes, excluding impact of refunds | 59,691 | 99,693 | 103,323 |
Gross proceeds from borrowings under the bank credit facility | 1,861,900 | 1,656,100 | 1,673,700 |
Gross repayments of borrowings under the bank credit facility | 1,687,600 | 1,562,700 | 1,629,600 |
Non-cash activity: | |||
Assets acquired under capital leases | 902 | 238 | 286 |
Accrued property and equipment | $ 32,264 | $ 11,236 | $ 9,295 |
Property and Equipment - Net (D
Property and Equipment - Net (Details) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | $ 2,181,163 | $ 1,921,827 | |
Less accumulated depreciation and amortization | 1,358,825 | 1,355,850 | |
Property and equipment - net | 822,338 | 565,977 | |
Capital Leased Assets, Gross | 29,500 | 28,600 | |
Accumulated Depreciation, Depletion and Amortization, Capital Leases | 17,900 | 13,200 | |
Payments to Acquire Property, Plant, and Equipment | 232,402 | 142,745 | $ 89,782 |
Depreciation | 124,970 | 117,093 | 120,460 |
Asset Impairment Charges | $ 141 | $ 0 | $ 100 |
Number of Stores Impaired | 0 | 0 | 1 |
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | $ 61,200 | $ 60,416 | |
Buildings and leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | 1,078,142 | 881,077 | |
Fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | 784,170 | 772,711 | |
Computer software costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | 179,071 | 172,539 | |
Construction-in-progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment - cost | $ 78,580 | $ 35,084 |
Bank Credit Facility (Details)
Bank Credit Facility (Details) - 2018 Credit Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Aug. 31, 2018 | Feb. 02, 2019 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility | $ 700 | |
Debt Instrument, Term | 5 years | |
Deferred Finance Costs | $ 1.5 | |
Line of Credit Facility, Swing Loan Sublimit | $ 30 | |
Line of Credit Facility, Letter of Credit Sublimit | 75 | |
Line of Credit Facility, Foreign Borrower Sublimit | 75 | |
Line of Credit Facility, Optional Currency Sublimit | 200 | |
Line of Credit Facility, Amount Outstanding | 374.1 | |
Line of Credit Facility, Letters of Credit Outstanding | 5 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 320.9 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Feb. 02, 2019 | Feb. 03, 2018 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value Disclosure | $ 31.6 | $ 33 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($)store | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Leases, Operating [Abstract] | |||
Number of Stores Leased | store | 1,348 | ||
Operating Leases, Rent Expense, Net [Abstract] | |||
Minimum rents | $ 346,067 | $ 330,229 | $ 321,248 |
Contingent rents | 168 | 469 | 607 |
Total rent expense | 346,235 | $ 330,698 | $ 321,855 |
Operating Leases, Future Minimum Payments Due [Abstract] | |||
2019 | 279,844 | ||
2020 | 244,978 | ||
2021 | 204,362 | ||
2022 | 159,479 | ||
2023 | 120,023 | ||
Thereafter | 310,474 | ||
Total Leases | 1,319,160 | ||
Capital Leases, Future Minimum Payments, Net Minimum Payments [Abstract] | |||
2019 | 9,050 | ||
2020 | 10,815 | ||
2021 | 9,725 | ||
2022 | 6,992 | ||
2023 | 6,512 | ||
Thereafter | 127,864 | ||
Total lease payments | 170,958 | ||
Less amount to discount to present value | (14,758) | ||
Capital Lease Obligations Per Balance Sheet | $ 156,200 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Class of Stock [Line Items] | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Other Than Stock Options and Restricted Stock Awards, Amount | 0 | 0 | 0 |
Weighted-average common shares outstanding: | |||
Basic | 40,809,000 | 42,818,000 | 45,316,000 |
Dilutive effect of share-based awards | 153,000 | 482,000 | 658,000 |
Diluted | 40,962,000 | 43,300,000 | 45,974,000 |
Employee Stock Option [Member] | |||
Class of Stock [Line Items] | |||
Antidilutive stock options excluded from dilutive share calculation | 100,000 | 0 | 0 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 04, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Mar. 07, 2018 | |
Class of Stock [Line Items] | |||||
Stock Repurchased During Period, Value | $ 111,750 | $ 165,757 | $ 254,304 | ||
2018 Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | ||||
Stock Repurchased During Period, Shares | 2.4 | ||||
Stock Repurchased During Period, Value | $ 100,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Dividends, Common Stock [Abstract] | |||||||||||
Amount declared (Dividends) | $ 49,885 | $ 44,746 | $ 39,749 | ||||||||
Amount paid (Dividends) | $ 50,608 | $ 44,671 | $ 38,466 | ||||||||
Common Stock [Member] | |||||||||||
Dividends, Common Stock [Abstract] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1.20 | $ 1 | $ 0.84 |
Amount declared (Dividends) | $ 12,346 | $ 12,321 | $ 12,474 | $ 12,744 | $ 10,903 | $ 11,007 | $ 11,289 | $ 11,547 | $ 49,885 | $ 44,746 | |
Amount paid (Dividends) | $ 12,016 | $ 12,065 | $ 12,141 | $ 14,386 | $ 10,478 | $ 10,638 | $ 10,872 | $ 12,683 | $ 50,608 | $ 44,671 |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 31, 2015 | Feb. 01, 2014 | May 25, 2017 | May 24, 2017 | Jan. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Allocated Share-based Compensation Expense | $ 26,300 | $ 27,800 | $ 33,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 13,200 | |||||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 2 days | |||||||
LTIP 2017 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,500,000 | 1,743,116 | ||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Nonvested, beginning balance | 589,843 | 771,521 | 785,149 | |||||
Granted | 354,457 | 205,819 | 261,792 | |||||
Vested | (413,261) | (368,408) | (252,156) | |||||
Forfeited | (47,857) | (19,089) | (23,264) | |||||
Nonvested, ending balance | 483,182 | 589,843 | 771,521 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 46.50 | $ 44.77 | $ 42.12 | $ 40.96 | ||||
Grants in Period, Weighted Average Grant Date Fair Value | 45.38 | 51.16 | 45.62 | |||||
Vested in Period, Weighted Average Grant Date Fair Value | 42.60 | 42.84 | 42.03 | |||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 44.49 | $ 44.02 | $ 43.63 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Total fair value of restricted stock vested | $ 19,240 | $ 19,015 | $ 11,510 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 744,331 | |||||||
Allocated Share-based Compensation Expense | $ 14,900 | $ 15,400 | $ 17,500 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Nonvested, beginning balance | 249,324 | 360,357 | 0 | |||||
Granted | 337,421 | 259,042 | 379,794 | |||||
Vested | (249,324) | (360,357) | 0 | |||||
Forfeited | (55,338) | (9,718) | (19,437) | |||||
Nonvested, ending balance | 282,083 | 249,324 | 360,357 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 55.67 | $ 51.49 | $ 41.04 | $ 0 | ||||
Grants in Period, Weighted Average Grant Date Fair Value | 55.67 | 51.49 | 41.04 | |||||
Vested in Period, Weighted Average Grant Date Fair Value | 51.49 | 41.04 | 0 | |||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 46.31 | $ 51.49 | $ 41.04 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Total fair value of restricted stock vested | $ 12,792 | $ 21,026 | $ 621 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
2016 PSU Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 282,083 | |||||||
2017 PSU Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 222,323 | |||||||
2018 PSU Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 239,925 | |||||||
CEO Performance Share Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||
Granted | 37,800 | |||||||
Vested | (12,600) | (25,200) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Grants in Period, Weighted Average Grant Date Fair Value | $ 34.68 | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Total intrinsic value of stock options exercised | $ 228 | $ 4,423 | $ 7,392 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||
Stock Options [Member] | LTIP 2012 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term | 7 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term Following Termination of Employment, Death, or Disability | 1 year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||||||
Stock Options [Member] | LTIP 2005 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term | 7 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term Following Termination of Employment, Death, or Disability | 1 year | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years |
Share-Based Plans - Options (De
Share-Based Plans - Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 237,501 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 9 months 2 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 38.30 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 237,501 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 38.30 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding stock options | 280,626 | 589,675 | 1,174,902 | |
Exercised | (43,125) | (304,049) | (572,727) | |
Forfeited | 0 | (5,000) | (12,500) | |
Outstanding stock options | 237,501 | 280,626 | 589,675 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options, Vested and Expected to Vest, Outstanding, Number | 237,501 | |||
Options, Exercisable, Number | 237,501 | |||
Options, Outstanding, Weighted Average Exercise Price | $ 38.30 | $ 39.04 | $ 38.75 | $ 38.26 |
Options, Exercises in Period, Weighted Average Exercise Price | 43.11 | 38.51 | 37.81 | |
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 0 | $ 36.93 | $ 35.83 | |
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 38.30 | |||
Options, Exercisable, Weighted Average Exercise Price | $ 38.30 | |||
Options, Outstanding, Weighted Average Remaining Contractual Term | 9 months 2 days | |||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 9 months 2 days | |||
Options, Exercisable, Weighted Average Remaining Contractual Term | 9 months 2 days | |||
Options, Outstanding, Intrinsic Value | $ 5 | |||
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 5 | |||
Options, Exercisable, Intrinsic Value | $ 5 | |||
30.01 - 40.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 30.01 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 40 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 160,001 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 year 1 month 3 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 35.62 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 160,001 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 35.62 | |||
40.01 - 50.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 40.01 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 50 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 77,500 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 1 month 2 days | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 43.85 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 77,500 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 43.85 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Total intrinsic value of stock options exercised | $ 228 | $ 4,423 | $ 7,392 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years |
Share-Based Plans - Board of Di
Share-Based Plans - Board of Directors (Details) | 12 Months Ended |
Feb. 02, 2019$ / Nonemployee_Director | |
Board of Directors Chairman [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued to Each Individual | 200,000 |
Nonemployee Board of Directors [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Deferred Compensation Arrangement with Individual, Fair Value of Shares Issued to Each Individual | 135,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Defined Contribution Plan, Cost | $ 8,500 | $ 7,700 | $ 6,600 |
Deferred Compensation Liability, Classified, Noncurrent | $ 31,800 | $ 33,400 | |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost on projected benefit obligation | 879 | ||
Expected investment return on plan assets | (1,536) | ||
Amortization of actuarial loss | 2,241 | ||
Settlement loss | 24,483 | ||
Net periodic pension cost | $ 26,067 | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount Rate | 1.20% | ||
Expected Long-term Rate of Return | 2.80% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 03, 2018 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current | ||||
U.S. Federal | $ 35,025 | $ 63,743 | $ 87,521 | |
U.S. State and Local | 10,341 | 9,201 | 13,122 | |
Total current tax expense | 45,366 | 72,944 | 100,643 | |
Deferred | ||||
U.S. Federal | 5,300 | 28,336 | (7,965) | |
U.S. State and Local | 53 | 4,242 | (1,207) | |
Total deferred tax expense | 5,353 | 32,578 | (9,172) | |
Income tax provision | 50,719 | 105,522 | $ 91,471 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 4,500 | |||
Tax Cuts and Jobs Act of 2017 Incomplete Accounting Change in Tax Rate Provisional Income Tax Expense Benefit | $ 600 | |||
Deferred Tax Assets, Increase (Decrease) from ASU 2016-09 | 100 | |||
Deferred Tax Assets, Increase (Decrease) from Pension Related Charges Recorded in Accumulated Other Comprehensive Income | (10,400) | |||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 1,000 | $ (4,300) | ||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% | 33.70% | 35.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 4.00% | 3.00% | 3.20% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 0.70% | 0.00% | 0.00% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | (0.30%) | 1.50% | 0.00% | |
Effective Income Tax Rate Reconciliation, Tax Credits | (1.40%) | (1.00%) | (1.10%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 0.40% | (1.30%) | 0.00% | |
Effective Income Tax Rate Reconciliation, Other Adjustments | 0.00% | (0.20%) | 0.30% | |
Effective Income Tax Rate | 24.40% | 35.70% | 37.40% | |
Income Taxes Paid, Net [Abstract] | ||||
Income taxes paid | $ 59,691 | $ 99,693 | $ 103,323 | |
Income taxes refunded | (474) | (888) | (16,187) | |
Net income taxes paid | 59,217 | 98,805 | 87,136 | |
Deferred Tax Assets, Gross [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 20,841 | 21,106 | ||
Deferred Tax Assets, Inventory | 18,454 | 13,591 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 17,218 | 14,308 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 16,208 | 15,292 | ||
Deferred Tax Assets, Depreciation and Fixed Asset Basis Differences | 10,497 | 8,435 | ||
Deferred Tax Assets, Tax Credit Carryforwards | 3,856 | 4,246 | ||
Deferred Tax Assets, State Taxes | 3,416 | 3,749 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 1,316 | 537 | ||
Deferred Tax Assets, Other | 11,767 | 11,623 | ||
Deferred Tax Assets, Valuation Allowance | (2,940) | (2,311) | ||
Deferred Tax Assets, Net | 100,633 | 90,576 | ||
Deferred Tax Liabilities [Abstract] | ||||
Deferred Tax Liabilities, Property, Plant and Equipment | 66,016 | 51,310 | ||
Deferred Tax Liabilities, Lease Construction Reimbursements | 13,917 | 11,542 | ||
Deferred Tax Liabilities, Deferred Expense, Other Capitalized Costs | 4,285 | 5,559 | ||
Deferred Tax Liabilities, Insurance Proceeds Receivable | 2,477 | 2,424 | ||
Deferred Tax Liabilities, Other | 5,305 | 5,755 | ||
Deferred Tax Liabilities | 92,000 | 76,590 | ||
Net deferred tax assets | 8,633 | 13,986 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized Tax Benefits | 11,673 | 13,121 | 13,772 | |
Gross increases - tax positions in current year | 1,649 | 361 | 822 | |
Gross increases - tax positions in prior period | 1,025 | 1,329 | 171 | |
Gross decreases - tax positions in prior period | (1,827) | (1,385) | (80) | |
Settlements (increase) | 403 | |||
Settlements (decrease) | (319) | (236) | ||
Lapse of statute of limitations | (937) | (1,434) | (1,328) | |
Unrecognized Tax Benefits | 11,986 | 11,673 | 13,121 | |
Income Tax Uncertainties [Abstract] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 9,400 | 9,200 | ||
Federal Tax Expense (Benefit) on State and Local Income Taxes | 1,800 | 2,100 | ||
Unrecognized Tax Benefits, Tax Positions with Uncertain Timing of Deductability | 800 | 600 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (700) | 100 | $ 200 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 5,400 | $ 6,100 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 4,000 |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards and Tax Credit Carryforward | $ 4,896 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 15 |
California Enterprise Zone [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 4,566 |
Other State Credits [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | $ 315 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
May 05, 2018USD ($) | Oct. 28, 2017USD ($) | Jul. 29, 2017 | Apr. 29, 2017 | Apr. 30, 2016USD ($) | Oct. 31, 2015 | Aug. 01, 2015USD ($) | May 02, 2015 | Feb. 02, 2013 | |
Pending Litigation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of Shareholder Derivative Lawsuits | 3 | ||||||||
Pending Litigation [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Loss in Period | $ 4.7 | ||||||||
Tabletop Torch and Citronella Matter [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Loss in Period | $ (3) | $ 4.5 | |||||||
Loss Contingency, Claims Settled, Number | 1 | 1 | 1 | 1 | |||||
Shareholder and Derivatives Matter [Member] | Settled Litigation [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Loss in Period | $ 3.5 |
Contingencies - Commitments (De
Contingencies - Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Commitments Disclosure [Abstract] | |||
Self-insurance letters of credit | $ 55.9 | ||
Inventories [Member] | |||
Commitments Disclosure [Abstract] | |||
Purchase Commitment, Remaining Minimum Amount Committed | 401.4 | ||
Purchase Commitment [Member] | |||
Commitments Disclosure [Abstract] | |||
Purchase Commitment, Remaining Minimum Amount Committed | 338.9 | ||
Inventories [Member] | |||
Commitments Disclosure [Abstract] | |||
Long-term Purchase Commitment, Amount | 1.3 | ||
Long-term Commitments, Purchases | $ 10.5 | $ 11 | $ 18.2 |
Derivative Instruments (Details
Derivative Instruments (Details) number in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | |
Fuel [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 7,200 | 3,600 | |
Energy Related Derivative [Member] | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative, Fair Value, Net | $ (685) | $ 390 | |
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Sale of Commodity Contracts | 455 | (756) | $ (2,299) |
Unrealized Gain (Loss) on Commodity Contracts | (1,075) | 1,398 | 3,657 |
Derivative, Gain (Loss) on Derivative, Net | (620) | 642 | $ 1,358 |
Energy Related Derivative [Member] | Other Current Assets [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset, Current | 523 | 312 | |
Energy Related Derivative [Member] | Other Assets [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | 203 | 262 | |
Energy Related Derivative [Member] | Accrued Operating Expenses [Member] | |||
Derivative Liability [Abstract] | |||
Derivative Liability, Current | (586) | (77) | |
Energy Related Derivative [Member] | Other Liabilities [Member] | |||
Derivative Liability [Abstract] | |||
Derivative Liability | $ (825) | $ (107) |
Components of Accumulated Oth_3
Components of Accumulated Other Comprehensive Income (Details) $ in Thousands | 12 Months Ended |
Jan. 28, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (15,977) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (185) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 16,162 |
Other Comprehensive Income (Loss), Net of Tax | 15,977 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 0 |
Sale of Real Estate (Details)
Sale of Real Estate (Details) - Land and Building [Member] $ in Millions | 12 Months Ended |
Jan. 28, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |
Proceeds from Sale of Real Estate | $ 4.6 |
Gain (Loss) on Sale of Properties | $ 3.8 |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 5,238,105 | $ 5,264,362 | $ 5,193,995 |
Furniture [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,289,133 | 1,236,737 | 1,195,365 |
Soft Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 826,313 | 789,596 | 750,814 |
Consumables [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 799,038 | 822,533 | 817,747 |
Food [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 782,988 | 818,387 | 824,414 |
Seasonal [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 765,619 | 765,674 | 738,756 |
Hard Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 407,596 | 428,788 | 437,575 |
Electronics, Toys, & Accessories [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 367,418 | $ 402,647 | $ 429,324 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Selected Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 1,598,551 | $ 1,149,402 | $ 1,222,169 | $ 1,267,983 | $ 1,640,611 | $ 1,109,184 | $ 1,219,597 | $ 1,294,970 | $ 5,238,105 | $ 5,264,362 | $ 5,193,995 |
Gross margin | 659,344 | 459,174 | 491,419 | 511,958 | 682,041 | 443,626 | 492,500 | 524,275 | 2,121,895 | 2,142,442 | 2,099,419 |
Net income (loss) | $ 108,047 | $ (6,556) | $ 24,164 | $ 31,239 | $ 104,828 | $ 4,372 | $ 29,120 | $ 51,512 | $ 156,894 | $ 189,832 | $ 152,828 |
Earnings Per Share, Basic [Abstract] | |||||||||||
Earnings per common share - basic | $ 2.70 | $ (0.16) | $ 0.59 | $ 0.74 | $ 2.50 | $ 0.10 | $ 0.68 | $ 1.16 | $ 3.84 | $ 4.43 | $ 3.37 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Earnings per common share - diluted | $ 2.68 | $ (0.16) | $ 0.59 | $ 0.74 | $ 2.46 | $ 0.10 | $ 0.67 | $ 1.15 | $ 3.83 | $ 4.38 | $ 3.32 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Mar. 06, 2019USD ($) |
Common Stock [Member] | 2019 Repurchase Program [Member] | |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 50 |