Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Nov. 02, 2019 | Dec. 06, 2019 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 2, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-08897 | |
Entity Registrant Name | BIG LOTS INC | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 06-1119097 | |
Entity Address, Address Line One | 4900 E. Dublin-Granville Road | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43081 | |
City Area Code | 614 | |
Local Phone Number | 278-6800 | |
Entity Central Index Key | 0000768835 | |
Title of 12(b) Security | Common shares | |
Trading Symbol | BIG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 39,042,767 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-31 | |
Amendment Flag | false | |
Entity Small Business | false |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Net sales | $ 1,167,988 | $ 1,149,402 | $ 3,716,198 | $ 3,639,554 |
Cost of sales (exclusive of depreciation expense shown separately below) | 704,602 | 690,228 | 2,235,535 | 2,177,003 |
Gross margin | 463,386 | 459,174 | 1,480,663 | 1,462,551 |
Selling and administrative expenses | 436,714 | 436,826 | 1,352,345 | 1,301,523 |
Depreciation expense | 34,752 | 31,911 | 97,572 | 90,936 |
Gain on sale of distribution center | (178,534) | 0 | (178,534) | 0 |
Operating profit (loss) | 170,454 | (9,563) | 209,280 | 70,092 |
Interest expense | (5,359) | (3,138) | (13,657) | (7,121) |
Other income (expense) | (322) | 59 | (201) | 716 |
Income (loss) before income taxes | 164,773 | (12,642) | 195,422 | 63,687 |
Income tax expense (benefit) | 37,791 | (6,086) | 46,722 | 14,840 |
Net income (loss) and comprehensive income (loss) | $ 126,982 | $ (6,556) | $ 148,700 | $ 48,847 |
Earnings per common share | ||||
Earnings (loss) per common share - basic (in dollars per share) | $ 3.25 | $ (0.16) | $ 3.78 | $ 1.19 |
Earnings (loss) per common share - diluted (in dollars per share) | $ 3.25 | $ (0.16) | $ 3.77 | $ 1.19 |
Weighted-average common shares outstanding: | ||||
Basic | 39,017 | 40,021 | 39,313 | 41,065 |
Dilutive effect of share-based awards | 77 | 0 | 85 | 138 |
Diluted | 39,094 | 40,021 | 39,398 | 41,203 |
Cash dividends declared per common share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Nov. 02, 2019 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 61,794 | $ 46,034 |
Inventories | 1,117,263 | 969,561 |
Other current assets | 82,495 | 112,408 |
Total current assets | 1,261,552 | 1,128,003 |
Operating lease right-of-use assets | 1,233,558 | 0 |
Property and equipment - net | 860,659 | 822,338 |
Deferred income taxes | 0 | 8,633 |
Other assets | 65,977 | 64,373 |
Total assets | 3,421,746 | 2,023,347 |
Current liabilities: | ||
Accounts payable | 475,995 | 396,903 |
Current operating lease liabilities | 205,390 | 0 |
Property, payroll, and other taxes | 87,357 | 75,317 |
Accrued operating expenses | 131,987 | 99,422 |
Insurance reserves | 36,534 | 38,883 |
Accrued salaries and wages | 38,004 | 26,798 |
Income taxes payable | 1,977 | 1,237 |
Total current liabilities | 977,244 | 638,560 |
Long-term debt | 501,115 | 374,100 |
Noncurrent operating lease liabilities | 1,067,529 | 0 |
Deferred income taxes | 8,316 | 0 |
Deferred rent | 0 | 60,700 |
Insurance reserves | 51,665 | 54,507 |
Unrecognized tax benefits | 12,913 | 14,189 |
Synthetic lease obligation | 0 | 144,477 |
Other liabilities | 40,640 | 43,773 |
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 39,036 shares and 40,042 shares, respectively | 1,175 | 1,175 |
Treasury shares - 78,459 shares and 77,453 shares, respectively, at cost | (2,546,251) | (2,506,086) |
Additional paid-in capital | 619,441 | 622,685 |
Retained earnings | 2,687,959 | 2,575,267 |
Total shareholders' equity | 762,324 | 693,041 |
Total liabilities and shareholders' equity | $ 3,421,746 | $ 2,023,347 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Nov. 02, 2019 | Feb. 02, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Shares Authorized | 2,000 | 2,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Shares Authorized | 298,000 | 298,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares, Issued | 117,495 | 117,495 |
Common Stock, Shares, Outstanding | 39,036 | 40,042 |
Treasury Stock, Shares | 78,459 | 77,453 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Performance Shares [Member] | Common Stock [Member] | Common Stock [Member]Performance Shares [Member] | Treasury Stock [Member] | Treasury Stock [Member]Performance Shares [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Performance Shares [Member] | Retained Earnings [Member] | Retained Earnings [Member]Performance Shares [Member] |
Balance at Feb. 03, 2018 | $ 669,587 | $ 1,175 | $ (2,422,396) | $ 622,550 | $ 2,468,258 | |||||
Balance (in shares) at Feb. 03, 2018 | 41,925 | |||||||||
Treasury stock (in shares) at Feb. 03, 2018 | 75,570 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 48,847 | $ 0 | $ 0 | 0 | 48,847 | |||||
Dividends declared | (37,539) | 0 | 0 | 0 | (37,539) | |||||
Purchases of common shares | (111,747) | $ 0 | $ 107,827 | (3,920) | 0 | |||||
Purchases of common shares, (in shares) | (2,635) | 2,635 | ||||||||
Exercise of stock options | 1,859 | $ 0 | $ 1,395 | 464 | 0 | |||||
Exercise of stock options (in shares) | 43 | (43) | ||||||||
Restricted shares vested | 0 | $ 0 | $ 13,263 | (13,263) | 0 | |||||
Restricted shares vested, (in shares) | 413 | (413) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 9,475 | $ (9,475) | $ 0 | |||||
Performance shares vested (in shares) | 296 | (296) | ||||||||
Other | 3 | $ 0 | $ 2 | 1 | 0 | |||||
Other (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 21,722 | $ 0 | $ 0 | 21,722 | 0 | |||||
Balance at Nov. 03, 2018 | 592,732 | $ 1,175 | $ (2,506,088) | 618,079 | 2,479,566 | |||||
Balance (in shares) at Nov. 03, 2018 | 40,042 | |||||||||
Treasury stock (in shares) at Nov. 03, 2018 | 77,453 | |||||||||
Balance at Aug. 04, 2018 | 605,725 | $ 1,175 | $ (2,507,784) | 613,891 | 2,498,443 | |||||
Balance (in shares) at Aug. 04, 2018 | 39,987 | |||||||||
Treasury stock (in shares) at Aug. 04, 2018 | 77,508 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | (6,556) | $ 0 | $ 0 | 0 | (6,556) | |||||
Dividends declared | (12,321) | 0 | 0 | 0 | (12,321) | |||||
Purchases of common shares | (486) | $ 0 | $ (486) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (12) | 12 | ||||||||
Exercise of stock options | 1,839 | $ 0 | $ 1,375 | 464 | 0 | |||||
Exercise of stock options (in shares) | 42 | (42) | ||||||||
Restricted shares vested | 0 | $ 0 | $ 809 | (809) | 0 | |||||
Restricted shares vested, (in shares) | 25 | (25) | ||||||||
Performance shares vested | 0 | $ 0 | $ 0 | 0 | 0 | |||||
Performance shares vested (in shares) | 0 | 0 | ||||||||
Other | (2) | $ 0 | $ (2) | 0 | 0 | |||||
Other (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 4,533 | $ 0 | $ 0 | 4,533 | 0 | |||||
Balance at Nov. 03, 2018 | 592,732 | $ 1,175 | $ (2,506,088) | 618,079 | 2,479,566 | |||||
Balance (in shares) at Nov. 03, 2018 | 40,042 | |||||||||
Treasury stock (in shares) at Nov. 03, 2018 | 77,453 | |||||||||
Balance at Feb. 02, 2019 | $ 693,041 | $ 1,175 | $ (2,506,086) | 622,685 | 2,575,267 | |||||
Balance (in shares) at Feb. 02, 2019 | 40,042 | 40,042 | ||||||||
Treasury stock (in shares) at Feb. 02, 2019 | 77,453 | 77,453 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ 148,700 | $ 0 | $ 0 | 0 | 148,700 | |||||
Dividends declared | (36,356) | 0 | 0 | 0 | (36,356) | |||||
Purchases of common shares | (55,342) | $ 0 | $ (55,342) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (1,474) | 1,474 | ||||||||
Exercise of stock options | 200 | $ 0 | $ 202 | (2) | 0 | |||||
Exercise of stock options (in shares) | 6 | (6) | ||||||||
Restricted shares vested | 0 | $ 0 | $ 6,521 | (6,521) | 0 | |||||
Restricted shares vested, (in shares) | 201 | (201) | ||||||||
Performance shares vested | 0 | $ 0 | $ 8,459 | (8,459) | 0 | |||||
Performance shares vested (in shares) | 261 | (261) | ||||||||
Other | (5) | $ 0 | $ (5) | 0 | 0 | |||||
Other (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 11,738 | $ 0 | $ 0 | 11,738 | 0 | |||||
Balance at Nov. 02, 2019 | $ 762,324 | $ 1,175 | $ (2,546,251) | 619,441 | 2,687,959 | |||||
Balance (in shares) at Nov. 02, 2019 | 39,036 | 39,036 | ||||||||
Treasury stock (in shares) at Nov. 02, 2019 | 78,459 | 78,459 | ||||||||
Balance at Aug. 03, 2019 | $ 644,543 | $ 1,175 | $ (2,547,556) | 617,993 | 2,572,931 | |||||
Balance (in shares) at Aug. 03, 2019 | 39,001 | |||||||||
Treasury stock (in shares) at Aug. 03, 2019 | 78,494 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 126,982 | $ 0 | $ 0 | 0 | 126,982 | |||||
Dividends declared | (11,954) | 0 | 0 | 0 | (11,954) | |||||
Purchases of common shares | (423) | $ 0 | $ (423) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (18) | 18 | ||||||||
Exercise of stock options | 0 | $ 0 | $ 0 | 0 | 0 | |||||
Exercise of stock options (in shares) | 0 | 0 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 1,526 | (1,526) | 0 | |||||
Restricted shares vested, (in shares) | 47 | (47) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 204 | $ (204) | $ 0 | |||||
Performance shares vested (in shares) | 6 | (6) | ||||||||
Other | (2) | $ 0 | $ (2) | 0 | 0 | |||||
Other (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 3,178 | $ 0 | $ 0 | 3,178 | 0 | |||||
Balance at Nov. 02, 2019 | $ 762,324 | $ 1,175 | $ (2,546,251) | 619,441 | 2,687,959 | |||||
Balance (in shares) at Nov. 02, 2019 | 39,036 | 39,036 | ||||||||
Treasury stock (in shares) at Nov. 02, 2019 | 78,459 | 78,459 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-02 [Member] | $ 348 | $ 0 | $ 0 | $ 0 | $ 348 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Operating activities: | ||
Net income | $ 148,700 | $ 48,847 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 98,153 | 82,666 |
Non-cash lease amortization expense | 171,564 | 0 |
Deferred income taxes | 16,842 | (8,937) |
Non-cash impairment charge | 3,292 | 0 |
(Gain) Loss on disposition of equipment | (178,431) | 350 |
Non-cash share-based compensation expense | 11,738 | 21,722 |
Unrealized loss (gain) on fuel derivatives | 126 | (460) |
Change in assets and liabilities | ||
Inventories | (147,702) | (201,095) |
Accounts payable | 79,092 | 128,409 |
Operating lease liabilities | (163,970) | 0 |
Current income taxes | 2,000 | (35,540) |
Other current assets | (4,880) | (15,626) |
Other current liabilities | 48,538 | 7,943 |
Other assets | (2,066) | 1,253 |
Other liabilities | (2,448) | 10,888 |
Net cash provided by operating activities | 80,548 | 40,420 |
Investing activities: | ||
Capital expenditures | (231,889) | (165,396) |
Cash proceeds from sale of property and equipment | 190,679 | 367 |
Assets acquired under synthetic lease | 0 | (116,039) |
Other | (21) | 35 |
Net cash used in investing activities | (41,231) | (281,033) |
Financing activities: | ||
Net proceeds from long-term debt | (140,926) | (288,200) |
Payment of finance lease obligations | 72,479 | 2,899 |
Dividends paid | (36,707) | (38,592) |
Proceeds from the exercise of stock options | 200 | 1,859 |
Payment for treasury shares acquired | (55,342) | (111,747) |
Proceeds from synthetic lease | 0 | 116,039 |
Deferred financing cost paid | (150) | (1,488) |
Other | (5) | 3 |
Net cash (used in) provided by financing activities | (23,557) | 251,375 |
Increase in cash and cash equivalents | 15,760 | 10,762 |
Cash and cash equivalents: | ||
Beginning of period | 46,034 | 51,176 |
End of period | $ 61,794 | $ 61,938 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 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 All references in this report to “we,” “us,” or “our” are to Big Lots, Inc. and its subsidiaries. We are a discount retailer operating in the United States (“U.S.”). At November 2, 2019 , we operated 1,418 stores in 47 states. We make available, free of charge, through the “Investor Relations” section of our website ( www.biglots.com ) under the “SEC Filings” caption, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as soon as reasonably practicable after we file such material with, or furnish it to, the Securities and Exchange Commission (“SEC”). The contents of our website are not incorporated into or otherwise part of this report. The accompanying consolidated financial statements and these notes have been prepared in accordance with the rules and regulations of the SEC for interim financial information. The consolidated financial statements reflect all normal recurring adjustments which management believes are necessary to present fairly our financial condition, results of operations, and cash flows for all periods presented. The consolidated financial statements, however, do not include all information necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Interim results may not necessarily be indicative of results that may be expected for, or actually result during, any other interim period or for the year as a whole. We have historically experienced, and expect to continue to experience, seasonal fluctuations, with a larger percentage of our net sales and operating profit realized in our fourth fiscal quarter. The accompanying consolidated financial statements and these notes should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019 (“2018 Form 10-K”). 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 2019 (“ 2019 ”) is comprised of the 52 weeks that began on February 3, 2019 and will end on February 1, 2020 . Fiscal year 2018 (“ 2018 ”) was comprised of the 52 weeks that began on February 4, 2018 and ended on February 2, 2019 . The fiscal quarters ended November 2, 2019 (“ third quarter of 2019 ”) and November 3, 2018 (“ third quarter of 2018 ”) were both comprised of 13 weeks. The year-to-date periods ended November 2, 2019 (“year-to-date 2019") and November 3, 2018 (“year-to-date 2018”) were both comprised of 39 weeks. 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. Our 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. Warehousing, distribution, and outbound transportation costs included in selling and administrative expenses were $48.8 million and $45.5 million for the third quarter of 2019 and the third quarter of 2018 , respectively, and $137.1 million and $131.1 million for the year-to-date 2019 and the year-to-date 2018, respectively. Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, internet and e-mail marketing and advertising, and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $18.2 million and $16.4 million for the third quarter of 2019 and the third quarter of 2018 , respectively, and $57.9 million and $54.7 million for the year-to-date 2019 and the year-to-date 2018, respectively. Derivative Instruments We use derivative instruments to mitigate the risk of market fluctuations in the price of diesel fuel that we expect to consume to support our outbound transportation of inventory to our stores. 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 and comprehensive income. For further information on our derivative instruments, see note 11. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for the year-to-date 2019 and the year-to-date 2018 : Thirty-Nine Weeks Ended (In thousands) November 2, 2019 November 3, 2018 Supplemental disclosure of cash flow information: Cash paid for interest, including financing or capital leases $ 13,828 $ 6,494 Cash paid for income taxes, excluding impact of refunds 28,379 59,600 Gross proceeds from long-term debt 1,425,400 1,376,400 Gross payments of long-term debt 1,284,474 1,088,200 Cash paid for operating lease liabilities 217,935 — Non-cash activity: Assets acquired under financing or capital leases 70,831 785 Accrued property and equipment 23,906 37,440 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 1,489,449 $ — Property and Equipment - Net Depreciation and amortization expense of property and equipment are recorded on a straight-line basis using estimated service lives. We began a significant capital investment program in our store of the future concept in 2018, which resulted in us reviewing our estimated service lives of our leasehold improvements and fixtures and equipment at both our renovated stores and newly opened stores. During 2019, in connection with analysis of our remaining lease terms under ASC 842, we changed the estimated service lives on leasehold improvements for new stores from 5 years to 10 years and for renovated stores from 5 years to 7 years , both of which more appropriately reflect the remaining lease term on these stores. Additionally, we changed the estimated service lives on fixtures and certain equipment from 5 years to 7 years for both new stores and renovated stores to reflect our revised expectation on our renovation cycle, while taking into consideration our remaining lease term. Reclassification of Merchandise Categories We periodically assess, and make 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. Recently Adopted Accounting Standards 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. Additionally, this guidance expanded related disclosure requirements. On February 3, 2019, we adopted the new standard and elected the optional transition method, as allowed by ASU 2018-11, Leases (Topic 842), Targeted Improvements , to apply the new standard as of the effective date. Therefore, we have not applied the new standard to the comparative prior periods presented in the unaudited consolidated financial statements. We elected to apply the following practical expedients and policy elections at adoption: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. Separation of lease and non-lease components We have elected to establish an accounting policy to account for lease and non-lease components as a single component for our real estate class of assets. Short-term policy We have elected to establish a short-term lease exception policy, permitting us to not apply the recognition requirements of the new standard to short-term leases (i.e., leases with terms of 12 months or less). Adoption of this standard, in the first quarter of 2019, resulted in the recognition of right-of-use assets and lease liabilities for operating leases of $1,110 million and $1,138 million , respectively, with difference in amounts being primarily comprised of pre-existing deferred rent and prepaid rent. The impact of the adoption was immaterial to the consolidated statements of shareholders' equity. For further discussion on our leases, see note 4. |
Debt
Debt | 9 Months Ended |
Nov. 02, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | Bank Credit Facility On August 31, 2018, we entered into a $700 million five -year unsecured credit facility (“2018 Credit Agreement”) that replaced our prior credit facility entered into in July 2011 and most recently amended in May 2015 (“2011 Credit Agreement”). 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 2018 Credit Agreement. Borrowings under the 2018 Credit Agreement are available for general corporate purposes, working capital, and to repay certain 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. Additionally, we are subject to cross-default provisions associated with the synthetic lease for our new distribution center in California. 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 November 2, 2019 , we had $447.3 million of borrowings outstanding under the 2018 Credit Agreement, while $6.9 million was committed to outstanding letters of credit, leaving $245.8 million available under the 2018 Credit Agreement. Secured Equipment Term Note On August 7, 2019, we entered into a $70 million term note agreement (“2019 Term Note”), which is secured by the equipment at our new California distribution center. The 2019 Term Note will expire on May 7, 2024. We are required to make monthly payments over the term of the 2019 Term Note and are permitted to prepay, subject to penalties, at any time. The interest rate on the 2019 Term Note is 3.3% . In connection with our entry into the 2019 Term Note, we paid debt issuance costs of $0.2 million . Debt was recorded in our consolidated balance sheets as follows: Instrument (In thousands) November 2, 2019 February 2, 2019 2019 Term Note $ 67,726 $ — 2018 Credit Agreement 447,300 374,100 Total debt $ 515,026 $ 374,100 Less current portion of long-term debt (included in Accrued operating expenses) $ (13,911 ) $ — Long-term debt $ 501,115 $ 374,100 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Nov. 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 $32.5 million and $31.6 million at November 2, 2019 and February 2, 2019 , 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 the 2018 Credit Agreement are estimated based on 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 the 2018 Credit Agreement, the carrying value of these instruments approximates their fair value. The fair value of our long-term obligations under the 2019 Term Note are based on quoted market prices and are classified as Level 2 within the fair value hierarchy. The carrying value of the instrument approximates its fair value. The carrying value of accounts receivable and accounts payable approximates fair value because of the relatively short maturity of these items. |
Leases
Leases | 9 Months Ended |
Nov. 02, 2019 | |
Disclosure Text Block [Abstract] | |
LEASES | LEASES We determine if an arrangement contains a lease at inception of the agreement. Our leased property consists of our retail stores, distribution centers in California, store security, and other office equipment. Certain of our store leases have rent escalations and/or have tenant allowances or other lease incentives, which are fixed in nature and included in our calculation of right-of-use assets and lease liabilities. Certain of our store leases provide for contingent rents, which are recorded as variable costs and not included in our calculation of right-of-use assets and lease liabilities. Many of our store leases obligate us to pay for our applicable portion of real estate taxes, CAM, and property insurance, which are recorded as variable costs and not included in our calculation of right-of-use assets and lease liabilities, except for certain fixed CAM charges that are not variable. Many of our leases contain provisions for options to renew, extend the original term for additional periods, or terminate the lease if certain sales thresholds are not attained. We have assessed the reasonable certainty of these provisions to determine the appropriate lease term. Our lease agreements do not contain material residual value guarantees (excluding the synthetic lease arrangement discussed below), restrictions, or covenants. In November 2017, we entered into a synthetic lease arrangement for a new distribution center in California. The term of this lease commenced in the second quarter of 2019 and will expire five years after commencement. Under the prior accounting standard, this lease was accounted for as a capital lease due to certain construction period considerations; therefore, it was reflected in both our balance sheet and our future minimum lease obligations disclosure. As the lease commenced in the second quarter of 2019, we assessed the lease classification of the agreement and determined it was an operating lease under ASC 842; therefore, the lease is included in our operating lease right-of-use assets and operating lease liabilities in the below table as of November 2, 2019. The annual lease payments are approximately $7 million for the duration of the term. Additionally, this arrangement includes a residual value guarantee. Leases were recorded in our consolidated balance sheets as follows: Leases Balance Sheet Location November 2, 2019 Assets (In thousands) Operating Operating lease right-of-use assets $ 1,233,558 Finance Property and equipment - net 8,755 Total right-of-use assets $ 1,242,313 Liabilities Current Operating Current operating lease liabilities $ 205,390 Finance Accrued operating expenses 3,771 Noncurrent Operating Noncurrent operating lease liabilities 1,067,529 Finance Other liabilities 5,635 Total lease liabilities $ 1,282,325 The components of lease costs were as follows: Statements of Operations and Comprehensive Income Location Third Quarter Year-to-date Lease cost 2019 2019 (In thousands) Operating lease cost Selling and administrative expenses $ 71,721 $ 214,771 Finance lease cost Amortization of leased assets Depreciation 1,427 3,403 Interest on lease liabilities Interest expense 598 850 Short-term lease cost Selling and administrative expenses 1,304 4,386 Variable lease cost Selling and administrative expenses 17 237 Total lease cost $ 75,067 $ 223,647 Maturity of our lease liabilities at November 2, 2019 , was as follows: Fiscal Year Operating Leases Finance Leases 2019 (represents the fourth quarter of 2019) $ 59,797 $ 1,494 2020 291,127 4,441 2021 257,137 3,330 2022 220,601 607 2023 186,539 117 Thereafter 469,884 71 Total lease payments $ 1,485,085 $ 10,060 Less amount to discount to present value $ (212,166 ) $ (654 ) Present value of lease liabilities $ 1,272,919 $ 9,406 Lease term and discount rate, for our operating leases, at November 2, 2019 were as follows: November 2, 2019 Weighted average remaining lease term (years) 6.4 Weighted average discount rate 4.2 % Our weighted average discount rate represents our estimated incremental borrowing rate, assuming a secured borrowing, based on the remaining lease term at the time of adoption of the standard, lease commencement, or the period in which the lease term expectation was modified. Our finance leases, and the associated remaining lease term and discount rate, are insignificant. Disclosures Related to Periods Prior to Adoption of ASC 842, Leases Under ASC 840, Leases, future minimum rental commitments for leases, excluding closed store leases, real estate taxes, CAM, and property insurance, and scheduled payments for all capital leases at February 2, 2019, were as follows: Fiscal Year Operating Leases Capital Leases 2019 (full 12 months) $ 279,844 $ 9,050 2020 244,978 10,815 2021 204,362 9,725 2022 159,479 6,992 2023 120,023 6,512 Thereafter 310,474 127,864 Total lease payments $ 1,319,160 $ 170,958 Less amount to discount to present value $ (14,758 ) Present value of lease liabilities $ 156,200 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Nov. 02, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Earnings per Share There were no adjustments required to be made to the weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share. At November 2, 2019 , we excluded from securities outstanding for the computation of earnings per share, antidilutive stock options, restricted stock units, and performance share units, for which the minimum applicable performance conditions had not been attained as of November 2, 2019. At November 3, 2018, there were no securities outstanding which were excluded from the computation of earnings per share other than antidilutive stock options, restricted stock units, and performance share units. For the third quarter of 2019 and 2018 , there were 0.1 million and 0.1 million stock options, respectively, outstanding that were antidilutive, as determined under the treasury stock method, and excluded from the computation of diluted earnings. There were 0.1 million stock options outstanding for the year-to-date 2019 that were antidilutive, and for the year-to-date 2018, antidilutive options outstanding were determined to be immaterial. Antidilutive stock options generally consist of outstanding stock options where the exercise price per share is greater than the weighted-average market price per share for our common shares for each period. Antidilutive stock options, restricted stock units and performance share units are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The restricted stock units and performance share units that were antidilutive, as determined under the treasury stock method, were 0.5 million for the third quarter of 2019 and determined to be immaterial for the third quarter of 2018 . The restricted stock units and performance share units that were antidilutive, as determined under the treasury stock method, were 0.4 million for the year-to-date 2019, while the year-to-date 2018 units were immaterial. Share Repurchase Programs On March 6, 2019, our Board of Directors (“Board”) authorized a share repurchase program providing for the repurchase of $50 million of our common shares (“2019 Repurchase Program”). The 2019 Repurchase Program was exhausted during the second quarter of 2019. During the year-to-date 2019 , we acquired approximately 1.3 million of our outstanding common shares for $50.0 million under the 2019 Repurchase Program. Dividends The Company declared and paid cash dividends per common share during the quarterly periods presented as follows: Dividends Amount Declared Amount Paid 2019: (In thousands) (In thousands) First quarter $ 0.30 $ 12,206 $ 13,197 Second quarter $ 0.30 $ 12,196 $ 11,718 Third quarter $ 0.30 $ 11,954 $ 11,792 Total $ 0.90 $ 36,356 $ 36,707 The amount of dividends declared may vary from the amount of dividends paid in a period due to the vesting of restricted stock units and performance share units. The payment of future dividends will be at the discretion of our Board 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. |
Share-Based Plans
Share-Based Plans | 9 Months Ended |
Nov. 02, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PLANS | SHARE-BASED PLANS We have issued nonqualified stock options, restricted stock awards, restricted stock units, and performance share units under our shareholder-approved equity compensation plans. Our restricted stock units and performance share units, as described below, are expensed and reported as non-vested shares. We recognized share-based compensation expense of $3.2 million and $4.5 million in the third quarter of 2019 and the third quarter of 2018 , respectively, and $11.7 million and $21.7 million for the year-to-date 2019 and the year-to-date 2018, respectively. Non-vested Restricted Stock Units The following table summarizes the non-vested restricted stock units activity for the year-to-date 2019: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock units at February 2, 2019 483,182 $ 46.50 Granted 333,222 36.45 Vested (141,820 ) 47.72 Forfeited (20,418 ) 42.73 Outstanding non-vested restricted stock units at May 4, 2019 654,166 $ 41.25 Granted 46,487 27.86 Vested (12,509 ) 40.74 Forfeited (9,110 ) 40.43 Outstanding non-vested restricted stock units at August 3, 2019 679,034 $ 40.35 Granted 35,011 22.14 Vested (47,001 ) 43.38 Forfeited (32,597 ) 40.94 Outstanding non-vested restricted stock units at November 2, 2019 634,447 $ 39.09 The non-vested restricted stock units granted in the year-to-date 2019 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. Non-vested Stock Units Granted to Non-Employee Directors In the second quarter of 2019, 11,632 common shares underlying the restricted stock units granted in 2018 to the non-employee members of our Board vested on the trading day immediately preceding our 2019 Annual Meeting of Shareholders (“2019 Annual Meeting”). These units were part of the annual compensation to the non-employee members of the Board. Additionally, in the second quarter of 2019, the chairman of our Board received an annual restricted stock unit grant having a grant date fair value of approximately $210,000 . The remaining non-employees elected to our Board at our 2019 Annual Meeting each received an annual restricted stock unit grant having a grant date fair value of approximately $145,000 . The 2019 restricted stock units will vest on the earlier of (1) the trading day immediately preceding our 2020 Annual Meeting of Shareholders, or (2) the non-employee director’s death or disability. However, the restricted stock units will not vest if the non-employee director ceases to serve on our Board before either vesting event occurs. Performance Share Units In the year-to-date 2019, we issued performance share units (“PSUs”) to certain members of management, which will vest if certain financial performance objectives are achieved over a three-year performance period and the grantee remains employed by us during the performance period. The financial performance objectives for each fiscal year within the three-year performance period will be approved by the Compensation Committee of our Board 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 for 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 November 2, 2019 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2017 184,779 March 2019 Fiscal 2019 2018 195,182 March 2020 Fiscal 2020 2019 322,379 March 2021 Fiscal 2021 Total 702,340 The number of shares to be distributed upon vesting of the PSUs depends on the average performance attained during the three-year performance period compared to the performance targets established 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 related award agreement. At November 2, 2019 , we estimate the attainment of an average performance that is lower than the targets established for the PSUs issued in 2017, but above the minimum attainment for vesting. We recognized $0.2 million and $2.1 million in the third quarter of 2019 and 2018, respectively, and $2.5 million and $13.3 million in the year-to-date 2019 and 2018, respectively, of share-based compensation expense related to PSUs. The following table summarizes the activity related to PSUs for the year-to-date 2019: Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs at February 2, 2019 282,083 $ 55.67 Granted 217,518 31.89 Vested (275,308 ) 55.67 Forfeited (8,144 ) 31.89 Outstanding PSUs at May 4, 2019 216,149 $ 32.51 Granted — — Vested — — Forfeited (3,954 ) 31.89 Outstanding PSUs at August 3, 2019 212,195 $ 32.52 Granted — — Vested (6,775 ) 55.67 Forfeited (20,641 ) 31.89 Outstanding PSUs at November 2, 2019 184,779 $ 31.89 Stock Options The following table summarizes stock option activity for the year-to-date 2019: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000's) Outstanding stock options at February 2, 2019 237,501 $ 38.30 Exercised (6,250 ) 32.04 Forfeited (77,500 ) 43.85 Outstanding stock options at May 4, 2019 153,751 $ 35.76 0.9 $ 288 Exercised — — Forfeited — — Outstanding stock options at August 3, 2019 153,751 $ 35.76 0.6 $ — Exercised — — Forfeited (5,000 ) 30.82 Outstanding stock options at November 2, 2019 148,751 $ 35.93 0.4 $ — Vested or expected to vest at November 2, 2019 148,751 $ 35.93 0.4 $ — Exercisable at November 2, 2019 148,751 $ 35.93 0.4 $ — The stock options granted in prior years vest in equal amounts on the first four anniversaries of the grant date and have a contractual term of seven years . The following activity occurred under our share-based plans during the respective periods shown: Third Quarter Year-to-Date (In thousands) 2019 2018 2019 2018 Total intrinsic value of stock options exercised $ — $ 220 $ 42 $ 228 Total fair value of restricted stock vested 1,051 1,042 6,434 19,230 Total fair value of performance shares vested $ 143 $ — $ 9,849 $ 12,792 The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2018 and 2019, at November 2, 2019 was approximately $16.3 million . This compensation cost is expected to be recognized through October 2022 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.9 years from November 2, 2019 . |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 02, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We have estimated the reasonably possible expected net change in unrecognized tax benefits through November 1, 2020, based on (1) expected cash and noncash settlements or payments of uncertain tax positions, and (2) 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 | 9 Months Ended |
Nov. 02, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES California Wage and Hour Matters We currently are defending three purported wage and hour class actions and several individual representative actions in California. The cases were brought by various current and/or former California associates alleging various violations of California wage and hour laws. Upon further consideration of these matters, including outcomes of cases against other retailers, during the first quarter of 2019, we determined a loss from these matters was probable and we increased our accrual for litigation by recording a $7.3 million charge as our best estimate for these matters in aggregate. Since the end of the first quarter of 2019, we reached tentative settlements in each of the class actions, subject to final documentation and court approval. We intend to defend ourselves vigorously against the allegations levied in the remaining lawsuits. We believe the existing accrual for litigation remains appropriate. 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. |
Restructuring
Restructuring | 9 Months Ended |
Nov. 02, 2019 | |
Restructuring [Abstract] | |
RESTRUCTURING | RESTRUCTURING COSTS In March 2019, we announced a transformational restructuring initiative to both drive growth in our net sales and reduce costs within our business. We expect to generate costs savings from this initiative through improved markdown and merchandise management, reduced management layers, optimization of store labor, improved efficiencies in our supply chain, and reduced central and other costs. As we implement this initiative, we have incurred upfront costs, including employee severance costs and consultancy fees, and made payments to execute the initiative. During the first quarter of 2019, we incurred $15.3 million in costs associated with our transformational restructuring initiative, which were recorded in selling and administrative expenses. During the second quarter of 2019, we incurred an additional $19.5 million in costs from this initiative. In the third quarter of 2019, we incurred $3.6 million in costs associated with this initiative. We expect any additional costs recorded during the fourth quarter of 2019 with respect to this initiative to be immaterial. The changes in our liabilities associated with severance and postemployment benefits, which are recorded in accrued operating expenses, during the year-to-date 2019 were as follows (in thousands): Balance at February 2, 2019 $ — Charges 7,253 Payments (803 ) Other — Balance at May 4, 2019 $ 6,450 Charges 7,344 Payments (1,882 ) Other (1,182 ) Balance at August 3, 2019 $ 10,730 Charges — Payments (5,276 ) Other (347 ) Balance at November 2, 2019 $ 5,107 |
Business Segment Data
Business Segment Data | 9 Months Ended |
Nov. 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: Food, Consumables, Soft Home, Hard Home, Furniture, Seasonal, and Electronics, Toys, & Accessories. 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 Soft Home category includes the home décor, frames, fashion bedding, utility bedding, bath, window, decorative textile, home organization and area rugs departments. The Hard Home category includes our small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments. The Furniture category includes our upholstery, mattress, ready-to-assemble, and case goods departments. The Seasonal category includes our lawn & garden, summer, Christmas, and other holiday departments. The Electronics, Toys, & Accessories category includes our electronics, jewelry, hosiery, and toys departments. We periodically assess, and make 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: Third Quarter Year-to-Date (In thousands) 2019 2018 2019 2018 Furniture $ 344,103 $ 313,450 $ 1,031,357 $ 941,022 Soft Home 206,493 203,328 606,397 585,850 Consumables 198,467 194,480 581,925 573,215 Food 180,687 185,641 530,970 549,576 Seasonal 94,225 90,824 523,822 508,397 Hard Home 79,833 92,275 243,584 271,916 Electronics, Toys, & Accessories 64,180 69,404 198,143 209,578 Net sales $ 1,167,988 $ 1,149,402 $ 3,716,198 $ 3,639,554 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Nov. 02, 2019 | |
Derivative [Line Items] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We enter into derivative instruments, particularly collar contracts designed 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 and comprehensive income. Our outstanding derivative instrument contracts were comprised of the following: (In thousands) November 2, 2019 February 2, 2019 Diesel fuel collars (in gallons) 4,500 7,200 The fair value of our outstanding derivative instrument contracts was as follows: (In thousands) Assets (Liabilities) Derivative Instrument Balance Sheet Location November 2, 2019 February 2, 2019 Diesel fuel collars Other current assets $ 157 $ 523 Other assets 297 203 Accrued operating expenses (672 ) (586 ) Other liabilities (594 ) (825 ) Total derivative instruments $ (812 ) $ (685 ) The effect of derivative instruments on the consolidated statements of operations and comprehensive income was as follows: Amount of Gain (Loss) (In thousands) Third Quarter Year-to-Date Derivative Instrument Statements of Operations and Comprehensive Income Location 2019 2018 2019 2018 Diesel fuel collars Realized Other income (expense) $ (47 ) $ 154 $ (71 ) $ 279 Unrealized Other income (expense) (278 ) (102 ) (126 ) 460 Total derivative instruments $ (325 ) $ 52 $ (197 ) $ 739 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. |
Gain on Sale of Distribution Ce
Gain on Sale of Distribution Center | 9 Months Ended |
Nov. 02, 2019 | |
Gain (Loss) on Disposition of Property Plant Equipment [Abstract] | |
Real Estate Disclosure [Text Block] | GAIN ON SALE OF DISTRIBUTION CENTER On October 30, 2019, we completed the sale of our distribution center located in Rancho Cucamonga, California. As part of our agreement with the purchaser, we will lease the property back from the purchaser for six months while we wind down our operations at the distribution center. The lease permits us to exit the lease early or extend the lease for up to six additional months. Net proceeds from the sale of the distribution center were $190.3 million and our gain on the sale was $178.5 million . |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 02, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 2019 (“ 2019 ”) is comprised of the 52 weeks that began on February 3, 2019 and will end on February 1, 2020 . Fiscal year 2018 (“ 2018 ”) was comprised of the 52 weeks that began on February 4, 2018 and ended on February 2, 2019 . The fiscal quarters ended November 2, 2019 (“ third quarter of 2019 ”) and November 3, 2018 (“ third quarter of 2018 ”) were both comprised of 13 weeks. The year-to-date periods ended November 2, 2019 (“year-to-date 2019") and November 3, 2018 (“year-to-date 2018”) were both comprised of 39 weeks. |
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. Our 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. Warehousing, distribution, and outbound transportation costs included in selling and administrative expenses were $48.8 million and $45.5 million for the third quarter of 2019 and the third quarter of 2018 , respectively, and $137.1 million and $131.1 million for the year-to-date 2019 and the year-to-date 2018, respectively. |
Advertising Cost [Policy Text Block] | Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, internet and e-mail marketing and advertising, and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $18.2 million and $16.4 million for the third quarter of 2019 and the third quarter of 2018 , respectively, and $57.9 million and $54.7 million for the year-to-date 2019 and the year-to-date 2018, respectively. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments We use derivative instruments to mitigate the risk of market fluctuations in the price of diesel fuel that we expect to consume to support our outbound transportation of inventory to our stores. 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 and comprehensive income. For further information on our derivative instruments, see note 11. |
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. We began a significant capital investment program in our store of the future concept in 2018, which resulted in us reviewing our estimated service lives of our leasehold improvements and fixtures and equipment at both our renovated stores and newly opened stores. During 2019, in connection with analysis of our remaining lease terms under ASC 842, we changed the estimated service lives on leasehold improvements for new stores from 5 years to 10 years and for renovated stores from 5 years to 7 years , both of which more appropriately reflect the remaining lease term on these stores. Additionally, we changed the estimated service lives on fixtures and certain equipment from 5 years to 7 years for both new stores and renovated stores to reflect our revised expectation on our renovation cycle, while taking into consideration our remaining lease term. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassification of Merchandise Categories We periodically assess, and make 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards 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. Additionally, this guidance expanded related disclosure requirements. On February 3, 2019, we adopted the new standard and elected the optional transition method, as allowed by ASU 2018-11, Leases (Topic 842), Targeted Improvements , to apply the new standard as of the effective date. Therefore, we have not applied the new standard to the comparative prior periods presented in the unaudited consolidated financial statements. We elected to apply the following practical expedients and policy elections at adoption: Practical expedient package We have not reassessed whether any expired or existing contracts are, or contain, leases. We have not reassessed the lease classification for any expired or existing leases. We have not reassessed initial direct costs for any expired or existing leases. Hindsight practical expedient We have not elected the hindsight practical expedient, which permits the use of hindsight when determining lease term and impairment of operating lease assets. Separation of lease and non-lease components We have elected to establish an accounting policy to account for lease and non-lease components as a single component for our real estate class of assets. Short-term policy We have elected to establish a short-term lease exception policy, permitting us to not apply the recognition requirements of the new standard to short-term leases (i.e., leases with terms of 12 months or less). Adoption of this standard, in the first quarter of 2019, resulted in the recognition of right-of-use assets and lease liabilities for operating leases of $1,110 million and $1,138 million , respectively, with difference in amounts being primarily comprised of pre-existing deferred rent and prepaid rent. The impact of the adoption was immaterial to the consolidated statements of shareholders' equity. For further discussion on our leases, see note 4. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Supplemental Cash Flow Disclosures (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Other Significant Noncash Transactions [Line Items] | |
Schedule of Other Significant Noncash Transactions [Table Text Block] | The following table provides supplemental cash flow information for the year-to-date 2019 and the year-to-date 2018 : Thirty-Nine Weeks Ended (In thousands) November 2, 2019 November 3, 2018 Supplemental disclosure of cash flow information: Cash paid for interest, including financing or capital leases $ 13,828 $ 6,494 Cash paid for income taxes, excluding impact of refunds 28,379 59,600 Gross proceeds from long-term debt 1,425,400 1,376,400 Gross payments of long-term debt 1,284,474 1,088,200 Cash paid for operating lease liabilities 217,935 — Non-cash activity: Assets acquired under financing or capital leases 70,831 785 Accrued property and equipment 23,906 37,440 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 1,489,449 $ — |
Debt Long-term Debt (Tables)
Debt Long-term Debt (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Debt was recorded in our consolidated balance sheets as follows: Instrument (In thousands) November 2, 2019 February 2, 2019 2019 Term Note $ 67,726 $ — 2018 Credit Agreement 447,300 374,100 Total debt $ 515,026 $ 374,100 Less current portion of long-term debt (included in Accrued operating expenses) $ (13,911 ) $ — Long-term debt $ 501,115 $ 374,100 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Leases, Assets and Liabilities [Abstract] | |
Assets and Liabilities, Lessee [Table Text Block] | Leases were recorded in our consolidated balance sheets as follows: Leases Balance Sheet Location November 2, 2019 Assets (In thousands) Operating Operating lease right-of-use assets $ 1,233,558 Finance Property and equipment - net 8,755 Total right-of-use assets $ 1,242,313 Liabilities Current Operating Current operating lease liabilities $ 205,390 Finance Accrued operating expenses 3,771 Noncurrent Operating Noncurrent operating lease liabilities 1,067,529 Finance Other liabilities 5,635 Total lease liabilities $ 1,282,325 |
Lease, Cost [Table Text Block] | The components of lease costs were as follows: Statements of Operations and Comprehensive Income Location Third Quarter Year-to-date Lease cost 2019 2019 (In thousands) Operating lease cost Selling and administrative expenses $ 71,721 $ 214,771 Finance lease cost Amortization of leased assets Depreciation 1,427 3,403 Interest on lease liabilities Interest expense 598 850 Short-term lease cost Selling and administrative expenses 1,304 4,386 Variable lease cost Selling and administrative expenses 17 237 Total lease cost $ 75,067 $ 223,647 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity of our lease liabilities at November 2, 2019 , was as follows: Fiscal Year Operating Leases Finance Leases 2019 (represents the fourth quarter of 2019) $ 59,797 $ 1,494 2020 291,127 4,441 2021 257,137 3,330 2022 220,601 607 2023 186,539 117 Thereafter 469,884 71 Total lease payments $ 1,485,085 $ 10,060 Less amount to discount to present value $ (212,166 ) $ (654 ) Present value of lease liabilities $ 1,272,919 $ 9,406 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Lease term and discount rate, for our operating leases, at November 2, 2019 were as follows: November 2, 2019 Weighted average remaining lease term (years) 6.4 Weighted average discount rate 4.2 % |
Lessee, Operating Lease, Disclosure and Schedule of Capital Leased Assets [Table Text Block] | Under ASC 840, Leases, future minimum rental commitments for leases, excluding closed store leases, real estate taxes, CAM, and property insurance, and scheduled payments for all capital leases at February 2, 2019, were as follows: Fiscal Year Operating Leases Capital Leases 2019 (full 12 months) $ 279,844 $ 9,050 2020 244,978 10,815 2021 204,362 9,725 2022 159,479 6,992 2023 120,023 6,512 Thereafter 310,474 127,864 Total lease payments $ 1,319,160 $ 170,958 Less amount to discount to present value $ (14,758 ) Present value of lease liabilities $ 156,200 |
Shareholders' Equity Dividends
Shareholders' Equity Dividends Declared (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | The Company declared and paid cash dividends per common share during the quarterly periods presented as follows: Dividends Amount Declared Amount Paid 2019: (In thousands) (In thousands) First quarter $ 0.30 $ 12,206 $ 13,197 Second quarter $ 0.30 $ 12,196 $ 11,718 Third quarter $ 0.30 $ 11,954 $ 11,792 Total $ 0.90 $ 36,356 $ 36,707 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following table summarizes the non-vested restricted stock units activity for the year-to-date 2019: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock units at February 2, 2019 483,182 $ 46.50 Granted 333,222 36.45 Vested (141,820 ) 47.72 Forfeited (20,418 ) 42.73 Outstanding non-vested restricted stock units at May 4, 2019 654,166 $ 41.25 Granted 46,487 27.86 Vested (12,509 ) 40.74 Forfeited (9,110 ) 40.43 Outstanding non-vested restricted stock units at August 3, 2019 679,034 $ 40.35 Granted 35,011 22.14 Vested (47,001 ) 43.38 Forfeited (32,597 ) 40.94 Outstanding non-vested restricted stock units at November 2, 2019 634,447 $ 39.09 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs for the year-to-date 2019: Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs at February 2, 2019 282,083 $ 55.67 Granted 217,518 31.89 Vested (275,308 ) 55.67 Forfeited (8,144 ) 31.89 Outstanding PSUs at May 4, 2019 216,149 $ 32.51 Granted — — Vested — — Forfeited (3,954 ) 31.89 Outstanding PSUs at August 3, 2019 212,195 $ 32.52 Granted — — Vested (6,775 ) 55.67 Forfeited (20,641 ) 31.89 Outstanding PSUs at November 2, 2019 184,779 $ 31.89 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following table summarizes stock option activity for the year-to-date 2019: Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (000's) Outstanding stock options at February 2, 2019 237,501 $ 38.30 Exercised (6,250 ) 32.04 Forfeited (77,500 ) 43.85 Outstanding stock options at May 4, 2019 153,751 $ 35.76 0.9 $ 288 Exercised — — Forfeited — — Outstanding stock options at August 3, 2019 153,751 $ 35.76 0.6 $ — Exercised — — Forfeited (5,000 ) 30.82 Outstanding stock options at November 2, 2019 148,751 $ 35.93 0.4 $ — Vested or expected to vest at November 2, 2019 148,751 $ 35.93 0.4 $ — Exercisable at November 2, 2019 148,751 $ 35.93 0.4 $ — |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | The following activity occurred under our share-based plans during the respective periods shown: Third Quarter Year-to-Date (In thousands) 2019 2018 2019 2018 Total intrinsic value of stock options exercised $ — $ 220 $ 42 $ 228 Total fair value of restricted stock vested 1,051 1,042 6,434 19,230 Total fair value of performance shares vested $ 143 $ — $ 9,849 $ 12,792 |
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 November 2, 2019 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2017 184,779 March 2019 Fiscal 2019 2018 195,182 March 2020 Fiscal 2020 2019 322,379 March 2021 Fiscal 2021 Total 702,340 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The changes in our liabilities associated with severance and postemployment benefits, which are recorded in accrued operating expenses, during the year-to-date 2019 were as follows (in thousands): Balance at February 2, 2019 $ — Charges 7,253 Payments (803 ) Other — Balance at May 4, 2019 $ 6,450 Charges 7,344 Payments (1,882 ) Other (1,182 ) Balance at August 3, 2019 $ 10,730 Charges — Payments (5,276 ) Other (347 ) Balance at November 2, 2019 $ 5,107 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 9 Months Ended |
Nov. 02, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: Third Quarter Year-to-Date (In thousands) 2019 2018 2019 2018 Furniture $ 344,103 $ 313,450 $ 1,031,357 $ 941,022 Soft Home 206,493 203,328 606,397 585,850 Consumables 198,467 194,480 581,925 573,215 Food 180,687 185,641 530,970 549,576 Seasonal 94,225 90,824 523,822 508,397 Hard Home 79,833 92,275 243,584 271,916 Electronics, Toys, & Accessories 64,180 69,404 198,143 209,578 Net sales $ 1,167,988 $ 1,149,402 $ 3,716,198 $ 3,639,554 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Nov. 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) November 2, 2019 February 2, 2019 Diesel fuel collars (in gallons) 4,500 7,200 |
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 November 2, 2019 February 2, 2019 Diesel fuel collars Other current assets $ 157 $ 523 Other assets 297 203 Accrued operating expenses (672 ) (586 ) Other liabilities (594 ) (825 ) Total derivative instruments $ (812 ) $ (685 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effect of derivative instruments on the consolidated statements of operations and comprehensive income was as follows: Amount of Gain (Loss) (In thousands) Third Quarter Year-to-Date Derivative Instrument Statements of Operations and Comprehensive Income Location 2019 2018 2019 2018 Diesel fuel collars Realized Other income (expense) $ (47 ) $ 154 $ (71 ) $ 279 Unrealized Other income (expense) (278 ) (102 ) (126 ) 460 Total derivative instruments $ (325 ) $ 52 $ (197 ) $ 739 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 02, 2019USD ($)store | Nov. 03, 2018USD ($) | Nov. 02, 2019USD ($)store | Nov. 03, 2018USD ($) | Feb. 01, 2020 | Feb. 02, 2019USD ($) | Feb. 03, 2019USD ($) | |
Components of Operating Cost and Expense [Abstract] | |||||||
Number of Stores | store | 1,418 | 1,418 | |||||
Number of States in which Entity Operates | 47 | 47 | |||||
Operating Cycle | 52 or 53 weeks | ||||||
Fiscal Period Duration | 91 days | 91 days | 273 days | 273 days | 364 days | 364 days | |
Distribution and Outbound Transportation Costs | $ 48,800 | $ 45,500 | $ 137,100 | $ 131,100 | |||
Advertising Expense | 18,200 | $ 16,400 | 57,900 | $ 54,700 | |||
Item Effected [Line Items] | |||||||
Operating lease right-of-use assets | 1,233,558 | 1,233,558 | $ 0 | $ 1,110,000 | |||
Operating Lease, Liability | $ 1,272,919 | $ 1,272,919 | $ 1,138,000 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, including financing or capital leases | $ 13,828 | $ 6,494 |
Cash paid for income taxes, excluding impact of refunds | 28,379 | 59,600 |
Gross proceeds from long-term debt | 1,425,400 | 1,376,400 |
Gross payments of long-term debt | 1,284,474 | 1,088,200 |
Cash paid for operating lease liabilities | 217,935 | 0 |
Non-cash activity: | ||
Assets acquired under finance leases | 70,831 | 785 |
Accrued property and equipment | 23,906 | 37,440 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 1,489,449 | $ 0 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | 9 Months Ended | 12 Months Ended |
Nov. 02, 2019 | Feb. 02, 2019 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements - New Stores [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Leasehold Improvements - Renovated Stores [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Store Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Store Fixtures and Equipment - New and Renovated Stores [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years |
Debt Line of Credit (Details)
Debt Line of Credit (Details) - 2018 Credit Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2018 | Nov. 02, 2019 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 700 | |
Debt Instrument, Term | 5 years | |
Deferred Finance Costs, Gross | $ 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 | $ 447.3 | |
Line of Credit Facility, Letters of Credit Outstanding | 6.9 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 245.8 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Aug. 07, 2019 | Feb. 02, 2019 |
Debt, Long-term and Short-term, Combined Amount [Abstract] | |||
Total debt | $ 515,026 | $ 374,100 | |
Less current portion of long-term debt (included in Accrued operating expenses | (13,911) | 0 | |
Long-term debt | 501,115 | 374,100 | |
2019 Term Note [Member] | |||
Secured Debt [Abstract] | |||
Secured Debt | 67,726 | $ 70,000 | 0 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.30% | ||
Debt Issuance Costs, Gross | $ 200 | ||
Debt, Long-term and Short-term, Combined Amount [Abstract] | |||
Secured Debt | 67,726 | $ 70,000 | 0 |
Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount [Abstract] | |||
Long-term Line of Credit | $ 447,300 | $ 374,100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Nov. 02, 2019 | Feb. 02, 2019 |
Fair Value, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value Disclosure | $ 32.5 | $ 31.6 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Nov. 02, 2019 | Feb. 03, 2019 | Feb. 02, 2019 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease right-of-use assets | $ 1,233,558 | $ 1,110,000 | $ 0 |
Finance Lease, Right-of-Use Asset | 8,755 | ||
Right-of-use assets, total | 1,242,313 | ||
Current operating lease liabilities | 205,390 | 0 | |
Finance Lease, Liability, Current | 3,771 | ||
Noncurrent operating lease liabilities | 1,067,529 | $ 0 | |
Finance Lease, Liability, Noncurrent | 5,635 | ||
Lease liabilities, total | $ 1,282,325 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.20% | ||
California Distribution Center [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Description | In November 2017, we entered into a synthetic lease arrangement for a new distribution center in California. The term of this lease commenced in the second quarter of 2019 and will expire five years after commencement. Under the prior accounting standard, this lease was accounted for as a capital lease due to certain construction period considerations; therefore, it was reflected in both our balance sheet and our future minimum lease obligations disclosure. As the lease commenced in the second quarter of 2019, we assessed the lease classification of the agreement and determined it was an operating lease under ASC 842; therefore, the lease is included in our operating lease right-of-use assets and operating lease liabilities in the below table as of November 2, 2019. The annual lease payments are approximately $7 million for the duration of the term. Additionally, this arrangement includes a residual value guarantee. | ||
Lessee, Operating Lease, Term of Contract | 5 years |
Leases Lease, Cost (Details)
Leases Lease, Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 02, 2019 | Nov. 02, 2019 | |
Lease, Cost [Abstract] | ||
Operating Lease, Cost | $ 71,721 | $ 214,771 |
Finance Lease, Right-of-Use Asset, Amortization | 1,427 | 3,403 |
Finance Lease, Interest Expense | 598 | 850 |
Short-term Lease, Cost | 1,304 | 4,386 |
Variable Lease, Cost | 17 | 237 |
Lease, Cost | $ 75,067 | $ 223,647 |
Leases Lessee, Maturity (Detail
Leases Lessee, Maturity (Details) - USD ($) $ in Thousands | Nov. 02, 2019 | Feb. 03, 2019 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 1,494 | |
Finance Lease, Liability, Payments, Due Year Two | 4,441 | |
Finance Lease, Liability, Payments, Due Year Three | 3,330 | |
Finance Lease, Liability, Payments, Due Year Four | 607 | |
Finance Lease, Liability, Payments, Due Year Five | 117 | |
Finance Lease, Liability, Payments, Due after Year Five | 71 | |
Finance Lease, Liability, Payment, Due | 10,060 | |
Finance Lease, Liability, Undiscounted Excess Amount | (654) | |
Finance Lease, Liability | 9,406 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 59,797 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 291,127 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 257,137 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 220,601 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 186,539 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 469,884 | |
Lessee, Operating Lease, Liability, Payments, Due | 1,485,085 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (212,166) | |
Operating Lease, Liability | $ 1,272,919 | $ 1,138,000 |
Leases Leases, Operating and Ca
Leases Leases, Operating and Capital (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 279,844 |
Operating Leases, Future Minimum Payments, Due in Two Years | 244,978 |
Operating Leases, Future Minimum Payments, Due in Three Years | 204,362 |
Operating Leases, Future Minimum Payments, Due in Four Years | 159,479 |
Operating Leases, Future Minimum Payments, Due in Five Years | 120,023 |
Operating Leases, Future Minimum Payments, Due Thereafter | 310,474 |
Operating Leases, Future Minimum Payments Due | 1,319,160 |
Capital Leases, Future Minimum Payments, Net Minimum Payments, Fiscal Year Maturity [Abstract] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 9,050 |
Capital Leases, Future Minimum Payments Due in Two Years | 10,815 |
Capital Leases, Future Minimum Payments Due in Three Years | 9,725 |
Capital Leases, Future Minimum Payments Due in Four Years | 6,992 |
Capital Leases, Future Minimum Payments Due in Five Years | 6,512 |
Capital Leases, Future Minimum Payments Due Thereafter | 127,864 |
Capital Leases, Future Minimum Payments Due | 170,958 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | (14,758) |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 156,200 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | |
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | |
Class of Stock [Line Items] | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Other Than Stock Options, Restricted Stock Units, and Performance Share Units, Amount | 0 | 0 | 0 |
Stock Options [Member] | |||
Class of Stock [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | 100,000 | 100,000 |
Restricted Stock [Member] | |||
Class of Stock [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 | 400,000 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Mar. 28, 2019 | |
Class of Stock [Line Items] | |||||
Stock Repurchased During Period, Value | $ 423 | $ 486 | $ 55,342 | $ 111,747 | |
Common Stock [Member] | 2019 Repurchase Program [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | ||||
Stock Repurchased During Period, Shares | 1.3 | ||||
Stock Repurchased During Period, Value | $ 50,000 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Equity [Abstract] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.90 | ||
Amount declared (Dividends) | $ 11,954 | $ 12,196 | $ 12,206 | $ 12,321 | $ 36,356 | $ 37,539 |
Amount paid (Dividends) | $ (11,792) | $ (11,718) | $ (13,197) | $ (36,707) | $ (38,592) |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Expense | $ 3,200,000 | $ 4,500,000 | $ 11,700,000 | $ 21,700,000 | |||
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 | $ 16,300,000 | $ 16,300,000 | |||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 39.09 | $ 40.35 | $ 41.25 | $ 39.09 | $ 46.50 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 22.14 | 27.86 | 36.45 | ||||
Vested in Period, Weighted Average Grant Date Fair Value | 43.38 | 40.74 | 47.72 | ||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 40.94 | $ 40.43 | $ 42.73 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||||||
Total fair value of other than options vested | $ 1,051,000 | 1,042,000 | $ 6,434,000 | 19,230,000 | |||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Nonvested, beginning balance | 679,034 | 654,166 | 483,182 | 483,182 | |||
Granted | 35,011 | 46,487 | 333,222 | ||||
Vested | (47,001) | (12,509) | (141,820) | ||||
Forfeited | (32,597) | (9,110) | (20,418) | ||||
Nonvested, ending balance | 634,447 | 679,034 | 654,166 | 634,447 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Award Requisite Service Period | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Vested | (11,632) | ||||||
DeferredCompensationArrangementFairValueOfSharesIssuedToEachDirector | $ 145,000 | ||||||
Restricted Stock Units (RSUs) [Member] | Board of Directors Chairman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
DeferredCompensationArrangementFairValueOfSharesIssuedToEachDirector | $ 210,000 | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Expense | $ 200,000 | 2,100,000 | $ 2,500,000 | 13,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Nonvested, beginning balance | 212,195 | 216,149 | 282,083 | 282,083 | |||
Granted | 0 | 0 | 217,518 | ||||
Vested | (6,775) | 0 | (275,308) | ||||
Forfeited | (20,641) | (3,954) | (8,144) | ||||
Nonvested, ending balance | 184,779 | 212,195 | 216,149 | 184,779 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 31.89 | $ 32.52 | $ 32.51 | $ 31.89 | $ 55.67 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 0 | 0 | 31.89 | ||||
Vested in Period, Weighted Average Grant Date Fair Value | 55.67 | 0 | 55.67 | ||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 31.89 | $ 31.89 | $ 31.89 | ||||
Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 702,340 | 702,340 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||||||
Total fair value of other than options vested | $ 143,000 | 0 | $ 9,849,000 | 12,792,000 | |||
2017 PSU Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 184,779 | 184,779 | |||||
2018 PSU Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 195,182 | 195,182 | |||||
2019 PSU Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 322,379 | 322,379 | |||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||
Award Requisite Service Period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||||||
Total intrinsic value of stock options exercised | $ 0 | $ 220,000 | $ 42,000 | $ 228,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term | 7 years |
Share-Based Plans Share-Based P
Share-Based Plans Share-Based Plans - Options (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Nov. 02, 2019 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding stock options, beginning balance | 153,751 | 153,751 | 237,501 | 237,501 | |
Exercised | 0 | 0 | (6,250) | ||
Forfeited | (5,000) | 0 | (77,500) | ||
Outstanding stock options, ending balance | 148,751 | 153,751 | 153,751 | 148,751 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Options, Vested and Expected to Vest, Outstanding, Number | 148,751 | 148,751 | |||
Options, Exercisable, Number | 148,751 | 148,751 | |||
Options, Outstanding, Weighted Average Exercise Price | $ 35.93 | $ 35.76 | $ 35.76 | $ 35.93 | $ 38.30 |
Options, Exercises in Period, Weighted Average Exercise Price | 0 | 0 | 32.04 | ||
Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 30.82 | $ 0 | $ 43.85 | ||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 35.93 | 35.93 | |||
Options, Exercisable, Weighted Average Exercise Price | $ 35.93 | $ 35.93 | |||
Options, Outstanding, Weighted Average Remaining Contractual Term | 4 months 24 days | 7 months 6 days | 10 months 24 days | ||
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 4 months 24 days | ||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 4 months 24 days | ||||
Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | $ 288 | $ 0 | |
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 0 | 0 | |||
Options, Exercisable, Intrinsic Value | $ 0 | $ 0 | |||
Award Requisite Service Period | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Term | 7 years |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Nov. 02, 2019USD ($) |
Income Tax Contingency [Line Items] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ (4) |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
May 04, 2019USD ($) | |
California Wage and Hour Matters [Member] | Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Loss in Period | $ 7.3 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | $ 3,600 | $ 19,500 | $ 15,300 |
Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 10,730 | 6,450 | 0 |
Restructuring Charges | 0 | 7,344 | 7,253 |
Payments for Restructuring | (5,276) | (1,882) | (803) |
Restructuring Reserve, Accrual Adjustment | (347) | (1,182) | 0 |
Restructuring Reserve | $ 5,107 | $ 10,730 | $ 6,450 |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,167,988 | $ 1,149,402 | $ 3,716,198 | $ 3,639,554 |
Furniture [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 344,103 | 313,450 | 1,031,357 | 941,022 |
Soft Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 206,493 | 203,328 | 606,397 | 585,850 |
Consumables [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 198,467 | 194,480 | 581,925 | 573,215 |
Food [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 180,687 | 185,641 | 530,970 | 549,576 |
Seasonal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 94,225 | 90,824 | 523,822 | 508,397 |
Hard Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 79,833 | 92,275 | 243,584 | 271,916 |
Electronics, Toys, & Accessories [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 64,180 | $ 69,404 | $ 198,143 | $ 209,578 |
Derivative Instruments (Details
Derivative Instruments (Details) number in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Nov. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Feb. 02, 2019USD ($) | |
Fuel [Member] | |||||
Derivative [Line Items] | |||||
Derivative, Nonmonetary Notional Amount | 4,500 | 4,500 | 7,200 | ||
Energy Related Derivative [Member] | |||||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||||
Derivative, Fair Value, Net | $ (812) | $ (812) | $ (685) | ||
Energy Related Derivative [Member] | Other Nonoperating Income (Expense) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Sale of Commodity Contracts | (47) | $ 154 | (71) | $ 279 | |
Unrealized Gain (Loss) on Commodity Contracts | (278) | (102) | (126) | 460 | |
Derivative, Gain (Loss) on Derivative, Net | (325) | $ 52 | (197) | $ 739 | |
Energy Related Derivative [Member] | Other Current Assets [Member] | |||||
Derivative Asset [Abstract] | |||||
Derivative Asset, Current | 157 | 157 | 523 | ||
Energy Related Derivative [Member] | Other Assets [Member] | |||||
Derivative Asset [Abstract] | |||||
Derivative asset, Other assets | 297 | 297 | 203 | ||
Energy Related Derivative [Member] | Accrued Operating Expenses [Member] | |||||
Derivative Liability [Abstract] | |||||
Derivative Liability, Current | (672) | (672) | (586) | ||
Energy Related Derivative [Member] | Other Liabilities [Member] | |||||
Derivative Liability [Abstract] | |||||
Derivative Liability, Other Liabilities | $ (594) | $ (594) | $ (825) |
Gain on Sale of Distribution _2
Gain on Sale of Distribution Center (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2019 | Nov. 03, 2018 | Nov. 02, 2019 | Nov. 03, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Gain on sale of distribution center | $ 178,534 | $ 0 | $ 178,534 | $ 0 |
Land and Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Net Proceeds from Sale of Real Estate | 190,300 | |||
Gain on sale of distribution center | $ 178,500 |