Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Aug. 01, 2020 | Sep. 04, 2020 | |
Document Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 1, 2020 | |
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 | 39,257,039 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 | 6 Months Ended | ||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Net sales | $ 1,644,197 | $ 1,252,414 | $ 3,083,346 | $ 2,548,210 |
Cost of sales (exclusive of depreciation expense shown separately below) | 960,633 | 754,184 | 1,829,026 | 1,530,933 |
Gross margin | 683,564 | 498,230 | 1,254,320 | 1,017,277 |
Selling and administrative expenses | 504,000 | 455,026 | 962,631 | 915,631 |
Depreciation expense | 33,974 | 30,023 | 71,664 | 62,820 |
Gain on sale of distribution centers | (463,053) | 0 | (463,053) | 0 |
Operating profit | 608,643 | 13,181 | 683,078 | 38,826 |
Interest expense | (2,548) | (4,565) | (5,870) | (8,298) |
Other income (expense) | 1,357 | (789) | (1,960) | 121 |
Income before income taxes | 607,452 | 7,827 | 675,248 | 30,649 |
Income tax expense | 155,480 | 1,649 | 173,953 | 8,931 |
Net income and comprehensive income | $ 451,972 | $ 6,178 | $ 501,295 | $ 21,718 |
Earnings per common share | ||||
Earnings per common share - basic (in dollars per share) | $ 11.52 | $ 0.16 | $ 12.79 | $ 0.55 |
Earnings per common share - diluted (in dollars per share) | $ 11.29 | $ 0.16 | $ 12.66 | $ 0.55 |
Weighted-average common shares outstanding: | ||||
Basic | 39,239 | 39,000 | 39,184 | 39,461 |
Dilutive effect of share-based awards | 801 | 77 | 419 | 83 |
Diluted | 40,040 | 39,077 | 39,603 | 39,544 |
Cash dividends declared per common share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 01, 2020 | Feb. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 898,560 | $ 52,721 |
Inventories | 713,504 | 921,266 |
Other current assets | 83,956 | 89,962 |
Total current assets | 1,696,020 | 1,063,949 |
Operating lease right-of-use assets | 1,663,020 | 1,202,252 |
Property and equipment - net | 727,091 | 849,147 |
Deferred income taxes | 16,597 | 4,762 |
Other assets | 66,762 | 69,171 |
Total assets | 4,169,490 | 3,189,281 |
Current liabilities: | ||
Accounts payable | 379,409 | 378,241 |
Current operating lease liabilities | 206,088 | 212,144 |
Property, payroll, and other taxes | 93,829 | 82,109 |
Accrued operating expenses | 137,428 | 118,973 |
Insurance reserves | 35,360 | 36,131 |
Accrued salaries and wages | 44,755 | 39,292 |
Income taxes payable | 179,821 | 3,930 |
Total current liabilities | 1,076,690 | 870,820 |
Long-term debt | 43,074 | 279,464 |
Noncurrent operating lease liabilities | 1,472,307 | 1,035,377 |
Deferred income taxes | 4,639 | 48,610 |
Insurance reserves | 56,333 | 57,567 |
Unrecognized tax benefits | 10,442 | 10,722 |
Other liabilities | 177,845 | 41,257 |
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 39,251 shares and 39,037 shares, respectively | 1,175 | 1,175 |
Treasury shares - 78,244 shares and 78,458 shares, respectively, at cost | (2,537,359) | (2,546,232) |
Additional paid-in capital | 617,496 | 620,728 |
Retained earnings | 3,246,848 | 2,769,793 |
Total shareholders' equity | 1,328,160 | 845,464 |
Total liabilities and shareholders' equity | $ 4,169,490 | $ 3,189,281 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Aug. 01, 2020 | Feb. 01, 2020 |
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 | 39,251 | 39,037 |
Treasury Stock, Shares | 78,244 | 78,458 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | 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]Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member]Performance Shares [Member] |
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 | |||||||||||
Treasury stock (in shares) at Feb. 02, 2019 | 77,453 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | 21,718 | $ 0 | $ 0 | 0 | 21,718 | |||||||
Dividends declared | (24,402) | 0 | 0 | 0 | (24,402) | |||||||
Purchases of common shares | (54,919) | $ 0 | $ (54,919) | 0 | 0 | |||||||
Purchases of common shares, (in shares) | (1,456) | 1,456 | ||||||||||
Exercise of stock options | 200 | $ 0 | $ 202 | (2) | 0 | |||||||
Exercise of stock options (in shares) | 6 | (6) | ||||||||||
Restricted shares vested | 0 | $ 0 | $ 4,995 | (4,995) | 0 | |||||||
Restricted shares vested, (in shares) | 154 | (154) | ||||||||||
Performance shares vested | $ 0 | $ 0 | $ 8,255 | $ (8,255) | $ 0 | |||||||
Performance shares vested (in shares) | 255 | (255) | ||||||||||
Other | (3) | $ 0 | $ (3) | 0 | 0 | |||||||
Other | Accounting Standards Update 2016-02 [Member] | $ 348 | $ 348 | ||||||||||
Other (in shares) | 0 | 0 | ||||||||||
Share-based employee compensation expense | 8,560 | $ 0 | $ 0 | 8,560 | 0 | |||||||
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 | |||||||||||
Balance at May. 04, 2019 | 648,331 | $ 1,175 | $ (2,545,967) | 614,174 | 2,578,949 | |||||||
Balance (in shares) at May. 04, 2019 | 39,042 | |||||||||||
Treasury stock (in shares) at May. 04, 2019 | 78,453 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | 6,178 | $ 0 | $ 0 | 0 | 6,178 | |||||||
Dividends declared | (12,196) | 0 | 0 | 0 | (12,196) | |||||||
Purchases of common shares | (1,994) | $ 0 | $ (1,994) | 0 | 0 | |||||||
Purchases of common shares, (in shares) | (53) | 53 | ||||||||||
Exercise of stock options | 0 | $ 0 | $ 0 | 0 | 0 | |||||||
Exercise of stock options (in shares) | 0 | 0 | ||||||||||
Restricted shares vested | 0 | $ 0 | $ 406 | (406) | 0 | |||||||
Restricted shares vested, (in shares) | 12 | (12) | ||||||||||
Performance shares vested | 0 | $ 0 | $ 0 | 0 | 0 | |||||||
Performance shares vested (in shares) | 0 | 0 | ||||||||||
Other | (1) | $ 0 | $ (1) | 0 | 0 | |||||||
Other (in shares) | 0 | 0 | ||||||||||
Share-based employee compensation expense | 4,225 | $ 0 | $ 0 | 4,225 | 0 | |||||||
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 | |||||||||||
Balance at Feb. 01, 2020 | $ 845,464 | $ 1,175 | $ (2,546,232) | 620,728 | 2,769,793 | |||||||
Balance (in shares) at Feb. 01, 2020 | 39,037 | 39,037 | ||||||||||
Treasury stock (in shares) at Feb. 01, 2020 | 78,458 | 78,458 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Dividends declared | $ (11,905) | |||||||||||
Balance at May. 02, 2020 | 883,933 | $ 1,175 | $ (2,538,276) | 613,823 | 2,807,211 | |||||||
Balance (in shares) at May. 02, 2020 | 39,223 | |||||||||||
Treasury stock (in shares) at May. 02, 2020 | 78,272 | |||||||||||
Balance at Feb. 01, 2020 | $ 845,464 | $ 1,175 | $ (2,546,232) | 620,728 | 2,769,793 | |||||||
Balance (in shares) at Feb. 01, 2020 | 39,037 | 39,037 | ||||||||||
Treasury stock (in shares) at Feb. 01, 2020 | 78,458 | 78,458 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | $ 501,295 | $ 0 | $ 0 | 0 | 501,295 | |||||||
Dividends declared | (24,240) | 0 | 0 | 0 | (24,240) | |||||||
Purchases of common shares | (1,951) | $ 0 | $ (1,951) | 0 | 0 | |||||||
Purchases of common shares, (in shares) | (119) | 119 | ||||||||||
Exercise of stock options | 98 | $ 0 | $ 91 | 7 | 0 | |||||||
Exercise of stock options (in shares) | 3 | (3) | ||||||||||
Restricted shares vested | 0 | $ 0 | $ 8,577 | (8,577) | 0 | |||||||
Restricted shares vested, (in shares) | 264 | (264) | ||||||||||
Performance shares vested | 0 | $ 0 | $ 2,107 | (2,107) | 0 | |||||||
Performance shares vested (in shares) | 65 | (65) | ||||||||||
Other | 56 | $ 0 | $ 49 | 7 | 0 | |||||||
Other (in shares) | 1 | (1) | ||||||||||
Share-based employee compensation expense | 7,438 | $ 0 | $ 0 | 7,438 | 0 | |||||||
Balance at Aug. 01, 2020 | $ 1,328,160 | $ 1,175 | $ (2,537,359) | 617,496 | 3,246,848 | |||||||
Balance (in shares) at Aug. 01, 2020 | 39,251 | 39,251 | ||||||||||
Treasury stock (in shares) at Aug. 01, 2020 | 78,244 | 78,244 | ||||||||||
Balance at May. 02, 2020 | $ 883,933 | $ 1,175 | $ (2,538,276) | 613,823 | 2,807,211 | |||||||
Balance (in shares) at May. 02, 2020 | 39,223 | |||||||||||
Treasury stock (in shares) at May. 02, 2020 | 78,272 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Comprehensive income | 451,972 | $ 0 | $ 0 | 0 | 451,972 | |||||||
Dividends declared | (12,335) | 0 | 0 | 0 | (12,335) | |||||||
Purchases of common shares | (11) | $ 0 | $ (11) | 0 | 0 | |||||||
Purchases of common shares, (in shares) | 0 | 0 | ||||||||||
Exercise of stock options | 98 | $ 0 | $ 91 | 7 | 0 | |||||||
Exercise of stock options (in shares) | 3 | (3) | ||||||||||
Restricted shares vested | 0 | $ 0 | $ 795 | (795) | 0 | |||||||
Restricted shares vested, (in shares) | 24 | (24) | ||||||||||
Performance shares vested | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Performance shares vested (in shares) | 0 | 0 | ||||||||||
Other | 50 | $ 0 | $ 42 | 8 | 0 | |||||||
Other (in shares) | 1 | (1) | ||||||||||
Share-based employee compensation expense | 4,453 | $ 0 | $ 0 | 4,453 | 0 | |||||||
Balance at Aug. 01, 2020 | $ 1,328,160 | $ 1,175 | $ (2,537,359) | $ 617,496 | $ 3,246,848 | |||||||
Balance (in shares) at Aug. 01, 2020 | 39,251 | 39,251 | ||||||||||
Treasury stock (in shares) at Aug. 01, 2020 | 78,244 | 78,244 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per common share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.60 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 01, 2020 | Aug. 03, 2019 | |
Operating activities: | ||
Net income | $ 501,295 | $ 21,718 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 71,924 | 63,259 |
Non-cash lease amortization expense | 118,170 | 114,348 |
Deferred income taxes | (55,806) | (7,551) |
Non-cash impairment charge | 658 | 2,914 |
(Gain) loss on disposition of property and equipment | (462,744) | 130 |
Non-cash share-based compensation expense | 7,438 | 8,560 |
Unrealized loss (gain) on fuel derivatives | 1,438 | (152) |
Change in assets and liabilities | ||
Inventories | 207,762 | 95,504 |
Accounts payable | 1,168 | (51,548) |
Operating lease liabilities | (148,722) | (93,364) |
Current income taxes | 191,488 | (10,944) |
Other current assets | (9,768) | (23,597) |
Other current liabilities | 28,938 | 43,344 |
Other assets | 2,512 | (2,578) |
Other liabilities | 12,633 | (1,758) |
Net cash provided by operating activities | 468,384 | 158,285 |
Investing activities: | ||
Capital expenditures | (69,402) | (162,840) |
Cash proceeds from sale of property and equipment | 587,010 | 127 |
Other | (22) | (18) |
Net cash provided by (used in) investing activities | 517,586 | (162,731) |
Financing activities: | ||
Net (repayments of) proceeds from long-term debt | (236,155) | 93,700 |
Net financing proceeds from sale and leaseback | 124,074 | 0 |
Payment of finance lease obligations | 1,968 | 1,946 |
Dividends paid | (24,285) | (24,915) |
Proceeds from the exercise of stock options | 98 | 200 |
Payment for treasury shares acquired | (1,951) | (54,919) |
Other | 56 | (3) |
Net cash (used in) provided by financing activities | (140,131) | 12,117 |
Increase in cash and cash equivalents | 845,839 | 7,671 |
Cash and cash equivalents: | ||
Beginning of period | 52,721 | 46,034 |
End of period | $ 898,560 | $ 53,705 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
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 2020 and the year-to-date 2019: Twenty-Six Weeks Ended (In thousands) August 1, 2020 August 3, 2019 Supplemental disclosure of cash flow information: Cash paid for interest $ 5,338 $ 8,662 Cash paid for income taxes, excluding impact of refunds 38,356 27,779 Gross proceeds from long-term debt 514,500 866,500 Gross payments of long-term debt 750,655 772,800 Gross financing proceeds from sale and leaseback 133,999 — Gross repayments of financing from sale and leaseback 9,925 — Cash paid for operating lease liabilities 189,263 144,318 Non-cash activity: Assets acquired under finance leases — 70,831 Accrued property and equipment 22,057 44,458 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 572,949 $ 1,383,557 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 01, 2020 | |
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 neighborhood discount retailer operating in the United States (“U.S.”). At August 1, 2020, we operated 1,404 stores in 47 states and an e-commerce platform. 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, including as a result of the COVID-19 coronavirus pandemic, which has disrupted and may continue to disrupt our business. We have historically experienced seasonal fluctuations, with a larger percentage of our net sales and operating profit realized in our fourth fiscal quarter. However, due to demand volatility we have experienced during the COVID-19 coronavirus pandemic, the seasonality of our 2020 results may differ from our historical experience. 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 1, 2020 (“2019 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 2020 (“2020”) is comprised of the 52 weeks that began on February 2, 2020 and will end on January 30, 2021. Fiscal year 2019 (“2019”) was comprised of the 52 weeks that began on February 3, 2019 and ended on February 1, 2020. The fiscal quarters ended August 1, 2020 (“second quarter of 2020”) and August 3, 2019 (“second quarter of 2019”) were both comprised of 13 weeks. The year-to-date periods ended August 1, 2020 (“year-to-date 2020") and August 3, 2019 (“year-to-date 2019”) were both comprised of 26 weeks. Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, credit and debit card receivables, and highly liquid investments, including money market funds and commercial paper, which are unrestricted to withdrawal or use and which have an original maturity of three months or less. We review cash and cash equivalent balances on a bank by bank basis in order to identify book overdrafts. Book overdrafts occur when the aggregate amount of outstanding checks and electronic fund transfers exceed the cash deposited at a given bank. We reclassify book overdrafts, if any, to accounts payable on our consolidated balance sheets. 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 $59.7 million and $43.2 million for the second quarter of 2020 and the second quarter of 2019, respectively, and $112.0 million and $88.3 million for the year-to-date 2020 and the year-to-date 2019, respectively. Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, social media, 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 $21.9 million and $17.3 million for the second quarter of 2020 and the second quarter of 2019, respectively, and $44.8 million and $39.7 million for the year-to-date 2020 and the year-to-date 2019, 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. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for the year-to-date 2020 and the year-to-date 2019: Twenty-Six Weeks Ended (In thousands) August 1, 2020 August 3, 2019 Supplemental disclosure of cash flow information: Cash paid for interest $ 5,338 $ 8,662 Cash paid for income taxes, excluding impact of refunds 38,356 27,779 Gross proceeds from long-term debt 514,500 866,500 Gross payments of long-term debt 750,655 772,800 Gross financing proceeds from sale and leaseback 133,999 — Gross repayments of financing from sale and leaseback 9,925 — Cash paid for operating lease liabilities 189,263 144,318 Non-cash activity: Assets acquired under finance leases — 70,831 Accrued property and equipment 22,057 44,458 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 572,949 $ 1,383,557 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 |
Debt
Debt | 6 Months Ended |
Aug. 01, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bank Credit Facility On August 31, 2018, we entered into a $700 million five 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. The covenants of the 2018 Credit Agreement do not restrict our ability to pay dividends. Additionally, we are subject to cross-default provisions associated with the synthetic lease for our distribution center in Apple Valley, 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 August 1, 2020, we had no borrowings outstanding under the 2018 Credit Agreement, while $11.4 million was committed to outstanding letters of credit, leaving $688.6 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 Apple Valley, 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) August 1, 2020 February 1, 2020 2019 Term Note $ 57,336 $ 64,291 2018 Credit Agreement — 229,200 Total debt $ 57,336 $ 293,491 Less current portion of long-term debt (included in Accrued operating expenses) $ (14,262) $ (14,027) Long-term debt $ 43,074 $ 279,464 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In the second quarter of 2020, we invested a portion of the proceeds from the sale and leaseback of four distribution centers (see note 9 for additional information on the sale and leaseback transactions) in money market fund investments and commercial paper investments. These highly liquid investments were recorded in cash and cash equivalents in our consolidated balance sheets at their fair value. The fair values of the money market 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 the commercial paper investments were Level 2 valuations under the fair value hierarchy because the instruments’ market values were determined based on quoted market prices in active markets. In connection with our nonqualified deferred compensation plan, we had mutual fund investments, which 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. As of August 1, 2020, the fair value of our investments were recorded in our consolidated balance sheets as follows: (In thousands) Balance Sheet Location August 1, Level 1 Level 2 Assets: Money market funds Cash and cash equivalents $ 280,008 $ 280,008 $ — Commercial paper Cash and cash equivalents 299,907 — 299,907 Mutual funds - deferred compensation plan Other Assets $ 30,626 $ 30,626 $ — As of February 1, 2020, the fair value of our investments were recorded in our consolidated balance sheets as follows: (In thousands) Balance Sheet Location February 1, Level 1 Level 2 Assets: Money market funds Cash and cash equivalents $ — $ — $ — Commercial paper Cash and cash equivalents — — — Mutual funds - deferred compensation plan Other Assets $ 33,715 $ 33,715 $ — 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. The carrying value of these instruments was $0 as of August 1, 2020. 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. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Aug. 01, 2020 | |
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 August 1, 2020 and August 3, 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 August 1, 2020 and August 3, 2019, respectively. For the second quarter of 2020 , it was determined that an immaterial amount of stock options outstanding were antidilutive and excluded from the computation of diluted earnings per share, and for the second quarter of 2019 , there were 0.2 million stock option s outstanding that were antidilutive. Antidilutive stock options for the year-to-date 2020 and the year-to-date 2019 were immaterial and 0.2 million, respectively. 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 immaterial and 0.5 million for the second quarter of 2020 and the second quarter of 2019, respectively, and 0.3 million and 0.4 million for the year-to-date 2020 and the year-to-date 2019, respectively. Dividends The Company declared and paid cash dividends per common share during the quarterly periods presented as follows: Dividends Amount Declared Amount Paid 2020: (In thousands) (In thousands) First quarter $ 0.30 $ 11,905 $ 12,478 Second quarter 0.30 12,335 11,807 Total $ 0.60 $ 24,240 $ 24,285 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, which accrue dividend equivalent rights that are paid when the award vests. The payment of future dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by our Board of Directors. |
Share-Based Plans
Share-Based Plans | 6 Months Ended |
Aug. 01, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PLANS | SHARE-BASED PLANS We have issued nonqualified stock options, restricted stock units, and performance share units under our shareholder-approved equity compensation plans. At August 1, 2020, the number of nonqualified stock options outstanding was immaterial. 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 $4.5 million and $4.2 million in the second quarter of 2020 and the second quarter of 2019, respectively, and $7.4 million and $8.6 million for the year-to-date 2020 and the year-to-date 2019, respectively. Non-vested Restricted Stock Units The following table summarizes the non-vested restricted stock units activity for the year-to-date 2020 : Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock units at February 1, 2020 648,510 $ 38.52 Granted 921,309 15.82 Vested (239,856) 43.07 Forfeited (1,511) 38.06 Outstanding non-vested restricted stock units at May 2, 2020 1,328,452 $ 21.95 Granted 74,244 33.20 Vested (24,498) 27.99 Forfeited (41,074) 25.26 Outstanding non-vested restricted stock units at August 1, 2020 1,337,124 $ 22.35 The non-vested restricted stock units granted in the year-to-date 2020 generally vest and are expensed on a ratable basis over three years from the grant date of the award, if a threshold financial performance objective is achieved and the grantee remains employed by us through the vesting dates. Non-vested Restricted Stock Units Granted to Non-Employee Directors In the second quarter of 2020, 44,229 common shares underlying the restricted stock units granted in 2019 to the non-employee members of our Board vested on the trading day immediately preceding our 2020 Annual Meeting of Shareholders (“2020 Annual Meeting”). These units were part of the annual compensation of the non-employee directors of the Board. Additionally, in the second quarter of 2020, 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 2020 Annual Meeting each received an annual restricted stock unit grant having a grant date fair value of approximately $145,000. The 2020 restricted stock units will vest on the earlier of (1) the trading day immediately preceding our 2021 Annual Meeting of Shareholders, or (2) the non-employee director's death or disability. However, the non-employee directors will forfeit their restricted stock units if their service on the Board terminates before either vesting event occurs. Performance Share Units In 2020 , we awarded performance share units with a restriction feature (“RPSUs”) to certain members of senior management, which vest based on the achievement of share price performance goals and a minimum service requirement of one year. The RPSUs have a contractual term of three years. We use a Monte Carlo simulation to estimate the fair value of the RPSUs on the grant date and recognize expense over the derived service period. If the share price performance goals applicable to the RPSUs are not achieved prior to expiration, the unvested portion of the awards will be forfeited. Shares issued in connection with vested RPSUs are generally restricted from sale, transfer, or other disposition prior to the third anniversary of the grant date except under certain circumstances, including death, disability, or change in control. Prior to 2020, 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. Typically, the financial performance objectives for each fiscal year within the three-year performance period will be approved by the Compensation Committee of our Board of Directors during the first quarter of the respective fiscal year. In 2020, due to the lack of business visibility resulting from the COVID-19 pandemic, the Compensation Committee chose to defer the establishment of the 2020 performance objectives until later in the 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. As a result of the Compensation Committee’s decision to defer establishment of the 2020 performance objectives for PSUs, the financial performance objectives for the third fiscal year of the PSUs issued in 2018 were not established prior to the end of the second quarter of 2020 and the grant date for the 2018 PSUs was not established as of the end of the second quarter of 2020. Subsequent to the end of the second quarter of 2020, in August 2020, the Compensation Committee established the financial performance objectives for the third fiscal year of PSUs issued in 2018; therefore, the 2018 PSUs were deemed granted in August 2020. We have begun or expect to begin recognizing expense related to PSUs and RPSUs as follows: Issue Year Outstanding PSUs and RPSUs at August 1, 2020 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2018 170,612 August 2020 Fiscal 2020 2019 309,705 March 2021 Fiscal 2021 2020 400,572 April 2020 Fiscal 2020 - 2021 Total 880,889 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. We recognized $1.2 million and $1.0 million in the second quarter of 2020 and 2019, respectively, and $1.6 million and $2.2 million in the year-to-date 2020 and 2019 respectively, of share-based compensation expense related to PSUs. The following table summarizes the activity related to PSUs and RPSUs for the year-to-date 2020 : Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs and RPSUs at February 1, 2020 181,922 $ 31.89 Granted 408,340 11.70 Vested (181,062) 31.89 Forfeited (860) 31.89 Outstanding PSUs and RPSUs at May 2, 2020 408,340 $ 11.70 Granted 4,682 29.44 Vested — — Forfeited (12,450) 11.70 Outstanding PSUs and RPSUs at August 1, 2020 400,572 $ 11.90 The following activity occurred under our share-based plans during the respective periods shown: Second Quarter Year-to-Date (In thousands) 2020 2019 2020 2019 Total intrinsic value of stock options exercised $ 12 $ — $ 12 $ 42 Total fair value of restricted stock vested 849 341 4,890 5,383 Total fair value of performance shares vested $ — $ — $ 924 $ 9,706 The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2018 and 2019, at August 1, 2020 was approximately $26.6 million. This compensation cost is expected to be recognized through July 2023 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 2.0 years from August 1, 2020. |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESWe have estimated the reasonably possible expected net change in unrecognized tax benefits through August 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 $5.0 million. Actual results may differ materially from this estimate. |
Contingencies
Contingencies | 6 Months Ended |
Aug. 01, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES California Wage and Hour Matters We currently are defending several purported wage and hour class actions in California. The cases were brought by various current and/or former California associates alleging various violations of California wage and hour laws. During the first quarter of 2019, upon consideration of these matters, including outcomes of cases against other retailers, 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. We intend to defend ourselves vigorously against the allegations levied in the remaining lawsuits. 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. |
Business Segment Data
Business Segment Data | 6 Months Ended |
Aug. 01, 2020 | |
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, apparel, 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: Second Quarter Year-to-Date (In thousands) 2020 2019 2020 2019 Furniture $ 439,737 $ 303,358 $ 855,438 $ 687,255 Seasonal 299,700 246,106 496,021 429,597 Soft Home 286,556 190,767 516,378 399,904 Consumables 225,251 196,955 462,492 383,457 Food 185,011 169,157 388,830 350,282 Hard Home 110,610 81,891 191,777 163,751 Electronics, Toys, & Accessories 97,332 64,180 172,410 133,964 Net sales $ 1,644,197 $ 1,252,414 $ 3,083,346 $ 2,548,210 |
Gain on Sale of Distribution Ce
Gain on Sale of Distribution Centers | 6 Months Ended |
Aug. 01, 2020 | |
Gain (Loss) on Disposition of Property Plant Equipment [Abstract] | |
GAIN ON SALE OF DISTRIBUTION CENTERS | GAIN ON SALE OF DISTRIBUTION CENTERS On June 12, 2020, we completed sale and leaseback transactions for our distribution centers located in Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA. The aggregate sale price for the transactions was $725.0 million. Due to sale-leaseback accounting requirements, the proceeds received in the transactions were allocated between proceeds on the sale of the distribution centers and financing proceeds. Accordingly, aggregate net proceeds, before income taxes, on the sales of the distribution centers were $586.9 million and the aggregate gain on the sales was $463.1 million. Additionally, we incurred $4.0 million of additional selling and administrative expenses in connection with the transaction, which primarily consisted of consulting services. The remainder of consideration received was financing liability proceeds of $134.0 million. The current portion of the financing liability was recorded in accrued operating expenses in our consolidated balance sheets. The noncurrent portion of the financing liability was recorded in other liabilities in our consolidated balance sheets. Interest expense will be recognized on the financing liability using the effective interest method and the financing liability will be accreted over the duration of the lease agreements. Future payments to the buyer-lessor will be allocated between the financing liability and the lease liabilities. The leases for the Columbus, OH and Montgomery, AL distribution centers each have an initial term of 15 years and multiple five-year extension options. The leases for the Durant, OK and Tremont, PA distribution centers each have an initial term of 20 years and multiple five-year extension options. At commencement of the leases, we recorded aggregate operating lease liabilities of $466.1 million and aggregate operating lease right-of-use assets of $466.1 million. The weighted average discount rate for the leases was 6.2%. All of the leases are absolute net. Additionally, all of the leases include a right of first refusal beginning after the fifth year of the initial term which allows us to purchase the leased property if the buyer-lessor receives a bona fide purchase offer from a third-party. In connection with our entrance into the sale and leaseback transactions, we agreed to repay all borrowings outstanding under the 2018 Credit Agreement and restrict our borrowings under the 2018 Credit Agreement for 90 days following closing of the transactions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Aug. 01, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTOn August 27, 2020, our Board of Directors authorized the repurchase of up to $500.0 million of our common shares (“2020 Repurchase Authorization”). Pursuant to the 2020 Repurchase Authorization, we may repurchase shares in the open market and/or in privately negotiated transactions at our discretion, subject to market conditions and other factors. Common shares acquired through the 2020 Repurchase Authorization will be available to meet obligations under our equity compensation plans and for general corporate purposes. The 2020 Repurchase Authorization has no scheduled termination date. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 01, 2020 | |
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 2020 (“2020”) is comprised of the 52 weeks that began on February 2, 2020 and will end on January 30, 2021. Fiscal year 2019 (“2019”) was comprised of the 52 weeks that began on February 3, 2019 and ended on February 1, 2020. The fiscal quarters ended August 1, 2020 (“second quarter of 2020”) and August 3, 2019 (“second quarter of 2019”) were both comprised of 13 weeks. The year-to-date periods ended August 1, 2020 (“year-to-date 2020") and August 3, 2019 (“year-to-date 2019”) were both comprised of 26 weeks. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, credit and debit card receivables, and highly liquid investments, including money market funds and commercial paper, which are unrestricted to withdrawal or use and which have an original maturity of three months or less. We review cash and cash equivalent balances on a bank by bank basis in order to identify book overdrafts. Book overdrafts occur when the aggregate amount of outstanding checks and electronic fund transfers exceed the cash deposited at a given bank. We reclassify book overdrafts, if any, to accounts payable on our consolidated balance sheets. |
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 $59.7 million and $43.2 million for the second quarter of 2020 and the second quarter of 2019, respectively, and $112.0 million and $88.3 million for the year-to-date 2020 and the year-to-date 2019, respectively. |
Advertising Cost [Policy Text Block] | Advertising Expense Advertising costs, which are expensed as incurred, consist primarily of television and print advertising, digital, social media, 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 $21.9 million and $17.3 million for the second quarter of 2020 and the second quarter of 2019, respectively, and $44.8 million and $39.7 million for the year-to-date 2020 and the year-to-date 2019, 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. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassification of Merchandise CategoriesWe 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 StandardsIn August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15 Intangibles - Goodwill and Other - Internal-Use Software. This update evaluates the accounting for costs paid by a customer to implement a cloud computing arrangement. The new guidance aligns cloud computing arrangement implementation cost accounting with the capitalization requirements for internal-use software development, while leaving the accounting for service elements unchanged. On February 2, 2020, we adopted ASU 2018-15 on a prospective basis. The impact of the adoption was immaterial to the consolidated financial statements. |
Debt Long-term Debt (Tables)
Debt Long-term Debt (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
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) August 1, 2020 February 1, 2020 2019 Term Note $ 57,336 $ 64,291 2018 Credit Agreement — 229,200 Total debt $ 57,336 $ 293,491 Less current portion of long-term debt (included in Accrued operating expenses) $ (14,262) $ (14,027) Long-term debt $ 43,074 $ 279,464 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of August 1, 2020, the fair value of our investments were recorded in our consolidated balance sheets as follows: (In thousands) Balance Sheet Location August 1, Level 1 Level 2 Assets: Money market funds Cash and cash equivalents $ 280,008 $ 280,008 $ — Commercial paper Cash and cash equivalents 299,907 — 299,907 Mutual funds - deferred compensation plan Other Assets $ 30,626 $ 30,626 $ — As of February 1, 2020, the fair value of our investments were recorded in our consolidated balance sheets as follows: (In thousands) Balance Sheet Location February 1, Level 1 Level 2 Assets: Money market funds Cash and cash equivalents $ — $ — $ — Commercial paper Cash and cash equivalents — — — Mutual funds - deferred compensation plan Other Assets $ 33,715 $ 33,715 $ — |
Shareholders' Equity Dividends
Shareholders' Equity Dividends Declared (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
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 2020: (In thousands) (In thousands) First quarter $ 0.30 $ 11,905 $ 12,478 Second quarter 0.30 12,335 11,807 Total $ 0.60 $ 24,240 $ 24,285 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
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 2020 : Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock units at February 1, 2020 648,510 $ 38.52 Granted 921,309 15.82 Vested (239,856) 43.07 Forfeited (1,511) 38.06 Outstanding non-vested restricted stock units at May 2, 2020 1,328,452 $ 21.95 Granted 74,244 33.20 Vested (24,498) 27.99 Forfeited (41,074) 25.26 Outstanding non-vested restricted stock units at August 1, 2020 1,337,124 $ 22.35 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs and RPSUs for the year-to-date 2020 : Number of Units Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs and RPSUs at February 1, 2020 181,922 $ 31.89 Granted 408,340 11.70 Vested (181,062) 31.89 Forfeited (860) 31.89 Outstanding PSUs and RPSUs at May 2, 2020 408,340 $ 11.70 Granted 4,682 29.44 Vested — — Forfeited (12,450) 11.70 Outstanding PSUs and RPSUs at August 1, 2020 400,572 $ 11.90 |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | The following activity occurred under our share-based plans during the respective periods shown: Second Quarter Year-to-Date (In thousands) 2020 2019 2020 2019 Total intrinsic value of stock options exercised $ 12 $ — $ 12 $ 42 Total fair value of restricted stock vested 849 341 4,890 5,383 Total fair value of performance shares vested $ — $ — $ 924 $ 9,706 |
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 and RPSUs as follows: Issue Year Outstanding PSUs and RPSUs at August 1, 2020 Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2018 170,612 August 2020 Fiscal 2020 2019 309,705 March 2021 Fiscal 2021 2020 400,572 April 2020 Fiscal 2020 - 2021 Total 880,889 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 6 Months Ended |
Aug. 01, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: Second Quarter Year-to-Date (In thousands) 2020 2019 2020 2019 Furniture $ 439,737 $ 303,358 $ 855,438 $ 687,255 Seasonal 299,700 246,106 496,021 429,597 Soft Home 286,556 190,767 516,378 399,904 Consumables 225,251 196,955 462,492 383,457 Food 185,011 169,157 388,830 350,282 Hard Home 110,610 81,891 191,777 163,751 Electronics, Toys, & Accessories 97,332 64,180 172,410 133,964 Net sales $ 1,644,197 $ 1,252,414 $ 3,083,346 $ 2,548,210 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 01, 2020USD ($)store | Aug. 03, 2019USD ($) | Aug. 01, 2020USD ($)store | Aug. 03, 2019USD ($) | Jan. 30, 2021 | Feb. 01, 2020 | |
Components of Operating Cost and Expense [Abstract] | ||||||
Number of Stores | store | 1,404 | 1,404 | ||||
Number of States in which Entity Operates | 47 | 47 | ||||
Fiscal Period Duration | 91 days | 91 days | 182 days | 182 days | 364 days | 364 days |
Distribution and Outbound Transportation Costs | $ 59.7 | $ 43.2 | $ 112 | $ 88.3 | ||
Advertising Expense | $ 21.9 | $ 17.3 | $ 44.8 | $ 39.7 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Aug. 01, 2020 | Aug. 03, 2019 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 5,338 | $ 8,662 |
Cash paid for income taxes, excluding impact of refunds | 38,356 | 27,779 |
Gross proceeds from long-term debt | 514,500 | 866,500 |
Gross payments of long-term debt | 750,655 | 772,800 |
Gross financing proceeds from sale and leaseback | 133,999 | 0 |
Gross repayments of financing from sale and leaseback | 9,925 | 0 |
Cash paid for operating lease liabilities | 189,263 | 144,318 |
Non-cash activity: | ||
Assets acquired under finance leases | 0 | 70,831 |
Accrued property and equipment | 22,057 | 44,458 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 572,949 | $ 1,383,557 |
Debt Line of Credit (Details)
Debt Line of Credit (Details) - 2018 Credit Agreement [Member] - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2018 | Aug. 01, 2020 | |
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 | $ 0 | |
Line of Credit Facility, Letters of Credit Outstanding | 11.4 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 688.6 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Thousands | Aug. 01, 2020 | Feb. 01, 2020 | Aug. 07, 2019 |
Debt, Long-term and Short-term, Combined Amount [Abstract] | |||
Total debt | $ 57,336 | $ 293,491 | |
Less current portion of long-term debt (included in Accrued operating expenses | (14,262) | (14,027) | |
Long-term debt | 43,074 | 279,464 | |
2019 Term Note [Member] | |||
Secured Debt [Abstract] | |||
Secured Debt | 57,336 | 64,291 | $ 70,000 |
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 | 57,336 | 64,291 | $ 70,000 |
Line of Credit [Member] | |||
Debt, Long-term and Short-term, Combined Amount [Abstract] | |||
Long-term Line of Credit | $ 0 | $ 229,200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Aug. 01, 2020 | Feb. 01, 2020 |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value Disclosure | $ 30,626 | $ 33,715 |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 280,008 | 0 |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 299,907 | 0 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value Disclosure | 30,626 | 33,715 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 280,008 | 0 |
Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities, Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 299,907 | $ 0 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Class of Stock [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | ||
Stock Options [Member] | ||||
Class of Stock [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | 200,000 | ||
Restricted Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 | 300,000 | 400,000 | |
Performance Shares [Member] | ||||
Class of Stock [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Other Than Stock Options, Restricted Stock Units, and Performance Share Units, Amount | 0 | 0 | 0 | 0 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2020 | May 02, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Equity [Abstract] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.60 | ||
Amount declared (Dividends) | $ 12,335 | $ 11,905 | $ 12,196 | $ 24,240 | $ 24,402 |
Amount paid (Dividends) | $ (11,807) | $ (12,478) | $ (24,285) | $ (24,915) |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2020 | May 02, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Expense | $ 4,500,000 | $ 4,200,000 | $ 7,400,000 | $ 8,600,000 | ||
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 | $ 26,600,000 | $ 26,600,000 | ||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||
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 | $ 22.35 | $ 21.95 | $ 22.35 | $ 38.52 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 33.20 | 15.82 | ||||
Vested in Period, Weighted Average Grant Date Fair Value | 27.99 | 43.07 | ||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 25.26 | $ 38.06 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 849,000 | 341,000 | $ 4,890,000 | 5,383,000 | ||
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 | 1,328,452 | 648,510 | 648,510 | |||
Granted | 74,244 | 921,309 | ||||
Vested | (24,498) | (239,856) | ||||
Forfeited | (41,074) | (1,511) | ||||
Nonvested, ending balance | 1,337,124 | 1,328,452 | 1,337,124 | |||
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 | (44,229) | |||||
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 | $ 1,200,000 | 1,000,000 | $ 1,600,000 | 2,200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, beginning balance | 408,340 | 181,922 | 181,922 | |||
Granted | 4,682 | 408,340 | ||||
Vested | 0 | (181,062) | ||||
Forfeited | (12,450) | (860) | ||||
Nonvested, ending balance | 400,572 | 408,340 | 400,572 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 11.90 | $ 11.70 | $ 11.90 | $ 31.89 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 29.44 | 11.70 | ||||
Vested in Period, Weighted Average Grant Date Fair Value | 0 | 31.89 | ||||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 11.70 | $ 31.89 | ||||
Award Vesting Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 880,889 | 880,889 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 0 | 0 | $ 924,000 | 9,706,000 | ||
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 | 170,612 | 170,612 | ||||
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 | 309,705 | 309,705 | ||||
2020 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 | 400,572 | 400,572 | ||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total intrinsic value of stock options exercised | $ 12,000 | $ 0 | $ 12,000 | $ 42,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Aug. 01, 2020USD ($) |
Income Tax Contingency [Line Items] | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ (5) |
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 |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,644,197 | $ 1,252,414 | $ 3,083,346 | $ 2,548,210 |
Furniture [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 439,737 | 303,358 | 855,438 | 687,255 |
Seasonal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 299,700 | 246,106 | 496,021 | 429,597 |
Soft Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 286,556 | 190,767 | 516,378 | 399,904 |
Consumables [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 225,251 | 196,955 | 462,492 | 383,457 |
Food [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 185,011 | 169,157 | 388,830 | 350,282 |
Hard Home [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 110,610 | 81,891 | 191,777 | 163,751 |
Electronics, Toys, & Accessories [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 97,332 | $ 64,180 | $ 172,410 | $ 133,964 |
Gain on Sale of Distribution _2
Gain on Sale of Distribution Centers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2020 | Aug. 03, 2019 | Aug. 01, 2020 | Aug. 03, 2019 | Jun. 12, 2020 | Feb. 01, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||
Gain on sale of distribution centers | $ 463,053 | $ 0 | $ 463,053 | $ 0 | ||
Gross financing proceeds from sale and leaseback | 133,999 | $ 0 | ||||
Sale Leaseback Transaction [Line Items] | ||||||
Operating lease right-of-use assets | 1,663,020 | $ 1,663,020 | $ 1,202,252 | |||
Land and Building [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Gross Proceeds from Sale of Real Estate | 725,000 | |||||
Net Proceeds from Sale of Real Estate | 586,900 | |||||
Gain on sale of distribution centers | 463,100 | |||||
Selling and administrative expenses, sale and leaseback transaction | 4,000 | |||||
Gross financing proceeds from sale and leaseback | $ 134,000 | |||||
Land and Building [Member] | Ohio and Alabama Distribution Centers [Member] | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 15 years | |||||
Land and Building [Member] | Oklahoma and Pennsylvania Distribution Centers [Member] | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Lessee, Operating Lease, Term of Contract | 20 years | |||||
Land and Building [Member] | Ohio, Alabama, Oklahoma, and Pennsylvania Distribution Centers [Member] | ||||||
Sale Leaseback Transaction [Line Items] | ||||||
Sale Leaseback Transaction, Lease Terms | The leases for the Columbus, OH and Montgomery, AL distribution centers each have an initial term of 15 years and multiple five-year extension options. The leases for the Durant, OK and Tremont, PA distribution centers each have an initial term of 20 years and multiple five-year extension options. At commencement of the leases, we recorded aggregate operating lease liabilities of $466.1 million and aggregate operating lease right-of-use assets of $466.1 million. The weighted average discount rate for the leases was 6.2%. All of the leases are absolute net. Additionally, all of the leases include a right of first refusal beginning after the fifth year of the initial term which allows us to purchase the leased property if the buyer-lessor receives a bona fide purchase offer from a third-party. In connection with our entrance into the sale and leaseback transactions, we agreed to repay all borrowings outstanding under the 2018 Credit Agreement and restrict our borrowings under the 2018 Credit Agreement for 90 days following closing of the transactions. | |||||
Operating Lease, Liability | $ 466,100 | |||||
Operating lease right-of-use assets | $ 466,100 | |||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Aug. 27, 2020USD ($) |
Common Stock [Member] | 2020 Repurchase Program [Member] | |
Subsequent Event [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 500 |