Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 28, 2023 | Mar. 24, 2023 | Jul. 29, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 28, 2023 | ||
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 | ||
Title of 12(b) Security | Common Shares $0.01 par value | ||
Trading Symbol | BIG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 572,171,828 | ||
Entity Common Stock, Shares Outstanding | 29,028,711 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000768835 | ||
Current Fiscal Year End Date | --01-31 | ||
Amendment Flag | false | ||
Auditor [Line Items] | |||
Auditor Firm ID | 34 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Columbus, Ohio |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 5,468,329 | $ 6,150,603 | $ 6,199,186 |
Cost of sales (exclusive of depreciation expense shown separately below) | 3,554,826 | 3,753,596 | 3,701,800 |
Gross margin | 1,913,503 | 2,397,007 | 2,497,386 |
Selling and administrative expenses | 2,020,144 | 2,014,682 | 1,965,555 |
Depreciation expense | 154,859 | 142,572 | 138,336 |
Gain on sale of distribution centers | 0 | 0 | (463,053) |
Operating (loss) profit | (261,500) | 239,753 | 856,548 |
Interest expense | (20,280) | (9,281) | (11,031) |
Other income (expense) | 1,363 | 1,339 | (911) |
(Loss) income before income taxes | (280,417) | 231,811 | 844,606 |
Income tax (benefit) expense | (69,709) | 54,033 | 215,415 |
Net (loss) income and comprehensive (loss) income | $ (210,708) | $ 177,778 | $ 629,191 |
Earnings (loss) per common share | |||
Earnings per common share - basic (in dollars per share) | $ (7.30) | $ 5.43 | $ 16.46 |
Earnings per common share - diluted (in dollars per share) | $ (7.30) | $ 5.33 | $ 16.11 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 44,730 | $ 53,722 |
Inventories | 1,147,949 | 1,237,797 |
Other current assets | 92,635 | 119,449 |
Total current assets | 1,285,314 | 1,410,968 |
Operating lease right-of-use assets | 1,619,756 | 1,731,995 |
Property and equipment - net | 691,111 | 735,826 |
Deferred income taxes | 56,301 | 10,973 |
Other assets | 38,449 | 37,491 |
Total assets | 3,690,931 | 3,927,253 |
Current liabilities: | ||
Accounts payable | 421,680 | 587,496 |
Current operating lease liabilities | 252,320 | 242,275 |
Property, payroll, and other taxes | 71,274 | 90,728 |
Accrued operating expenses | 111,752 | 120,684 |
Insurance reserves | 35,871 | 36,748 |
Accrued salaries and wages | 26,112 | 45,762 |
Income taxes payable | 845 | 894 |
Total current liabilities | 919,854 | 1,124,587 |
Long-term debt | 301,400 | 3,500 |
Noncurrent operating lease liabilities | 1,514,009 | 1,569,713 |
Deferred income taxes | 0 | 21,413 |
Insurance reserves | 58,613 | 62,591 |
Unrecognized tax benefits | 8,091 | 10,557 |
Other liabilities | 125,057 | 127,529 |
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 28,959 shares and 28,476 shares, respectively | 1,175 | 1,175 |
Treasury shares - 88,536 shares and 89,019 shares, respectively, at cost | (3,105,175) | (3,121,602) |
Additional paid-in capital | 627,714 | 640,522 |
Retained earnings | 3,240,193 | 3,487,268 |
Total shareholders' equity | 763,907 | 1,007,363 |
Total liabilities and shareholders' equity | $ 3,690,931 | $ 3,927,253 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Shareholders' equity: | ||
Preferred shares - authorized shares (in shares) | 2,000 | 2,000 |
Preferred shares - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares - shares issued (in shares) | 0 | 0 |
Common shares - authorized shares (in shares) | 298,000 | 298,000 |
Common shares - par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares - shares issued (in shares) | 117,495 | 117,495 |
Common shares - outstanding shares (in shares) | 28,959 | 28,476 |
Treasury shares - shares (in shares) | 88,536 | 89,019 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Performance Shares [Member] | Performance Shares [Member] Common Stock [Member] | Performance Shares [Member] Treasury Stock, Common [Member] | Performance Shares [Member] Additional Paid-in Capital [Member] | Performance Shares [Member] Retained Earnings [Member] |
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 | |||||||||
Treasury shares - shares (in shares) at Feb. 01, 2020 | 78,458 | |||||||||
Treasury Stock, Common, Shares at Jan. 30, 2021 | 81,960 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | 629,191 | $ 0 | $ 0 | 0 | 629,191 | |||||
Dividends declared | (47,982) | 0 | 0 | 0 | (47,982) | |||||
Purchases of common shares | (175,642) | $ 0 | $ (175,642) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (3,890) | 3,890 | ||||||||
Exercise of stock options | 493 | $ 0 | $ 429 | 64 | 0 | |||||
Exercise of stock options (in shares) | 13 | (13) | ||||||||
Restricted shares vested | 0 | $ 0 | $ 10,034 | (10,034) | 0 | |||||
Restricted shares vested, (in shares) | 309 | (309) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 2,107 | $ (2,107) | $ 0 | |||||
Performance share vested, (in shares) | 65 | (65) | ||||||||
Other | 52 | $ 0 | $ 45 | 7 | 0 | |||||
Other, (in shares) | 1 | (1) | ||||||||
Share-based employee compensation expense | 26,155 | $ 0 | $ 0 | 26,155 | 0 | |||||
Balance at Jan. 30, 2021 | $ 1,277,731 | $ 1,175 | $ (2,709,259) | 634,813 | 3,351,002 | |||||
Balance (in shares) at Jan. 30, 2021 | 35,535 | |||||||||
Treasury Stock, Common, Shares at Jan. 29, 2022 | 89,019 | 89,019 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ 177,778 | $ 0 | $ 0 | 0 | 177,778 | |||||
Dividends declared | (41,512) | 0 | 0 | 0 | (41,512) | |||||
Purchases of common shares | (446,374) | $ 0 | $ (446,374) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (8,076) | 8,076 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 16,140 | (16,140) | 0 | |||||
Restricted shares vested, (in shares) | 482 | (482) | ||||||||
Performance shares vested | 0 | $ 0 | $ 17,879 | (17,879) | 0 | |||||
Performance share vested, (in shares) | 535 | (535) | ||||||||
Other | 139 | $ 0 | $ 12 | 127 | 0 | |||||
Other, (in shares) | 0 | 0 | ||||||||
Share-based employee compensation expense | 39,601 | $ 0 | $ 0 | 39,601 | 0 | |||||
Balance at Jan. 29, 2022 | $ 1,007,363 | $ 1,175 | $ (3,121,602) | 640,522 | 3,487,268 | |||||
Balance (in shares) at Jan. 29, 2022 | 28,476 | 28,476 | ||||||||
Treasury Stock, Common, Shares at Jan. 28, 2023 | 88,536 | 88,536 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ (210,708) | $ 0 | $ 0 | 0 | (210,708) | |||||
Dividends declared | (36,367) | 0 | 0 | 0 | (36,367) | |||||
Purchases of common shares | (11,180) | $ 0 | $ (11,180) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (304) | 304 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 15,440 | (15,440) | 0 | |||||
Restricted shares vested, (in shares) | 440 | (440) | ||||||||
Performance shares vested | $ 0 | $ 0 | $ 12,167 | $ (12,167) | $ 0 | |||||
Performance share vested, (in shares) | 347 | (347) | ||||||||
Share-based employee compensation expense | 14,799 | $ 0 | $ 0 | 14,799 | 0 | |||||
Balance at Jan. 28, 2023 | $ 763,907 | $ 1,175 | $ (3,105,175) | $ 627,714 | $ 3,240,193 | |||||
Balance (in shares) at Jan. 28, 2023 | 28,959 | 28,959 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 1.20 | $ 1.20 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Operating activities: | |||
Net (loss) income | $ (210,708) | $ 177,778 | $ 629,191 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization expense | 156,427 | 143,713 | 138,848 |
Non-cash lease expense | 271,945 | 265,401 | 246,442 |
Deferred income taxes | (66,742) | 19,007 | (52,415) |
Non-cash share-based compensation expense | 14,799 | 39,601 | 26,155 |
Non-cash impairment charge | 70,221 | 6,096 | 1,792 |
(Gain) loss on disposition of property and equipment | (19,392) | 342 | (462,916) |
Unrealized loss (gain) on fuel derivatives | 856 | (1,593) | (294) |
Loss on extinguishment of debt | 0 | 535 | 0 |
Change in assets and liabilities: | |||
Inventories | 89,848 | (297,503) | (19,028) |
Accounts payable | (165,816) | 189,063 | 20,193 |
Operating lease liabilities | (257,686) | (233,057) | (250,131) |
Current income taxes | 19,680 | (76,429) | 56,564 |
Other current assets | 3,146 | 32,154 | (10,238) |
Other current liabilities | (45,181) | (56,220) | 55,775 |
Other assets | 1,865 | (785) | (90) |
Other liabilities | (7,548) | (14,341) | 19,501 |
Net cash (used in) provided by operating activities | (144,286) | 193,762 | 399,349 |
Investing activities: | |||
Capital expenditures | (159,413) | (160,804) | (135,220) |
Cash proceeds from sale of property and equipment | 50,496 | 1,155 | 588,258 |
Other | (23) | (37) | (51) |
Net cash (used in) provided by investing activities | (108,940) | (159,686) | 452,987 |
Financing activities: | |||
Net proceeds from (repayments of) long-term debt | 297,900 | (46,764) | (243,227) |
Net (repayments of) proceeds from sale and leaseback financing | (355) | 0 | 123,435 |
Payment of finance lease obligations | (1,736) | (3,654) | (3,648) |
Dividends paid | (36,997) | (41,653) | (46,964) |
Proceeds from the exercise of stock options | 0 | 0 | 493 |
Payment for treasury shares acquired | (11,180) | (446,374) | (175,642) |
Payment of debt issuance costs | (3,398) | (1,167) | 0 |
Payment to extinguish debt | 0 | (438) | 0 |
Other | 0 | 140 | 52 |
Net cash provided by (used in) financing activities | 244,234 | (539,910) | (345,501) |
(Decrease) increase in cash and cash equivalents | (8,992) | (505,834) | 506,835 |
Cash and cash equivalents: | |||
Beginning of period | 53,722 | 559,556 | 52,721 |
End of period | $ 44,730 | $ 53,722 | $ 559,556 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $ 22,225 | $ 8,066 | $ 6,366 |
Cash paid for income taxes, excluding impact of refunds | 4,318 | 111,206 | 217,308 |
Gross proceeds from long-term debt | 2,208,400 | 55,600 | 514,500 |
Gross payments of long-term debt | 1,910,500 | 102,364 | 757,727 |
Gross financing proceeds from sale and leaseback | 0 | 0 | 133,999 |
Gross repayments of financing from sale and leaseback | 355 | 0 | 10,564 |
Cash paid for operating lease liabilities | 373,172 | 341,341 | 340,747 |
Non-cash activity: | |||
Assets acquired under finance leases | 3,740 | 1,080 | 0 |
Accrued property and equipment | 16,674 | 19,303 | 17,791 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 216,499 | $ 354,066 | $ 694,811 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business We are a home discount retailer in the United States (“U.S.”). At January 28, 2023, we operated 1,425 stores in 48 states and an e-commerce platform. Our mission is to help people Live BIG and Save LOTS. Our vision is to be the BIG difference for a better life by delivering unmistakable value to customers, building a “best places to grow” culture, rewarding shareholders with consistent growth and top tier returns, and doing good in local communities. Basis of Presentation The consolidated financial statements include Big Lots, Inc. and all of its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all of our accounts. We consolidate all majority-owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates, judgments, and assumptions creates a level of uncertainty with respect to reported or disclosed amounts in our consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, judgments, and assumptions, including those that management considers critical to the accurate presentation and disclosure of our consolidated financial statements and accompanying notes. Management bases its estimates, judgments, and assumptions on historical experience, current trends, and various other factors that it believes are reasonable under the circumstances. Because of the inherent uncertainty in using estimates, judgments, and assumptions, actual results may differ from these estimates. Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2022 (“2022”) was comprised of the 52 weeks that began on January 30, 2022 and ended on January 28, 2023. Fiscal year 2021 (“2021”) was comprised of the 52 weeks that began on January 31, 2021 and ended on January 29, 2022. Fiscal year 2020 (“2020”) was comprised of the 52 weeks that began on February 2, 2020 and ended on January 30, 2021. Segment Reporting We manage our business based on one segment, discount retailing. Our entire operation is located in the U.S. Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, and credit and debit card receivables. We review cash and cash equivalent balances on a bank by bank basis 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. Amounts due from banks for credit and debit card transactions, including private label credit card transactions, are typically settled in less than three days, and at January 28, 2023 and January 29, 2022, totaled $24.7 million and $32.5 million, respectively. Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the average cost retail inventory method. Cost includes any applicable inbound shipping and handling costs associated with the receipt of merchandise into our distribution centers (see the discussion below under the caption “Selling and Administrative Expenses” for additional information regarding outbound shipping and handling costs to our stores). Market is determined based on the estimated net realizable value, which generally is the merchandise selling price. Under the average cost retail inventory method, inventory is segregated into classes of merchandise having similar characteristics at its current retail selling value. Current retail selling values are converted to a cost basis by applying an average cost factor to each specific merchandise class’s retail selling value. Cost factors represent the average cost-to-retail ratio computed using beginning inventory and all fiscal year-to-date purchase activity specific to each merchandise class. Under the average cost retail inventory method, permanent sales price markdowns result in cost reductions in inventory. Our permanent sales price markdowns are typically related to end of season clearance events and are recorded as a charge to cost of sales in the period of management’s decision to initiate sales price reductions with the intent not to return the price to regular retail. Promotional markdowns are recorded as a charge to net sales in the period the merchandise is sold. Promotional markdowns are typically related to specific marketing efforts with respect to products maintained continuously in our stores or products that are only available in limited quantities but represent substantial value to our customers. Promotional markdowns are principally used to drive higher sales volume during a defined promotional period. We record a reduction to inventories and charge to cost of sales for an allowance for shrinkage. The allowance for shrinkage is calculated as a percentage of sales for the period from the last physical inventory date to the end of the reporting period. Such estimates are based on a combination of our historical experience and current year physical inventory results. We record a reduction to inventories and charge to cost of sales for any excess or obsolete inventory. The excess or obsolete inventory is estimated based on a review of our aged inventory and takes into account any items that have already received a cost reduction as a result of the permanent markdown process discussed above. We estimate the reduction for excess or obsolete inventory based on historical sales trends, age and quantity of product on hand, and anticipated future sales. Property and Equipment - Net Depreciation and amortization expense of property and equipment are recorded on a straight‑line basis using estimated service lives. The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 - 10 years Store fixtures and equipment 2 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 3 - 8 years Leasehold improvements are amortized on a straight-line basis using the shorter of their estimated service lives or the lease term. Assets acquired under leases which meet the criteria of a finance lease are capitalized in property and equipment - net and amortized over the estimated service life of the asset or the applicable lease term, whichever is shorter. Depreciation estimates are revised prospectively to reflect the remaining depreciation or amortization of the asset over the shortened estimated service life when a decision is made to dispose of property and equipment prior to the end of its previously estimated service life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in selling and administrative expenses. Major repairs that extend service lives are capitalized. Maintenance and repairs are charged to expense as incurred. Capitalized interest was not significant in any period presented. Long-Lived Assets Our long-lived assets primarily consist of property and equipment - net and operating lease right-of-use assets. In order to determine if impairment indicators are present for store property and equipment and operating lease right-of-use assets, we review historical operating results at the store level. We generally use actual historical cash flows to determine if stores had negative cash flows. For each store with negative cash flows, we estimate future cash flows based on operating performance estimates specific to each store’s operations based on assumptions currently being used to develop our company level operating plans. If the net book value of a store’s long-lived assets is not recoverable by the expected undiscounted future cash flows of the store, we estimate the fair value of the store’s assets and recognize an impairment charge for the excess net book value of the store’s long-lived assets over their fair value (categorized as Level 3 under the fair value hierarchy). Fair value at the store level is typically based on projected discounted cash flows over the remaining lease term. Asset impairment charges are proportionately recorded between property and equipment - net and operating lease right-of-use assets. Asset impairment charges are included in selling and administrative expenses in our accompanying consolidated statements of operations and comprehensive income. Intangible Assets In 2018, we acquired the Broyhill ® trademark and trade name. This trademark and trade name have indefinite lives. We test the trademark and trade name for impairment annually or whenever circumstances indicate that the carrying value of the asset may not be recoverable. We estimate the fair value of these intangible assets based on an income approach. We perform our annual impairment testing during our fourth fiscal quarter of each year. Savings Plans We have a savings plan with a 401(k) deferral feature and we provide matching contributions, which are subject to Internal Revenue Service (“IRS”) regulations, based on a percentage of employee contributions. For 2022, 2021, and 2020, we expensed $9.2 million, $9.2 million, and $9.2 million, respectively, related to our matching contributions. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement basis and tax basis of assets and liabilities using enacted law and tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We assess the adequacy and need for a valuation allowance for deferred tax assets. In making such assessment, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. We have established a valuation allowance to reduce our deferred tax assets to the balance that is more likely than not to be realized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. The effective income tax rate in any period may be materially impacted by the overall level of income (loss) before income taxes, the jurisdictional mix and magnitude of income (loss), changes in the income tax laws (which may be retroactive to the beginning of the fiscal year), subsequent recognition, de-recognition and/or measurement of an uncertain tax benefit, changes in a deferred tax valuation allowance, and adjustments of a deferred tax asset or liability for enacted changes in tax laws or rates. Insurance and Insurance-Related Reserves We are self-insured for certain losses relating to property, general liability, workers’ compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees. We purchase stop-loss coverage to limit significant exposure in these areas. Accrued insurance-related liabilities and related expenses are based on actual claims filed and estimates of claims incurred but not reported and are reliably determinable. The accruals are determined by applying actuarially-based calculations. Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Level 1, defined as observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2, defined as observable inputs other than Level 1 inputs. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of accounts receivable and accounts payable approximates fair value because of the relatively short maturity of these items. Revenue Recognition We recognize sales revenue at the time the customer takes possession of the merchandise (i.e., the point at which we transfer the goods). Sales are recorded net of discounts (i.e., the amount of consideration we expect to receive for the goods) and estimated returns and exclude any sales tax. The reserve for merchandise returns is estimated based on our prior return experience. We sell gift cards in our stores, online, and through third-party retailers, and issue merchandise credits, typically as a result of customer returns, on stored value cards. We do not charge administrative fees on unused gift card or merchandise credit balances and our gift cards and merchandise credits do not expire. We recognize sales revenue related to gift cards and merchandise credits (1) when the gift card or merchandise credit is redeemed in a sales transaction by the customer or (2) as breakage occurs. We recognize gift card and merchandise credit breakage when we estimate that the likelihood of the card or credit being redeemed by the customer is remote and we determine that we do not have a legal obligation to remit the value of unredeemed cards or credits to the relevant regulatory authority. We estimate breakage based upon historical redemption patterns. The liability for the unredeemed cash value of gift cards and merchandise credits is recorded in accrued operating expenses in our consolidated balance sheets. We offer price hold contracts and buy now pick up later arrangements on merchandise. Revenue for price hold contracts and buy now pick up later arrangements is recognized when the customer makes the final payment and takes possession of the merchandise. Amounts paid by customers under price hold contracts and buy now pick up later arrangements are recorded in accrued operating expenses in our consolidated balance sheets until a sale is consummated. We recognize sales revenue for direct-to-customer transactions on our e-commerce platform at the time the merchandise is shipped (i.e., the point at which we transfer the goods). We also offer buy online, pick up in store services on our e-commerce platform. Revenue for buy online, pick up in store transactions is recognized when the customer takes possession of the merchandise at the store. Cost of Sales Cost of sales includes the cost of merchandise, net of cash discounts and rebates, markdowns, and inventory shrinkage, and the cost of shipping direct-to-customer e-commerce orders. Cost of merchandise includes related inbound freight to our distribution centers, duties, and commissions. We classify warehousing, distribution and outbound transportation costs to our stores as selling and administrative expenses. Due to this classification, our gross margin rates may not be comparable to those of other retailers that include warehousing, distribution and outbound transportation costs to stores in cost of sales. Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Our selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs to stores in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $331.8 million, $310.4 million, and $251.0 million for 2022, 2021, and 2020, respectively. Leases and Rent Expense We determine if an arrangement contains a lease at inception of the agreement. Our leased property consists of our retail stores, distribution centers, store security, and other office equipment. Certain of our store and distribution center 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 leases obligate us to pay for our applicable portion of real estate taxes, common area maintenance costs (“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 and insurance 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, restrictions, or covenants. We have established a short-term lease exception policy, permitting us to not apply lease recognition requirements to leases with terms of 12 months or less. We recognize a lease liability and right-of-use asset at commencement of the lease when possession of the property is taken from the lessor, which, for stores, normally includes a construction or set-up period prior to store opening. We begin recognizing rent expense at commencement of the lease. Rent expense for operating leases is recognized on a straight-line basis over the lease term and is included in selling and administrative expenses. We account for lease and non-lease components as a single component for our real estate class of assets. 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, payment card-linked marketing and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $98.3 million, $97.7 million, and $102.8 million for 2022, 2021, and 2020, respectively. Share-Based Compensation Share-based compensation expense is recognized in selling and administrative expense in our consolidated statements of operations and comprehensive income for all awards that we expect to vest. Non-vested Restricted Stock Units We expense our non-vested restricted stock units (“RSUs”) with graded vesting as a single award with an average estimated life over the entire term of the award. The expense for the non-vested restricted stock units is recorded on a straight-line basis over the vesting period. Performance Share Units Compensation expense for performance share units (“PSUs”) is recorded based on fair value of the award on the grant date and the estimated achievement of financial performance objectives. From an accounting perspective, the grant date is established once all financial performance targets have been set. We monitor the estimated achievement of the financial performance objectives at each reporting period and will potentially adjust the estimated expense on a cumulative basis. The expense for PSUs is recorded on a straight-line basis from the grant date through the end of the performance period. In 2020, we awarded performance share units with a restriction feature to certain members of senior management, which vested based on the achievement of share price performance goals and a minimum service requirement of one year (“PRSUs”). The PRSUs had a contractual term of three years. The grant date fair value and estimated vesting period of the PRSUs was determined by a third party using a Monte Carlo simulation. The awards were expensed over their estimated vesting period on a straight-line basis. In 2022, we awarded performance share units with a performance condition to certain members of senior management, which vest based on the achievement of total shareholder return (“TSR”) targets relative to a peer group over a three-year performance period and require the grantee to remain employed by us through the end of the performance period (“TSR PSUs”). The TSR 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 use a Monte Carlo simulation to estimate the fair value of the TSR PSUs on the grant date and recognize expense over the service period. The TSR PSUs have a contractual period of three years. Earnings per Share Basic earnings per share is based on the weighted-average number of shares outstanding during each period. Diluted earnings per share is based on the weighted-average number of shares outstanding during each period and the additional dilutive effect of RSUs, PSUs, PRSUs, and TSR PSUs, calculated using the treasury stock method. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for 2022, 2021, and 2020: (In thousands) 2022 2021 2020 Supplemental disclosure of cash flow information: Cash paid for interest $ 22,225 $ 8,066 $ 6,366 Cash paid for income taxes, excluding impact of refunds 4,318 111,206 217,308 Gross proceeds from long-term debt 2,208,400 55,600 514,500 Gross payments of long-term debt 1,910,500 102,364 757,727 Gross financing proceeds from sale and leaseback — — 133,999 Gross repayments of financing from sale and leaseback 355 — 10,564 Cash paid for operating lease liabilities 373,172 341,341 340,747 Non-cash activity: Assets acquired under finance leases 3,740 1,080 — Accrued property and equipment 16,674 19,303 17,791 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 216,499 $ 354,066 $ 694,811 Reclassifications Our seven merchandise categories are as follows: Food; Consumables; Soft Home; Hard Home; Furniture; Seasonal; and Apparel, Electronics, & Other. The Food category includes our beverage & grocery; specialty foods; and pet departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; and chemical departments. The Soft Home category includes our home décor; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home category includes our small appliances; table top; food preparation; stationery; home maintenance; home organization; and toys 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 Apparel, Electronics, & Other department includes our apparel; electronics; jewelry; hosiery; and candy & snacks departments, as well as the assortments for The Lot and the Queue Line. 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 the third quarter of 2021, the Company adopted Accounting Standards Update (“ASU”) 2020-04 Reference Rate Reform . This ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, leases, and other transactions affected by the potential fallback of LIBOR. The Company adopted ASU 2020-04 in connection with its entry into a new credit facility (see Note 3 to the consolidated financial statements) that includes language to address LIBOR fallback and in connection with an amendment to the lease for our Apple Valley, CA distribution center including similar LIBOR fallback language. The impact of the adoption was immaterial to the consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Softwar e. 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. Recent Accounting Pronouncements In September 2022, FASB issued ASU 2022-04 related to disclosure requirements for buyers in supplier finance programs. The amendments in the update require that buyers disclose qualitative and quantitative information about their supplier finance programs. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after |
Property and Equipment - Net
Property and Equipment - Net | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT - NET | PROPERTY AND EQUIPMENT - NET Property and equipment - net consist of: (In thousands) January 28, 2023 January 29, 2022 Land and land improvements $ 27,257 $ 48,849 Buildings and leasehold improvements 775,837 828,179 Fixtures and equipment 940,613 940,921 Computer software costs 191,910 187,190 Construction-in-progress 24,676 25,394 Property and equipment - cost 1,960,293 2,030,533 Less accumulated depreciation and amortization 1,269,182 1,294,707 Property and equipment - net $ 691,111 $ 735,826 Property and equipment - cost includes $24.6 million and $25.3 million at January 28, 2023 and January 29, 2022, respectively, to recognize assets from finance leases. Accumulated depreciation and amortization includes $20.8 million and $23.6 million at January 28, 2023 and January 29, 2022, respectively, related to finance leases. During 2022, 2021, and 2020, respectively, we invested $159.4 million, $160.8 million, and $135.2 million of cash in capital expenditures and we recorded $154.9 million, $142.6 million, and $138.3 million of depreciation expense. In 2020, we disposed of $123.8 million of property and equipment - cost in connection with the sale of four distribution centers in sale and leaseback transactions (see Note 9 to the accompanying consolidated financial statements for additional information on the sale and leaseback transactions). In 2022, land and building-related assets for 25 owned store locations and one unoccupied land parcel with an aggregate carrying value of $30.6 million were classified as held for sale on the consolidated balance sheets. In the fourth quarter of 2022, we sold $29.4 million of these assets that we classified as held for sale in connection with the sale of 20 owned properties and one land parcel (see Note 9 to the accompanying consolidated financial statements for additional information on the sale of real estate). We incurred $17.9 million, $0.9 million, and $0.9 million in asset impairment charges, excluding impairment of right-of-use assets (see Note 4 to the accompanying consolidated financial statements), in 2022, 2021, and 2020, respectively. We impaired the value of property and equipment assets at 155, eight, and four stores as a result of our store impairment review in 2022, 2021, and 2020, respectively. |
Debt
Debt | 12 Months Ended |
Jan. 28, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Bank Credit Facility On September 21, 2022, we entered into a five The 2022 Credit Agreement replaced the $600 million five Revolving loans under the 2022 Credit Agreement are available in an aggregate amount equal to the lesser of (1) the aggregate Commitments and (2) a borrowing base consisting of eligible credit card receivables and eligible inventory (including in-transit inventory), subject to customary exceptions and reserves. Under the 2022 Credit Agreement, we may obtain additional Commitments on no more than five occasions in an aggregate amount of up to $300 million, subject to agreement by the lenders to increase their respective Commitments and certain other conditions. The 2022 Credit Agreement includes a swing loan sublimit of 10% of the then applicable aggregate Commitments and a $90 million letter of credit sublimit. Loans made under the 2022 Credit Agreement may be prepaid without penalty. Borrowings under the 2022 Credit Agreement are available for general corporate purposes, working capital and to repay certain of our indebtedness. Our obligations under the 2022 Credit Agreement are secured by our working capital assets (including inventory, credit card receivables and other accounts receivable, deposit accounts, and cash), subject to customary exceptions. The pricing and certain fees under the 2022 Credit Agreement fluctuate based on our availability under the 2022 Credit Agreement. The 2022 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 one, three or six month adjusted Term SOFR. We will also pay an unused commitment fee of 0.20% per annum on the unused Commitments. The 2022 Credit Agreement contains an environmental, social and governance (“ESG”) provision, which may provide favorable pricing and fee adjustments if we meet ESG performance criteria to be established by a future amendment to the 2022 Credit Agreement. The 2022 Credit Agreement contains customary affirmative and negative covenants (including, where applicable, restrictions on our ability to, among other things, incur additional indebtedness, pay dividends, redeem or repurchase stock, prepay certain indebtedness, make certain loans and investments, dispose of assets, enter into restrictive agreements, engage in transactions with affiliates, modify organizational documents, incur liens and consummate mergers and other fundamental changes) and events of default. In addition, the 2022 Credit Agreement requires us to maintain a fixed charge coverage ratio of not less than 1.0 if (1) certain events of default occur and continue or (2) borrowing availability under the 2022 Credit Agreement is less than the greater of (a) 10% of the Maximum Credit Amount (as defined in the 2022 Credit Agreement) or (b) $67.5 million. A violation of these covenants could result in a default under the 2022 Credit Agreement which could permit the lenders to restrict our ability to further access the 2022 Credit Agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2022 Credit Agreement. As of January 28, 2023, we had a Borrowing Base (as defined under the 2022 Credit Agreement) of $710.3 million under the 2022 Credit Agreement. At January 28, 2023 we had $301.4 million in borrowings outstanding under the 2022 Credit Agreement and $32.0 million committed to outstanding letters of credit, leaving $376.9 million available under the 2022 Credit Agreement, subject to certain borrowing base limitations as discussed above. Synthetic Lease Simultaneous with our entry into the 2022 Credit Agreement, we entered into an amendment (the “Synthetic Lease Amendment”) to the synthetic lease for our distribution center in Apple Valley, CA (the “Synthetic Lease”). The Synthetic Lease Amendment amended the Synthetic Lease to, among other things, (1) amend the lessor yield payable thereunder from a LIBOR-based rate to a SOFR-based rate, and to fix the SOFR margin paid on the lessor yield at 2.60%, (2) remove the financial covenants thereunder, (3) change the maturity date of the Synthetic Lease from May 30, 2024 to June 1, 2023, (4) permit the liens and indebtedness under the 2022 Credit Agreement, and (5) restrict our ability to amend the 2022 Credit Agreement, without the consent of all of the Synthetic Lease participants, to (a) increase the Commitments under the 2022 Credit Agreement to an amount in excess of $900 million, (b) remove or reduce the reserve for the then outstanding balance under the Synthetic Lease from the borrowing base under the 2022 Credit Agreement and (c) revise the maturity date under the 2022 Credit Agreement to an earlier date. On March 15, 2023, we entered into the 2023 Synthetic Lease (as defined below) for our distribution center in Apply Valley, CA which replaced the Synthetic Lease. For additional information on the 2023 Synthetic Lease, see Note 11 to the accompanying consolidated financial statement. Debt was recorded in our consolidated balance sheets as follows: Instrument (In thousands) January 28, 2023 January 29, 2022 2021 Credit Agreement $ — $ 3,500 2022 Credit Agreement 301,400 — Long-term debt $ 301,400 $ 3,500 |
Leases
Leases | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Our leased property consists of our retail stores, distribution centers, store security, and other office equipment. In the second quarter of 2020, we completed sale and leaseback transactions for our distribution centers located in Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA. 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 lease commencement, we determined that none of the extension options were reasonably certain to be exercised. Therefore, none of the extension options were included in the computation of the operating lease liabilities and operating lease right-of-use assets. 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. For additional information on the sale and leaseback transactions, see Note 9 to the accompanying consolidated financial statements. In the fourth quarter of 2022, we entered into the Synthetic Lease Amendment to the Synthetic Lease for our distribution center in Apple Valley, CA. For additional information on the amendment, see Note 3 to the accompanying consolidated financial statements. On March 15, 2023, we entered into the 2023 Synthetic Lease for our distribution center in Apple Valley, CA, which replaced the Synthetic Lease. For additional information on the 2023 Synthetic Lease, see Note 11 to the accompanying consolidated financial statements. In the fourth quarter of 2022, we completed the sale of 20 owned properties and one land parcel. As part of the consideration in the sale, the leases for our San Pablo, California and Citrus Heights, California stores were cancelled at no additional cost. As a result of these lease cancellations, we derecognized operating lease right-of-use assets of $4.0 million in aggregate and derecognized operating lease liabilities of $5.9 million resulting in a net gain on extinguishment of lease liabilities of $1.9 million (see Note 9 to the accompanying consolidated financial statements for additional information on the transaction). Leases were recorded in our consolidated balance sheets as follows: Leases (In thousands) Balance Sheet Location January 28, 2023 January 29, 2022 Assets Operating Operating lease right-of-use assets $ 1,619,756 $ 1,731,995 Finance Property and equipment - net 3,813 1,686 Total right-of-use assets $ 1,623,569 $ 1,733,681 Liabilities Current Operating Current operating lease liabilities $ 252,320 $ 242,275 Finance Accrued operating expenses 1,789 869 Noncurrent Operating Noncurrent operating lease liabilities 1,514,009 1,569,713 Finance Other liabilities 1,967 955 Total lease liabilities $ 1,770,085 $ 1,813,812 The components of lease costs were as follows: Lease cost (In thousands) Statements of Operations and Comprehensive Income Location 2022 2021 2020 Operating lease cost Selling and administrative expenses $ 363,315 $ 355,021 326,780 Finance lease cost Amortization of leased assets Depreciation 1,546 3,024 3,800 Interest on lease liabilities Interest expense 163 104 274 Short-term lease cost Selling and administrative expenses 5,251 5,152 4,728 Variable lease cost Selling and administrative expenses 96,265 84,940 88,074 Total lease cost $ 466,540 $ 448,241 $ 423,656 In 2022, 2021, and 2020, our operating lease cost above included $1.8 million, $1.1 million and $0.9 million, respectively, of right-of-use asset impairment charges related to store closures prior to lease termination date. In 2022, 2021, and 2020, our operating lease cost above excludes $50.5 million, $4.1 million, and $0.0 million respectively, of right-of-use asset impairment charges related to our store impairment review for underperforming stores. Maturity of our lease liabilities at January 28, 2023, was as follows: Fiscal Year (In thousands) Operating Leases Finance Leases 2023 $ 334,092 $ 1,992 2024 330,858 1,712 2025 295,401 321 2026 251,214 — 2027 198,934 — Thereafter 772,362 — Total lease payments $ 2,182,861 $ 4,025 Less amount to discount to present value $ (416,532) $ (269) Present value of lease liabilities $ 1,766,329 $ 3,756 Lease term and discount rate for our operating leases were as follows: January 28, 2023 January 29, 2022 Weighted average remaining lease term (years) 8.0 8.3 Weighted average discount rate 4.6 % 4.3 % 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. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jan. 28, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Earnings per Share There were no adjustments required to be made to weighted-average common shares outstanding for purposes of computing basic and diluted earnings per share for all periods presented. At January 28, 2023, performance share units that vest based on relative total shareholder return (“TSR PSUs” - see Note 6 for a more detailed description of these awards), were excluded from our computation of earnings (loss) per share because the minimum applicable performance conditions had not been attained. Antidilutive RSUs, PSUs, PRSUs, and TSR PSUs are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The RSUs, PSUs, PRSUs, and TSR PSUs that were antidilutive, as determined under the treasury stock method, were 0.4 million for 2022, 0.2 million for 2021 and immaterial for 2020. Due to the net loss in 2022, any potentially dilutive shares were excluded from the denominator in computing diluted earnings (loss) per common share for 2022. A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted earnings per share computations is as follows: (In thousands) 2022 2021 2020 Weighted-average common shares outstanding: Basic 28,860 32,723 38,233 Dilutive effect of share-based awards — 632 834 Diluted 28,860 33,355 39,067 Share Repurchases On December 1, 2021, our Board of Directors authorized the repurchase of up to $250 million of our common shares (“2021 Repurchase Authorization”). Pursuant to the 2021 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. The 2021 Repurchase Authorization has no scheduled termination date. In 2022, no shares were repurchased under the 2021 Repurchase Authorization. As of January 28, 2023, we had $159.4 million available for future repurchases under the 2021 Repurchase Authorization. Common shares acquired through repurchase authorizations are held in treasury at cost and are available to meet obligations under equity compensation plans and for general corporate purposes. In addition to shares repurchased under the repurchase authorizations, purchases of common shares reported in the consolidated statements of shareholders’ equity include shares repurchased to satisfy income tax withholdings associated with the vesting of share-based awards. Dividends The Company declared and paid cash dividends per common share during the periods presented as follows: Dividends Amount Declared Amount Paid 2021: (In thousands) (In thousands) First quarter $ 0.30 $ 11,206 $ 12,460 Second quarter 0.30 10,611 10,204 Third quarter 0.30 10,209 9,890 Fourth quarter 0.30 9,486 9,099 Total $ 1.20 $ 41,512 $ 41,653 2022: First quarter $ 0.30 $ 8,981 $ 10,705 Second quarter 0.30 9,068 8,791 Third quarter 0.30 9,196 8,767 Fourth quarter 0.30 9,122 8,734 Total $ 1.20 $ 36,367 $ 36,997 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 | 12 Months Ended |
Jan. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PLANS | SHARE-BASED PLANS Our shareholders approved the Big Lots 2020 Long-Term Incentive Plan (“2020 LTIP”) in June 2020. The 2020 LTIP authorizes the issuance of incentive and nonqualified stock options, restricted stock, restricted stock units, deferred stock units, performance shares, PSUs, performance units, stock appreciation rights, cash-based awards, and other share-based awards. We have issued restricted stock units, PSUs, and TSR PSUs under the 2020 LTIP. The number of common shares available for issuance under the 2020 LTIP consists of an initial allocation of 3,600,000 common shares plus any common shares subject to the 1,360,943 outstanding awards as of February 1, 2020 under the Big Lots 2017 Long-Term Incentive Plan (“2017 LTIP”) that, on or after February 1, 2020, cease for any reason to be subject to such awards (other than by reason of exercise or settlement). The Human Capital and Compensation Committee of our Board of Directors (“Committee”), which is charged with administering the 2020 LTIP, has the authority to determine the terms of each award. Our former equity compensation plan, the 2017 LTIP, approved by our shareholders in May 2017, was terminated on June 10, 2020. The 2017 LTIP authorized the issuance of incentive and nonqualified stock options, restricted stock, restricted stock units, deferred stock awards, PSUs, stock appreciation rights, cash-based awards, and other share-based awards. We have issued restricted stock units, PSUs, and PRSUs under the 2017 LTIP. Share-based compensation expense was $14.8 million, $39.6 million, and $26.2 million in 2022, 2021, and 2020, respectively. Non-vested Restricted Stock The following table summarizes the non-vested restricted stock units activity for fiscal years 2020, 2021, and 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock at February 1, 2020 648,510 $ 38.52 Granted 1,031,213 18.18 Vested (308,797) 40.65 Forfeited (156,714) 22.80 Outstanding non-vested restricted stock at January 30, 2021 1,214,212 $ 22.71 Granted 255,071 68.71 Vested (481,689) 25.12 Forfeited (78,307) 28.19 Outstanding non-vested restricted stock at January 29, 2022 909,287 $ 33.87 Granted 573,989 34.21 Vested (440,241) 31.21 Forfeited (167,532) 37.40 Outstanding non-vested restricted stock at January 28, 2023 875,503 $ 34.75 The non-vested restricted stock units granted in 2020, 2021, and 2022 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. In 2022, we granted an immaterial amount of non-vested restricted stock units with a minimum service requirement of one year and no required financial performance objectives. In the fourth quarter of 2022, we modified certain restricted stock units granted in 2022, to remove the financial performance objective. We did not record any additional expense as a result of this modification. Performance Share Units Prior to 2020, and in 2021 and 2022, we awarded PSUs to certain members of management, which will vest if certain financial performance objectives are achieved over a three As a result of the process used to establish the financial performance objectives, we will only meet the requirements of establishing a grant date for the PSUs when we communicate the financial performance objectives for the third fiscal year of the award to the award recipients, which will then trigger the service inception date, the fair value of the awards, and the associated expense recognition period. If we meet the applicable threshold financial performance objectives over the three In 2022, in addition to PSUs, we also awarded TSR PSUs to certain members of management, which vest based on the achievement of TSR targets relative to a peer group over a three-year performance period and require the grantee to remain employed by us through the end of the performance period. If we meet the applicable performance thresholds over the three The number of shares distributed upon vesting of the TSR PSUs depends on the average performance attained during the three-year performance period compared to the performance targets established by the Committee, and may result in the distribution of an amount of shares that is greater or less than the number of TSR PSUs granted, as defined in the award agreement. As of January 28, 2023, we have granted 60,924 TSR PSU shares, which will be expensed through fiscal 2024. In 2020, we awarded 413,022 PRSUs to certain members of senior management, which were subject to vesting based on the achievement of share price performance goals and a minimum service requirement of one three We have begun, or expect to begin, recognizing expense related to PSUs as follows: Issue Year Outstanding PSUs at Expected Valuation (Grant) Date Actual or Expected Expense Period 2021 137,721 July 2023 Fiscal 2023 2022 243,739 March 2024 Fiscal 2024 Total 381,460 As of January 28, 2023, we had a total of 442,384 outstanding performance share units, which includes PSUs and TSR PSUs. In 2022, 2021, and 2020, we recognized $1.0 million, $25.2 million and $14.2 million, respectively, in share-based compensation expense related to PSUs, PRSUs, and TSR PSUs. The following table summarizes the activity related to PSUs, PRSUs and TSR PSUs for fiscal years 2020, 2021, and 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs, PRSUs, and TSR PSUs at February 1, 2020 181,922 $ 31.89 Granted 580,285 24.53 Vested (181,062) 31.89 Forfeited (107,114) 25.56 Outstanding PSUs, PRSUs, and TSR PSUs at January 30, 2021 474,031 $ 24.31 Granted 263,787 70.24 Vested (474,031) 24.31 Forfeited (23,677) 70.24 Outstanding PSUs, PRSUs, and TSR PSUs at January 29, 2022 240,110 $ 70.24 Granted 73,787 56.00 Vested (240,110) 70.24 Forfeited (12,863) 57.15 Outstanding PSUs, PRSUs, and TSR PSUs at January 28, 2023 60,924 $ 55.76 Board of Directors’ Awards In 2020, we granted (1) the chairman of our Board of Directors an annual restricted stock unit award having a grant date fair value of approximately $210,000, and (2) the remaining non-employee directors an annual restricted stock unit award having a grant date fair value of approximately $145,000. In 2021 and 2022, we granted (1) the chairman of our Board of Directors an annual restricted stock unit award having a grant date fair value of approximately $245,000, and (2) the remaining non-employee directors an annual restricted stock unit award having a grant date fair value of approximately $145,000. These awards vest on the earlier of (1) the trading day immediately preceding the annual meeting of our shareholders following the grant of such awards or (2) the death or disability of the grantee. However, the non-employee directors will forfeit their restricted stock units if their service on the Board terminates before either vesting event occurs. Additionally, we allow our non-employee directors to defer all or a portion of their restricted stock unit award until the earlier of the first to occur of: (1) the specified date by the non-employee director in the deferral agreement, (2) the non-employee director’s death or disability, or (3) the date the non-employee director ceases to serve as a member of the Board of Directors. During 2022, 2021, and 2020, the following activity occurred under our share-based compensation plans: (In thousands) 2022 2021 2020 Total intrinsic value of stock options exercised $ — $ — $ 161 Total fair value of restricted stock vested 14,641 31,954 7,102 Total fair value of PSU, PRSUs, and TSR PSUs vested $ 13,877 $ 37,387 $ 924 The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2021 and 2022, at January 28, 2023 was approximately $19.2 million. This compensation cost is expected to be recognized through January 2026 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.8 years from January 28, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes was comprised of the following: (In thousands) 2022 2021 2020 Current: U.S. Federal $ (1,862) $ 26,888 $ 206,883 U.S. State and local (1,105) 8,138 60,947 Total current tax (benefit) expense (2,967) 35,026 267,830 Deferred: U.S. Federal (57,054) 13,651 (40,848) U.S. State and local (9,688) 5,356 (11,567) Total deferred tax (benefit) expense (66,742) 19,007 (52,415) Income tax provision $ (69,709) $ 54,033 $ 215,415 Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows: 2022 (a) 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal tax benefit 3.0 4.6 4.6 Work opportunity tax and other employment tax credits 1.0 (1.4) (0.3) Executive compensation limitations - permanent difference (0.3) 1.8 0.2 Share-based compensation (0.2) (2.3) 0.2 Other, net 0.4 (0.4) (0.2) Effective income tax rate 24.9 % 23.3 % 25.5 % (a) The reconciliation between the statutory federal income tax rate and effective income tax rate for 2022 is not directly comparable to the reconciliations for 2021 and 2020 due to the loss before income taxes in 2022 compared to the income before income taxes in 2021 and 2020. Income tax payments and refunds were as follows: (In thousands) 2022 2021 2020 Income taxes refunded $ (27,759) $ (546) $ (1,522) Income taxes paid 4,318 111,206 217,308 Net income taxes (refunded) paid $ (23,441) $ 110,660 $ 215,786 Deferred taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax, including income tax uncertainties. Significant components of our deferred tax assets and liabilities were as follows: (In thousands) January 28, 2023 January 29, 2022 Deferred tax assets: Lease liabilities, net of lease incentives $ 458,293 $ 474,584 Net operating losses, tax credits, and other carryforwards 64,513 2,307 Depreciation and fixed asset basis differences 39,218 40,302 Sale and leaseback financing liability 32,251 33,508 Uniform inventory capitalization 23,660 22,734 Workers’ compensation and other insurance reserves 20,868 22,097 Compensation related 5,376 12,703 Accrued operating liabilities 3,032 2,145 Accrued state taxes 1,581 2,557 Accrued payroll taxes related to CARES Act — 4,674 Other 16,074 13,718 Valuation allowances, net of federal tax benefit (2,102) (2,093) Total deferred tax assets 662,764 629,236 Deferred tax liabilities: Right-of-use assets, net of amortization 409,979 441,786 Accelerated depreciation and fixed asset basis differences 113,469 120,224 Synthetic lease obligation 38,464 38,582 Deferred gain on like-kind exchange 13,930 14,476 Lease construction reimbursements 11,368 8,333 Prepaid expenses 5,548 5,143 Workers’ compensation and other insurance reserves 4,067 4,493 Other 9,638 6,639 Total deferred tax liabilities 606,463 639,676 Net deferred tax assets (liabilities) $ 56,301 $ (10,440) Our deferred tax assets and deferred tax liabilities, netted by tax jurisdiction, are summarized in the table below: (In thousands) January 28, 2023 January 29, 2022 U.S. Federal $ 35,640 $ (21,413) U.S. State and local 20,661 10,973 Net deferred tax assets (liabilities) $ 56,301 $ (10,440) We have the following income tax loss and credit carryforwards at January 28, 2023 (amounts are shown net of tax excluding the federal income tax effect of the state and local items): (In thousands) U.S. Federal: Federal net operating loss carryforward $ 45,590 Indefinite carryforward Other carryforwards 4,867 Predominately indefinite carryforward Employment tax credits 3,807 Carryback to 2021, remainder expires 2024 Total U.S. Federal 54,264 U.S. State and local: State and local net operating loss carryforwards 10,073 Various carryforward periods ranging from 5 to 20 years including some jurisdictions with no expirations California enterprise zone credits 2,769 Predominately expires fiscal year 2023 Other state credits 131 Expires fiscal years through 2026 Total U.S. State and local 12,973 Total net operating losses, tax credits, and other carryforwards $ 67,237 The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for 2022, 2021, and 2020: (In thousands) 2022 2021 2020 Unrecognized tax benefits - beginning of year $ 9,862 $ 9,465 $ 10,760 Gross increases - tax positions in current year 357 410 728 Gross increases - tax positions in prior period 424 1,864 745 Gross decreases - tax positions in prior period (1,555) (1,039) (1,871) Settlements (333) (125) (20) Lapse of statute of limitations (1,222) (713) (877) Unrecognized tax benefits - end of year $ 7,533 $ 9,862 $ 9,465 At the end of 2022 and 2021, the total amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is $4.9 million and $7.2 million, respectively, after considering the federal tax benefit of state and local income taxes of $1.1 million and $1.5 million, respectively. Unrecognized tax benefits of $1.6 million and $1.3 million in 2022 and 2021, respectively, relate to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The uncertain timing items could result in the acceleration of the payment of cash to the taxing authority to an earlier period. We recognized an expense (benefit) associated with interest and penalties on unrecognized tax benefits of approximately $(0.8) million, $(1.1) million, and $(0.4) million during 2022, 2021, and 2020, respectively, as a component of income tax expense. The amount of accrued interest and penalties recognized in the accompanying consolidated balance sheets at January 28, 2023 and January 29, 2022 was $1.8 million and $2.8 million, respectively. We are subject to U.S. federal income tax, and income tax of multiple state and local jurisdictions. The statute of limitations for assessments on our federal income tax returns for periods prior to 2019 has lapsed. In addition, the state income tax returns filed by us are subject to examination generally for periods beginning with 2018, although state income tax carryforward attributes generated prior to 2018 and non-filing positions may still be adjusted upon examination. We have various state returns in the process of examination or administrative appeal. We have estimated the reasonably possible expected net change in unrecognized tax benefits through February 3, 2024, based on expected cash and noncash settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations for unrecognized tax benefits. The estimated net decrease in unrecognized tax benefits for the next 12 months is approximately $2.0 million. Actual results may differ materially from this estimate. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND LEGAL PROCEEDINGS | COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS California Wage and Hour Matters We currently are defending several wage and hour matters in California. The cases were brought by various current and/or former California associates alleging various violations of California wage and hour laws. We have settled and/or reached settlement agreements, including final approval by the courts, in each wage and hour class action that was pending against the Company. During the fourth quarter of 2022, we determined a loss from the wage and hour matters was probable and we increased our accrual for litigation by recording an additional $1.0 million charge as our best estimate for these matters in aggregate. Our remaining accrual for California wage and hour matters was $2.2 million at January 28, 2023. We intend to defend ourselves vigorously against the allegations levied in the remaining individual and representative 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. We are self-insured for certain losses relating to property, general liability, workers’ compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees, and we have purchased stop-loss coverage in order to limit significant exposure in these areas. Accrued insurance liabilities are actuarially determined based on claims filed and estimates of claims incurred but not reported. We use letters of credit, which amounted to $32.0 million at January 28, 2023, as collateral to back certain of our self-insured losses with our claims administrators. |
Gain on Sale of Distribution Ce
Gain on Sale of Distribution Center & Other Real Estate | 12 Months Ended |
Jan. 28, 2023 | |
Gain (Loss) on Disposition of Property Plant Equipment [Abstract] | |
GAIN ON SALE OF DISTRIBUTION CENTER & OTHER REAL ESTATE | GAIN ON SALE OF DISTRIBUTION CENTER & OTHER REAL ESTATE In the second quarter of 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. See Note 4 to the accompanying consolidated financial statements for information on the lease agreements. In the fourth quarter of 2022, we completed the sale of 20 owned store locations and one unoccupied land parcel with an aggregate net book value of $29.4 million. The net cash proceeds on these sales of real estate was $47.8 million and resulted in a gain of $18.6 million on sale of real estate. We incurred $1.8 million of additional selling and administrative expenses in connection with the sale, which primarily consisted of consulting services and employee related costs. Additionally, as part of the sale of real estate, two leased locations were terminated at no additional costs resulting in a gain on extinguishment of lease liabilities of $1.9 million, which was included in the gain on sale of real estate after related expenses and recorded within selling and administrative expenses in our consolidated statements of operations and comprehensive income. The extinguishment of these lease liabilities resulted in non-cash consideration of $5.9 million related to cancellation of future cash payments of these lease liabilities. See Note 4 to the accompanying consolidated financial statements for information on these lease cancellations and Note 2 for information on the sale of real estate. We also incurred a $1.7 million charge of accelerated depreciation expense in connection with the sale of real estate resulting from the disposal of fixtures and equipment at these stores related to the real estate. This charge was recorded within depreciation expense in our consolidated statements of operations and comprehensive income. See Note 2 |
Business Segment Data
Business Segment Data | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT DATA | BUSINESS SEGMENT DATA We use the following seven merchandise categories, which are consistent with our internal management and reporting of merchandise net sales: Food; Consumables; Soft Home; Hard Home; Furniture; Seasonal; and Apparel, Electronics, & Other. The Food category includes our beverage & grocery; specialty foods; and pet departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; and chemical departments. The Soft Home category includes our home décor; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home category includes our small appliances; table top; food preparation; stationery; home maintenance; home organization; and toys 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 Apparel, Electronics, & Other department includes our apparel; electronics; jewelry; hosiery; and candy & snacks departments, as well as the assortments for The Lot, our cross-category presentation solution, and the Queue Line, our streamlined checkout experience. In 2021 we realigned our merchandise categories and renamed our Electronics, Toys, & Accessories merchandise category as Apparel, Electronics, & Other. See the reclassifications section of Note 1 to the consolidated financial statements for further discussion. 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: (In thousands) 2022 2021 2020 Furniture $ 1,279,346 $ 1,684,393 $ 1,736,932 Seasonal 961,446 954,165 815,378 Food 736,120 746,415 823,420 Soft Home 677,633 822,559 887,743 Consumables 629,161 665,732 737,630 Hard Home 594,343 675,041 700,186 Apparel, Electronics, & Other 590,280 602,298 497,897 Net sales $ 5,468,329 $ 6,150,603 $ 6,199,186 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 28, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On March 15, 2023, the Company, Bankers Commercial Corporation (“Lessor”), the rent assignees parties thereto (“Rent Assignees” and, together with Lessor, “Participants”), MUFG Bank, Ltd., as collateral agent for the Rent Assignees (in such capacity, “Collateral Agent”), and MUFG Bank, Ltd., as administrative agent for the Participants, entered into a Participation Agreement (the “Participation Agreement”), pursuant to which the Participants funded $100 million to Wachovia Service Corporation (“Prior Lessor”) to finance Lessor’s purchase of the land and building related to our Apple Valley, CA distribution center (“Leased Property”) from the Prior Lessor. Also on March 15, 2023, we entered into a Lease Agreement and supplement to the Lease Agreement (collectively, the “Lease” and together with the Participation Agreement and related agreements, the “2023 Synthetic Lease”) pursuant to which the Lessor will lease the Leased Property to the Company for an initial term of 60 months. The Lease may be extended for up to an additional five years, in one-year or longer annual periods, with each renewal subject to approval by the Participants. The 2023 Synthetic Lease requires the Company to pay basic rent on the scheduled payment dates in arrears in an amount equal to (a) a per annum rate equal to Term SOFR for the applicable payment period plus a 10 basis point spread adjustment plus an applicable margin equal to 250 basis points multiplied by (b) the portion of the lease balance not constituting the investment by Lessor in the Leased Property. In addition to basic rent, the Company must pay all costs and expenses associated with the use or occupancy of the Leased Property, including without limitation, maintenance, insurance and certain indemnity payments. The Company will also be responsible for break-funding costs, annual lease administration fees and increased costs. The 2023 Synthetic Lease is expected to be an operating lease. Concurrently with Lessor’s purchase of the Lease Property from Prior Lessor, the participation agreement and lease agreement associated with our former synthetic lease arrangement in each case entered into on November 30, 2017 and most recently amended on September 21, 2022 (the “Prior Synthetic Lease”), were terminated effective on March 15, 2023. In connection with the termination of the Prior Synthetic Lease, the Company paid approximately $53.4 million of the outstanding lease balance to Prior Lessor as an in-substance residual value guarantee using borrowings under the 2022 Credit Agreement. As a result of the termination of the Prior Synthetic Lease, the borrowing base under the 2022 Credit Agreement is no longer subject to a reserve for the outstanding balance under the Prior Synthetic Lease. The Company, together with all of its direct and indirect subsidiaries that serve as guarantors under the 2022 Credit Agreement guarantee the payment and performance obligations under the 2023 Synthetic Lease. The obligations under the 2023 Synthetic Lease are also secured by a pledge of the Company’s interest in the Leased Property. In addition, the Company, no less frequently than annually, will be subject to a test (the “LTV Test”) that requires the ratio of (a) the adjusted lease balance minus any Lessee Letter of Credit (as defined below) to (b) the Leased Property’s fair market value to be greater than 60 percent. If the Company does not comply with the LTV Test, the Company must deliver or adjust a letter of credit in favor of the Collateral Agent (“Lessee Letter of Credit”) in an amount necessary to comply with the LTV Test. The 2023 Synthetic Lease also contains customary representations and warranties, covenants and events of default. The Participation Agreement also requires us to maintain a fixed charge coverage ratio of not less than 1.0 if (1) certain events of default occur and continue or (2) borrowing availability under the 2022 Credit Agreement is less than the greater of (a) 10% of the Maximum Credit Amount (as defined in the 2022 Credit Agreement) or (b) $67.5 million, which is consistent with the terms of the 2022 Credit Agreement. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business We are a home discount retailer in the United States (“U.S.”). At January 28, 2023, we operated 1,425 stores in 48 states and an e-commerce platform. Our mission is to help people Live BIG and Save LOTS. Our vision is to be the BIG difference for a better life by delivering unmistakable value to customers, building a “best places to grow” culture, rewarding shareholders with consistent growth and top tier returns, and doing good in local communities. Basis of Presentation The consolidated financial statements include Big Lots, Inc. and all of its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and include all of our accounts. We consolidate all majority-owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates, Policy [Policy Text Block] | Management Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. The use of estimates, judgments, and assumptions creates a level of uncertainty with respect to reported or disclosed amounts in our consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, judgments, and assumptions, including those that management considers critical to the accurate presentation and disclosure of our consolidated financial statements and accompanying notes. Management bases its estimates, judgments, and assumptions on historical experience, current trends, and various other factors that it believes are reasonable under the circumstances. Because of the inherent uncertainty in using estimates, judgments, and assumptions, actual results may differ from these estimates. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Periods Our fiscal year ends on the Saturday nearest to January 31, which results in fiscal years consisting of 52 or 53 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Fiscal year 2022 (“2022”) was comprised of the 52 weeks that began on January 30, 2022 and ended on January 28, 2023. Fiscal year 2021 (“2021”) was comprised of the 52 weeks that began on January 31, 2021 and ended on January 29, 2022. Fiscal year 2020 (“2020”) was comprised of the 52 weeks that began on February 2, 2020 and ended on January 30, 2021. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting We manage our business based on one segment, discount retailing. Our entire operation is located in the U.S. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents primarily consist of amounts on deposit with financial institutions, outstanding checks, and credit and debit card receivables. We review cash and cash equivalent balances on a bank by bank basis 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. Amounts due from banks for credit and debit card transactions, including private label credit card transactions, are typically settled in less than three days, and at January 28, 2023 and January 29, 2022, totaled $24.7 million and $32.5 million, respectively. |
Inventory, Policy [Policy Text Block] | Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the average cost retail inventory method. Cost includes any applicable inbound shipping and handling costs associated with the receipt of merchandise into our distribution centers (see the discussion below under the caption “Selling and Administrative Expenses” for additional information regarding outbound shipping and handling costs to our stores). Market is determined based on the estimated net realizable value, which generally is the merchandise selling price. Under the average cost retail inventory method, inventory is segregated into classes of merchandise having similar characteristics at its current retail selling value. Current retail selling values are converted to a cost basis by applying an average cost factor to each specific merchandise class’s retail selling value. Cost factors represent the average cost-to-retail ratio computed using beginning inventory and all fiscal year-to-date purchase activity specific to each merchandise class. Under the average cost retail inventory method, permanent sales price markdowns result in cost reductions in inventory. Our permanent sales price markdowns are typically related to end of season clearance events and are recorded as a charge to cost of sales in the period of management’s decision to initiate sales price reductions with the intent not to return the price to regular retail. Promotional markdowns are recorded as a charge to net sales in the period the merchandise is sold. Promotional markdowns are typically related to specific marketing efforts with respect to products maintained continuously in our stores or products that are only available in limited quantities but represent substantial value to our customers. Promotional markdowns are principally used to drive higher sales volume during a defined promotional period. We record a reduction to inventories and charge to cost of sales for an allowance for shrinkage. The allowance for shrinkage is calculated as a percentage of sales for the period from the last physical inventory date to the end of the reporting period. Such estimates are based on a combination of our historical experience and current year physical inventory results. We record a reduction to inventories and charge to cost of sales for any excess or obsolete inventory. The excess or obsolete inventory is estimated based on a review of our aged inventory and takes into account any items that have already received a cost reduction as a result of the permanent markdown process discussed above. We estimate the reduction for excess or obsolete inventory based on historical sales trends, age and quantity of product on hand, and anticipated future sales. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment - Net Depreciation and amortization expense of property and equipment are recorded on a straight‑line basis using estimated service lives. The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 - 10 years Store fixtures and equipment 2 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 3 - 8 years Leasehold improvements are amortized on a straight-line basis using the shorter of their estimated service lives or the lease term. Assets acquired under leases which meet the criteria of a finance lease are capitalized in property and equipment - net and amortized over the estimated service life of the asset or the applicable lease term, whichever is shorter. Depreciation estimates are revised prospectively to reflect the remaining depreciation or amortization of the asset over the shortened estimated service life when a decision is made to dispose of property and equipment prior to the end of its previously estimated service life. The cost of assets sold or retired and the related accumulated depreciation are removed from the accounts with any resulting gain or loss included in selling and administrative expenses. Major repairs that extend service lives are capitalized. Maintenance and repairs are charged to expense as incurred. Capitalized interest was not significant in any period presented. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived AssetsOur long-lived assets primarily consist of property and equipment - net and operating lease right-of-use assets. In order to determine if impairment indicators are present for store property and equipment and operating lease right-of-use assets, we review historical operating results at the store level. We generally use actual historical cash flows to determine if stores had negative cash flows. For each store with negative cash flows, we estimate future cash flows based on operating performance estimates specific to each store’s operations based on assumptions currently being used to develop our company level operating plans. If the net book value of a store’s long-lived assets is not recoverable by the expected undiscounted future cash flows of the store, we estimate the fair value of the store’s assets and recognize an impairment charge for the excess net book value of the store’s long-lived assets over their fair value (categorized as Level 3 under the fair value hierarchy). Fair value at the store level is typically based on projected discounted cash flows over the remaining lease term. Asset impairment charges are proportionately recorded between property and equipment - net and operating lease right-of-use assets. Asset impairment charges are included in selling and administrative expenses in our accompanying consolidated statements of operations and comprehensive income. |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Intangible Assets In 2018, we acquired the Broyhill ® trademark and trade name. This trademark and trade name have indefinite lives. We test the trademark and trade name for impairment annually or whenever circumstances indicate that the carrying value of the asset may not be recoverable. We estimate the fair value of these intangible assets based on an income approach. We perform our annual impairment testing during our fourth fiscal quarter of each year. |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Savings PlansWe have a savings plan with a 401(k) deferral feature and we provide matching contributions, which are subject to Internal Revenue Service (“IRS”) regulations, based on a percentage of employee contributions. For 2022, 2021, and 2020, we expensed $9.2 million, $9.2 million, and $9.2 million, respectively, related to our matching contributions. |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement basis and tax basis of assets and liabilities using enacted law and tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We assess the adequacy and need for a valuation allowance for deferred tax assets. In making such assessment, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. We have established a valuation allowance to reduce our deferred tax assets to the balance that is more likely than not to be realized. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of operations and comprehensive income. Accrued interest and penalties are included within the related tax liability line in the accompanying consolidated balance sheets. The effective income tax rate in any period may be materially impacted by the overall level of income (loss) before income taxes, the jurisdictional mix and magnitude of income (loss), changes in the income tax laws (which may be retroactive to the beginning of the fiscal year), subsequent recognition, de-recognition and/or measurement of an uncertain tax benefit, changes in a deferred tax valuation allowance, and adjustments of a deferred tax asset or liability for enacted changes in tax laws or rates. |
Self Insurance Policy [Policy Text Block] | Insurance and Insurance-Related Reserves We are self-insured for certain losses relating to property, general liability, workers’ compensation, and employee medical, dental, and prescription drug benefit claims, a portion of which is paid by employees. We purchase stop-loss coverage to limit significant exposure in these areas. Accrued insurance-related liabilities and related expenses are based on actual claims filed and estimates of claims incurred but not reported and are reliably determinable. The accruals are determined by applying actuarially-based calculations. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Level 1, defined as observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2, defined as observable inputs other than Level 1 inputs. These include quoted prices for similar assets or liabilities in an active market, quoted prices for identical assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying value of accounts receivable and accounts payable approximates fair value because of the relatively short maturity of these items. |
Revenue [Policy Text Block] | Revenue Recognition We recognize sales revenue at the time the customer takes possession of the merchandise (i.e., the point at which we transfer the goods). Sales are recorded net of discounts (i.e., the amount of consideration we expect to receive for the goods) and estimated returns and exclude any sales tax. The reserve for merchandise returns is estimated based on our prior return experience. We sell gift cards in our stores, online, and through third-party retailers, and issue merchandise credits, typically as a result of customer returns, on stored value cards. We do not charge administrative fees on unused gift card or merchandise credit balances and our gift cards and merchandise credits do not expire. We recognize sales revenue related to gift cards and merchandise credits (1) when the gift card or merchandise credit is redeemed in a sales transaction by the customer or (2) as breakage occurs. We recognize gift card and merchandise credit breakage when we estimate that the likelihood of the card or credit being redeemed by the customer is remote and we determine that we do not have a legal obligation to remit the value of unredeemed cards or credits to the relevant regulatory authority. We estimate breakage based upon historical redemption patterns. The liability for the unredeemed cash value of gift cards and merchandise credits is recorded in accrued operating expenses in our consolidated balance sheets. We offer price hold contracts and buy now pick up later arrangements on merchandise. Revenue for price hold contracts and buy now pick up later arrangements is recognized when the customer makes the final payment and takes possession of the merchandise. Amounts paid by customers under price hold contracts and buy now pick up later arrangements are recorded in accrued operating expenses in our consolidated balance sheets until a sale is consummated. We recognize sales revenue for direct-to-customer transactions on our e-commerce platform at the time the merchandise is shipped (i.e., the point at which we transfer the goods). We also offer buy online, pick up in store services on our e-commerce platform. Revenue for buy online, pick up in store transactions is recognized when the customer takes possession of the merchandise at the store. |
Cost of Goods and Service [Policy Text Block] | Cost of Sales Cost of sales includes the cost of merchandise, net of cash discounts and rebates, markdowns, and inventory shrinkage, and the cost of shipping direct-to-customer e-commerce orders. Cost of merchandise includes related inbound freight to our distribution centers, duties, and commissions. We classify warehousing, distribution and outbound transportation costs to our stores as selling and administrative expenses. Due to this classification, our gross margin rates may not be comparable to those of other retailers that include warehousing, distribution and outbound transportation costs to stores in cost of sales. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling and Administrative Expenses Selling and administrative expenses include store expenses (such as payroll and occupancy costs) and costs related to warehousing, distribution, outbound transportation to our stores, advertising, purchasing, insurance, non-income taxes, accepting credit/debit cards, and overhead. Our selling and administrative expense rates may not be comparable to those of other retailers that include warehousing, distribution, and outbound transportation costs to stores in cost of sales. Distribution and outbound transportation costs included in selling and administrative expenses were $331.8 million, $310.4 million, and $251.0 million for 2022, 2021, and 2020, respectively. |
Lessee, Leases [Policy Text Block] | Leases and Rent Expense We determine if an arrangement contains a lease at inception of the agreement. Our leased property consists of our retail stores, distribution centers, store security, and other office equipment. Certain of our store and distribution center 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 leases obligate us to pay for our applicable portion of real estate taxes, common area maintenance costs (“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 and insurance 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, restrictions, or covenants. |
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, payment card-linked marketing and in-store point-of-purchase signage and presentations. Advertising expenses are included in selling and administrative expenses. Advertising expenses were $98.3 million, $97.7 million, and $102.8 million for 2022, 2021, and 2020, respectively. |
Share-based Payment Arrangement [Policy Text Block] | Share-Based Compensation Share-based compensation expense is recognized in selling and administrative expense in our consolidated statements of operations and comprehensive income for all awards that we expect to vest. Non-vested Restricted Stock Units We expense our non-vested restricted stock units (“RSUs”) with graded vesting as a single award with an average estimated life over the entire term of the award. The expense for the non-vested restricted stock units is recorded on a straight-line basis over the vesting period. Performance Share Units Compensation expense for performance share units (“PSUs”) is recorded based on fair value of the award on the grant date and the estimated achievement of financial performance objectives. From an accounting perspective, the grant date is established once all financial performance targets have been set. We monitor the estimated achievement of the financial performance objectives at each reporting period and will potentially adjust the estimated expense on a cumulative basis. The expense for PSUs is recorded on a straight-line basis from the grant date through the end of the performance period. In 2020, we awarded performance share units with a restriction feature to certain members of senior management, which vested based on the achievement of share price performance goals and a minimum service requirement of one year (“PRSUs”). The PRSUs had a contractual term of three years. The grant date fair value and estimated vesting period of the PRSUs was determined by a third party using a Monte Carlo simulation. The awards were expensed over their estimated vesting period on a straight-line basis. In 2022, we awarded performance share units with a performance condition to certain members of senior management, which vest based on the achievement of total shareholder return (“TSR”) targets relative to a peer group over a three-year performance period and require the grantee to remain employed by us through the end of the performance period (“TSR PSUs”). The TSR 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 use a Monte Carlo simulation to estimate the fair value of the TSR PSUs on the grant date and recognize expense over the service period. The TSR PSUs have a contractual period of three years. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share Basic earnings per share is based on the weighted-average number of shares outstanding during each period. Diluted earnings per share is based on the weighted-average number of shares outstanding during each period and the additional dilutive effect of RSUs, PSUs, PRSUs, and TSR PSUs, calculated using the treasury stock method. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassifications Our seven merchandise categories are as follows: Food; Consumables; Soft Home; Hard Home; Furniture; Seasonal; and Apparel, Electronics, & Other. The Food category includes our beverage & grocery; specialty foods; and pet departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; and chemical departments. The Soft Home category includes our home décor; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home category includes our small appliances; table top; food preparation; stationery; home maintenance; home organization; and toys 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 Apparel, Electronics, & Other department includes our apparel; electronics; jewelry; hosiery; and candy & snacks departments, as well as the assortments for The Lot and the Queue Line. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In the third quarter of 2021, the Company adopted Accounting Standards Update (“ASU”) 2020-04 Reference Rate Reform . This ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, leases, and other transactions affected by the potential fallback of LIBOR. The Company adopted ASU 2020-04 in connection with its entry into a new credit facility (see Note 3 to the consolidated financial statements) that includes language to address LIBOR fallback and in connection with an amendment to the lease for our Apple Valley, CA distribution center including similar LIBOR fallback language. The impact of the adoption was immaterial to the consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15 Intangibles - Goodwill and Other - Internal-Use Softwar e. 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. Recent Accounting Pronouncements In September 2022, FASB issued ASU 2022-04 related to disclosure requirements for buyers in supplier finance programs. The amendments in the update require that buyers disclose qualitative and quantitative information about their supplier finance programs. Interim and annual requirements include disclosure of outstanding amounts under the obligations as of the end of the reporting period, and annual requirements include a rollforward of those obligations for the annual reporting period, as well as a description of payment and other key terms of the programs. This update is effective for annual periods beginning after |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment [Table Text Block] | The estimated service lives of our depreciable property and equipment by major asset category were as follows: Land improvements 15 years Buildings 40 years Leasehold improvements 5 - 10 years Store fixtures and equipment 2 - 7 years Distribution and transportation fixtures and equipment 5 - 15 years Office and computer equipment 3 - 5 years Computer software costs 3 - 8 years |
Supplemental disclosure of cash flow information [Table Text Block] | The following table provides supplemental cash flow information for 2022, 2021, and 2020: (In thousands) 2022 2021 2020 Supplemental disclosure of cash flow information: Cash paid for interest $ 22,225 $ 8,066 $ 6,366 Cash paid for income taxes, excluding impact of refunds 4,318 111,206 217,308 Gross proceeds from long-term debt 2,208,400 55,600 514,500 Gross payments of long-term debt 1,910,500 102,364 757,727 Gross financing proceeds from sale and leaseback — — 133,999 Gross repayments of financing from sale and leaseback 355 — 10,564 Cash paid for operating lease liabilities 373,172 341,341 340,747 Non-cash activity: Assets acquired under finance leases 3,740 1,080 — Accrued property and equipment 16,674 19,303 17,791 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 216,499 $ 354,066 $ 694,811 |
Property and Equipment - Net (T
Property and Equipment - Net (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment - net consist of: (In thousands) January 28, 2023 January 29, 2022 Land and land improvements $ 27,257 $ 48,849 Buildings and leasehold improvements 775,837 828,179 Fixtures and equipment 940,613 940,921 Computer software costs 191,910 187,190 Construction-in-progress 24,676 25,394 Property and equipment - cost 1,960,293 2,030,533 Less accumulated depreciation and amortization 1,269,182 1,294,707 Property and equipment - net $ 691,111 $ 735,826 |
Debt Long-term Debt (Tables)
Debt Long-term Debt (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
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) January 28, 2023 January 29, 2022 2021 Credit Agreement $ — $ 3,500 2022 Credit Agreement 301,400 — Long-term debt $ 301,400 $ 3,500 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Leases [Abstract] | |
Assets and Liabilities, Lessee [Table Text Block] | Leases were recorded in our consolidated balance sheets as follows: Leases (In thousands) Balance Sheet Location January 28, 2023 January 29, 2022 Assets Operating Operating lease right-of-use assets $ 1,619,756 $ 1,731,995 Finance Property and equipment - net 3,813 1,686 Total right-of-use assets $ 1,623,569 $ 1,733,681 Liabilities Current Operating Current operating lease liabilities $ 252,320 $ 242,275 Finance Accrued operating expenses 1,789 869 Noncurrent Operating Noncurrent operating lease liabilities 1,514,009 1,569,713 Finance Other liabilities 1,967 955 Total lease liabilities $ 1,770,085 $ 1,813,812 |
Lease, Cost [Table Text Block] | The components of lease costs were as follows: Lease cost (In thousands) Statements of Operations and Comprehensive Income Location 2022 2021 2020 Operating lease cost Selling and administrative expenses $ 363,315 $ 355,021 326,780 Finance lease cost Amortization of leased assets Depreciation 1,546 3,024 3,800 Interest on lease liabilities Interest expense 163 104 274 Short-term lease cost Selling and administrative expenses 5,251 5,152 4,728 Variable lease cost Selling and administrative expenses 96,265 84,940 88,074 Total lease cost $ 466,540 $ 448,241 $ 423,656 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity of our lease liabilities at January 28, 2023, was as follows: Fiscal Year (In thousands) Operating Leases Finance Leases 2023 $ 334,092 $ 1,992 2024 330,858 1,712 2025 295,401 321 2026 251,214 — 2027 198,934 — Thereafter 772,362 — Total lease payments $ 2,182,861 $ 4,025 Less amount to discount to present value $ (416,532) $ (269) Present value of lease liabilities $ 1,766,329 $ 3,756 |
Operating Lease, Lease Term and Discount Rate [Table Text Block] | Lease term and discount rate for our operating leases were as follows: January 28, 2023 January 29, 2022 Weighted average remaining lease term (years) 8.0 8.3 Weighted average discount rate 4.6 % 4.3 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Class of Stock [Line Items] | |
Schedule of Stock by Class [Table Text Block] | A reconciliation of the number of weighted-average common shares outstanding used in the basic and diluted earnings per share computations is as follows: (In thousands) 2022 2021 2020 Weighted-average common shares outstanding: Basic 28,860 32,723 38,233 Dilutive effect of share-based awards — 632 834 Diluted 28,860 33,355 39,067 |
Dividends Declared [Table Text Block] | The Company declared and paid cash dividends per common share during the periods presented as follows: Dividends Amount Declared Amount Paid 2021: (In thousands) (In thousands) First quarter $ 0.30 $ 11,206 $ 12,460 Second quarter 0.30 10,611 10,204 Third quarter 0.30 10,209 9,890 Fourth quarter 0.30 9,486 9,099 Total $ 1.20 $ 41,512 $ 41,653 2022: First quarter $ 0.30 $ 8,981 $ 10,705 Second quarter 0.30 9,068 8,791 Third quarter 0.30 9,196 8,767 Fourth quarter 0.30 9,122 8,734 Total $ 1.20 $ 36,367 $ 36,997 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
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 fiscal years 2020, 2021, and 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding non-vested restricted stock at February 1, 2020 648,510 $ 38.52 Granted 1,031,213 18.18 Vested (308,797) 40.65 Forfeited (156,714) 22.80 Outstanding non-vested restricted stock at January 30, 2021 1,214,212 $ 22.71 Granted 255,071 68.71 Vested (481,689) 25.12 Forfeited (78,307) 28.19 Outstanding non-vested restricted stock at January 29, 2022 909,287 $ 33.87 Granted 573,989 34.21 Vested (440,241) 31.21 Forfeited (167,532) 37.40 Outstanding non-vested restricted stock at January 28, 2023 875,503 $ 34.75 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs, PRSUs and TSR PSUs for fiscal years 2020, 2021, and 2022: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs, PRSUs, and TSR PSUs at February 1, 2020 181,922 $ 31.89 Granted 580,285 24.53 Vested (181,062) 31.89 Forfeited (107,114) 25.56 Outstanding PSUs, PRSUs, and TSR PSUs at January 30, 2021 474,031 $ 24.31 Granted 263,787 70.24 Vested (474,031) 24.31 Forfeited (23,677) 70.24 Outstanding PSUs, PRSUs, and TSR PSUs at January 29, 2022 240,110 $ 70.24 Granted 73,787 56.00 Vested (240,110) 70.24 Forfeited (12,863) 57.15 Outstanding PSUs, PRSUs, and TSR PSUs at January 28, 2023 60,924 $ 55.76 |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | During 2022, 2021, and 2020, the following activity occurred under our share-based compensation plans: (In thousands) 2022 2021 2020 Total intrinsic value of stock options exercised $ — $ — $ 161 Total fair value of restricted stock vested 14,641 31,954 7,102 Total fair value of PSU, PRSUs, and TSR PSUs vested $ 13,877 $ 37,387 $ 924 |
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 Expected Valuation (Grant) Date Actual or Expected Expense Period 2021 137,721 July 2023 Fiscal 2023 2022 243,739 March 2024 Fiscal 2024 Total 381,460 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes was comprised of the following: (In thousands) 2022 2021 2020 Current: U.S. Federal $ (1,862) $ 26,888 $ 206,883 U.S. State and local (1,105) 8,138 60,947 Total current tax (benefit) expense (2,967) 35,026 267,830 Deferred: U.S. Federal (57,054) 13,651 (40,848) U.S. State and local (9,688) 5,356 (11,567) Total deferred tax (benefit) expense (66,742) 19,007 (52,415) Income tax provision $ (69,709) $ 54,033 $ 215,415 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows: 2022 (a) 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal tax benefit 3.0 4.6 4.6 Work opportunity tax and other employment tax credits 1.0 (1.4) (0.3) Executive compensation limitations - permanent difference (0.3) 1.8 0.2 Share-based compensation (0.2) (2.3) 0.2 Other, net 0.4 (0.4) (0.2) Effective income tax rate 24.9 % 23.3 % 25.5 % |
Schedule of Income Taxes Paid [Table Text Block] | Income tax payments and refunds were as follows: (In thousands) 2022 2021 2020 Income taxes refunded $ (27,759) $ (546) $ (1,522) Income taxes paid 4,318 111,206 217,308 Net income taxes (refunded) paid $ (23,441) $ 110,660 $ 215,786 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of our deferred tax assets and liabilities were as follows: (In thousands) January 28, 2023 January 29, 2022 Deferred tax assets: Lease liabilities, net of lease incentives $ 458,293 $ 474,584 Net operating losses, tax credits, and other carryforwards 64,513 2,307 Depreciation and fixed asset basis differences 39,218 40,302 Sale and leaseback financing liability 32,251 33,508 Uniform inventory capitalization 23,660 22,734 Workers’ compensation and other insurance reserves 20,868 22,097 Compensation related 5,376 12,703 Accrued operating liabilities 3,032 2,145 Accrued state taxes 1,581 2,557 Accrued payroll taxes related to CARES Act — 4,674 Other 16,074 13,718 Valuation allowances, net of federal tax benefit (2,102) (2,093) Total deferred tax assets 662,764 629,236 Deferred tax liabilities: Right-of-use assets, net of amortization 409,979 441,786 Accelerated depreciation and fixed asset basis differences 113,469 120,224 Synthetic lease obligation 38,464 38,582 Deferred gain on like-kind exchange 13,930 14,476 Lease construction reimbursements 11,368 8,333 Prepaid expenses 5,548 5,143 Workers’ compensation and other insurance reserves 4,067 4,493 Other 9,638 6,639 Total deferred tax liabilities 606,463 639,676 Net deferred tax assets (liabilities) $ 56,301 $ (10,440) |
Deferred Tax Assets and Liabilities by Jurisdiction [Table Text Block] | Our deferred tax assets and deferred tax liabilities, netted by tax jurisdiction, are summarized in the table below: (In thousands) January 28, 2023 January 29, 2022 U.S. Federal $ 35,640 $ (21,413) U.S. State and local 20,661 10,973 Net deferred tax assets (liabilities) $ 56,301 $ (10,440) |
Summary of Tax Credit Carryforwards [Table Text Block] | We have the following income tax loss and credit carryforwards at January 28, 2023 (amounts are shown net of tax excluding the federal income tax effect of the state and local items): (In thousands) U.S. Federal: Federal net operating loss carryforward $ 45,590 Indefinite carryforward Other carryforwards 4,867 Predominately indefinite carryforward Employment tax credits 3,807 Carryback to 2021, remainder expires 2024 Total U.S. Federal 54,264 U.S. State and local: State and local net operating loss carryforwards 10,073 Various carryforward periods ranging from 5 to 20 years including some jurisdictions with no expirations California enterprise zone credits 2,769 Predominately expires fiscal year 2023 Other state credits 131 Expires fiscal years through 2026 Total U.S. State and local 12,973 Total net operating losses, tax credits, and other carryforwards $ 67,237 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for 2022, 2021, and 2020: (In thousands) 2022 2021 2020 Unrecognized tax benefits - beginning of year $ 9,862 $ 9,465 $ 10,760 Gross increases - tax positions in current year 357 410 728 Gross increases - tax positions in prior period 424 1,864 745 Gross decreases - tax positions in prior period (1,555) (1,039) (1,871) Settlements (333) (125) (20) Lapse of statute of limitations (1,222) (713) (877) Unrecognized tax benefits - end of year $ 7,533 $ 9,862 $ 9,465 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Jan. 28, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: (In thousands) 2022 2021 2020 Furniture $ 1,279,346 $ 1,684,393 $ 1,736,932 Seasonal 961,446 954,165 815,378 Food 736,120 746,415 823,420 Soft Home 677,633 822,559 887,743 Consumables 629,161 665,732 737,630 Hard Home 594,343 675,041 700,186 Apparel, Electronics, & Other 590,280 602,298 497,897 Net sales $ 5,468,329 $ 6,150,603 $ 6,199,186 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Component of Operating Other Cost and Expense [Abstract] | |||
Number of Stores | 1,425 | ||
Number of States in which Entity Operates | 48 | ||
Fiscal Period | P52W | P52W | P52W |
Credit and Debit Card Receivables, at Carrying Value | $ 24.7 | $ 32.5 | |
Distribution and Outbound Transportation Costs | 331.8 | 310.4 | $ 251 |
Advertising Expense | 98.3 | 97.7 | 102.8 |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 9.2 | $ 9.2 | $ 9.2 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Useful Lives of Fixed Assets (Details) | 12 Months Ended |
Jan. 28, 2023 | |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Store Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Store Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Distribution and Transportation Fixtures and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Distribution and Transportation Fixtures and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Office and Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office and Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer software costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer software costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 8 years |
Property and Equipment - Net (D
Property and Equipment - Net (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 28, 2023 USD ($) | Oct. 29, 2022 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | $ 1,960,293 | $ 1,960,293 | $ 2,030,533 | ||
Less accumulated depreciation and amortization | 1,269,182 | 1,269,182 | 1,294,707 | ||
Property and equipment - net | 691,111 | 691,111 | 735,826 | ||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 24,600 | 24,600 | 25,300 | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 20,800 | 20,800 | 23,600 | ||
Payments to Acquire Property, Plant, and Equipment | 159,413 | 160,804 | $ 135,220 | ||
Depreciation | 154,859 | 142,572 | 138,336 | ||
Tangible Asset Impairment Charges | $ 17,900 | $ 900 | $ 900 | ||
Number of Stores Impaired | 155 | 8 | 4 | ||
Assets Held for Sale | $ 30,600 | ||||
Number of Stores, Held for Sale | 25 | ||||
Number of Land Parcels, Held for Sale | 1 | ||||
Number of Stores, Sold | 20 | ||||
Number of Land Parcel, Sold | 1 | ||||
Land and land improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | $ 27,257 | $ 27,257 | $ 48,849 | ||
Buildings and leasehold improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | 775,837 | 775,837 | 828,179 | ||
Fixtures and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | 940,613 | 940,613 | 940,921 | ||
Computer software costs [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | 191,910 | 191,910 | 187,190 | ||
Construction-in-progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment - cost | 24,676 | $ 24,676 | 25,394 | ||
Land and Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sold Assets, Previously Held for Sale | $ 29,400 | ||||
Land and Building [Member] | Ohio, Alabama, Oklahoma, and Pennsylvania Distribution Centers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Disposals | $ 123,800 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 21, 2022 | Sep. 22, 2021 | Jan. 28, 2023 | Jan. 29, 2022 | |
2022 Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 900,000 | |||
Debt Instrument, Term | 5 years | |||
Debt Issuance Costs, Gross | $ 3,400 | |||
Line of Credit Facility, Optional Incremental Term Loans and/or Borrowing Capacity | $ 300,000 | |||
Line of Credit Facility, Swing Loan Sublimit | 10% | |||
Line of Credit Facility, Letter of Credit Sublimit | $ 90,000 | |||
Line of Credit Facility, Unused Commitment Fee | 0.20% | |||
Line of Credit Facility, Fixed Minimum Coverage Ratio | 1 | |||
Line of Credit Facility, Covenant Minimum Percent Availability | 10% | |||
Line of Credit Facility, Covenant Minimum Monetary Availability | $ 67,500 | |||
Line of Credit Facility, Current Borrowing Capacity | $ 710,300 | |||
Line of Credit Facility, Amount Outstanding | 301,400 | $ 0 | ||
Line of Credit Facility, Letters of Credit Outstanding | 32,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 376,900 | |||
2021 Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 600,000 | |||
Debt Instrument, Term | 5 years | |||
Line of Credit Facility, Amount Outstanding | $ 0 | $ 3,500 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Thousands | Jan. 28, 2023 | Jan. 29, 2022 |
Debt, Long-term and Short-term, Combined Amount [Abstract] | ||
Long-term Debt, Excluding Current Maturities | $ 301,400 | $ 3,500 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jun. 12, 2020 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating Lease, Right-of-Use Asset | $ 1,619,756 | $ 1,619,756 | $ 1,731,995 | ||
De-recognized Operating Lease Right-of-Use Assets | 4,000 | ||||
Non-Cash Consideration, Cancellable Future Cash Payments | 5,900 | ||||
Gain on Extinguishment of Lease Liabilities | (1,900) | ||||
Finance Lease, Right-of-Use Asset | $ 3,813 | $ 3,813 | $ 1,686 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment - net | Property and equipment - net | Property and equipment - net | ||
Right-of-use assets, total | $ 1,623,569 | $ 1,623,569 | $ 1,733,681 | ||
Operating Lease, Liability, Current | 252,320 | 252,320 | 242,275 | ||
Finance Lease, Liability, Current | $ 1,789 | $ 1,789 | $ 869 | ||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued operating expenses | Accrued operating expenses | Accrued operating expenses | ||
Operating Lease, Liability, Noncurrent | $ 1,514,009 | $ 1,514,009 | $ 1,569,713 | ||
Finance Lease, Liability, Noncurrent | $ 1,967 | $ 1,967 | $ 955 | ||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities | ||
Lease liabilities, total | $ 1,770,085 | $ 1,770,085 | $ 1,813,812 | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years | 8 years | 8 years 3 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | 4.60% | 4.30% | ||
Finance Lease, Liability, to be Paid [Abstract] | |||||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 1,992 | $ 1,992 | |||
Finance Lease, Liability, Payments, Due Year Two | 1,712 | 1,712 | |||
Finance Lease, Liability, Payments, Due Year Three | 321 | 321 | |||
Finance Lease, Liability, Payments, Due Year Four | 0 | 0 | |||
Finance Lease, Liability, Payments, Due Year Five | 0 | 0 | |||
Finance Lease, Liability, Payments, Due after Year Five | 0 | 0 | |||
Finance Lease, Liability, Payment, Due | 4,025 | 4,025 | |||
Finance Lease, Liability, Undiscounted Excess Amount | (269) | (269) | |||
Finance Lease, Liability | 3,756 | 3,756 | |||
Lease, Cost [Abstract] | |||||
Operating Lease, Cost | 363,315 | $ 355,021 | $ 326,780 | ||
Finance Lease, Right-of-Use Asset, Amortization | 1,546 | 3,024 | 3,800 | ||
Finance Lease, Interest Expense | 163 | 104 | 274 | ||
Short-term Lease, Cost | 5,251 | 5,152 | 4,728 | ||
Variable Lease, Cost | 96,265 | 84,940 | 88,074 | ||
Lease, Cost | 466,540 | 448,241 | 423,656 | ||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability | 1,766,329 | 1,766,329 | |||
Operating Lease, Right-of-Use Asset | $ 1,619,756 | $ 1,619,756 | $ 1,731,995 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.60% | 4.60% | 4.30% | ||
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |||||
2022 | $ 334,092 | $ 334,092 | |||
2023 | 330,858 | 330,858 | |||
2024 | 295,401 | 295,401 | |||
2025 | 251,214 | 251,214 | |||
2026 | 198,934 | 198,934 | |||
Thereafter | 772,362 | 772,362 | |||
Lessee, Operating Lease, Liability, Payments, Due | 2,182,861 | 2,182,861 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (416,532) | (416,532) | |||
Operating Lease, Liability | $ 1,766,329 | 1,766,329 | |||
Impairment due to store closure | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Impairment Loss | 1,800 | $ 1,100 | 900 | ||
Impairment due to store underperformance [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Impairment Loss | $ 50,500 | $ 4,100 | $ 0 | ||
Ohio and Alabama Distribution Centers [Member] | Land and Building [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 15 years | ||||
Oklahoma and Pennsylvania Distribution Centers [Member] | Land and Building [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 20 years | ||||
Ohio, Alabama, Oklahoma, and Pennsylvania Distribution Centers [Member] | Land and Building [Member] | |||||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating Lease, Right-of-Use Asset | $ 466,100 | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% | ||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Description | In the second quarter of 2020, we completed sale and leaseback transactions for our distribution centers located in Columbus, OH; Durant, OK; Montgomery, AL; and Tremont, PA. 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 lease commencement, we determined that none of the extension options were reasonably certain to be exercised. Therefore, none of the extension options were included in the computation of the operating lease liabilities and operating lease right-of-use assets. 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. For additional information on the sale and leaseback transactions, see Note 9 to the accompanying consolidated financial statements. | ||||
Operating Lease, Liability | $ 466,100 | ||||
Operating Lease, Right-of-Use Asset | $ 466,100 | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% | ||||
Lessee, Operating Lease, Liability, to be Paid [Abstract] | |||||
Operating Lease, Liability | $ 466,100 |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Class of Stock [Line Items] | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Other Than Restricted Stock Units, Performance Share Units, and Performance Restricted Share Units, Amount | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 400,000 | 200,000 | 0 |
Weighted-average common shares outstanding: | |||
Basic | 28,860,000 | 32,723,000 | 38,233,000 |
Dilutive effect of share-based awards | 0 | 632,000 | 834,000 |
Diluted | 28,860,000 | 33,355,000 | 39,067,000 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Dec. 01, 2021 | |
Class of Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 11,180 | $ 446,374 | $ 175,642 | |
Common Stock [Member] | 2021 Repurchase Authorization [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 250,000 | |||
Stock Repurchased During Period, Shares | 0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 159,400 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Jan. 29, 2022 | Oct. 30, 2021 | Jul. 31, 2021 | May 01, 2021 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Dividends, Common Stock [Abstract] | |||||||||||
Amount declared (Dividends) | $ 36,367 | $ 41,512 | $ 47,982 | ||||||||
Amount paid (Dividends) | $ 36,997 | $ 41,653 | $ 46,964 | ||||||||
Common Stock [Member] | |||||||||||
Dividends, Common Stock [Abstract] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 1.20 | $ 1.20 | |
Amount declared (Dividends) | $ 9,122 | $ 9,196 | $ 9,068 | $ 8,981 | $ 9,486 | $ 10,209 | $ 10,611 | $ 11,206 | $ 36,367 | $ 41,512 | |
Amount paid (Dividends) | $ 8,734 | $ 8,767 | $ 8,791 | $ 10,705 | $ 9,099 | $ 9,890 | $ 10,204 | $ 12,460 | $ 36,997 | $ 41,653 |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jun. 10, 2020 | Jun. 09, 2020 | Feb. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 14,800 | $ 39,600 | $ 26,200 | |||
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 | $ 19,200 | |||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |||||
LTIP 2020 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,600,000 | 1,360,943 | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, beginning balance | 909,287 | 1,214,212 | 648,510 | |||
Granted | 573,989 | 255,071 | 1,031,213 | |||
Vested | (440,241) | (481,689) | (308,797) | |||
Forfeited | (167,532) | (78,307) | (156,714) | |||
Nonvested, ending balance | 875,503 | 909,287 | 1,214,212 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 34.75 | $ 33.87 | $ 22.71 | $ 38.52 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 34.21 | 68.71 | 18.18 | |||
Vested in Period, Weighted Average Grant Date Fair Value | 31.21 | 25.12 | 40.65 | |||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 37.40 | $ 28.19 | $ 22.80 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 14,641 | $ 31,954 | $ 7,102 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Restricted Stock Units (2022) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 442,384 | |||||
Share-based Payment Arrangement, Expense | $ 1,000 | $ 25,200 | $ 14,200 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, beginning balance | 240,110 | 474,031 | 181,922 | |||
Granted | 73,787 | 263,787 | 580,285 | |||
Vested | (240,110) | (474,031) | (181,062) | |||
Forfeited | (12,863) | (23,677) | (107,114) | |||
Nonvested, ending balance | 60,924 | 240,110 | 474,031 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 55.76 | $ 70.24 | $ 24.31 | $ 31.89 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 56 | 70.24 | 24.53 | |||
Vested in Period, Weighted Average Grant Date Fair Value | 70.24 | 24.31 | 31.89 | |||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 57.15 | $ 70.24 | $ 25.56 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 13,877 | $ 37,387 | $ 924 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
PSU [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 381,460 | |||||
2020 PRSU Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted | 413,022 | |||||
Vested | (339,568) | |||||
Nonvested, ending balance | 0 | |||||
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, Award Requisite Service Period | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | |||||
2021 PSU Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 137,721 | |||||
2022 TSR PSU Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 60,924 | |||||
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, Expiration Period | 3 years | |||||
2022 PSU Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 243,739 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total intrinsic value of stock options exercised | $ 0 | $ 0 | $ 161 |
Share-Based Plans - Board of Di
Share-Based Plans - Board of Directors (Details) - USD ($) | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Board of Directors Chairman [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Deferred Compensation Arrangement Fair Value Of Shares Issued To Each Director | $ 245,000 | $ 245,000 | $ 210,000 |
Nonemployee Board of Directors [Member] | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Deferred Compensation Arrangement Fair Value Of Shares Issued To Each Director | $ 145,000 | $ 145,000 | $ 145,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Deferred Tax Assets and Liabilities by Jurisdiction [Line Items] | |||
Deferred Tax Assets, Net | $ 56,301 | ||
Deferred Tax Liabilities, Net | $ 10,440 | ||
Current | |||
U.S. Federal | (1,862) | 26,888 | $ 206,883 |
U.S. State and Local | (1,105) | 8,138 | 60,947 |
Total current tax expense | (2,967) | 35,026 | 267,830 |
Deferred | |||
U.S. Federal | (57,054) | 13,651 | (40,848) |
U.S. State and Local | (9,688) | 5,356 | (11,567) |
Total deferred tax expense | (66,742) | 19,007 | (52,415) |
Income tax provision | $ (69,709) | $ 54,033 | $ 215,415 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 3% | 4.60% | 4.60% |
Effective Income Tax Rate Reconciliation, Tax Credits | 1% | (1.40%) | (0.30%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | (0.30%) | 1.80% | 0.20% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Percent | (0.20%) | (2.30%) | 0.20% |
Effective Income Tax Rate Reconciliation, Other Adjustments | 0.40% | (0.40%) | (0.20%) |
Effective Income Tax Rate | 24.90% | 23.30% | 25.50% |
Income Taxes Paid, Net [Abstract] | |||
Income taxes paid | $ 4,318 | $ 111,206 | $ 217,308 |
Income taxes refunded | (27,759) | (546) | (1,522) |
Net income taxes paid | (23,441) | 110,660 | 215,786 |
Deferred Tax Assets, Gross [Abstract] | |||
Deferred Tax Assets, Lease Liabilities, Net of Lease Incentives | 458,293 | 474,584 | |
Deferred Tax Assets, Operating Loss Carryforwards | 64,513 | 2,307 | |
Deferred Tax Assets, Depreciation and Fixed Asset Basis Differences | 39,218 | 40,302 | |
Deferred Tax Assets, Sale and Leaseback Financing Liability | 32,251 | 33,508 | |
Deferred Tax Assets, Inventory | 23,660 | 22,734 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 20,868 | 22,097 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 5,376 | 12,703 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 3,032 | 2,145 | |
Deferred Tax Assets, State Taxes | 1,581 | 2,557 | |
Deferred Tax Assets, CARES Act Deferred Payroll Taxes | 0 | 4,674 | |
Deferred Tax Assets, Other | 16,074 | 13,718 | |
Deferred Tax Assets, Valuation Allowance | (2,102) | (2,093) | |
Deferred Tax Assets, Net of Valuation Allowance | 662,764 | 629,236 | |
Deferred Tax Liabilities [Abstract] | |||
Deferred Tax Liabilities, Leasing Arrangements | 409,979 | 441,786 | |
Deferred Tax Liabilities, Property, Plant and Equipment | 113,469 | 120,224 | |
Deferred Tax Liabilities, Synthetic Lease Obligations | 38,464 | 38,582 | |
Deferred Tax Liabilities, Tax Deferred Income | 13,930 | 14,476 | |
Deferred Tax Liabilities, Lease Construction Reimbursements | 11,368 | 8,333 | |
Deferred Tax Liabilities, Deferred Expense, Other Capitalized Costs | 5,548 | 5,143 | |
Deferred Tax Liabilities, Insurance Proceeds Receivable | 4,067 | 4,493 | |
Deferred Tax Liabilities, Other | 9,638 | 6,639 | |
Deferred Tax Liabilities, Gross | 606,463 | 639,676 | |
Deferred Tax Assets, Net | 56,301 | ||
Deferred Tax Liabilities, Net | (10,440) | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits | 9,862 | 9,465 | 10,760 |
Gross increases - tax positions in current year | 357 | 410 | 728 |
Gross increases - tax positions in prior period | 424 | 1,864 | 745 |
Gross decreases - tax positions in prior period | (1,555) | (1,039) | (1,871) |
Settlements (decrease) | (333) | (125) | (20) |
Lapse of statute of limitations | (1,222) | (713) | (877) |
Unrecognized Tax Benefits | 7,533 | 9,862 | 9,465 |
Income Tax Uncertainties [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 4,900 | 7,200 | |
Federal Tax Expense (Benefit) on State and Local Income Taxes | 1,100 | 1,500 | |
Unrecognized Tax Benefits, Tax Positions with Uncertain Timing of Deductability | 1,600 | 1,300 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (800) | (1,100) | $ (400) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,800 | 2,800 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 2,000 | ||
Domestic Tax Authority [Member] | |||
Deferred Tax Assets and Liabilities by Jurisdiction [Line Items] | |||
Deferred Tax Assets, Net | 35,640 | ||
Deferred Tax Liabilities, Net | 21,413 | ||
Deferred Tax Liabilities [Abstract] | |||
Deferred Tax Assets, Net | 35,640 | ||
Deferred Tax Liabilities, Net | (21,413) | ||
State and Local Jurisdiction [Member] | |||
Deferred Tax Assets and Liabilities by Jurisdiction [Line Items] | |||
Deferred Tax Assets, Net | 20,661 | 10,973 | |
Deferred Tax Liabilities [Abstract] | |||
Deferred Tax Assets, Net | $ 20,661 | $ 10,973 |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) $ in Thousands | Jan. 28, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards and Tax Credit Carryforward | $ 67,237 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 10,073 |
Operating Loss Carryforwards and Tax Credit Carryforward | 12,973 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 45,590 |
Operating Loss Carryforwards and Tax Credit Carryforward | 54,264 |
California Enterprise Zone [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 2,769 |
Other State Credits [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 131 |
U.S. Federal Other Carryforwards [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 4,867 |
Employment Tax Credits [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | $ 3,807 |
Contingencies (Details)
Contingencies (Details) - Pending Litigation [Member] - California Wage and Hour Matters [Member] $ in Millions | 12 Months Ended |
Jan. 28, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Loss Contingency, Loss in Period | $ 1 |
Loss Contingency Accrual | $ 2.2 |
Contingencies - Commitments (De
Contingencies - Commitments (Details) $ in Millions | Jan. 28, 2023 USD ($) |
Commitments Disclosure [Abstract] | |
Self-insurance letters of credit | $ 32 |
Gain on Sale of Distribution _2
Gain on Sale of Distribution Center & Other Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Gain on sale of distribution centers | $ 0 | $ 0 | $ (463,053) | |
Gain on Extinguishment of Lease Liabilities | $ (1,900) | |||
Non-Cash Consideration, Cancellable Future Cash Payments | 5,900 | |||
Gross financing proceeds from sale and leaseback | $ 0 | $ 0 | 133,999 | |
Land and Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from Sale of Real Estate | 47,800 | 586,900 | ||
Gain (Loss) on Sale of Properties | 18,600 | |||
Gain on sale of distribution centers | (463,100) | |||
Gross Proceeds from Sale of Real Estate | 725,000 | |||
Sold Assets, Previously Held for Sale | 29,400 | |||
Selling and administrative expenses, sale and leaseback transaction | 1,800 | 4,000 | ||
Accelerated Depreciation on Sale of Real Estate | $ 1,700 | |||
Gross financing proceeds from sale and leaseback | $ 134,000 |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 5,468,329 | $ 6,150,603 | $ 6,199,186 |
Furniture [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,279,346 | 1,684,393 | 1,736,932 |
Seasonal [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 961,446 | 954,165 | 815,378 |
Food [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 736,120 | 746,415 | 823,420 |
Soft Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 677,633 | 822,559 | 887,743 |
Consumables [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 629,161 | 665,732 | 737,630 |
Hard Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 594,343 | 675,041 | 700,186 |
Apparel, Electronics, & Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 590,280 | $ 602,298 | $ 497,897 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 12 Months Ended |
Jan. 28, 2023 USD ($) | |
Subsequent Events [Abstract] | |
Subsequent Event, Date | Mar. 15, 2023 |
Lease Amount | $ 100 |
Lease Term | 60 |
Payment of Residual Lease Balance | $ 53.4 |