Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Apr. 12, 2024 | Jul. 28, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 03, 2024 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 294,902,033 | ||
Entity Common Stock, Shares Outstanding | 29,512,551 | ||
Document Fiscal Year Focus | 2023 | ||
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 | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 4,722,099 | $ 5,468,329 | $ 6,150,603 |
Cost of sales (exclusive of depreciation expense shown separately below) | 3,035,488 | 3,554,826 | 3,753,596 |
Gross margin | 1,686,611 | 1,913,503 | 2,397,007 |
Selling and administrative expenses | 2,141,927 | 2,040,334 | 2,015,616 |
Depreciation expense | 144,504 | 154,859 | 142,572 |
Gain on sale of Sale of Real Estate | (212,463) | (20,190) | (934) |
Operating (loss) profit | (387,357) | (261,500) | 239,753 |
Interest expense | (44,758) | (20,280) | (9,281) |
Other income (expense) | 7 | 1,363 | 1,339 |
(Loss) income before income taxes | (432,108) | (280,417) | 231,811 |
Income tax (benefit) expense | 49,768 | (69,709) | 54,033 |
Net (loss) income and comprehensive (loss) income | $ (481,876) | $ (210,708) | $ 177,778 |
Earnings (loss) per common share | |||
Earnings per common share - basic (in dollars per share) | $ (16.53) | $ (7.30) | $ 5.43 |
Earnings per common share - diluted (in dollars per share) | $ (16.53) | $ (7.30) | $ 5.33 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 46,411 | $ 44,730 |
Inventories | 953,302 | 1,147,949 |
Other current assets | 86,310 | 92,635 |
Total current assets | 1,086,023 | 1,285,314 |
Operating lease right-of-use assets | 1,637,845 | 1,619,756 |
Property and equipment - net | 563,185 | 691,111 |
Deferred income taxes | 0 | 56,301 |
Other assets | 38,256 | 38,449 |
Total assets | $ 3,325,309 | 3,690,931 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts Payable | |
Current liabilities: | ||
Accounts Payable | $ 320,682 | 421,680 |
Current operating lease liabilities | 242,384 | 252,320 |
Property, payroll, and other taxes | 72,517 | 71,274 |
Accrued operating expenses | 116,900 | 111,752 |
Insurance reserves | 33,458 | 35,871 |
Accrued salaries and wages | 43,182 | 26,112 |
Income taxes payable | 1,896 | 845 |
Total current liabilities | 831,019 | 919,854 |
Long-term debt | 406,271 | 301,400 |
Noncurrent operating lease liabilities | 1,616,634 | 1,514,009 |
Deferred income taxes | 459 | 0 |
Insurance reserves | 57,384 | 58,613 |
Unrecognized tax benefits | 5,223 | 8,091 |
Other liabilities | 123,824 | 125,057 |
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 | (3,092,046) | (3,105,175) |
Additional paid-in capital | 624,618 | 627,714 |
Retained earnings | 2,750,748 | 3,240,193 |
Total shareholders' equity | 284,495 | 763,907 |
Total liabilities and shareholders' equity | $ 3,325,309 | $ 3,690,931 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
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) | 29,224 | 28,959 |
Treasury shares - shares (in shares) | 88,271 | 88,536 |
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 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 shares - shares (in shares) at Jan. 30, 2021 | 81,960 | |||||||||
Treasury Stock, Common, Shares at Jan. 29, 2022 | 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 | |||||||||
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 | ||||||||
Treasury Stock, Common, Shares at Feb. 03, 2024 | 88,271 | 88,271 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Comprehensive income | $ (481,876) | $ 0 | $ 0 | 0 | (481,876) | |||||
Dividends declared | (7,569) | 0 | 0 | 0 | (7,569) | |||||
Purchases of common shares | (1,583) | $ 0 | $ (1,583) | 0 | 0 | |||||
Purchases of common shares, (in shares) | (155) | 155 | ||||||||
Restricted shares vested | 0 | $ 0 | $ 14,712 | (14,712) | 0 | |||||
Restricted shares vested, (in shares) | 420 | (420) | ||||||||
Share-based employee compensation expense | 11,616 | $ 0 | $ 0 | 11,616 | 0 | |||||
Balance at Feb. 03, 2024 | $ 284,495 | $ 1,175 | $ (3,092,046) | $ 624,618 | $ 2,750,748 | |||||
Balance (in shares) at Feb. 03, 2024 | 29,224 | 29,224 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.30 | $ 1.20 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating activities: | |||
Net (loss) income | $ (481,876) | $ (210,708) | $ 177,778 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization expense | 147,177 | 156,427 | 143,713 |
Non-cash lease expense | 295,342 | 271,945 | 265,401 |
Deferred income taxes | 56,760 | (66,742) | 19,007 |
Non-cash share-based compensation expense | 11,616 | 14,799 | 39,601 |
Non-cash impairment charge | 150,667 | 70,221 | 6,096 |
(Gain) loss on disposition of property and equipment | (213,078) | (19,392) | 342 |
Unrealized loss (gain) on fuel derivatives | 0 | 856 | (1,593) |
Loss on extinguishment of debt | 0 | 0 | 535 |
Change in assets and liabilities: | |||
Inventories | 194,647 | 89,848 | (297,503) |
Accounts payable | (100,998) | (165,816) | 189,063 |
Operating lease liabilities | (338,939) | (257,686) | (233,057) |
Current income taxes | 3,500 | 19,680 | (76,429) |
Other current assets | (298) | 3,146 | 32,154 |
Other current liabilities | 27,747 | (45,181) | (56,220) |
Other assets | (2,119) | 1,865 | (785) |
Other liabilities | (2,108) | (7,548) | (14,341) |
Net cash (used in) provided by operating activities | (251,960) | (144,286) | 193,762 |
Investing activities: | |||
Capital expenditures | (63,139) | (159,413) | (160,804) |
Cash proceeds from sale of property and equipment | 342,675 | 50,496 | 1,155 |
Other | (25) | (23) | (37) |
Net cash provided by (used in) investing activities | 279,511 | (108,940) | (159,686) |
Financing activities: | |||
Net proceeds from (repayments of) long-term debt | 104,871 | 297,900 | (46,764) |
Net repayments of sale and leaseback financing | (3,132) | (355) | 0 |
Repayment of failed sale-leaseback financing | (100,316) | 0 | 0 |
Payment of finance lease obligations | (2,118) | (1,736) | (3,654) |
Dividends paid | (9,806) | (36,997) | (41,653) |
Payments for other financing liabilities | (13,786) | 0 | 0 |
Payment for treasury shares acquired | (1,583) | (11,180) | (446,374) |
Payment of debt issuance costs | 0 | (3,398) | (1,167) |
Payment to extinguish debt | 0 | 0 | (438) |
Other | 0 | 0 | 140 |
Net cash (used in) provided by financing activities | (25,870) | 244,234 | (539,910) |
Increase (decrease) in cash and cash equivalents | 1,681 | (8,992) | (505,834) |
Cash and cash equivalents: | |||
Beginning of period | 44,730 | 53,722 | 559,556 |
End of period | $ 46,411 | $ 44,730 | $ 53,722 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Information - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $ 42,506 | $ 22,225 | $ 8,066 |
Cash paid for income taxes, excluding impact of refunds | 1,370 | 4,318 | 111,206 |
Gross proceeds from long-term debt | 1,662,271 | 2,208,400 | 55,600 |
Gross payments of long-term debt | 1,557,400 | 1,910,500 | 102,364 |
Gross repayments of financing from sale and leaseback | 3,132 | 355 | 0 |
Cash paid for operating lease liabilities | 476,644 | 373,172 | 341,341 |
Non-cash activity: | |||
Assets acquired under finance leases | 8,281 | 3,740 | 1,080 |
Accrued property and equipment | 17,215 | 16,674 | 19,303 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 399,502 | $ 216,499 | $ 354,066 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024, we operated 1,392 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 2023 (“2023”) was comprised of the 53 weeks that began on January 29, 2023 and ended on February 3, 2024. 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. 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 February 3, 2024 and January 28, 2023, totaled $29.6 million and $24.7 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. 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 its 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. We determine the fair value using a discounted cash flow approach that requires significant judgment with respect to sales growth and gross margin rates, based upon annual forecasts and longer-range plans. These forecasts and plans are used for internal reporting purposes and are also used as the basis for external communication and guidance issued to outside parties about future business trends. Fair value estimates used in our impairment review of long-lived assets were determined using a future cash flow model involving several assumptions. Changes in our assumptions could materially impact our fair value estimates. Assumptions critical to our fair value estimates were: (i) projected sales growth rates and (ii) gross margin rates. These and other assumptions are impacted by macro economic conditions and expectations of management and may change in the future based on specific facts and circumstances. While we believe the assumptions used to estimate the future cash flows are reasonable, there can be no assurance that the expected future cash flows will be realized. As a result, impairment charges that possibly would have been recognized in earlier periods may not be recognized until later periods if actual results deviate unfavorably from earlier estimates. The use of different assumptions would increase or decrease discounted cash flows or sales projections and, therefore, could change impairment determinations. 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 (loss) 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 2023, 2022, and 2021, we expensed $9.5 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. In 2023, based upon a triggering event that resulted from a three-year cumulative loss before income taxes, we recorded a valuation allowance against all of our deferred tax assets. See Note 8 - Income Taxes for additional details. 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 (loss) 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 $360.1 million, $331.8 million, and $310.4 million for 2023, 2022, and 2021, 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 other than temporary restrictions under the sale and leaseback transactions completed in 2023, which are described in in Note 10 - Gain on Sale of Real Estate . 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 $91.5 million, $98.3 million, and $97.7 million for 2023, 2022, and 2021, respectively. Share-Based Compensation Share-based compensation expense is recognized in selling and administrative expense in our consolidated statements of operations and comprehensive (loss) 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 2022 and 2023, 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 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 In 2023, we awarded PSUs to certain members of management, which will vest if minimum financial performance objectives are achieved over a three three Note 7 - Share Based Plans for a more detailed description. 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, TSR PSUs, and SVCA PSUs calculated using the treasury stock method. Supplemental Cash Flow Disclosures The following table provides supplemental cash flow information for 2023, 2022, and 2021: (In thousands) 2023 2022 2021 Supplemental disclosure of cash flow information: Cash paid for interest $ 42,506 $ 22,225 $ 8,066 Cash paid for income taxes, excluding impact of refunds 1,370 4,318 111,206 Gross proceeds from long-term debt 1,662,271 2,208,400 55,600 Gross payments of long-term debt 1,557,400 1,910,500 102,364 Gross repayments of financing from sale and leaseback 3,132 355 — Cash paid for operating lease liabilities 476,644 373,172 341,341 Non-cash activity: Assets acquired under finance leases 8,281 3,740 1,080 Accrued property and equipment 17,215 16,674 19,303 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 399,502 $ 216,499 $ 354,066 Reclassifications Our six merchandise categories are as follows: Food; Consumables; Soft Home; Hard Home and Other; Furniture; and Seasonal. The Food category includes our beverage & grocery; specialty foods; and candy & snacks departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; pet; infant; stationery; and chemical departments. The Soft Home category includes our apparel; hosiery; jewelry; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home and Other category includes our small appliances; table top; food preparation; home maintenance; home organization; toys; and electronics departments; and other offerings. The Furniture category includes our upholstery; mattress; ready-to-assemble; home décor; and case goods departments. The Seasonal category includes our lawn & garden; summer; Christmas; and other holiday departments. In the fourth quarter of 2023, we realigned our merchandise categories and eliminated our Apparel, Electronics, & Other merchandise category. We have reallocated the departments that previously comprised Apparel, Electronics, & Other into the following merchandise categories: Hard Home and Other, Soft Home, Consumables, and Food. 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, in addition to the realignment noted above, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. In addition, certain amounts in our Consolidated Financial Statements for the year ended January 28, 2023 were adjusted to conform to our 2023 presentation. The Company believes these reclassifications are immaterial. 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 AVDC including similar LIBOR fallback language. The impact of the adoption was immaterial to the consolidated financial statements. In September 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-04, Enhanced Disclosures about the Supplier Finance Programs. ASU 2022-04 requires buyers in supplier finance programs to disclose qualitative and quantitative information about their supplier finance programs. The Company adopted this ASU in fiscal year 2023, except for the disclosure of rollforward activity, which is effective on a prospective basis beginning in fiscal year 2024. See Note 12 , Supplier Financing for disclosure related to the Company’s supplier financing program obligations. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures , which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands the requirements for income tax disclosures in order to provide greater transparency. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Property and Equipment - Net
Property and Equipment - Net | 3 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) February 3, 2024 January 28, 2023 Land and land improvements $ 13,968 $ 27,257 Buildings and leasehold improvements 756,022 775,837 Fixtures and equipment 944,802 940,613 Computer software costs 197,846 191,910 Construction-in-progress 17,644 24,676 Property and equipment - cost 1,930,282 1,960,293 Less accumulated depreciation and amortization 1,367,097 1,269,182 Property and equipment - net $ 563,185 $ 691,111 Property and equipment - cost includes $31.2 million and $24.6 million at February 3, 2024 and January 28, 2023, respectively, to recognize assets from finance leases. Accumulated depreciation and amortization includes $22.5 million and $20.8 million at February 3, 2024 and January 28, 2023, respectively, related to finance leases. During 2023, 2022, and 2021, respectively, we invested $63.1 million, $159.4 million, and $160.8 million of cash in capital expenditures and we recorded $144.5 million, $154.9 million, and $142.6 million of depreciation expense. 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 10 to the accompanying consolidated financial statements for additional information on the sale of real estate). In 2023, we disposed of $123.1 million of property and equipment - cost in connection with the sale of the AVDC and 23 owned store locations in sale and leaseback transactions (see Note 10 to the accompanying consolidated financial statements for additional information on the sale and leaseback transactions). In 2023, separate from the aforementioned sale and leaseback transactions noted above, the Company completed the sale of three owned store locations that were classified as held for sale at the end of fiscal 2022, with an aggregate net book value of $3.6 million. The net cash proceeds on the sale of real estate were $11.3 million and resulted in a gain after related expenses of $7.7 million, which was recorded in gain on sale of real estate in the accompanying consolidated statements of operations and comprehensive (loss) income. We incurred $32.4 million, $17.9 million, and $0.9 million in asset impairment charges, recorded within property and equipment - net (see Note 5 to the accompanying consolidated financial statements for more information regarding operating lease right-of-use assets impairments), in 2023, 2022, and 2021, respectively. We impaired the value of property and equipment assets at 354, 155, and eight stores as a result of our long-lived asset impairment review in 2023, 2022, and 2021, respectively. |
Debt
Debt | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024, the fixed charge coverage ratio was not applicable under the 2022 Credit Agreement. As of February 3, 2024, we had a Borrowing Base (as defined under the 2022 Credit Agreement) of $739.5 million under the 2022 Credit Agreement. At February 3, 2024, we had $406.1 million in borrowings outstanding under the 2022 Credit Agreement and $52.1 million committed to outstanding letters of credit, leaving $281.3 million available under the 2022 Credit Agreement, subject to certain borrowing base limitations as discussed above. At February 3, 2024, we had $207.4 million available under the 2022 Credit Agreement, net of the borrowing base limitations discussed above. Secured Insurance Premium Financing Obligation In the second quarter of 2023, we entered into three individual financing agreements (“2023 Term Notes”) in an aggregate amount of $16.2 million, which are secured by unearned prepaid insurance premiums. The 2023 Term Notes will expire between January 2024 and May 2024. We are required to make monthly payments over the term of the 2023 Term Notes and are permitted to prepay, subject to penalties, at any time. The 2023 Term Notes carry annual interest rates ranging from 7.1% to 8.5%. The Company did not receive any cash in connection with its entry into the 2023 Term Notes. In 2023, we entered into an immaterial financing arrangement for server and software equipment, which is included within the 2023 term notes balance noted within the table below. Debt was recorded in our consolidated balance sheets as follows: Instrument (In thousands) February 3, 2024 January 28, 2023 2022 Credit Agreement $ 406,100 $ 301,400 2023 Term Notes 3,021 — Total debt $ 409,121 $ 301,400 Less current portion of long-term debt (included in Accrued operating expenses) $ 2,850 $ — Long-term debt $ 406,271 $ 301,400 |
Synthetic Lease
Synthetic Lease | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
Synthetic Lease | Synthetic Lease Synthetic Lease The 2023 Synthetic Lease related to our Apple Valley, CA distribution center was terminated and paid off on August 25, 2023 in connection with the closing of the sale and leaseback transactions described in more detail in Note 10 - Gain on Sale of Real Estate . On March 15, 2023, AVDC, LLC (“Lessee”), a wholly-owned indirect subsidiary of 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 leased the Leased Property to Lessee for an initial term of 60 months. The Lease could have been extended for up to an additional five years, in one-year or longer annual periods, with each renewal subject to approval by the Participants. GAAP treatment of the synthetic lease refinancing transaction required us to treat the assignment of the purchase option from Prior Lessor to Lessor as a deemed acquisition of the Leased Property due to the Company’s control of the Leased Property under GAAP at the time the assigned purchase option was exercised. Accordingly, the Company applied sale and leaseback accounting to the transfer of the property from the Prior Lessor to the Lessor. The transaction met the criteria of a “failed sale-leaseback” under GAAP, which required us to record an asset for the deemed acquisition and an equivalent financing liability that represents the cost to acquire the Leased Property. As the 2023 Synthetic Lease was terminated on August 25, 2023, the previously recorded asset and financing liability were sold as part of the sale and leaseback transactions described in more detail in Note 10 - Gain on Sale of Real Estate . Concurrently with Lessor’s purchase of the Leased 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 |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases [Abstract] | |
LEASES | LEASES Our leased property consists of our retail stores, distribution centers, store security, and other office equipment. As of February 3, 2024, we have four long-term distribution center leases including financing liabilities as a result of the sale and leaseback transactions completed in 2020. 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 is recognized on the financing liability using the effective interest method and the financing liability will be accreted over the duration of the lease agreements. All current and future payments to the buyer-lessor will be allocated between the financing liability and the lease liabilities. In 2023, we refinanced the 2023 Synthetic Lease for AVDC (see Note 4 to the accompanying consolidated financial statements) and subsequently exited the 2023 Synthetic Lease through a sale leaseback transaction (see Note 10 to the accompanying consolidated financial statements for additional information on the transaction). 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 two previously leased stores were cancelled at no additional cost. As a result of these lease cancellations, we derecognized $4.0 million in operating lease right-of-use assets and $5.9 million in operating lease liabilities resulting in a net gain on extinguishment of lease liabilities of $1.9 million (see Note 10 to the accompanying consolidated financial statements for additional information on the transaction). In the third quarter of 2023, we simultaneously terminated the 2023 Synthetic Lease for the AVDC, took title to the AVDC property, and completed sale and leaseback transactions for the AVDC and 23 owned store locations (“Sale and leaseback Stores”). The transactions, which were completed with the same buyer-lessor of our four other regional distribution centers, also included a five-year extension of the lease for our Columbus, OH distribution center (“CODC”). The leases for the Sale and leaseback Stores will have an initial term of 20 years and multiple 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 $224.2 million and aggregate operating lease right-of-use assets of $260.6 million, the latter of which included prepaid rent of $36.5 million. The weighted average discount rate for the leases was 10.6%. 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 regarding the sale and leaseback transactions, see Note 10 to the accompanying consolidated financial statements. Leases were recorded in our consolidated balance sheets as follows: Leases (In thousands) Balance Sheet Location February 3, 2024 January 28, 2023 Assets Operating Operating lease right-of-use assets $ 1,637,845 $ 1,619,756 Finance Property and equipment - net 8,676 3,813 Total right-of-use assets $ 1,646,521 $ 1,623,569 Liabilities Current Operating Current operating lease liabilities $ 242,384 $ 252,320 Finance Accrued operating expenses 4,068 1,789 Noncurrent Operating Noncurrent operating lease liabilities 1,616,634 1,514,009 Finance Other liabilities 4,204 1,967 Total lease liabilities $ 1,867,290 $ 1,770,085 The components of lease costs were as follows: Lease cost (In thousands) Statements of Operations and Comprehensive (Loss) Income Location 2023 (1) 2022 2021 Operating lease cost Selling and administrative expenses $ 405,230 $ 363,315 355,021 Finance lease cost Amortization of leased assets Depreciation 2,826 1,546 3,024 Interest on lease liabilities Interest expense 536 163 104 Short-term lease cost Selling and administrative expenses 4,505 5,251 5,152 Variable lease cost Selling and administrative expenses 94,208 96,265 84,940 Total lease cost $ 507,305 $ 466,540 $ 448,241 (1) Included in the 2023 operating lease cost and recorded within selling and administrative expenses of the statements of operations and comprehensive (loss) and income was a termination fee of $53.6 million related to the refinancing of the 2023 Synthetic Lease. In 2023, 2022, and 2021, our operating lease cost above included $0.0 million, $1.8 million and $1.1 million, respectively, of right-of-use asset impairment charges related to store closures prior to lease termination date. In 2023, 2022, and 2021, our operating lease cost above excluded $119.0 million, $50.5 million, and $4.1 million respectively, of right-of-use asset impairment charges related to our long-lived asset impairment review for underperforming stores. Maturity of our lease liabilities at February 3, 2024, was as follows: Fiscal Year (In thousands) Operating Leases Finance Leases 2024 $ 386,198 $ 4,266 2025 353,429 2,896 2026 307,440 1,137 2027 255,939 1,100 2028 219,378 413 Thereafter 1,253,967 — Total lease payments $ 2,776,351 $ 9,812 Less amount to discount to present value $ (917,333) $ (1,540) Present value of lease liabilities $ 1,859,018 $ 8,272 Lease term and discount rate for our operating leases were as follows: February 3, 2024 January 28, 2023 Weighted average remaining lease term (years) 9.6 8.0 Weighted average discount rate 7.0 % 4.6 % 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 |
Feb. 03, 2024 | |
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 February 3, 2024, “TSR PSUs” (see Note 7 for a more detailed description of these awards), shareholder value creation awards (“SVCA PSUs” - see Note 7 for a more detailed description of these awards), and RSUs with a minimum performance requirement (see Note 7 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, SVCA PSUs, and TSR PSUs are excluded from the calculation because they decrease the number of diluted shares outstanding under the treasury stock method. The aggregate number of RSUs, PSUs, SVCA PSUs, and TSR PSUs that were antidilutive, as determined under the treasury stock method, were 1.5 million for 2023, 0.4 million for 2022 and 0.2 million for 2021. Due to the net loss in 2023 and 2022, any potentially dilutive shares were excluded from the denominator in computing diluted earnings (loss) per common share for 2023 and 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) 2023 2022 2021 Weighted-average common shares outstanding: Basic 29,155 28,860 32,723 Dilutive effect of share-based awards — — 632 Diluted 29,155 28,860 33,355 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 2023, no shares were repurchased under the 2021 Repurchase Authorization. As of February 3, 2024, 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 and the consolidated statements of cash flows include shares repurchased to satisfy income tax withholdings associated with the vesting of share-based awards. In 2022 and 2023, purchases of common shares reported in the consolidated statements of shareholders’ equity and consolidated statements of cash flows were solely comprised of 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 2022: (In thousands) (In thousands) 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 2023: First quarter $ 0.30 $ 9,116 $ 9,587 Second quarter — (119) 153 Third quarter — (1,425) 46 Fourth quarter — (3) 20 Total $ 0.30 $ 7,569 $ 9,806 The amount of dividends declared may vary from the amount of dividends paid in a period due to the vesting of share-based awards. Furthermore, dividends declared may fluctuate on a periodic basis due to the forfeiture of unpaid dividends associated with unvested share-based awards. Forfeitures of unpaid dividends result in a reversal of amounts previously declared which may produce a negative balance during the period. On May 23, 2023, our Board of Directors suspended the Company’s quarterly cash dividend. The payment of any future dividends will be at the discretion of our Board of Directors and will depend on our financial condition, results of operations, capital requirements, compliance with applicable laws and agreements and any other factors deemed relevant by our Board of Directors. |
Share-Based Plans
Share-Based Plans | 12 Months Ended |
Feb. 03, 2024 | |
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, stock appreciation rights, cash-based awards, and other share-based awards. We have issued RSUs, SVCA PSUs, PSUs, and TSR PSUs under the 2020 LTIP. The number of common shares available for issuance under the 2020 LTIP as originally approved by our shareholders consisted 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 under the 2020 LTIP. In 2023, our shareholders approved the amended and restated 2020 LTIP which became effective on May 23, 2023. The amended and restated 2020 LTIP increased the aggregate number of Common Shares available for grant under the 2020 LTIP by 1,250,000 shares and limited the recycling of Common Shares withheld to satisfy tax withholding obligations on equity awards. 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 RSUs, and PSUs under the 2017 LTIP. Share-based compensation expense was $11.6 million, $14.8 million, and $39.6 million in 2023, 2022, and 2021, respectively. Non-vested Restricted Stock The following table summarizes the non-vested RSUs activity for fiscal years 2021, 2022, and 2023: Number of Shares Weighted Average Grant-Date Fair Value Per Share 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 Granted 1,713,340 9.58 Vested (419,672) 29.05 Forfeited (258,968) 20.98 Outstanding non-vested restricted stock at February 3, 2024 1,910,203 $ 12.54 The non-vested RSUs granted in 2021, 2022, and 2023 generally vest, and are expensed, on a ratable basis over three years from the grant date of the award, if the grantee remains employed by us through the vesting dates and in the case of the RSUs granted in 2021 and 2022, if a threshold financial performance objective is achieved. The financial performance objective was achieved for the 2021 RSUs. We estimated the attainment of the financial performance objective associated with certain RSUs granted in 2022 will fall below the minimum required performance threshold. The RSUs granted in 2023 are not subject to any financial performance objective. Performance Share Units We awarded PSUs to certain members of management in 2021, 2022 and 2023, which will vest if certain financial performance objectives are achieved over a three three As a result of the process used to establish the financial performance objectives, we will only meet the requirements for establishing a grant date for PSUs issued in 2021 and 2022 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 The financial performance objectives for 2023 were established in the third quarter of 2023, which resulted in the establishment of the service inception date, the fair value of the awards, and the associated expense recognition period for the 2021 PSUs. The number of shares distributed upon vesting of the 2021 PSUs depended on the average performance attained during the three-year performance period compared to the financial performance objectives established by the Committee, and may result in the distribution of an amount of shares that is greater or less than the number of 2021 PSUs granted, as defined in the award agreement. The performance period for the 2021 PSUs ended on February 3, 2024, and it was determined that we did not meet the financial performance objectives applicable to the 2021 PSUs. As a result, the 2021 PSUs will be forfeited on the first trading day after the filing of this Form 10-K and no share-based compensation expense has been recognized with respect to the 2021 PSUs. In 2023, we issued PSUs to certain members of management, which will vest if minimum financial performance objectives are achieved over a three financial performance objectives will be established for each fiscal year within the three As a result of the process used to establish the financial performance objectives, we met the requirements for establishing a grant date and subsequently the service inception date, fair value of the awards, and associated expense recognition period for the first tranche of 2023 PSUs after the Committee established the 2023 fiscal year financial performance objectives in the third quarter of 2023. If we meet the applicable threshold financial performance objectives for any of the three tranches and the grantee remains employed by us through the end of the performance period, the PSUs will vest on the first trading day after we file our Annual Report on Form 10-K for the last fiscal year in the three The number of shares distributed upon vesting of the 2023 PSUs depends on the average performance attained during the three In 2022 and 2023, 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 three three The number of shares distributed upon vesting of the TSR PSUs depends on the average performance attained during the three In 2023, we also awarded SVCA PSUs to certain members of management, which vest based on the achievement of multiple share price performance goals over a three three We have begun, or expect to begin, recognizing expense related to PSUs, TSR PSUs, and SVCA PSUs as follows: Issue Year PSU Category Outstanding Units at Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2021 PSU 103,381 August 2023 Fiscal 2023 2022 TSR PSU 48,032 Fiscal 2022 Fiscal 2022 - 2024 2022 PSU 192,166 March 2024 Fiscal 2024 2023 PSU ("FY23 Tranche") 164,468 August 2023 Fiscal 2023 - 2025 2023 PSU ("FY24 Tranche") 164,468 March 2024 Fiscal 2024 - 2025 2023 PSU ("FY25 Tranche") 164,468 March 2025 Fiscal 2025 2023 TSR PSU 123,346 March 2023 Fiscal 2023 - 2025 2023 SVCA PSU 539,456 March 2023 Fiscal 2023 - 2025 Total 1,499,785 In 2023, 2022, and 2021, we recognized $1.8 million, $1.0 million and $25.2 million, respectively, in share-based compensation expense related to PSUs, TSR PSUs, and SVCA PSUs. The following table summarizes the activity related to PSUs, TSR PSUs, and SVCA PSUs for 2021, 2022, and 2023: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs 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 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 and TSR PSUs at January 28, 2023 60,924 $ 55.76 Granted 1,032,665 4.69 Vested — — Forfeited (114,906) 10.28 Outstanding PSUs, TSR PSUs, and SVCA PSUs at February 3, 2024 978,683 $ 7.34 Board of Directors’ Awards In 2021, 2022, and 2023 we granted (1) the chairman of our Board of Directors an annual RSU award having a grant date fair value of approximately $245,000, and (2) the remaining non-employee directors an annual RSU 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 2023, 2022, and 2021, the following activity occurred under our share-based compensation plans: (In thousands) 2023 2022 2021 Total fair value of restricted stock vested 4,178 14,641 31,954 Total fair value of PSU, TSR PSUs, and SVCA PSUs vested $ — $ 13,877 $ 37,387 The total unearned compensation cost related to all share-based awards outstanding, excluding PSUs issued in 2022 and the second and third tranches of the 2023 PSUs, at February 3, 2024 was approximately $16.9 million. This compensation cost is expected to be recognized through January 2027 based on existing vesting terms with the weighted-average remaining expense recognition period being approximately 1.9 years from February 3, 2024. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes was comprised of the following: (In thousands) 2023 2022 2021 Current: U.S. Federal $ (5,757) $ (1,862) $ 26,888 U.S. State and local (1,235) (1,105) 8,138 Total current tax (benefit) expense (6,992) (2,967) 35,026 Deferred: U.S. Federal 35,925 (57,054) 13,651 U.S. State and local 20,835 (9,688) 5,356 Total deferred tax expense (benefit) 56,760 (66,742) 19,007 Income tax provision (a) $ 49,768 $ (69,709) $ 54,033 (a) The income tax provision for 2023 is not directly comparable to the income tax provision for 2021 and 2022 due to the valuation allowance recorded on our deferred tax assets in 2023 due to a triggering event that resulted from a three-year cumulative loss before income taxes. Reconciliation between the statutory federal income tax rate and the effective income tax rate was as follows: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal tax benefit 3.7 3.0 4.6 Work opportunity tax and other employment tax credits 0.5 1.0 (1.4) Executive compensation limitations - permanent difference (0.2) (0.3) 1.8 Share-based compensation (0.3) (0.2) (2.3) Change in valuation allowance (36.4) — — Other, net 0.2 0.4 (0.4) Effective income tax rate (a) (11.5) % 24.9 % 23.3 % (a) The reconciliation between the statutory federal income tax rate and effective income tax rate for 2023 and 2022 are not directly comparable to the reconciliation for 2021 due to the loss before income taxes in 2023 and 2022 compared to the income before income taxes in 2021. Further, the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2023 is not directly comparable to the reconciliations for 2021 and 2022 due to the valuation allowance recorded on our deferred tax assets in 2023. Income tax payments and refunds were as follows: (In thousands) 2023 2022 2021 Income taxes refunded $ (11,656) $ (27,759) $ (546) Income taxes paid 1,370 4,318 111,206 Net income taxes (refunded) paid $ (10,286) $ (23,441) $ 110,660 Deferred taxes reflect the net tax effects of temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax, including income tax uncertainties. Significant components of our deferred tax assets and liabilities were as follows: (In thousands) February 3, 2024 January 28, 2023 Deferred tax assets: Lease liabilities, net of lease incentives $ 482,272 $ 458,293 Net operating losses, tax credits, and other carryforwards 107,313 64,513 Sale and leaseback financing liability 31,332 32,251 Uniform inventory capitalization 22,723 23,660 Workers’ compensation and other insurance reserves 20,715 20,868 Depreciation and fixed asset basis differences 10,869 39,218 Compensation related 8,397 5,376 Research and development costs capitalized for tax 3,618 171 Accrued state taxes 1,506 1,581 Accrued operating liabilities 1,166 3,032 Other 19,226 15,903 Valuation allowances, net of federal tax benefit (159,178) (2,102) Total deferred tax assets 549,959 662,764 Deferred tax liabilities: Right-of-use assets, net of amortization 417,965 409,979 Accelerated depreciation and fixed asset basis differences 83,738 113,469 Deferred gain on like-kind exchange 13,927 13,930 Lease construction reimbursements 11,261 11,368 Prepaid expenses 5,506 5,548 Workers’ compensation and other insurance reserves 3,905 4,067 Synthetic lease obligation — 38,464 Other 14,116 9,638 Total deferred tax liabilities 550,418 606,463 Net deferred tax assets (liabilities) $ (459) $ 56,301 Our deferred tax assets and deferred tax liabilities, netted by tax jurisdiction, are summarized in the table below: (In thousands) February 3, 2024 January 28, 2023 U.S. Federal $ (285) $ 35,640 U.S. State and local (174) 20,661 Net deferred tax assets (liabilities) $ (459) $ 56,301 The following table summarizes changes in the valuation allowance: (In thousands) 2023 2022 2021 Valuation allowance - beginning of year $ 2,102 $ 2,093 $ 2,105 Additions charged to income tax benefit 159,207 9 — Allowances taken or written off (2,131) — (12) Other adjustments — — — Valuation allowance - end of year $ 159,178 $ 2,102 $ 2,093 The increase in the valuation allowance during 2023 is primarily related to the valuation allowance recorded on our deferred tax assets in 2023 due to a triggering event that resulted from a three-year cumulative loss before income taxes. We have the following income tax loss and credit carryforwards at February 3, 2024 (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 $ 73,631 Indefinite carryforward Other carryforwards 18,191 Predominately indefinite carryforward Employment tax credits 2,791 Expires 2045 Total U.S. Federal 94,613 U.S. State and local: State and local net operating loss carryforwards 19,234 Various carryforward periods ranging from 5 to 20 years including some jurisdictions with no expirations Other state credits 661 Expires fiscal years through 2026 Total U.S. State and local 19,895 Total net operating losses, tax credits, and other carryforwards $ 114,508 The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for 2023, 2022, and 2021: (In thousands) 2023 2022 2021 Unrecognized tax benefits - beginning of year $ 7,533 $ 9,862 $ 9,465 Gross increases - tax positions in current year 32 357 410 Gross increases - tax positions in prior period 1,112 424 1,864 Gross decreases - tax positions in prior period — (1,555) (1,039) Settlements — (333) (125) Lapse of statute of limitations (1,231) (1,222) (713) Unrecognized tax benefits - end of year $ 7,446 $ 7,533 $ 9,862 At the end of 2023 and 2022, the total amount of unrecognized tax benefits that, if recognized, would affect the effective income tax rate is $3.5 million and $4.9 million, respectively, after considering the federal tax benefit of state and local income taxes of $0.9 million and $1.1 million, respectively. Unrecognized tax benefits of $2.7 million and $1.6 million in 2023 and 2022, 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 $0.3 million, $(0.8) million, and $(1.1) million during 2023, 2022, and 2021, respectively, as a component of income tax expense. The amount of accrued interest and penalties recognized in the accompanying consolidated balance sheets at February 3, 2024 and January 28, 2023 was $2.1 million and $1.8 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 2020 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 |
Feb. 03, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES, AND LEGAL PROCEEDINGS | COMMITMENTS, CONTINGENCIES AND LEGAL PROCEEDINGS California Wage and Hour Matters We have settled and/or reached settlement agreements, including final approval by the courts, in wage and hour class actions in California that were pending against the Company. These cases were brought by various current and/or former California associates alleging various violations of California wage and hour laws. During the fourth quarter of 2023, we made the final settlement payments for these California wage and hour matters and as of February 3, 2024, we have no outstanding accruals. 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 $52.1 million at February 3, 2024, 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 |
Feb. 03, 2024 | |
Gain (Loss) on Disposition of Property Plant Equipment [Abstract] | |
GAIN ON SALE OF DISTRIBUTION CENTER & OTHER REAL ESTATE | GAIN ON SALE OF REAL ESTATE 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 were $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 the gain on sale of real estate in our consolidated statements of operations and comprehensive (loss) 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. 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 (loss) income. 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 and disposal of fixtures and equipment as a result of the sale. In the third quarter of 2023, we simultaneously terminated the 2023 Synthetic Lease for the AVDC, took title to the AVDC property, and completed sale and leaseback transactions for the AVDC and Sale and leaseback Stores. The aggregate sale price for the transactions was $305.7 million. The transactions, which were completed with the same buyer-lessor of our four other regional distribution centers, also included a five-year extension of the lease for our Columbus, OH distribution center (“CODC”). The Company allocated $9.4 million of the cash consideration received to the extension of the lease for CODC and recorded the consideration as a lease incentive. Due to sale-leaseback accounting requirements, the remaining cash received was compared, on an individual property basis, to the fair market value of the properties. As a result, the cash received in the transactions was allocated between proceeds on the sale of the AVDC, the Sale and leaseback Stores, prepaid rent, and financing proceeds. The aggregate net proceeds, before taxes, on the sales of the AVDC and the Sale and leaseback Stores were $332.1 million. The aggregate net proceeds include $36.5 million in net proceeds in excess of the aggregate sale price due to properties sold below market, which resulted in a corresponding increase in prepaid rent. The prepaid rent was recorded in the operating lease right-of-use assets in our consolidated balance sheets. The aggregate net proceeds exclude $0.6 million received in the aggregate sale price due to properties sold above market value, which was recorded as a financing liability. 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. Straight-line rent expense will be recognized over the duration of the lease agreements. Additionally, we incurred $4.2 million of additional selling and administrative expenses in connection with the transactions, which primarily consisted of commissions and consulting services. The aggregate gross cash consideration received in these transactions was used to pay transaction expenses, fully pay off the 2023 Synthetic Lease for approximately $101 million, and repay borrowings under the 2022 Credit Agreement. Additionally, the purchase and sale agreement restricts us from drawing on the 2022 Credit Agreement for any purpose other than working capital, general corporate, operational requirements or capital expenditures for 180 days following the closing of the transactions unless our availability under the 2022 Credit Agreement exceeds $500 million as of the end of a quarterly reporting period. Our aggregate initial annual cash payments to the buyer-lessor for the AVDC and the Sale and leaseback Stores are approximately $24 million and the payments will escalate two percent annually. Aggregate annual straight-line rent expense for the 24 leases is approximately $30 million after the impact of 2023 right-of-use asset impairment charges and annual straight-line rent expense over the remainder of the CODC lease will increase by approximately $2 million. Aggregate initial annual interest expense on the financing liability is immaterial. In addition, we completed the sale of three owned store locations during 2023 that were classified as held for sale at the end of fiscal 2022 with an aggregate net book value of $3.6 million. The net cash proceeds on these sales of real estate were $11.3 million and resulted in a gain of $7.7 million on sale of real estate. We incurred immaterial additional selling and administrative expenses in connection with the sale, which primarily consisted of transfer taxes and legal fees. See Note 2 |
Business Segment Data
Business Segment Data | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT DATA | BUSINESS SEGMENT DATA We use the following six merchandise categories, which are consistent with our internal management and reporting of merchandise net sales: Food; Consumables; Soft Home; Hard Home and Other; Furniture; and Seasonal. The Food category includes our beverage & grocery; specialty foods; and candy & snacks departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; pet; infant; stationery; and chemical departments. The Soft Home category includes our apparel; hosiery; jewelry; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home and Other category includes our small appliances; table top; food preparation; home maintenance; home organization; toys; and electronics departments; and other offerings. The Furniture category includes our upholstery; mattress; ready-to-assemble; home décor; and case goods departments. The Seasonal category includes our lawn & garden; summer; Christmas; and other holiday departments. In the fourth quarter of 2023, we realigned our merchandise categories and eliminated our Apparel, Electronics, & Other merchandise category. We reallocated the departments that previously comprised Apparel, Electronics, & Other into the following merchandise categories: Hard Home and Other, Soft Home, Consumables, and Food. 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) 2023 2022 2021 Furniture $ 1,180,349 $ 1,409,298 $ 1,837,722 Consumables 859,968 924,780 916,417 Seasonal 758,327 961,446 954,165 Soft Home 754,495 859,418 1,010,337 Food 680,821 754,982 779,181 Hard Home and Other 488,139 558,405 652,781 Net sales $ 4,722,099 $ 5,468,329 $ 6,150,603 |
Supplier Finance Program
Supplier Finance Program | 12 Months Ended |
Feb. 03, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplier Finance Program | NOTE 12 – SUPPLIER FINANCE PROGRAM As of February 3, 2024, we facilitated a voluntary supply chain finance (“SCF”) program through a participating financial institution. This SCF program enables our suppliers to sell their receivables due from the Company to a participating financial institution at their discretion. As of February 16, 2024, the participating financial institution suspended funding and we have chosen to suspend the program until such time that unsecured funding is available. As of February 3, 2024 and January 28, 2023, the SCF program had $30.0 million and $55.0 million of revolving capacity, respectively. We are not a party to the agreements between the participating financial institution and the suppliers in connection with the SCF program. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the SCF program. No guarantees are provided by the Company or any of our subsidiaries under the SCF program. The amounts payable to the participating financial institution for suppliers who voluntarily participate in the SCF program are included within the accounts payable |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 03, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On April 18, 2024, the Company entered into a Credit Agreement (the “Term Loan Facility”) among the Company and Big Lots Stores, LLC, as borrowers (the “Borrowers”), all other domestic subsidiaries of the Company as guarantors (together with the Borrowers, the “Loan Parties”), 1903P Loan Agent, LLC (the “Term Loan Agent”), as administrative agent and collateral agent, and the other lenders named therein. The Term Loan Facility provides for a “first in, last out” delayed draw term loan facility in an aggregate committed amount up to $200 million. At commencement of the Term Loan Facility, the Company drew down $50 million in total borrowings under the Term Loan Facility. Loans under the Term Loan Facility are available in an aggregate amount equal to the lesser of (1) the aggregate Commitments and (2) a borrowing base calculated based on specified percentages of eligible inventory, credit card receivables, real estate, fixtures, machinery and equipment, subject to customary exceptions and reserves (the “Term Loan Borrowing Base”). If at any time the amounts borrowed under the Term Loan Facility exceed the Term Loan Borrowing Base, the Company is required to maintain a reserve against the borrowing base under the 2022 Credit Agreement in an amount equal to such excess (“the Term Pushdown Reserve”). Borrowings under the Term Loan Facility are available for general corporate purposes, working capital and to repay a portion of our indebtedness outstanding under the 2022 Credit Agreement. All amounts of the Term Loan Facility outstanding on the maturity date will be due and payable in full on September 21, 2027. The Term Loan Facility contains certain mandatory prepayments, including as a result of certain sales or disposition of certain assets, the incurrence of certain additional debt, certain issuances of additional equity and receipt of certain extraordinary receipts, subject to certain exceptions and, in the case of certain sales or other dispositions, reinvestment rights. In certain instances, mandatory prepayments are subject to a prepayment fee. Subject to compliance with relevant provisions of the 2022 Credit Agreement, voluntary prepayments under the Term Loan Facility are permitted at any time upon proper notice and subject to meeting certain tests under the 2022 Credit Agreement and, in certain instances, a prepayment fee. Amounts borrowed under the Term Loan Facility bear interest at a variable rate indexed to SOFR plus a pricing margin ranging from 9.25% to 10.00% per annum, based on our total borrowings under the Term Loan Facility. Interest payments under the Term Loan Facility are due on the first day of each calendar month. At commencement, the interest rate on the outstanding Term Loan Facility borrowings was 15.2%. The Term Loan Facility requires the Borrowers to maintain minimum excess availability under the 2022 Credit Agreement (“Excess Availability Covenant”) of at least the greater of (i) $80.0 million or (ii) 10% of the lesser of the aggregate commitments under the 2022 Credit Agreement (currently $900.0 million) and the borrowing base under the 2022 Credit Agreement (the “Maximum Credit Amount”) (without giving effect to the Term Pushdown Reserve). In addition, the Term Loan Facility contains customary covenants and restrictions on the Company’s and its subsidiaries’ activities, including, but not limited to, limitations on the incurrence of additional indebtedness, liens, negative pledges, guarantees, investments, loans, asset sales, mergers, acquisitions, prepayment of other debt, distributions, dividends, the repurchase of capital stock, transactions with affiliates, the ability to change the nature of its business or its fiscal year, and permitted activities of the Company. The Term Loan Facility contains customary events of default that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults, structural defaults under the loan documents and a change of control default. The occurrence of an event of default could result in the acceleration of our obligations under the Term Loan Facility. Under certain circumstances, a default interest rate will apply on any amount payable under the Term Loan Facility during the existence of an event of default at a per annum rate equal to 2.00% above the applicable interest rate for any principal and 2.00% above the rate applicable for base rate loans for any other interest. All obligations under the Term Loan Facility are guaranteed by the Loan Parties (other than the Borrowers) and secured by (a) a second priority lien on substantially all of the Loan Parties’ working capital assets, including credit card receivables and inventory, and (b) a first priority lien on substantially all of the Loan Parties’ non-working capital personal property assets, including fixtures, machinery, equipment, and intellectual property, and a first priority mortgage on the Company’s corporate headquarters located in Columbus, Ohio, in each case, subject to certain permitted liens. The Company will record deferred financing costs associated with the issuance of the Term Loan Facility. These costs will be amortized over the respective contractual terms of the Term Loan Facility. Amendment to 2022 Credit Agreement On April 18, 2024, concurrent with our entry into the Term Loan Facility, the Company entered into the First Amendment to the 2022 Credit Agreement (the “ABL Amendment”). The ABL Amendment amends the 2022 Credit Agreement to, among other things, (1) permit the Term Loan Facility, (2) expand the scope of collateral to include non-working capital assets and a mortgage on the Company’s corporate headquarters located in Columbus, Ohio, (3) revise the borrowing base formula therein to include the Term Pushdown Reserve, (4) increase the interest rate spreads and replace CDOR with CORRA, (5) replace the fixed charge coverage ratio covenant with the Excess Availability Covenant, and (6) make other changes to the 2022 Credit Agreement to conform with the Term Loan Facility. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Pay vs Performance Disclosure | |||
Net (loss) income | $ (481,876) | $ (210,708) | $ 177,778 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Insider Trading Arrangements During the three months ended February 3, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as such terms are defined in Item 408(a) of Regulation S-K. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024, we operated 1,392 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 2023 (“2023”) was comprised of the 53 weeks that began on January 29, 2023 and ended on February 3, 2024. 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. |
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 February 3, 2024 and January 28, 2023, totaled $29.6 million and $24.7 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 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. 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 its 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. We determine the fair value using a discounted cash flow approach that requires significant judgment with respect to sales growth and gross margin rates, based upon annual forecasts and longer-range plans. These forecasts and plans are used for internal reporting purposes and are also used as the basis for external communication and guidance issued to outside parties about future business trends. Fair value estimates used in our impairment review of long-lived assets were determined using a future cash flow model involving several assumptions. Changes in our assumptions could materially impact our fair value estimates. Assumptions critical to our fair value estimates were: (i) projected sales growth rates and (ii) gross margin rates. These and other assumptions are impacted by macro economic conditions and expectations of management and may change in the future based on specific facts and circumstances. While we believe the assumptions used to estimate the future cash flows are reasonable, there can be no assurance that the expected future cash flows will be realized. As a result, impairment charges that possibly would have been recognized in earlier periods may not be recognized until later periods if actual results deviate unfavorably from earlier estimates. The use of different assumptions would increase or decrease discounted cash flows or sales projections and, therefore, could change impairment determinations. |
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 Plans |
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. In 2023, based upon a triggering event that resulted from a three-year cumulative loss before income taxes, we recorded a valuation allowance against all of our deferred tax assets. See Note 8 - Income Taxes for additional details. 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 (loss) 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 $360.1 million, $331.8 million, and $310.4 million for 2023, 2022, and 2021, 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 other than temporary restrictions under the sale and leaseback transactions completed in 2023, which are described in in Note 10 - Gain on Sale of Real Estate . |
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 $91.5 million, $98.3 million, and $97.7 million for 2023, 2022, and 2021, 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 (loss) 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 2022 and 2023, 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 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 In 2023, we awarded PSUs to certain members of management, which will vest if minimum financial performance objectives are achieved over a three three Note 7 - Share Based Plans for a more detailed description. |
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, TSR PSUs, and SVCA PSUs calculated using the treasury stock method. |
Comparability of Prior Year Financial Data, Policy [Policy Text Block] | Reclassifications Our six merchandise categories are as follows: Food; Consumables; Soft Home; Hard Home and Other; Furniture; and Seasonal. The Food category includes our beverage & grocery; specialty foods; and candy & snacks departments. The Consumables category includes our health, beauty and cosmetics; plastics; paper; pet; infant; stationery; and chemical departments. The Soft Home category includes our apparel; hosiery; jewelry; frames; fashion bedding; utility bedding; bath; window; decorative textile; and area rugs departments. The Hard Home and Other category includes our small appliances; table top; food preparation; home maintenance; home organization; toys; and electronics departments; and other offerings. The Furniture category includes our upholstery; mattress; ready-to-assemble; home décor; and case goods departments. The Seasonal category includes our lawn & garden; summer; Christmas; and other holiday departments. In the fourth quarter of 2023, we realigned our merchandise categories and eliminated our Apparel, Electronics, & Other merchandise category. We have reallocated the departments that previously comprised Apparel, Electronics, & Other into the following merchandise categories: Hard Home and Other, Soft Home, Consumables, and Food. 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, in addition to the realignment noted above, there may be minor reclassifications of net sales by merchandise category compared to previously reported amounts. In addition, certain amounts in our Consolidated Financial Statements for the year ended January 28, 2023 were adjusted to conform to our 2023 presentation. The Company believes these reclassifications are immaterial. |
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 AVDC including similar LIBOR fallback language. The impact of the adoption was immaterial to the consolidated financial statements. In September 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-04, Enhanced Disclosures about the Supplier Finance Programs. ASU 2022-04 requires buyers in supplier finance programs to disclose qualitative and quantitative information about their supplier finance programs. The Company adopted this ASU in fiscal year 2023, except for the disclosure of rollforward activity, which is effective on a prospective basis beginning in fiscal year 2024. See Note 12 , Supplier Financing for disclosure related to the Company’s supplier financing program obligations. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures , which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands the requirements for income tax disclosures in order to provide greater transparency. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied prospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 2023, 2022, and 2021: (In thousands) 2023 2022 2021 Supplemental disclosure of cash flow information: Cash paid for interest $ 42,506 $ 22,225 $ 8,066 Cash paid for income taxes, excluding impact of refunds 1,370 4,318 111,206 Gross proceeds from long-term debt 1,662,271 2,208,400 55,600 Gross payments of long-term debt 1,557,400 1,910,500 102,364 Gross repayments of financing from sale and leaseback 3,132 355 — Cash paid for operating lease liabilities 476,644 373,172 341,341 Non-cash activity: Assets acquired under finance leases 8,281 3,740 1,080 Accrued property and equipment 17,215 16,674 19,303 Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 399,502 $ 216,499 $ 354,066 |
Property and Equipment - Net (T
Property and Equipment - Net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment - net consist of: (In thousands) February 3, 2024 January 28, 2023 Land and land improvements $ 13,968 $ 27,257 Buildings and leasehold improvements 756,022 775,837 Fixtures and equipment 944,802 940,613 Computer software costs 197,846 191,910 Construction-in-progress 17,644 24,676 Property and equipment - cost 1,930,282 1,960,293 Less accumulated depreciation and amortization 1,367,097 1,269,182 Property and equipment - net $ 563,185 $ 691,111 |
Debt Long-term Debt (Tables)
Debt Long-term Debt (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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) February 3, 2024 January 28, 2023 2022 Credit Agreement $ 406,100 $ 301,400 2023 Term Notes 3,021 — Total debt $ 409,121 $ 301,400 Less current portion of long-term debt (included in Accrued operating expenses) $ 2,850 $ — Long-term debt $ 406,271 $ 301,400 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 February 3, 2024 January 28, 2023 Assets Operating Operating lease right-of-use assets $ 1,637,845 $ 1,619,756 Finance Property and equipment - net 8,676 3,813 Total right-of-use assets $ 1,646,521 $ 1,623,569 Liabilities Current Operating Current operating lease liabilities $ 242,384 $ 252,320 Finance Accrued operating expenses 4,068 1,789 Noncurrent Operating Noncurrent operating lease liabilities 1,616,634 1,514,009 Finance Other liabilities 4,204 1,967 Total lease liabilities $ 1,867,290 $ 1,770,085 |
Lease, Cost [Table Text Block] | The components of lease costs were as follows: Lease cost (In thousands) Statements of Operations and Comprehensive (Loss) Income Location 2023 (1) 2022 2021 Operating lease cost Selling and administrative expenses $ 405,230 $ 363,315 355,021 Finance lease cost Amortization of leased assets Depreciation 2,826 1,546 3,024 Interest on lease liabilities Interest expense 536 163 104 Short-term lease cost Selling and administrative expenses 4,505 5,251 5,152 Variable lease cost Selling and administrative expenses 94,208 96,265 84,940 Total lease cost $ 507,305 $ 466,540 $ 448,241 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturity of our lease liabilities at February 3, 2024, was as follows: Fiscal Year (In thousands) Operating Leases Finance Leases 2024 $ 386,198 $ 4,266 2025 353,429 2,896 2026 307,440 1,137 2027 255,939 1,100 2028 219,378 413 Thereafter 1,253,967 — Total lease payments $ 2,776,351 $ 9,812 Less amount to discount to present value $ (917,333) $ (1,540) Present value of lease liabilities $ 1,859,018 $ 8,272 |
Operating Lease, Lease Term and Discount Rate [Table Text Block] | Lease term and discount rate for our operating leases were as follows: February 3, 2024 January 28, 2023 Weighted average remaining lease term (years) 9.6 8.0 Weighted average discount rate 7.0 % 4.6 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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) 2023 2022 2021 Weighted-average common shares outstanding: Basic 29,155 28,860 32,723 Dilutive effect of share-based awards — — 632 Diluted 29,155 28,860 33,355 |
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 2022: (In thousands) (In thousands) 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 2023: First quarter $ 0.30 $ 9,116 $ 9,587 Second quarter — (119) 153 Third quarter — (1,425) 46 Fourth quarter — (3) 20 Total $ 0.30 $ 7,569 $ 9,806 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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 RSUs activity for fiscal years 2021, 2022, and 2023: Number of Shares Weighted Average Grant-Date Fair Value Per Share 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 Granted 1,713,340 9.58 Vested (419,672) 29.05 Forfeited (258,968) 20.98 Outstanding non-vested restricted stock at February 3, 2024 1,910,203 $ 12.54 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | The following table summarizes the activity related to PSUs, TSR PSUs, and SVCA PSUs for 2021, 2022, and 2023: Number of Shares Weighted Average Grant-Date Fair Value Per Share Outstanding PSUs 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 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 and TSR PSUs at January 28, 2023 60,924 $ 55.76 Granted 1,032,665 4.69 Vested — — Forfeited (114,906) 10.28 Outstanding PSUs, TSR PSUs, and SVCA PSUs at February 3, 2024 978,683 $ 7.34 |
Schedule of Share Based Compensation, Additional Information [Table Text Block] | During 2023, 2022, and 2021, the following activity occurred under our share-based compensation plans: (In thousands) 2023 2022 2021 Total fair value of restricted stock vested 4,178 14,641 31,954 Total fair value of PSU, TSR PSUs, and SVCA PSUs vested $ — $ 13,877 $ 37,387 |
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, TSR PSUs, and SVCA PSUs as follows: Issue Year PSU Category Outstanding Units at Actual Grant Date Expected Valuation (Grant) Date Actual or Expected Expense Period 2021 PSU 103,381 August 2023 Fiscal 2023 2022 TSR PSU 48,032 Fiscal 2022 Fiscal 2022 - 2024 2022 PSU 192,166 March 2024 Fiscal 2024 2023 PSU ("FY23 Tranche") 164,468 August 2023 Fiscal 2023 - 2025 2023 PSU ("FY24 Tranche") 164,468 March 2024 Fiscal 2024 - 2025 2023 PSU ("FY25 Tranche") 164,468 March 2025 Fiscal 2025 2023 TSR PSU 123,346 March 2023 Fiscal 2023 - 2025 2023 SVCA PSU 539,456 March 2023 Fiscal 2023 - 2025 Total 1,499,785 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
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) 2023 2022 2021 Current: U.S. Federal $ (5,757) $ (1,862) $ 26,888 U.S. State and local (1,235) (1,105) 8,138 Total current tax (benefit) expense (6,992) (2,967) 35,026 Deferred: U.S. Federal 35,925 (57,054) 13,651 U.S. State and local 20,835 (9,688) 5,356 Total deferred tax expense (benefit) 56,760 (66,742) 19,007 Income tax provision (a) $ 49,768 $ (69,709) $ 54,033 |
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: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes, net of federal tax benefit 3.7 3.0 4.6 Work opportunity tax and other employment tax credits 0.5 1.0 (1.4) Executive compensation limitations - permanent difference (0.2) (0.3) 1.8 Share-based compensation (0.3) (0.2) (2.3) Change in valuation allowance (36.4) — — Other, net 0.2 0.4 (0.4) Effective income tax rate (a) (11.5) % 24.9 % 23.3 % |
Schedule of Income Taxes Paid [Table Text Block] | Income tax payments and refunds were as follows: (In thousands) 2023 2022 2021 Income taxes refunded $ (11,656) $ (27,759) $ (546) Income taxes paid 1,370 4,318 111,206 Net income taxes (refunded) paid $ (10,286) $ (23,441) $ 110,660 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of our deferred tax assets and liabilities were as follows: (In thousands) February 3, 2024 January 28, 2023 Deferred tax assets: Lease liabilities, net of lease incentives $ 482,272 $ 458,293 Net operating losses, tax credits, and other carryforwards 107,313 64,513 Sale and leaseback financing liability 31,332 32,251 Uniform inventory capitalization 22,723 23,660 Workers’ compensation and other insurance reserves 20,715 20,868 Depreciation and fixed asset basis differences 10,869 39,218 Compensation related 8,397 5,376 Research and development costs capitalized for tax 3,618 171 Accrued state taxes 1,506 1,581 Accrued operating liabilities 1,166 3,032 Other 19,226 15,903 Valuation allowances, net of federal tax benefit (159,178) (2,102) Total deferred tax assets 549,959 662,764 Deferred tax liabilities: Right-of-use assets, net of amortization 417,965 409,979 Accelerated depreciation and fixed asset basis differences 83,738 113,469 Deferred gain on like-kind exchange 13,927 13,930 Lease construction reimbursements 11,261 11,368 Prepaid expenses 5,506 5,548 Workers’ compensation and other insurance reserves 3,905 4,067 Synthetic lease obligation — 38,464 Other 14,116 9,638 Total deferred tax liabilities 550,418 606,463 Net deferred tax assets (liabilities) $ (459) $ 56,301 |
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) February 3, 2024 January 28, 2023 U.S. Federal $ (285) $ 35,640 U.S. State and local (174) 20,661 Net deferred tax assets (liabilities) $ (459) $ 56,301 |
Summary of Tax Credit Carryforwards [Table Text Block] | We have the following income tax loss and credit carryforwards at February 3, 2024 (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 $ 73,631 Indefinite carryforward Other carryforwards 18,191 Predominately indefinite carryforward Employment tax credits 2,791 Expires 2045 Total U.S. Federal 94,613 U.S. State and local: State and local net operating loss carryforwards 19,234 Various carryforward periods ranging from 5 to 20 years including some jurisdictions with no expirations Other state credits 661 Expires fiscal years through 2026 Total U.S. State and local 19,895 Total net operating losses, tax credits, and other carryforwards $ 114,508 |
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 2023, 2022, and 2021: (In thousands) 2023 2022 2021 Unrecognized tax benefits - beginning of year $ 7,533 $ 9,862 $ 9,465 Gross increases - tax positions in current year 32 357 410 Gross increases - tax positions in prior period 1,112 424 1,864 Gross decreases - tax positions in prior period — (1,555) (1,039) Settlements — (333) (125) Lapse of statute of limitations (1,231) (1,222) (713) Unrecognized tax benefits - end of year $ 7,446 $ 7,533 $ 9,862 |
Business Segment Data (Tables)
Business Segment Data (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Category [Table Text Block] | The following table presents net sales data by merchandise category: (In thousands) 2023 2022 2021 Furniture $ 1,180,349 $ 1,409,298 $ 1,837,722 Consumables 859,968 924,780 916,417 Seasonal 758,327 961,446 954,165 Soft Home 754,495 859,418 1,010,337 Food 680,821 754,982 779,181 Hard Home and Other 488,139 558,405 652,781 Net sales $ 4,722,099 $ 5,468,329 $ 6,150,603 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Component of Operating Other Cost and Expense [Abstract] | |||
Number of Stores | 1,392 | ||
Number of States in which Entity Operates | 48 | ||
Fiscal Period | P52W | P52W | P52W |
Credit and Debit Card Receivables, at Carrying Value | $ 29,600 | $ 24,700 | |
Distribution and Outbound Transportation Costs | 360,100 | 331,800 | $ 310,400 |
Advertising Expense | 91,500 | 98,300 | 97,700 |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 9,500 | $ 9,200 | $ 9,200 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Useful Lives of Fixed Assets (Details) | Feb. 03, 2024 |
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) | 3 Months Ended | 12 Months Ended | ||||
Oct. 28, 2023 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Feb. 03, 2024 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Number of Stores included in the Sale and Leaseback | 23 | |||||
Property and equipment - cost | $ 1,960,293,000 | $ 1,930,282,000 | $ 1,960,293,000 | |||
Less accumulated depreciation and amortization | 1,269,182,000 | 1,367,097,000 | 1,269,182,000 | |||
Property and equipment - net | 691,111,000 | 563,185,000 | 691,111,000 | |||
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 24,600,000 | 31,200,000 | 24,600,000 | |||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 20,800,000 | 22,500,000 | 20,800,000 | |||
Payments to Acquire Property, Plant, and Equipment | 63,139,000 | 159,413,000 | $ 160,804,000 | |||
Depreciation | 144,504,000 | 154,859,000 | 142,572,000 | |||
Tangible Asset Impairment Charges | $ 32,400,000 | $ 17,900,000 | $ 900,000 | |||
Number of Stores Impaired | 354 | 155 | 8 | |||
Assets Held for Sale | $ 30,600,000 | |||||
Number of Stores, Held for Sale | 25 | |||||
Number of Land Parcels, Held for Sale | 1 | |||||
Number of Stores, Sold | 20 | 3 | ||||
Number of Land Parcel, Sold | 1 | |||||
Aggregate net book value of sale and leaseback real estate | $ 123,100,000 | |||||
Land and land improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment - cost | $ 27,257,000 | 13,968,000 | $ 27,257,000 | |||
Buildings and leasehold improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment - cost | 775,837,000 | 756,022,000 | 775,837,000 | |||
Fixtures and equipment [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment - cost | 940,613,000 | 944,802,000 | 940,613,000 | |||
Computer software costs [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment - cost | 191,910,000 | 197,846,000 | 191,910,000 | |||
Construction-in-progress [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property and equipment - cost | $ 24,676,000 | 17,644,000 | 24,676,000 | |||
Land and Building [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Sold Assets, Previously Held for Sale | $ 29,400,000 | $ 3,600,000 | ||||
Land and Building [Member] | Ohio, Alabama, Oklahoma, and Pennsylvania Distribution Centers [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Disposals | $ 0.106 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Sep. 21, 2022 | Sep. 22, 2021 | Feb. 03, 2024 | Jan. 28, 2023 | |
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 | $ 739,500 | |||
Line of Credit Facility, Amount Outstanding | 406,100 | $ 0 | ||
Line of Credit Facility, Letters of Credit Outstanding | 52,100 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 281,300 | |||
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 | $ 406,100 | $ 301,400 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Debt Instrument [Line Items] | ||
Term Note Payable, Minimum Interest Rate | 7.10% | |
Debt, Long-term and Short-term, Combined Amount [Abstract] | ||
Long-term Debt | $ 406,271 | $ 301,400 |
Long-term Debt, Excluding Current Maturities | 406,271 | 301,400 |
Less current portion of 2023 Term Notes (included in Accrued operating expenses) | 2,850 | |
Total Debt | 409,121 | $ 301,400 |
2023 Term Notes | ||
Debt, Long-term and Short-term, Combined Amount [Abstract] | ||
Long-term Line of Credit | 3,021 | |
Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
2023 Term Notes | $ 16,200 | |
Term Note Date, Earliest Expiration | 2024-01 | |
Term Note Date, Latest Expiration | 2024-05 | |
Term Note Payable, Maximum Interest Rate | 8.50% |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Details) $ in Thousands | 12 Months Ended |
Feb. 03, 2024 USD ($) | |
Leases [Abstract] | |
Synthetic Lease Date | Mar. 15, 2023 |
Synthetic Lease, Lease Amount | $ 100,000 |
Synthetic Lease, Lease Term | 60 |
Termination Payment on Synthetic Lease | $ 53,600 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Assets and Liabilities, Lessee [Abstract] | |||||
Operating Lease, Right-of-Use Asset | $ 1,637,845 | $ 1,619,756 | $ 1,637,845 | $ 1,619,756 | |
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 | $ 8,676 | $ 3,813 | $ 8,676 | $ 3,813 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment - net | Property and equipment - net | Property and equipment - net | Property and equipment - net | |
Right-of-use assets, total | $ 1,646,521 | $ 1,623,569 | $ 1,646,521 | $ 1,623,569 | |
Operating Lease, Liability, Current | 242,384 | 252,320 | 242,384 | 252,320 | |
Finance Lease, Liability, Current | $ 4,068 | $ 1,789 | $ 4,068 | $ 1,789 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued operating expenses | Accrued operating expenses | Accrued operating expenses | Accrued operating expenses | |
Operating Lease, Liability, Noncurrent | $ 1,616,634 | $ 1,514,009 | $ 1,616,634 | $ 1,514,009 | |
Finance Lease, Liability, Noncurrent | $ 4,204 | $ 1,967 | $ 4,204 | $ 1,967 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities | Other liabilities | |
Lease liabilities, total | $ 1,867,290 | $ 1,770,085 | $ 1,867,290 | $ 1,770,085 | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 7 months 6 days | 8 years | 9 years 7 months 6 days | 8 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 7% | 4.60% | 7% | 4.60% | |
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |||||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 4,266 | $ 4,266 | |||
Finance Lease, Liability, Payments, Due Year Two | 2,896 | 2,896 | |||
Finance Lease, Liability, Payments, Due Year Three | 1,137 | 1,137 | |||
Finance Lease, Liability, Payments, Due Year Four | 1,100 | 1,100 | |||
Finance Lease, Liability, Payments, Due Year Five | 413 | 413 | |||
Finance Lease, Liability, Payments, Due after Year Five | 0 | 0 | |||
Finance Lease, Liability, Payment, Due | 9,812 | 9,812 | |||
Finance Lease, Liability, Undiscounted Excess Amount | (1,540) | (1,540) | |||
Finance Lease, Liability | 8,272 | 8,272 | |||
Lease, Cost [Abstract] | |||||
Operating Lease, Cost | 405,230 | $ 363,315 | $ 355,021 | ||
Finance Lease, Right-of-Use Asset, Amortization | 2,826 | 1,546 | 3,024 | ||
Finance Lease, Interest Expense | 536 | 163 | 104 | ||
Short-term Lease, Cost | 4,505 | 5,251 | 5,152 | ||
Variable Lease, Cost | 94,208 | 96,265 | 84,940 | ||
Lease, Cost | 507,305 | 466,540 | 448,241 | ||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Liability | 1,859,018 | 1,859,018 | |||
Operating Lease, Right-of-Use Asset, Sale and leaseback | 260,600 | 260,600 | |||
Operating Lease, Right-of-Use Asset | $ 1,637,845 | $ 1,619,756 | $ 1,637,845 | $ 1,619,756 | |
Operating Lease, Weighted Average Discount Rate, Percent | 7% | 4.60% | 7% | 4.60% | |
Operating Lease Liabilities - AVDC | $ 224,200 | $ 224,200 | |||
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |||||
2022 | 386,198 | 386,198 | |||
2023 | 353,429 | 353,429 | |||
2024 | 307,440 | 307,440 | |||
2025 | 255,939 | 255,939 | |||
2026 | 219,378 | 219,378 | |||
Thereafter | 1,253,967 | 1,253,967 | |||
Lessee, Operating Lease, Liability, Payments, Due | 2,776,351 | 2,776,351 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (917,333) | (917,333) | |||
Operating Lease, Liability | $ 1,859,018 | 1,859,018 | |||
Impairment due to store closure | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Impairment Loss | 0 | $ 1,800 | 1,100 | ||
Impairment due to store underperformance [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Impairment Loss | $ 119,000 | $ 50,500 | $ 4,100 | ||
Ohio, Alabama, Oklahoma, and Pennsylvania Distribution Centers [Member] | Land and Building [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Description | |||||
AVDC and Owned Stores, Multiple Locations [Member] | Land and Building [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 20 years | 20 years |
Shareholders' Equity - Earnings
Shareholders' Equity - Earnings Per Share (Details) - shares | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
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 | 1,500,000 | 400,000 | 200,000 |
Weighted-average common shares outstanding: | |||
Basic | 29,155,000 | 28,860,000 | 32,723,000 |
Dilutive effect of share-based awards | 0 | 0 | 632,000 |
Diluted | 29,155,000 | 28,860,000 | 33,355,000 |
Shareholders' Equity - Share Re
Shareholders' Equity - Share Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Dec. 01, 2021 | |
Class of Stock [Line Items] | ||||
Stock Repurchased During Period, Value | $ 1,583 | $ 11,180 | $ 446,374 | |
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 | |||||||||
Feb. 03, 2024 | Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Equity [Abstract] | |||||||||||
Dividend Suspension Date | May 23, 2023 | ||||||||||
Dividends, Common Stock [Abstract] | |||||||||||
Amount declared (Dividends) | $ (7,569) | $ (36,367) | $ (41,512) | ||||||||
Amount paid (Dividends) | $ 9,806 | $ 36,997 | $ 41,653 | ||||||||
Common Stock [Member] | |||||||||||
Dividends, Common Stock [Abstract] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0 | $ 0 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 1.20 | |
Amount paid (Dividends) | $ 20 | $ 46 | $ 153 | $ 9,587 | $ 8,734 | $ 8,767 | $ 8,791 | $ 10,705 | $ 9,806 | $ 36,997 | |
Amount declared (Dividends), including the impact of forfeitures | $ (3) | $ (1,425) | $ (119) | $ 9,116 | $ 9,122 | $ 9,196 | $ 9,068 | $ 8,981 | $ 7,569 | $ 36,367 |
Share-Based Plans - General and
Share-Based Plans - General and Other than Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | Jun. 10, 2020 | Jun. 09, 2020 | |
Share-Based Payment Arrangement [Abstract] | ||||||
2020 LTIP Amendment (Effective Date) | May 23, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 11,600 | $ 14,800 | $ 39,600 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 16,900 | |||||
Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 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 Additional Shares Authorized | 1,250,000 | |||||
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 | 875,503 | 909,287 | 1,214,212 | |||
Granted | 1,713,340 | 573,989 | 255,071 | |||
Vested | (419,672) | (440,241) | (481,689) | |||
Forfeited | (258,968) | (167,532) | (78,307) | |||
Nonvested, ending balance | 1,910,203 | 875,503 | 909,287 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 12.54 | $ 34.75 | $ 33.87 | $ 22.71 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 9.58 | 34.21 | 68.71 | |||
Vested in Period, Weighted Average Grant Date Fair Value | 29.05 | 31.21 | 25.12 | |||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 20.98 | $ 37.40 | $ 28.19 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 4,178 | $ 14,641 | $ 31,954 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units Issued, Nonvested, Number | 1,499,785 | |||||
Share-based Payment Arrangement, Expense | $ 1,800 | $ 1,000 | $ 25,200 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, beginning balance | 60,924 | 240,110 | 474,031 | |||
Granted | 1,032,665 | 73,787 | 263,787 | |||
Vested | 0 | (240,110) | (474,031) | |||
Forfeited | (114,906) | (12,863) | (23,677) | |||
Nonvested, ending balance | 978,683 | 60,924 | 240,110 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||
Nonvested, Weighted Average Grant Date Fair Value | $ 7.34 | $ 55.76 | $ 70.24 | $ 24.31 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 4.69 | 56 | 70.24 | |||
Vested in Period, Weighted Average Grant Date Fair Value | 0 | 70.24 | 24.31 | |||
Forfeited in Period, Weighted Average Grant Date Fair Value | $ 10.28 | $ 57.15 | $ 70.24 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | ||||||
Total fair value of other than options vested | $ 0 | $ 13,877 | $ 37,387 | |||
2023 SVCA 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 | 539,456 | |||||
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 | |||||
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 | 103,381 | |||||
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 | 192,166 | |||||
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 | 48,032 | |||||
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 | |||||
2023 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 | 123,346 | |||||
2023 PSU Awards "FY25 Tranche" [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 | 164,468 | |||||
2023 PSU Awards "FY24 Tranche" [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 | 164,468 | |||||
2023 PSU Awards "FY23 Tranche" [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 | 164,468 | |||||
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 |
Share-Based Plans - Board of Di
Share-Based Plans - Board of Directors (Details) - USD ($) | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
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 |
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 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | Jan. 30, 2021 | |
Deferred Tax Assets and Liabilities by Jurisdiction [Line Items] | ||||
Deferred Tax Assets, Net | $ 459 | |||
Deferred Tax Liabilities, Net | $ 56,301 | |||
Deferred Tax Assets, Valuation Allowance | 159,178 | 2,102 | $ 2,093 | $ 2,105 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 159,207 | |||
Valuation Allowance Deferred Tax Asset Increase Decrease Allowances Taken or Written Off | (2,131) | 0 | (12) | |
Valuation Allowance Deferred Tax Asset Increase or Decrease Other | 0 | 0 | 0 | |
Current | ||||
U.S. Federal | (5,757) | (1,862) | 26,888 | |
U.S. State and Local | (1,235) | (1,105) | 8,138 | |
Total current tax expense | (6,992) | (2,967) | 35,026 | |
Deferred | ||||
U.S. Federal | 35,925 | (57,054) | 13,651 | |
U.S. State and Local | 20,835 | (9,688) | 5,356 | |
Total deferred tax expense | 56,760 | (66,742) | 19,007 | |
Income tax provision | $ 49,768 | $ (69,709) | $ 54,033 | |
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 | 3.70% | 3% | 4.60% | |
Effective Income Tax Rate Reconciliation, Tax Credits | 0.50% | 1% | (1.40%) | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | (0.20%) | (0.30%) | 1.80% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Percent | (0.30%) | (0.20%) | (2.30%) | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (36.40%) | 0% | 0% | |
Effective Income Tax Rate Reconciliation, Other Adjustments | 0.20% | 0.40% | (0.40%) | |
Effective Income Tax Rate | (11.50%) | 24.90% | 23.30% | |
Income Taxes Paid, Net [Abstract] | ||||
Income taxes paid | $ 1,370 | $ 4,318 | $ 111,206 | |
Income taxes refunded | (11,656) | (27,759) | (546) | |
Net income taxes paid | (10,286) | (23,441) | 110,660 | |
Deferred Tax Assets, Gross [Abstract] | ||||
Deferred Tax Assets, Lease Liabilities, Net of Lease Incentives | 482,272 | 458,293 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 107,313 | 64,513 | ||
Deferred Tax Assets, Depreciation and Fixed Asset Basis Differences | 10,869 | 39,218 | ||
Deferred Tax Assets, Sale and Leaseback Financing Liability | 31,332 | 32,251 | ||
Deferred Tax Assets, Inventory | 22,723 | 23,660 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 20,715 | 20,868 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 8,397 | 5,376 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 1,166 | 3,032 | ||
Deferred Tax Assets, State Taxes | 1,506 | 1,581 | ||
Deferred Tax Assets, CARES Act Deferred Payroll Taxes | 3,618 | 171 | ||
Deferred Tax Assets, Other | 19,226 | 15,903 | ||
Deferred Tax Assets, Valuation Allowance | (159,178) | (2,102) | (2,093) | $ (2,105) |
Deferred Tax Assets, Net of Valuation Allowance | 549,959 | 662,764 | ||
Deferred Tax Liabilities [Abstract] | ||||
Deferred Tax Liabilities, Leasing Arrangements | 417,965 | 409,979 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 83,738 | 113,469 | ||
Deferred Tax Liabilities, Synthetic Lease Obligations | 0 | 38,464 | ||
Deferred Tax Liabilities, Tax Deferred Income | 13,927 | 13,930 | ||
Deferred Tax Liabilities, Lease Construction Reimbursements | 11,261 | 11,368 | ||
Deferred Tax Liabilities, Deferred Expense, Other Capitalized Costs | 5,506 | 5,548 | ||
Deferred Tax Liabilities, Insurance Proceeds Receivable | 3,905 | 4,067 | ||
Deferred Tax Liabilities, Other | 14,116 | 9,638 | ||
Deferred Tax Liabilities, Gross | 550,418 | 606,463 | ||
Deferred Tax Assets, Net | 459 | |||
Deferred Tax Liabilities, Net | (56,301) | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized Tax Benefits | 7,533 | 9,862 | 9,465 | |
Gross increases - tax positions in current year | 32 | 357 | 410 | |
Gross increases - tax positions in prior period | 1,112 | 424 | 1,864 | |
Gross decreases - tax positions in prior period | 0 | (1,555) | (1,039) | |
Settlements (decrease) | 0 | (333) | (125) | |
Lapse of statute of limitations | (1,231) | (1,222) | (713) | |
Unrecognized Tax Benefits | 7,446 | 7,533 | 9,862 | |
Income Tax Uncertainties [Abstract] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,500 | 4,900 | ||
Federal Tax Expense (Benefit) on State and Local Income Taxes | 900 | 1,100 | ||
Unrecognized Tax Benefits, Tax Positions with Uncertain Timing of Deductability | 2,700 | 1,600 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 300 | (800) | $ (1,100) | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 2,100 | 1,800 | ||
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 | 285 | |||
Deferred Tax Liabilities, Net | 35,640 | |||
Deferred Tax Liabilities [Abstract] | ||||
Deferred Tax Assets, Net | 285 | |||
Deferred Tax Liabilities, Net | (35,640) | |||
State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets and Liabilities by Jurisdiction [Line Items] | ||||
Deferred Tax Assets, Net | 174 | 20,661 | ||
Deferred Tax Liabilities [Abstract] | ||||
Deferred Tax Assets, Net | $ 174 | $ 20,661 |
Income Taxes - Carryforwards (D
Income Taxes - Carryforwards (Details) $ in Thousands | Feb. 03, 2024 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards and Tax Credit Carryforward | $ 114,508 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 19,234 |
Operating Loss Carryforwards and Tax Credit Carryforward | 19,895 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 73,631 |
Operating Loss Carryforwards and Tax Credit Carryforward | 94,613 |
Other State Credits [Member] | State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 661 |
U.S. Federal Other Carryforwards [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | 18,191 |
Employment Tax Credits [Member] | Domestic Tax Authority [Member] | |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | $ 2,791 |
Contingencies - Commitments (De
Contingencies - Commitments (Details) $ in Thousands | Feb. 03, 2024 USD ($) |
Commitments Disclosure [Abstract] | |
Self-insurance letters of credit | $ 52,100 |
Gain on Sale of Distribution _2
Gain on Sale of Distribution Center & Other Real Estate (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | Feb. 03, 2024 USD ($) | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Gain on sale of Sale of Real Estate | $ (212,463) | $ (20,190) | $ (934) | ||
Gain on Extinguishment of Lease Liabilities | $ (1,900) | ||||
Non-Cash Consideration, Cancellable Future Cash Payments | 5,900 | ||||
Number of Stores included in the Sale and Leaseback | 23 | ||||
Incentive to Lessee | $ 9,400 | ||||
Repayment of 2023 Synthetic Lease | 101,000 | ||||
Land and Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from Sale of Real Estate | 47,800 | 305,700 | |||
Gain (Loss) on Sale of Properties | 18,600 | ||||
Gross Proceeds from Sale of Real Estate | 332,100 | ||||
Sold Assets, Previously Held for Sale | $ 29,400 | 3,600 | |||
Selling and administrative expenses, sale and leaseback transaction | 1,800 | 4,200 | |||
Accelerated Depreciation on Sale of Real Estate | $ 1,700 | ||||
Sale and Leaseback Transaction, Gain (Loss), Net | 36,500 | ||||
Sale Leaseback Transaction, Gross Proceeds, Financing Activities | $ 600 |
Business Segment Data (Details)
Business Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,722,099 | $ 5,468,329 | $ 6,150,603 |
Furniture [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,180,349 | 1,409,298 | 1,837,722 |
Seasonal [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 859,968 | 924,780 | 916,417 |
Food [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 758,327 | 961,446 | 954,165 |
Soft Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 754,495 | 859,418 | 1,010,337 |
Consumables [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 680,821 | 754,982 | 779,181 |
Hard Home [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 488,139 | $ 558,405 | $ 652,781 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier Finance Program, Revolving Capacity | $ 30,000 | $ 55,000 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts Payable | |
Supplier Finance Program, Obligation | $ 17,800 | $ 35,400 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 03, 2024 | Jan. 28, 2023 | |
Subsequent Events [Abstract] | ||
Subsequent Event, Date | Apr. 18, 2024 | |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 406,271 | $ 301,400 |
Term Loan Facility Member | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000 | |
Long-term Debt | $ 50,000 | |
Debt Instrument, Maturity Date, Description | September 21, 2027 | |
Debt Instrument, Basis Spread on Variable Rate | 9.25% | |
Debt Instrument, Basis Spread on Variable Rate At Commencement | 15.20% | |
Term Loan Facility, Covenant Minimum Monetary Availability | $ 80,000 | |
Term Loan Facility Facility, Covenant Minimum Percent Availability | 10% |