Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Apr. 04, 2015 | Aug. 02, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | PEP BOYS MANNY MOE & JACK | ||
Entity Central Index Key | 77449 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Jan-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $533,440,000 | ||
Entity Common Stock, Shares Outstanding | 53,781,268 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $38,044 | $33,431 |
Accounts receivable, less allowance for uncollectible accounts of $1,604 and $1,320 | 31,013 | 25,152 |
Merchandise inventories | 656,957 | 672,354 |
Prepaid expenses | 27,952 | 29,282 |
Other current assets | 55,986 | 63,405 |
Assets held for disposal | 2,648 | 2,013 |
Total current assets | 812,600 | 825,637 |
Property and equipment, net of accumulated depreciation of $1,251,797 and $1,227,121 | 604,380 | 625,525 |
Goodwill | 32,869 | 56,794 |
Deferred income taxes | 56,571 | 57,686 |
Other long-term assets | 35,321 | 39,839 |
Total assets | 1,541,741 | 1,605,481 |
Current liabilities: | ||
Accounts payable | 227,132 | 256,031 |
Trade payable program liability | 140,904 | 129,801 |
Accrued expenses | 226,176 | 237,403 |
Deferred income taxes | 61,216 | 69,373 |
Current maturities of long-term debt | 2,000 | 2,000 |
Total current liabilities | 657,428 | 694,608 |
Long-term debt less current maturities | 211,000 | 199,500 |
Other long-term liabilities | 45,567 | 48,485 |
Deferred gain from asset sales | 103,596 | 114,823 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, par value $1 per share: authorized 500,000,000 shares; issued 68,557,041 shares | 68,557 | 68,557 |
Additional paid-in capital | 298,299 | 297,009 |
Retained earnings | 397,890 | 432,332 |
Accumulated other comprehensive (loss) income | -391 | 379 |
Treasury stock, at cost - 14,988,205 shares and 15,358,872 shares | -240,205 | -250,212 |
Total stockholders' equity | 524,150 | 548,065 |
Total liabilities and stockholders' equity | $1,541,741 | $1,605,481 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for uncollectible accounts (in dollars) | $1,604 | $1,320 |
Property and equipment, accumulated depreciation | $1,251,797 | $1,227,121 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, issued shares | 68,557,041 | 68,557,041 |
Treasury stock, shares | 14,988,205 | 15,358,872 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | ||||||
Merchandise sales | $1,593,883 | $1,608,697 | $1,643,948 | |||
Service revenue | 490,720 | 457,871 | 446,782 | |||
Total revenues | 2,084,603 | 2,066,568 | 2,090,730 | |||
Costs of merchandise sales | 1,124,755 | 1,108,359 | 1,159,994 | |||
Costs of service revenue | 484,404 | 470,832 | 439,236 | |||
Total costs of revenues | 1,609,159 | 1,579,191 | 1,599,230 | |||
Gross profit from merchandise sales | 469,128 | 500,338 | 483,954 | |||
Gross profit (loss) from service revenue | 6,316 | -12,961 | 7,546 | |||
Total gross profit | 475,444 | 487,377 | 491,500 | |||
Selling, general and administrative expenses | 484,182 | 464,852 | 463,416 | |||
Goodwill impairment charge | 23,925 | [1] | ||||
Pension settlement expense | 17,753 | |||||
Net (gain) loss from disposition of assets | -13,806 | 227 | -1,323 | |||
Operating (loss) profit | -18,857 | 22,298 | 11,654 | |||
Merger termination fees, net | 42,816 | |||||
Non-operating income | 1,188 | 1,789 | 2,012 | |||
Interest expense | -13,873 | -14,797 | -33,982 | |||
(Loss) earnings from continuing operations before income taxes and discontinued operations | -31,542 | 9,290 | 22,500 | |||
Income tax (benefit) expense | -4,581 | [2] | 2,237 | [2] | 9,345 | [2] |
(Loss) earnings from continuing operations before discontinued operations | -26,961 | 7,053 | 13,155 | |||
Loss from discontinued operations, net of tax benefit of $179, $102 and $186 | -332 | -188 | -345 | |||
Net (loss) earnings | -27,293 | 6,865 | 12,810 | |||
Basic (loss) earnings per share: | ||||||
(Loss) earnings from continuing operations before discontinued operations (in dollars per share) | ($0.50) | $0.13 | $0.25 | |||
Loss from discontinued operations, net of tax (in dollars per share) | ($0.01) | ($0.01) | ||||
Basic (loss) earnings per share (in dollars per share) | ($0.51) | $0.13 | $0.24 | |||
Diluted (loss) earnings per share: | ||||||
(Loss) earnings from continuing operations before discontinued operations (in dollars per share) | ($0.50) | $0.13 | $0.24 | |||
Loss from discontinued operations, net of tax (in dollars per share) | ($0.01) | |||||
Diluted (loss) earnings per share (in dollars per share) | ($0.51) | $0.13 | $0.24 | |||
Other comprehensive (loss) income: | ||||||
Defined benefit plan adjustment, net of tax | 9,696 | |||||
Derivative financial instrument adjustment, net of tax | -770 | 1,359 | 6,973 | |||
Other comprehensive (loss) income | -770 | 1,359 | 16,669 | |||
Total comprehensive (loss) income | ($28,063) | $8,224 | $29,479 | |||
[1] | Cumulative charge to date of $23.9 million. | |||||
[2] | Excludes tax benefit recorded to discontinued operations of $0.2 million, $0.1 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME | |||
Loss from discontinued operations, tax benefit | $179 | $102 | $186 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) / Income | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Jan. 28, 2012 | $68,557 | $296,462 | $423,437 | ($266,478) | ($17,649) | $504,329 |
Balance (in shares) at Jan. 28, 2012 | 68,557,041 | -15,803,322 | ||||
Comprehensive income: | ||||||
Net earnings (loss) | 12,810 | 12,810 | ||||
Changes in net unrecognized other postretirement benefit costs, net of tax of $5,729 for year ended 2012 | 9,696 | 9,696 | ||||
Fair market value adjustment on derivatives, net of tax benefit of $460, $814 and $4,208 for the year ended 2014, 2013 and 2012, respectively | 6,973 | 6,973 | ||||
Total comprehensive income (loss) | 29,479 | |||||
Effect of stock options and related tax benefits | 375 | -5,494 | 7,418 | 2,299 | ||
Effect of stock options and related tax benefits (in shares) | 274,769 | |||||
Effect of employee stock purchase plan | -605 | 1,067 | 462 | |||
Effect of employee stock purchase plan (in shares) | 39,552 | |||||
Effect of restricted stock unit conversions | -2,457 | 2,503 | 46 | |||
Effect of restricted stock unit conversions (in shares) | 92,703 | |||||
Stock compensation expense | 1,299 | 1,299 | ||||
Treasury stock repurchases | -342 | -342 | ||||
Treasury stock repurchases (in shares) | -35,000 | |||||
Balance at Feb. 02, 2013 | 68,557 | 295,679 | 430,148 | -255,832 | -980 | 537,572 |
Balance (in shares) at Feb. 02, 2013 | 68,557,041 | -15,431,298 | ||||
Comprehensive income: | ||||||
Net earnings (loss) | 6,865 | 6,865 | ||||
Fair market value adjustment on derivatives, net of tax benefit of $460, $814 and $4,208 for the year ended 2014, 2013 and 2012, respectively | 1,359 | 1,359 | ||||
Total comprehensive income (loss) | 8,224 | |||||
Effect of stock options and related tax benefits | -135 | -3,742 | 5,093 | 1,216 | ||
Effect of stock options and related tax benefits (in shares) | 188,652 | |||||
Effect of employee stock purchase plan | -939 | 1,688 | 749 | |||
Effect of employee stock purchase plan (in shares) | 62,547 | |||||
Effect of restricted stock unit conversions | -1,527 | 1,589 | 62 | |||
Effect of restricted stock unit conversions (in shares) | 58,851 | |||||
Stock compensation expense | 2,992 | 2,992 | ||||
Treasury stock repurchases | -2,750 | -2,750 | ||||
Treasury stock repurchases (in shares) | -237,624 | -237,624 | ||||
Balance at Feb. 01, 2014 | 68,557 | 297,009 | 432,332 | -250,212 | 379 | 548,065 |
Balance (in shares) at Feb. 01, 2014 | 68,557,041 | -15,358,872 | ||||
Comprehensive income: | ||||||
Net earnings (loss) | -27,293 | -27,293 | ||||
Fair market value adjustment on derivatives, net of tax benefit of $460, $814 and $4,208 for the year ended 2014, 2013 and 2012, respectively | -770 | -770 | ||||
Total comprehensive income (loss) | -28,063 | |||||
Effect of stock options and related tax benefits | -8 | -5,933 | 6,886 | 945 | ||
Effect of stock options and related tax benefits (in shares) | 255,023 | |||||
Effect of employee stock purchase plan | -1,216 | 1,972 | 756 | |||
Effect of employee stock purchase plan (in shares) | 73,058 | |||||
Effect of restricted stock unit conversions | -959 | 1,149 | 190 | |||
Effect of restricted stock unit conversions (in shares) | 42,586 | |||||
Stock compensation expense | 2,257 | 2,257 | ||||
Balance at Jan. 31, 2015 | $68,557 | $298,299 | $397,890 | ($240,205) | ($391) | $524,150 |
Balance (in shares) at Jan. 31, 2015 | 68,557,041 | -14,988,205 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | |||
Changes in net unrecognized other postretirement benefit costs, tax | $5,729 | ||
Fair market value adjustment on derivatives, tax | $460 | $814 | $4,208 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Cash flows from operating activities: | ||||
Net (loss) earnings | ($27,293) | $6,865 | $12,810 | |
Adjustments to reconcile net (loss) earnings to net cash provided by continuing operations: | ||||
Net loss from discontinued operations | 332 | 188 | 345 | |
Depreciation | 75,099 | 78,439 | 79,104 | |
Amortization of deferred gain from asset sales | -13,389 | -12,604 | -12,846 | |
Amortization of deferred financing costs | 2,563 | 2,993 | 4,431 | |
Stock compensation expense | 2,257 | 2,992 | 1,299 | |
Deferred income taxes | -6,588 | -79 | 7,576 | |
Net (gain) loss from disposition of assets | -13,806 | 227 | -1,323 | |
Asset impairment | 7,535 | 7,659 | 10,555 | |
Goodwill impairment | 23,925 | [1] | ||
Other | -139 | -493 | -269 | |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||||
Decrease (increase) in accounts receivable, prepaid expenses and other | 4,366 | -6,511 | -602 | |
Decrease (increase) in merchandise inventories | 15,397 | -31,146 | -27,074 | |
(Decrease) increase in accounts payable | -27,963 | 8,378 | 984 | |
(Decrease) increase in accrued expenses | -11,853 | 6,115 | 10,481 | |
(Decrease) increase in other long-term liabilities | -2,391 | -3,345 | 3,487 | |
Net cash provided by continuing operations | 28,052 | 59,678 | 88,958 | |
Net cash used in discontinued operations | -608 | -274 | -467 | |
Net cash provided by operating activities | 27,444 | 59,404 | 88,491 | |
Cash flows from investing activities: | ||||
Capital expenditures | -67,269 | -53,982 | -54,696 | |
Proceeds from dispositions of assets | 20,227 | 21 | 5,588 | |
Additions to collateral investment | -2,312 | -3,654 | ||
Release of collateral investment | 1,650 | |||
Acquisitions, net of cash acquired | -10,694 | |||
Net cash used in investing activities | -47,042 | -65,317 | -52,762 | |
Cash flows from financing activities: | ||||
Borrowings under line of credit agreements | 598,495 | 40,745 | 2,319 | |
Payments under line of credit agreements | -584,995 | -37,245 | -2,319 | |
Borrowings on trade payable program liability | 182,462 | 154,985 | 179,751 | |
Payments on trade payable program liability | -171,359 | -174,902 | -115,247 | |
Payments for finance issuance costs | -770 | -6,520 | ||
Borrowings under new debt | 200,000 | |||
Debt payments | -2,000 | -2,000 | -295,122 | |
Repurchase of common stock | -2,750 | -342 | ||
Proceeds from stock issuance | 1,608 | 2,095 | 2,693 | |
Net cash provided by (used in) financing activities | 24,211 | -19,842 | -34,787 | |
Net increase (decrease) in cash and cash equivalents | 4,613 | -25,755 | 942 | |
Cash and cash equivalents at beginning of year | 33,431 | 59,186 | 58,244 | |
Cash and cash equivalents at end of year | 38,044 | 33,431 | 59,186 | |
Supplemental of cash flow information: | ||||
Cash paid for interest, net of amounts capitalized | 11,377 | 12,027 | 31,290 | |
Cash received from income tax refunds | 292 | 1,251 | 108 | |
Cash paid for income taxes | 1,418 | 4,377 | 2,826 | |
Non-cash investing activities: | ||||
Accrued purchases of property and equipment | $3,346 | $3,467 | $1,371 | |
[1] | Cumulative charge to date of $23.9 million. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
The Pep Boys—Manny, Moe & Jack and subsidiaries' (the "Company") consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of the Company's financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales, costs and expenses, as well as the disclosure of contingent assets and liabilities and other related disclosures. The Company bases its estimates on historical experience and on various other assumptions that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of the Company's assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates, and the Company includes any revisions to its estimates in the results for the period in which the actual amounts become known. | |||||||||||
The Company believes the significant accounting policies described below affect the more significant judgments and estimates used in the preparation of its consolidated financial statements. Accordingly, these are the policies the Company believes are the most critical to aid in fully understanding and evaluating the historical consolidated financial condition and results of operations. | |||||||||||
BUSINESS The Company operates in the U.S. automotive aftermarket, which has two general lines of business: (1) the Service business, commonly known as Do-It-For-Me, or "DIFM" (service labor, installed merchandise and tires) and (2) the Retail business, commonly known as Do-It-Yourself, or "DIY" (retail merchandise) and commercial. The Company's primary store format is the Supercenter, which serves both "DIFM" and "DIY" customers with the highest quality service offerings and merchandise. As part of the Company's long-term strategy to lead with automotive service, the Company is complementing the existing Supercenter store base with Service & Tire Centers. These Service & Tire Centers are designed to capture market share and leverage the existing Supercenter and support infrastructure. The Company currently operates stores in 35 states and Puerto Rico. | |||||||||||
FISCAL YEAR END The Company's fiscal year ends on the Saturday nearest to January 31. Fiscal 2014 and Fiscal 2013, which ended January 31, 2015 and February 2, 2014, respectively, were comprised of 52 weeks. Fiscal 2012, which ended February 2, 2013, was comprised of 53 weeks. | |||||||||||
PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | |||||||||||
CASH AND CASH EQUIVALENTS Cash equivalents include all short-term, highly liquid investments with an initial maturity of three months or less when purchased. All credit and debit card transactions that settle in less than seven days are also classified as cash and cash equivalents. | |||||||||||
ACCOUNTS RECEIVABLE Accounts receivable are primarily comprised of amounts due from commercial customers. The Company records an allowance for doubtful accounts based on an evaluation of the credit worthiness of its customers. The allowance is reviewed for adequacy at least quarterly and adjusted as necessary. Specific accounts are written off against the allowance when management determines the account is uncollectible. | |||||||||||
MERCHANDISE INVENTORIES Merchandise inventories are valued at the lower of cost or market. Cost is determined by using the last-in, first-out (LIFO) method. If the first-in, first-out (FIFO) method of costing inventory had been used by the Company, inventory would have been $570.2 million and $579.8 million as of January 31, 2015 and February 1, 2014, respectively. During fiscal 2014, 2013 and 2012, the effect of LIFO layer liquidations on gross profit was immaterial. | |||||||||||
The Company's inventory, consisting primarily of automotive tires, parts, and accessories, is used on vehicles typically having long lives. Because of this, and combined with the Company's historical experience of returning excess inventory to the Company's suppliers for full credit, the risk of obsolescence is minimal. The Company establishes a reserve for excess inventory for instances where less than full credit will be received for such returns or where the Company anticipates items will be sold at retail prices that are less than recorded costs. The reserve is based on management's judgment, including estimates and assumptions regarding marketability of products, the market value of inventory to be sold in future periods and on historical experiences where the Company received less than full credit from suppliers for product returns. The Company also provides for estimated inventory shrinkage based on historical levels and the results of its cycle counting program. The Company's inventory adjustments for these matters were immaterial for fiscal 2014 and fiscal 2013. In future periods, the company may be exposed to material losses should the company's suppliers alter their policies with regard to accepting excess inventory returns. | |||||||||||
PROPERTY AND EQUIPMENT Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives: building and improvements, 5 to 40 years, and furniture, fixtures and equipment, 3 to 10 years. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is included in the determination of net income. Property and equipment information follows: | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | |||||||||
2015 | 2014 | ||||||||||
Land | $ | 200,235 | $ | 202,038 | |||||||
Buildings and improvements | 895,214 | 888,389 | |||||||||
Furniture, fixtures and equipment | 759,008 | 760,170 | |||||||||
Construction in progress | 1,720 | 2,049 | |||||||||
Accumulated depreciation | (1,251,797 | ) | (1,227,121 | ) | |||||||
| | | | | | | | ||||
Property and equipment—net | $ | 604,380 | $ | 625,525 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
GOODWILL The accompanying Consolidated Balance Sheet has goodwill recorded as the result of acquisitions. The Company reviews goodwill for impairment annually during the fourth quarter, or when events or changes in circumstances indicate the carrying value of these reporting units might exceed their current fair values. The goodwill impairment test includes a quantitative assessment, which compares the fair value of the reporting unit to the carrying amount, including goodwill. At fiscal year end 2014, the Company had eight reporting units, of which six included goodwill. See Note 12 "Goodwill" for assessment and testing. | |||||||||||
OTHER INTANGIBLE ASSETS The Company amortizes intangible assets with finite lives on a straight-line basis over their estimated useful lives. | |||||||||||
LEASES The Company amortizes leasehold improvements over the lesser of the lease term or the economic life of those assets. Generally, for stores the lease term is the base lease term and for distribution centers the lease term includes the base lease term plus certain renewal option periods for which renewal is reasonably assured and for which failure to exercise the renewal option would result in an economic penalty to the Company. The calculation of straight-line rent expense is based on the same lease term with consideration for step rent provisions, escalation clauses, rent holidays and other lease concessions. The Company begins expensing rent upon completion of the Company's due diligence or when the Company has the right to use the property, whichever comes earlier. | |||||||||||
SOFTWARE CAPITALIZATION The Company capitalizes certain direct development costs associated with internal-use software, including external direct costs of material and services, and payroll costs for employees devoting time to the software projects. These costs are amortized over a period not to exceed five years beginning when the asset is substantially ready for use. Costs incurred during the preliminary project stage, as well as maintenance and training costs are expensed as incurred. | |||||||||||
TRADE PAYABLE PROGRAM LIABILITY The Company has a trade payable program which is funded by various bank participants who have the ability, but not the obligation, to purchase account receivables owed by the Company directly from its suppliers. The Company, in turn, makes the regularly scheduled full supplier payments to the bank participants. | |||||||||||
INCOME TAXES The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are determined based upon enacted tax laws and rates applied to the differences between the financial statement and tax bases of assets and liabilities. | |||||||||||
The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The Company must assess the likelihood that any recorded deferred tax assets will be recovered against future taxable income. To the extent the Company believes it is more likely than not that the asset will not be recoverable, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or changes the allowance in a future period, income tax expense will be impacted. | |||||||||||
In evaluating income tax positions, the Company records liabilities for potential exposures. These tax liabilities are adjusted in the period actual developments give rise to such change. Those developments could be, but are not limited to, settlement of tax audits, expiration of the statute of limitations, and changes in the tax code and regulations, along with varying application of tax policy and administration within those jurisdictions. Refer to Note 8, "Income Taxes," for further discussion of income taxes and changes in unrecognized tax benefit. | |||||||||||
SALES TAXES The Company presents sales net of sales taxes in its consolidated statements of operations. | |||||||||||
REVENUE RECOGNITION The Company recognizes revenue from the sale of merchandise at the time the merchandise is sold and the product is delivered to the customer, net of an allowance for estimated future returns. Service revenues are recognized on completion of the service. Service revenue consists of the labor charged for installing merchandise or maintaining or repairing vehicles, excluding the sale of any installed parts or materials. The Company records revenue net of an allowance for estimated future returns. The Company establishes reserves for sales returns and allowances based on current sales levels and historical return rates. Revenue from gift card sales is recognized on gift card redemption. The Company's gift cards do not have expiration dates. The Company recognizes breakage on gift cards when, among other things, sufficient gift card history is available to estimate potential breakage and the Company determines there are no legal obligations to remit the value of unredeemed gift cards to the relevant jurisdictions. Estimated gift card breakage revenue is immaterial for all periods presented. | |||||||||||
The Company's Customer Loyalty program allows members to earn points for each qualifying purchase. Points earned allow members to receive a certificate that may be redeemed on future purchases within 90 days of issuance. The retail value of points earned by loyalty program members is included in accrued liabilities as deferred income and recorded as a reduction of revenue at the time the points are earned, based on the historic and projected rate of redemption. The Company recognizes deferred revenue and the cost of the free products distributed to loyalty program members when the awards are redeemed. The cost of the free products distributed to program members is recorded within costs of revenues. | |||||||||||
A portion of the Company's transactions includes the sale of auto parts that contain a core component. These components represent the recyclable portion of the auto part. Customers are not charged for the core component of the new part if a used core is returned at the point of sale of the new part; otherwise the Company charges customers a specified amount for the core component. The Company refunds that same amount if the customer returns a used core to the store at a later date. The Company does not recognize sales or cost of sales for the core component of these transactions when a used part is returned by the customer at the point of sale. | |||||||||||
COSTS OF REVENUES Costs of merchandise sales include the cost of products sold, buying, warehousing and store occupancy costs. Costs of service revenue include service center payroll and related employee benefits, service center occupancy costs and cost of providing free or discounted towing services to customers. Occupancy costs include utilities, rents, real estate and property taxes, repairs, maintenance, depreciation and amortization expenses. | |||||||||||
VENDOR SUPPORT FUNDS The Company receives various incentives in the form of discounts and allowances from its suppliers based on purchases or for services that the Company provides to the suppliers. These incentives received from suppliers include rebates, allowances and promotional funds and are generally based on a percentage of the gross amount purchased. Funds are recorded when title of goods purchased have transferred to the Company as the amount is known and not contingent on future events. The amount of funds to be received are subject to supplier agreements and ongoing negotiations that may be impacted in the future based on changes in market conditions, supplier marketing strategies and changes in the profitability or sell-through of the related merchandise for the Company. | |||||||||||
Generally vendor support funds are earned based on purchases or product sales. These incentives are treated as a reduction of inventories and are recognized as a reduction to cost of sales as the inventories are sold. Certain supplier allowances are used exclusively for promotions and to offset certain other direct expenses if the Company determines the allowances are for specific, identifiable incremental expenses. Vendor support funds used to offset direct advertising costs were immaterial for fiscal years 2014, 2013, and 2012. | |||||||||||
WARRANTY RESERVE The Company provides warranties for both its merchandise sales and service labor. Warranties for merchandise are generally covered by the respective suppliers with the Company covering any costs above the supplier's stipulated allowance. Service labor is warranted in full by the Company for a limited specific time period. The Company establishes its warranty reserves based on historical experience. These costs are included in either costs of merchandise sales or costs of service revenue in the consolidated statement of operations. | |||||||||||
The reserve for warranty activity for the years ended January 31, 2015 and February 1, 2014, respectively, are as follows: | |||||||||||
(dollar amounts in thousands) | |||||||||||
Balance, February 2, 2013 | $ | 864 | |||||||||
Additions related to sales in the current year | 13,748 | ||||||||||
Warranty costs incurred in the current year | (13,930 | ) | |||||||||
| | | | | |||||||
Balance, February 1, 2014 | 682 | ||||||||||
Additions related to sales in the current year | 14,435 | ||||||||||
Warranty costs incurred in the current year | (14,435 | ) | |||||||||
| | | | | |||||||
Balance, January 31, 2015 | $ | 682 | |||||||||
| | | | | |||||||
| | | | | |||||||
ADVERTISING The Company expenses the costs of advertising the first time the advertising takes place. Gross advertising expense for fiscal 2014, 2013 and 2012 was $71.4 million, $65.8 million and $66.3 million, respectively, and is recorded within selling, general and administrative expenses. No advertising costs were recorded as assets as of January 31, 2015 or February 1, 2014. | |||||||||||
STORE OPENING COSTS The costs of opening new stores are expensed as incurred. | |||||||||||
IMPAIRMENT OF LONG-LIVED ASSETS The Company evaluates the ability to recover long-lived assets whenever events or circumstances indicate that the carrying value of the asset may not be recoverable. In the event assets are impaired, losses are recognized to the extent the carrying value exceeds fair value. In addition, the Company reports assets to be disposed of at the lower of the carrying amount or the fair market value less selling costs. See discussion of current year impairments in Note 11, "Store Closures and Asset Impairments." | |||||||||||
EARNINGS PER SHARE Basic earnings per share are computed by dividing earnings by the weighted average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing earnings by the weighted average number of common shares outstanding during the year plus incremental shares that would have been outstanding upon the assumed exercise of dilutive stock based compensation awards. | |||||||||||
DISCONTINUED OPERATIONS The Company's discontinued operations reflect the operating results for closed stores where the customer base could not be maintained. Loss from discontinued operations relates to expenses for previously closed stores and principally includes costs for rent, taxes, payroll, repairs and maintenance, asset impairments, and gains or losses on disposal. | |||||||||||
ACCOUNTING FOR STOCK-BASED COMPENSATION At January 31, 2015, the Company has two stock-based employee compensation plans, which are described in Note 15, "Equity Compensation Plans." Compensation costs relating to share-based payment transactions are recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award). | |||||||||||
COMPREHENSIVE INCOME Other comprehensive income includes changes in the fair market value of cash flow hedges. | |||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company may enter into interest rate swap agreements to hedge the exposure to increasing rates with respect to its certain variable rate debt agreements. The Company recognizes all derivatives as either assets or liabilities in the statement of financial position and measures those instruments at fair value. See further discussion in Note 5, "Debt and Financing Arrangements." | |||||||||||
SEGMENT INFORMATION The Company has eight operating segments defined by geographic regions. Each segment serves both DIY and DIFM lines of business. The Company aggregates all of its operating segments into one reportable segment. Sales by major product categories are as follows: | |||||||||||
52 weeks ended | 52 weeks ended | 53 weeks ended | |||||||||
(dollar amounts in thousands) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Parts and accessories | $ | 1,217,520 | $ | 1,238,384 | $ | 1,252,617 | |||||
Tires | 376,363 | 370,313 | 391,331 | ||||||||
Service labor | 490,720 | 457,871 | 446,782 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 2,084,603 | $ | 2,066,568 | $ | 2,090,730 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
SIGNIFICANT SUPPLIERS During fiscal 2014, the Company's ten largest suppliers accounted for approximately 42% of merchandise purchased. Only one supplier accounted for more than 10% of the Company's purchases. Other than a commitment to purchase 3.5 million units of oil products at various prices over a two-year period, the Company has no long-term contracts or minimum purchase commitments under which the Company is required to purchase merchandise. Open purchase orders are based on current inventory or operational needs and are fulfilled by suppliers within short periods of time and generally are not binding agreements. | |||||||||||
SELF INSURANCE The Company has risk participation arrangements with respect to workers' compensation, general liability, automobile liability, and other casualty coverages. The Company has a wholly owned captive insurance subsidiary through which it reinsures this retained exposure. This subsidiary uses both risk sharing treaties and third party insurance to manage this exposure. The Company records both liabilities and reinsurance receivables using actuarial methods utilized in the insurance industry based upon historical claims experience. The Company maintains stop loss coverage with third party insurers through which it reinsures certain of its casualty liabilities. The Company's stop loss coverage receivables were immaterial as of January 31, 2015 and February 1, 2014. As of February 1, 2014, the Company moved to a premium-based health insurance program with third party providers. | |||||||||||
RECLASSIFICATION Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on reported totals for assets, liabilities, shareholders' equity, cash flows or net income. | |||||||||||
RECENT ACCOUNTING STANDARDS | |||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-15, "Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; earlier adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on the consolidated financial statements. | |||||||||||
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period", which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new standard, but does not expect adoption of ASU 2014-12 to have a material impact on our consolidated financial statements. | |||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in "Topic 605, Revenue Recognition" and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective retrospectively for annual or interim reporting periods beginning after December 15, 2016, with early adoption not permitted. The Company is currently evaluating the new standard, but does not expect the adoption of ASU 2014-09 to have a material impact on the consolidated financial statements. | |||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 provides a narrower definition of discontinued operations than under existing U.S. GAAP. ASU 2014-08 requires that only a disposal of a component of an entity, or a group of components of an entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity's operations and financial results should be reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. ASU 2014-08 is effective prospectively for disposals (or classifications as held for disposal) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on the consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". ASU 2013-11 states that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, if available at the reporting date under the applicable tax law to settle any additional income taxes that would result from the disallowance of a tax position. If the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 did not have a material impact on the Company's consolidated financial statements. | |||||||||||
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jan. 31, 2015 | |
ACQUISITIONS. | |
ACQUISITIONS | NOTE 2—ACQUISITIONS |
During 2013, the Company paid $10.7 million to purchase 18 Service & Tire Centers located in Southern California from AKH Company, Inc., which had operated under the name Discount Tire Centers. This acquisition was financed using cash on hand. Collectively, the acquired stores produced approximately $26.1 million in sales annually based on unaudited pre-acquisition historical information. The results of operations of these acquired stores are included in the Company's results of operations as of the date of acquisition. | |
The Company expensed all costs related to this acquisition during Fiscal 2013. The total costs related to this acquisition were immaterial and are included in the consolidated statement of operations within selling, general and administrative expenses. | |
The purchase price of the acquisition was allocated to tangible assets of approximately $0.8 million and $0.1 million in intangible assets, with the remaining $9.9 million recorded as goodwill. The goodwill was primarily related to growth opportunities and assembled workforces, and is deductible for tax purposes. | |
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
OTHER CURRENT ASSETS | ||||||||
OTHER CURRENT ASSETS | NOTE 3—OTHER CURRENT ASSETS | |||||||
The following are the components of other current assets: | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Reinsurance receivable | $ | 55,405 | $ | 61,182 | ||||
Income taxes receivable | 270 | 1,643 | ||||||
Other | 311 | 580 | ||||||
| | | | | | | | |
Total | $ | 55,986 | $ | 63,405 | ||||
| | | | | | | | |
| | | | | | | | |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
ACCRUED EXPENSES | ||||||||
ACCRUED EXPENSES | NOTE 4—ACCRUED EXPENSES | |||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Casualty and medical risk insurance | $ | 141,594 | $ | 153,830 | ||||
Accrued compensation and related taxes | 29,984 | 30,645 | ||||||
Sales tax payable | 13,178 | 12,245 | ||||||
Other | 41,420 | 40,683 | ||||||
| | | | | | | | |
Total | $ | 226,176 | $ | 237,403 | ||||
| | | | | | | | |
| | | | | | | | |
DEBT_AND_FINANCING_ARRANGEMENT
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
DEBT AND FINANCING ARRANGEMENTS | ||||||||
DEBT AND FINANCING ARRANGEMENTS | NOTE 5—DEBT AND FINANCING ARRANGEMENTS | |||||||
The following are the components of debt and financing arrangements: | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Senior Secured Term Loan, due October 2018 | $ | 196,000 | $ | 198,000 | ||||
Revolving Credit Agreement, through July 2016 | 17,000 | 3,500 | ||||||
| | | | | | | | |
Long-term debt | 213,000 | 201,500 | ||||||
Current maturities | (2,000 | ) | (2,000 | ) | ||||
| | | | | | | | |
Long-term debt less current maturities | $ | 211,000 | $ | 199,500 | ||||
| | | | | | | | |
| | | | | | | | |
Senior Secured Term Loan due October 2018 | ||||||||
On October 11, 2012, the Company entered into the Second Amended and Restated Credit Agreement among the Company, Wells Fargo Bank, N.A., as Administrative Agent, and the other parties thereto that (i) increased the size of the Company's Senior Secured Term Loan (the "Term Loan") to $200.0 million, (ii) extended the maturity of the Term Loan from October 27, 2013 to October 11, 2018, (iii) reset the interest rate under the Term Loan to the London Interbank Offered Rate (LIBOR), subject to a floor of 1.25%, plus 3.75% and (iv) added an additional 16 of the Company's owned locations to the collateral pool securing the Term Loan. The amended and restated Term Loan was deemed to be substantially different than the prior Term Loan, and therefore the modification of the debt was treated as a debt extinguishment. The Company recorded $6.5 million of deferred financing costs related to the Second Amended and Restated Credit Agreement. | ||||||||
Net proceeds from the fiscal 2012 amendment and restatement of the Term Loan together with cash on hand were used to settle the Company's outstanding interest rate swap on the Term Loan as structured prior to its amendment and restatement and to satisfy and discharge all of the Company's outstanding 7.5% Senior Subordinated Notes ("Notes") due 2014. The settlement of the interest rate swap resulted in the reclassification of $7.5 million of accumulated other comprehensive loss to interest expense. The Company recognized, in interest expense, $1.9 million of deferred financing costs related to the Notes and the Term Loan as structured prior to its amendment and restatement. The interest payment and the swap settlement payment are presented within cash flows from operations on the consolidated statement of cash flows. | ||||||||
On October 11, 2012, the Company entered into two new interest rate swaps for a notional amount of $50.0 million each that together were designated as a cash flow hedge on the first $100.0 million of the Term Loan. The interest rate swaps convert the variable LIBOR portion of the interest payments due on the first $100.0 million of the Term Loan to a fixed rate of 1.855%. | ||||||||
On November 12, 2013, the Company entered into the First Amendment to the Second Amended and Restated Credit Agreement. The First Amendment reduced the interest rate payable by the Company from (i) LIBOR, subject to a 1.25% floor, plus 3.75% to (ii) LIBOR, subject to a 1.25% floor, plus 3.00%. The Company recorded $0.8 million of deferred financing costs related to the First Amendment. | ||||||||
As of January 31, 2015, 141 stores collateralized the Term Loan. The amount outstanding under the Term Loan as of January 31, 2015 and February 1, 2014 was $196.0 million and $198.0 million, respectively. | ||||||||
Revolving Credit Agreement Through July 2016 | ||||||||
The Company has a Revolving Credit Agreement among the Company, Bank of America, N.A., as Administrative Agent, and the other parties thereto providing for borrowings of up to $300.0 million and having a maturity of July 2016. The interest rate on this facility is LIBOR plus a margin of 2.00% to 2.50% for LIBOR rate borrowings or Prime plus 1.00% to 1.50% for Prime rate borrowings. The margin is based upon the then current availability under the facility. As of January 31, 2015, the Company had $17.0 million outstanding under the facility and $35.1 million of availability was utilized to support outstanding letters of credit. Taking into account the borrowing base requirements (including reduction for amounts outstanding under the trade payable program), as of January 31, 2015 there was $138.4 million of availability remaining under the facility. | ||||||||
Other Matters | ||||||||
The Company's debt agreements require compliance with covenants. The most restrictive of these covenants, an earnings before interest, taxes, depreciation and amortization ("EBITDA") requirement, is triggered if the Company's availability under its Revolving Credit Agreement plus unrestricted cash drops below $50.0 million. As of January 31, 2015, the Company was in compliance with all financial covenants contained in its debt agreements. The weighted average interest rate on all debt borrowings during fiscal 2014 and 2013 was 4.1% and 4.9%, respectively. | ||||||||
The Company has a trade payable program with availability up to $200.0 million which is funded by various bank participants who have the ability, but not the obligation, to purchase account receivables owed by the Company directly from suppliers. The Company, in turn, makes the regularly scheduled full supplier payments to the bank participants. The outstanding balance under the program was $140.9 million and $129.8 million under the program as of January 31, 2015 and February 1, 2014, respectively. | ||||||||
The Company has letter of credit arrangements in connection with its risk management and import merchandising programs. The Company had $8.1 million and $13.9 million outstanding commercial letters of credit as of January 31, 2015 and February 1, 2014, respectively. The Company was contingently liable for $27.0 million and $30.9 million in outstanding standby letters of credit as of January 31, 2015 and February 1, 2014, respectively. | ||||||||
The Company is also contingently liable for surety bonds in the amount of approximately $12.8 million and $10.6 million as of January 31, 2015 and February 1, 2014, respectively. The surety bonds guarantee certain payments (for example utilities, easement repairs, licensing requirements and customs fees). | ||||||||
The annual maturities of long-term debt, for the next five fiscal years are: | ||||||||
(dollar amounts in thousands) | Long-Term Debt | |||||||
Fiscal Year | ||||||||
2015 | $ | 2,000 | ||||||
2016 | 19,000 | |||||||
2017 | 2,000 | |||||||
2018 | 190,000 | |||||||
2019 | — | |||||||
Thereafter | — | |||||||
| | | | | ||||
Total | $ | 213,000 | ||||||
| | | | | ||||
| | | | | ||||
Interest rates that are currently available to the Company for issuance of debt with similar terms and remaining maturities are used to estimate fair value for debt obligations and are considered a level 2 measure under the fair value hierarchy. The estimated fair value of long-term debt including current maturities was $211.0 million and $203.7 million as of January 31, 2015 and February 1, 2014, respectively. | ||||||||
LEASE_AND_OTHER_COMMITMENTS
LEASE AND OTHER COMMITMENTS | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
LEASE AND OTHER COMMITMENTS | |||||
LEASE AND OTHER COMMITMENTS | NOTE 6—LEASE AND OTHER COMMITMENTS | ||||
The aggregate minimum rental payments for all leases having initial terms of more than one year are as follows: | |||||
(dollar amounts in thousands) | Operating | ||||
Leases | |||||
Fiscal Year | |||||
2015 | $ | 114,258 | |||
2016 | 106,774 | ||||
2017 | 99,370 | ||||
2018 | 87,919 | ||||
2019 | 78,813 | ||||
Thereafter | 259,087 | ||||
| | | | | |
Aggregate minimum lease payments | $ | 746,221 | |||
| | | | | |
| | | | | |
Rental expense incurred for operating leases in fiscal 2014, 2013, and 2012 was $108.2 million, $102.3 million and $97.9 million, respectively, and are recorded primarily in cost of revenues. The deferred gain for all sale leaseback transactions is being recognized as a reduction of costs of merchandise sales and costs of service revenues over the minimum term of these leases. | |||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
ASSET RETIREMENT OBLIGATIONS | |||||
ASSET RETIREMENT OBLIGATIONS | NOTE 7—ASSET RETIREMENT OBLIGATIONS | ||||
The Company records asset retirement obligations as incurred and when reasonably estimable, including obligations for which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. The obligation principally represents the removal of leasehold improvements from stores upon termination of store leases. The obligations are recorded as liabilities at fair value using discounted cash flows and are accreted over the lease term. Costs associated with the obligations are capitalized and amortized over the estimated remaining useful life of the asset. | |||||
The Company has recorded a liability pertaining to the asset retirement obligation in other long-term liabilities on its consolidated balance sheet. Changes in assumptions reflect favorable experience with the rate of occurrence of obligations and expected settlement dates. The liability for asset retirement obligations activity from February 2, 2013 through January 31, 2015 is as follows: | |||||
(dollar amounts in thousands) | |||||
Asset retirement obligation at February 2, 2013 | $ | 5,963 | |||
Additions | 245 | ||||
Change in assumptions | (287 | ) | |||
Settlements | (12 | ) | |||
Accretion expense | 334 | ||||
| | | | | |
Asset retirement obligation at February 1, 2014 | 6,243 | ||||
Additions | 113 | ||||
Change in assumptions | (734 | ) | |||
Settlements | (48 | ) | |||
Accretion expense | 350 | ||||
| | | | | |
Asset retirement obligation at January 31, 2015 | $ | 5,924 | |||
| | | | | |
| | | | | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | NOTE 8—INCOME TAXES | ||||||||||
The components of (loss) income from continuing operations before income tax (benefit) expense are as follows: | |||||||||||
Year Ended | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Domestic | $ | (32,878 | ) | $ | 8,533 | $ | 14,577 | ||||
Foreign | 1,336 | 757 | 7,923 | ||||||||
| | | | | | | | | | | |
Total | $ | (31,542 | ) | $ | 9,290 | $ | 22,500 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for income tax (benefit) expense includes the following: | |||||||||||
Year Ended | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (267 | ) | $ | (338 | ) | |||
State | 689 | 451 | 471 | ||||||||
Foreign | 1,383 | 2,132 | 1,636 | ||||||||
Deferred: | |||||||||||
Federal(a) | (6,716 | ) | 2,765 | 6,548 | |||||||
State | 1,028 | 840 | 988 | ||||||||
Foreign | (965 | ) | (3,684 | ) | 40 | ||||||
| | | | | | | | | | | |
Total income tax (benefit) expense from continuing operations(a) | $ | (4,581 | ) | $ | 2,237 | $ | 9,345 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | Excludes tax benefit recorded to discontinued operations of $0.2 million, $0.1 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||
A reconciliation of the statutory federal income tax rate to the effective rate for income tax (benefit) expense follows: | |||||||||||
Year Ended | |||||||||||
January 31, | February 1, | February 2, | |||||||||
2015 | 2014 | 2013 | |||||||||
Statutory tax rate | (35.0 | )% | 35 | % | 35 | % | |||||
State income taxes, net of federal tax | 3.7 | 6 | 4.1 | ||||||||
Foreign taxes, net of federal tax | 1.4 | 4.4 | 5.6 | ||||||||
Tax credits, net of valuation allowance | (1.8 | ) | (7.5 | ) | (3.2 | ) | |||||
Foreign deferred adjustment | — | (8.4 | ) | — | |||||||
Foreign tax law change impact | — | (3.8 | ) | — | |||||||
Tax uncertainty adjustment | (0.8 | ) | (3.0 | ) | (1.5 | ) | |||||
Goodwill impairment charge | 17.1 | — | — | ||||||||
Non deductible expenses | 0.9 | 3.5 | 0.5 | ||||||||
Stock compensation | — | — | 1.8 | ||||||||
Other, net | — | (2.1 | ) | (0.8 | ) | ||||||
| | | | | | | | | | | |
(14.5 | )% | 24.1 | % | 41.5 | % | ||||||
Items that gave rise to the deferred tax accounts are as follows: | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | |||||||||
2015 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Employee compensation | $ | 5,608 | $ | 3,544 | |||||||
Store closing reserves | 1,179 | 673 | |||||||||
Legal reserve | 1,619 | 182 | |||||||||
Benefit accruals | 1,655 | 2,109 | |||||||||
Net operating loss carryforwards—Federal | 6,253 | 1,115 | |||||||||
Net operating loss carryforwards—State | 112,411 | 111,258 | |||||||||
Tax credit carryforwards | 28,179 | 26,605 | |||||||||
Accrued leases | 13,876 | 15,215 | |||||||||
Deferred gain on sale leaseback | 41,385 | 46,176 | |||||||||
Deferred revenue | 1,965 | 2,987 | |||||||||
Other | 4,226 | 1,312 | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 218,356 | 211,176 | |||||||||
Valuation allowance | (108,845 | ) | (106,695 | ) | |||||||
| | | | | | | | ||||
109,511 | 104,481 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | 33,610 | $ | 33,059 | |||||||
Inventories | 67,420 | 71,630 | |||||||||
Real estate tax | 3,495 | 3,300 | |||||||||
Insurance and other | 7,176 | 4,299 | |||||||||
Interest rate derivatives | — | 274 | |||||||||
Debt related liabilities | 2,454 | 3,606 | |||||||||
| | | | | | | | ||||
114,155 | 116,168 | ||||||||||
Net deferred tax (liability) asset | $ | (4,644 | ) | $ | (11,687 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
As of January 31, 2015, the Company had available tax net operating losses that can be carried forward to future years. The Company has $6.2 million of deferred tax assets related to federal net operating loss carryforwards which begin to expire in 2029. The Company has $2.8 million of deferred tax assets related to state tax net operating loss carryforwards in unitary filing jurisdictions. The balance of $109.6 million of deferred tax assets related to net operating loss carryforwards in separate company state filing jurisdictions will expire in various years beginning in 2015. The Company has recorded a full valuation allowance against these net deferred tax assets. | |||||||||||
The tax credit carryforward as of January 31, 2015 consists of $7.9 million of federal alternative minimum tax credits, $7.9 million of federal hiring credits and $12.4 million of various state and foreign credits. The alternative minimum tax credits have an indefinite life, while the other credits are scheduled to expire in various years starting from 2015 and have a $7.4 million valuation allowance recorded against them. | |||||||||||
The temporary differences between the book and tax treatment of income and expenses result in deferred tax assets and liabilities, which are included within the consolidated balance sheet. The Company must assess the likelihood that any recorded deferred tax assets will be recovered against future taxable income. To the extent the Company believes it is more likely than not that the asset will not be recoverable, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or changes the allowance in a future period, income tax expense will be impacted. In fiscal year 2014, the Company recorded a $2.1 million gross valuation allowance primarily on state net operating loss carryforwards. In fiscal year 2013, the Company recorded a benefit for gross state hiring credits of approximately $6.3 million that were impacted by a state tax law change enacted during the fiscal year that restricted the carryforward period for these credits. The Company recorded $6.7 million of gross valuation allowances on these credits and other state credit carryforwards. | |||||||||||
The Company and its subsidiaries' largest jurisdictions subject to income tax are U.S. federal, Puerto Rico (foreign) and various states jurisdictions, in respective order of significance. The Company's U.S. federal returns for tax years 2011 and forward are subject to examination. Foreign, state and local income tax returns are generally subject to examination for a period of three to five years after filing of the respective returns. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Unrecognized tax benefit balance at the beginning of the year | $ | 1,941 | $ | 2,274 | $ | 3,364 | |||||
Gross increases for tax positions taken in prior years | — | — | — | ||||||||
Gross decreases for tax positions taken in prior years | — | — | (338 | ) | |||||||
Gross increases for tax positions taken in current year | 2 | 13 | 201 | ||||||||
Settlements taken in current year | (181 | ) | — | — | |||||||
Lapse of statute of limitations | (276 | ) | (346 | ) | (953 | ) | |||||
| | | | | | | | | | | |
Unrecognized tax benefit balance at the end of the year | $ | 1,486 | $ | 1,941 | $ | 2,274 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company recognizes potential interest and penalties for unrecognized tax benefits in income tax expense and, accordingly, the Company recognized $0.1 million in fiscal years 2014 and 2013 related to potential interest and penalties associated with uncertain tax positions. As of January 31, 2015, February 1, 2014 and February 2, 2013, the Company has recorded $0.2 million, $0.5 million, and $0.5 million, respectively, for the payment of interest and penalties which are excluded from the unrecognized tax benefit noted above. | |||||||||||
Unrecognized tax benefits include $0.4 million, $0.7 million, and $0.9 million as of January 31, 2015, February 1, 2014 and February 2, 2013, respectively, that if recognized would affect the Company's annual effective tax rate. The Company does not anticipate material changes to its unrecognized tax benefits within the next twelve months. | |||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 31, 2015 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | NOTE 9—STOCKHOLDERS' EQUITY |
On December 12, 2012, the Company's Board of Directors authorized a program to repurchase up to $50.0 million of the Company's common stock to be made from time to time in the open market or in privately negotiated transactions, with no expiration date. The Company did not repurchase any shares of Common Stock in fiscal 2014 and repurchased 237,624 shares of Common Stock for $2.8 million in fiscal 2013. The repurchased shares were placed into the Company's treasury. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | NOTE 10—ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||
The following table presents changes in accumulated other comprehensive (loss) income for the year ended January 31, 2015: | ||||||||
(Loss) Gain on Cash Flow | ||||||||
Hedges | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Beginning balance | $ | 379 | $ | (980 | ) | |||
Other comprehensive (loss) income before reclassifications, net of ($691) tax benefit and $584 tax | (1,154 | ) | 975 | |||||
Amounts reclassified from accumulated other comprehensive (loss) income, net of $230 and $231 tax(a) | 384 | 384 | ||||||
| | | | | | | | |
Net current-period other comprehensive (loss) income | (770 | ) | 1,359 | |||||
Ending balance | (391 | 379 | ||||||
$ | ) | $ | ||||||
| | | | | | | | |
| | | | | | | | |
(a) | Reclassified amount increased interest expense. | |||||||
STORE_CLOSURES_AND_ASSET_IMPAI
STORE CLOSURES AND ASSET IMPAIRMENTS | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
STORE CLOSURES AND ASSET IMPAIRMENTS | |||||
STORE CLOSURES AND ASSET IMPAIRMENTS | NOTE 11—STORE CLOSURES AND ASSET IMPAIRMENTS | ||||
During fiscal 2014, the Company recorded a $7.5 million impairment charge related to 35 stores, one of which was classified as held for disposal and 34 of which were classified as held and used as of January 31, 2015. Of the $7.5 million impairment charge, $2.5 million was charged to merchandise cost of sales, and $5.0 million was charged to service cost of sales. In fiscal 2013, the Company recorded a $7.7 million impairment charge related to 47, 4 of which were classified as held for disposal and 43 of which were classified as held and used as of February 1, 2014. Of the $7.7 million impairment charge, $2.4 million was charged to merchandise cost of sales, and $5.3 million was charged to service cost of sales. In fiscal 2012, the Company recorded a $10.6 million impairment charge related to 49 stores classified as held and used. Of the $10.6 million impairment charge, $5.1 million was charged to merchandise cost of sales, and $5.5 million was charged to service cost of sales. In all years the Company used a probability-weighted approach and estimates of expected future cash flows to determine the fair value of these stores. Discount and growth rate assumptions were derived from current economic conditions, management's expectations and projected trends of current operating results. The fair market value estimates are classified as a Level 2 or Level 3 measure within the fair value hierarchy. The remaining fair value of the impaired assets was $2.9 million, $4.2 million and $2.3 million at January 31, 2015, February 1, 2014 and February 2, 2013, respectively. | |||||
A store is classified as held for disposal when (i) the Company has committed to a plan to sell, (ii) the building is vacant and the property is available for sale, (iii) the Company is actively marketing the property for sale, (iv) the sale price is reasonable in relation to its current fair value and (v) the Company expects to complete the sale within one year. Assets held for disposal have been valued at the lower of their carrying amount or their estimated fair value, net of disposal costs. The fair value of these assets is estimated using readily available market data for comparable properties and is classified as a Level 2 (as described in Note 17, "Fair Value Measurements") measure within the fair value hierarchy. No depreciation expense is recognized during the period the asset is held for disposal. During fiscal 2014, the Company had five stores classified as assets held for disposal, which are as follows: | |||||
Year Ended | |||||
(dollar amounts in thousands) | January 31, | ||||
2015 | |||||
Land | $ | 1,983 | |||
Building and improvements | 4,653 | ||||
Accumulated depreciation | (3,988 | ) | |||
| | | | | |
Property and equipment—net | $ | 2,648 | |||
| | | | | |
| | | | | |
Number of properties | 5 | ||||
The Company classifies the five properties as held for disposal as the Company continues to actively market the properties at prices the Company believes reasonable given current market conditions and expects to sell these properties within the next twelve months. In addition, during fiscal 2014, the Company recorded $1.2 million of impairment charges related to one store classified as held for disposal of which $0.8 million was charged to merchandise cost of sales and $0.4 million was charged to service cost of sales. In fiscal 2013, the Company recorded $0.9 million of impairment charges related to four stores classified as held for disposal of which $0.7 million was charged to merchandise cost of sales and $0.2 was charged to service cost of sales. | |||||
The following schedule details activity in the reserve for closed locations for the three years in the period ended January 31, 2015. The reserve balance includes remaining rent on leases net of sublease income. | |||||
(dollar amounts in thousands) | |||||
Balance, January 28, 2012 | $ | 1,801 | |||
Accretion of present value of liabilities | 137 | ||||
Change in assumptions about future sublease income, lease termination | 367 | ||||
Cash payments | (664 | ) | |||
| | | | | |
Balance, February 2, 2013 | 1,641 | ||||
Accretion of present value of liabilities | 36 | ||||
Change in assumptions about future sublease income, lease termination | 322 | ||||
Cash payments | (1,449 | ) | |||
| | | | | |
Balance, February 1, 2014 | 550 | ||||
Accretion of present value of liabilities | 29 | ||||
Change in assumptions about future sublease income, lease termination | 1,434 | ||||
Cash payments | (538 | ) | |||
| | | | | |
Balance, January 31, 2015 | $ | 1,475 | |||
| | | | | |
GOODWILL
GOODWILL | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
GOODWILL | |||||
GOODWILL | NOTE 12—GOODWILL | ||||
The following table reflects the carrying amount and the changes in goodwill carrying amount: | |||||
(dollar amounts in thousands) | |||||
Balance, February 2, 2013 | $ | 46,917 | |||
Acquisitions | 9,877 | ||||
Impairments | — | ||||
| | | | | |
Balance, February 1, 2014 | 56,794 | ||||
Acquisitions | — | ||||
Impairments(a) | (23,925 | ) | |||
| | | | | |
Balance, January 31, 2015 | $ | 32,869 | |||
| | | | | |
| | | | | |
(a) | Cumulative charge to date of $23.9 million | ||||
As described in Note 1—Summary of Significant Accounting Policies, the Company reviews goodwill for impairment annually during its fourth fiscal quarter and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. | |||||
We determine the fair value of reporting units using a weighting of fair values derived from valuations using both the income approach and the market approach. Using the income approach the Company calculated the fair value of each reporting unit based upon a discounted cash flow analysis, which requires significant management assumptions and estimates regarding industry, economic factors and the future profitability of our businesses. The market approach developed an estimated fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with operating and investment characteristics that were comparable to the operating and investment characteristics of the Reporting Unit. | |||||
We established, and continue to evaluate, our reporting units based on our internal reporting structure and define such reporting units at the operating segment level. | |||||
The key assumptions used in the discounted cash flow approach include: | |||||
• | The reporting unit's projections of financial results, which range from 1 to five years. In general, our reporting units' fair values are most sensitive to our sales growth and operating profit rate assumptions, which represent estimates based on our current and projected sales mix, profit improvement opportunities and market conditions. If the business climate deteriorates, or if we fail to manage our businesses successfully, then actual results may not be consistent with these assumptions and estimates, and our goodwill may become impaired. | ||||
• | The projected terminal value for each reporting unit represents the present value of projected cash flows beyond the last period in the discounted cash flow analysis. The terminal values are most sensitive to our assumptions regarding long-term growth rates, which are based on several factors including macroeconomic variables and future growth plans. While we believe our long-term growth assumptions are reasonable in relation to these factors and our historical results, actual growth rates may be lower than our assumptions due to a variety of potential causes, such as a secular decline in demand for our products and services, unforeseen competition and long-term GDP growth rates in being lower than historical growth rates. | ||||
• | The discount rate, used to measure the present value of the projected future cash flows, is set using a weighted-average cost of capital method that considers market and industry data as well as our specific risk factors that are likely to be considered by a market participant. The weighted-average cost of capital is our estimate of the overall after-tax rate of return required by equity and debt holders of a business enterprise. The reporting units' weighted-average costs of capital in future periods may be impacted by adverse changes in market and economic conditions, including risk-free interest rates, and are subject to change based on the facts and circumstances that exist at the time of the valuation. | ||||
The fair values of all of our reporting units are based on underlying assumptions that represent our best estimates. Many of the factors used in assessing fair value are outside of the control of management and if actual results are not consistent with our assumptions and judgments, we could be exposed to further impairment charges. To validate the reasonableness of our reporting units' estimated fair values, we reconcile the aggregate fair values of our reporting units to our total market capitalization. | |||||
The Company's evaluation resulted in fair values for three reporting units being substantially below their respective carrying values and an implied fair value for which resulted in the Company recording a $23.9 million non-cash goodwill impairment charge in fiscal 2014. The primary factor that contributed to the impairment decline in sales and earnings in 2014 combined with the expectation of slower growth in the projection period. The remaining three reporting units had an aggregate goodwill balance of $32.9 million and the fair values substantially exceeded their carrying value. | |||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
EARNINGS PER SHARE | |||||||||||||
EARNINGS PER SHARE | NOTE 13—EARNINGS PER SHARE | ||||||||||||
The following schedule presents the calculation of basic and diluted earnings per share for earnings from continuing operations: | |||||||||||||
Year Ended | |||||||||||||
(dollar amounts in thousands, except per share amounts) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
(a) | (Loss)earnings from continuing operations before discontinued operations | $ | (26,961 | ) | $ | 7,053 | $ | 13,155 | |||||
Loss from discontinued operations, net of tax benefit of $179, $102 and $186 | (332 | ) | (188 | ) | (345 | ) | |||||||
| | | | | | | | | | | | | |
Net (loss) earnings | $ | (27,293 | ) | $ | 6,865 | $ | 12,810 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
(b) | Basic average number of common shares outstanding during period | 53,608 | 53,378 | 53,225 | |||||||||
Common shares assumed issued upon exercise of dilutive equity awards, net of assumed repurchase, at the average market price | — | 585 | 729 | ||||||||||
| | | | | | | | | | | | | |
(c) | Diluted average number of common shares assumed outstanding during period | 53,608 | 53,963 | 53,954 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Basic earnings per share: | |||||||||||||
Earnings from continuing operations (a/b) | $ | (0.50 | ) | $ | 0.13 | $ | 0.25 | ||||||
Discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | ||||||||
| | | | | | | | | | | | | |
Basic earnings per share | $ | (0.51 | ) | $ | 0.13 | $ | 0.24 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted earnings per share: | |||||||||||||
Earnings from continuing operations (a/c) | $ | (0.50 | ) | $ | 0.13 | $ | 0.24 | ||||||
Discontinued operations, net of tax | (0.01 | ) | — | — | |||||||||
| | | | | | | | | | | | | |
Diluted earnings per share | $ | (0.51 | ) | $ | 0.13 | $ | 0.24 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Certain stock options were excluded from the calculations of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the period then ended and therefore would be anti-dilutive. The total number of stock options, restricted stock units and performance share units excluded from the diluted earnings per share calculation was 2,407,000; 937,000; and 859,000 as of January 31, 2015, February 1, 2014, and February 2, 2013, respectively. | |||||||||||||
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
BENEFIT PLANS | |||||
BENEFIT PLANS | NOTE 14—BENEFIT PLANS | ||||
DEFINED BENEFIT AND CONTRIBUTION PLANS | |||||
On January 31, 2014, the Company's non-qualified defined contribution Supplemental Executive Retirement Plan (the "Account Plan") for key employees designated by the Board of Directors was amended to eliminate the retirement plan contributions that have historically been made by the Company effective for calendar year 2015. The Company did not contribute to the Account Plan in 2014 and the Company's contribution expense for the Account Plan was $0.8 million and $0.1 million for fiscal 2013 and 2012, respectively. | |||||
The Company has a qualified 401(k) savings plan and a separate savings plan for employees residing in Puerto Rico, which cover all full-time employees who are at least 18 years of age and have completed the lesser of (1) six consecutive months of employment and have a minimum of 500 hours of service and (2) 12 consecutive months and have a minimum of 1,000 hours of service. The Company contributes the lesser of 50% of the first 6% of a participant's pre-tax contributions or 3% of the participant's compensation under both savings plans. For fiscal 2012, the Company's contributions were conditional upon the achievement of certain pre-established financial performance goals which were not met in fiscal 2012. The Company's contributions for fiscal 2013 and fiscal 2014 were not conditional on any financial performance goals. The Company's savings plans' contribution expense in fiscal 2014 and 2013 was $3.2 million and $3.5 million respectively. The Company had no contribution expense in fiscal 2012. | |||||
During the fourth quarter of fiscal 2012, the Company terminated its defined benefit pension plan and contributed $14.1 million to fully fund the plan on a termination basis. Accordingly, the Company has no further defined benefit pension expense. The participants' benefits were converted into a lump sum cash payment or an annuity contract placed with an insurance carrier. The Company used a fiscal year end measurement date for determining the benefit obligation and the fair value of Plan assets. The actuarial computations were made using the "projected unit credit method." Variances between actual experience and assumptions for costs and returns on assets were amortized over the remaining service lives of employees under the Plan. | |||||
Pension expense is as follows: | |||||
Year ended | |||||
(dollar amounts in thousands) | February 2, | ||||
2013 | |||||
Service cost | $ | — | |||
Interest cost | 2,170 | ||||
Expected return on plan assets | (2,658 | ) | |||
Amortization of prior service cost | 13 | ||||
Recognized actuarial loss | 1,896 | ||||
| | | | | |
Net Period Pension Cost | 1,421 | ||||
Settlement Charge | 17,753 | ||||
| | | | | |
Net Period Pension Cost | $ | 19,174 | |||
| | | | | |
| | | | | |
DEFERRED COMPENSATION PLAN | |||||
The Company maintains a non-qualified deferred compensation plan that allows its officers and certain other employees to defer up to 20% of their annual salary and 100% of their annual bonus. Through fiscal 2013, the first 20% of an officer's bonus deferred into the Company's stock was matched by the Company on a one-for-one basis with Company stock that vests and is expensed over three years. The shares required to satisfy distributions of voluntary bonus deferrals and the accompanying match in the Company's stock are issued from its treasury account. On January 31, 2014, the Company amended the deferred compensation plan to eliminate the automatic matching employer contributions effective for fiscal 2014. | |||||
RABBI TRUST | |||||
The Company establishes and maintains a deferred liability for the non-qualified deferred compensation plan and the Account Plan. The Company plans to fund this liability by remitting the officers' deferrals to a Rabbi Trust where these are invested in variable life insurance policies. These assets are included in non-current other assets and are considered to be a Level 2 measure within the fair value hierarchy. Accordingly, all gains and losses on these underlying investments, which are held in the Rabbi Trust to fund the deferred liability, are recognized in the Company's Consolidated Statement of Operations. Under these plans, there were liabilities of $5.1 million at January 31, 2015 and $6.9 million at February 1, 2014, respectively, which are recorded primarily in other long-term liabilities. | |||||
EQUITY_COMPENSATION_PLANS
EQUITY COMPENSATION PLANS | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
EQUITY COMPENSATION PLANS | ||||||||||||||
EQUITY COMPENSATION PLANS | ||||||||||||||
NOTE 15—EQUITY COMPENSATION PLANS | ||||||||||||||
The Company has a stock-based compensation plan (the "Stock Incentive Plan") under which it has previously granted, and may continue to grant, non-qualified stock options, incentive stock options, restricted stock units ("RSUs"), and Performance Share Units ("PSUs") to key employees and members of its Board of Directors. As of January 31, 2015, there were 2,643,520 awards outstanding and 2,455,697 awards available for grant under the Stock Incentive Plan. | ||||||||||||||
Incentive stock options and non-qualified stock options granted to non-officers vest fully on the third anniversary of their grant date and to officers vest in equal tranches over three year periods. All currently outstanding options carry an expiration date of seven years. RSUs previously granted to non-officers vest fully on the third anniversary of their grant date. RSUs previously granted to officers vest in equal tranches over three year periods. PSUs granted to officers vest on the third anniversary of their grant date if, and only if, certain predetermined performance targets are achieved. | ||||||||||||||
The Company has also granted RSUs under the Stock Incentive Plan in conjunction with its non-qualified deferred compensation plan. Under the deferred compensation plan, through fiscal 2013, the first 20% of an officer's bonus deferred into the Company's stock fund was matched by the Company on a one-for-one basis with RSUs that vest over a three-year period, with one third vesting on each of the first three anniversaries of the grant date. On January 31, 2014, the Company amended and restated the deferred compensation plan to eliminate the automatic matching employer contributions effective for fiscal 2014. | ||||||||||||||
The terms and conditions applicable to future grants under the Stock Incentive Plan are generally determined by the Board of Directors, provided that the exercise price of stock options must be at least 100% of the quoted market price of the common stock on the grant date. The Company currently satisfies all share requirements resulting from RSU and PSU conversions and option exercises from its treasury stock. The Company believes its treasury share balance at January 31, 2015 is adequate to satisfy such activity during the next twelve-month period. | ||||||||||||||
The following table summarizes the options under the Stock Incentive Plan: | ||||||||||||||
Fiscal Year 2014 | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Exercise Price | ||||||||||||||
Outstanding—beginning of year | 1,658,471 | $ | 8.67 | |||||||||||
Granted | 1,234,447 | 8.02 | ||||||||||||
Exercised | (255,023 | ) | 3.73 | |||||||||||
Forfeited | (878,801 | ) | 7.15 | |||||||||||
Expired | (212,818 | ) | 13.11 | |||||||||||
| | | | | | | | |||||||
Outstanding—end of year | 1,546,276 | 9.22 | ||||||||||||
| | | | | | | | |||||||
Vested and expected to vest options—end of year | 1,499,115 | 9.18 | ||||||||||||
| | | | | | | | |||||||
Options exercisable—end of year | 921,422 | 8.28 | ||||||||||||
| | | | | | | | |||||||
The following table summarizes information about options during the last three fiscal years (dollars in thousands except per option): | ||||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||
Weighted average fair value at grant date per option | $ | 2.25 | $ | 5.11 | $ | 4.65 | ||||||||
Intrinsic value of options exercised | $ | 1,532 | $ | 1,059 | $ | 874 | ||||||||
The aggregate intrinsic value of outstanding options, exercisable options and expected to vest options at January 31, 2015 was $1.5 million, $1.5 million and $0.0 million, respectively. At January 31, 2015, the weighted average remaining contractual term of outstanding options, exercisable options and expected to vest options was 4.2 years, 2.9 years and 6.2 years, respectively. At January 31, 2015, there was approximately $1.7 million of total unrecognized pre-tax compensation cost related to non-vested stock options, which is expected to be recognized over a weighted average period of 1.4 years. | ||||||||||||||
The following table summarizes information about non-vested PSUs and RSUs since February 1, 2014: | ||||||||||||||
Number of | Number of | Total | Weighted Average | |||||||||||
PSUs | RSUs | Fair Value | ||||||||||||
Nonvested at February 1, 2014 | 675,513 | 149,945 | 825,458 | $ | 10.68 | |||||||||
Granted | 367,102 | 337,111 | 704,213 | 8.03 | ||||||||||
Forfeited | (581,609 | ) | (45,604 | ) | (627,213 | ) | 7.37 | |||||||
Vested | — | (142,942 | ) | (142,942 | ) | 10.59 | ||||||||
| | | | | | | | | | | | | | |
Nonvested at January 31, 2015 | 461,006 | 298,510 | 759,516 | 7.93 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The following table summarizes information about PSUs and RSUs, in the aggregate, during the last three fiscal years: | ||||||||||||||
(dollar amounts in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||||
Weighted average fair value at grant date per unit | $ | 8.03 | $ | 12.23 | $ | 9.48 | ||||||||
Fair value at vesting date | $ | 1,463 | $ | 758 | $ | 768 | ||||||||
Intrinsic value at conversion date | $ | 188 | $ | 525 | $ | 218 | ||||||||
Tax benefits realized from conversions | $ | 71 | $ | 197 | $ | 82 | ||||||||
At January 31, 2015, there was approximately $3.0 million of total unrecognized pre-tax compensation cost related to non-vested PSUs and RSUs, in the aggregate, which is expected to be recognized over a weighted-average period of 1.2 years. | ||||||||||||||
The Company recognized approximately $1.2 million, $1.2 million, and $1.1 million of compensation expense related to stock options, and approximately $1.1 million, $1.8 million, and $0.2 million of compensation expense related to PSUs and RSUs in the aggregate, included in selling, general and administrative expenses for fiscal 2014, 2013, and 2012, respectively. The related tax benefit recognized was approximately $0.9 million, $1.1 million and $0.4 million for fiscal 2014, 2013, and 2012, respectively. | ||||||||||||||
Expected volatility is based on historical volatilities for a time period similar to that of the expected term and the expected term of the options is based on actual experience. The risk-free rate is based on the U.S. treasury yield curve for issues with a remaining term equal to the expected term. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The following are the weighted-average assumptions: | ||||||||||||||
Year ended | ||||||||||||||
January 31, | February 1, | February 2, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Expected volatility | 41 | % | 53 | % | 58 | % | ||||||||
Risk-free interest rate range: | ||||||||||||||
High | 1.5 | % | 0.7 | % | 0.6 | % | ||||||||
Low | 0.1 | % | 0.7 | % | 0.5 | % | ||||||||
Ranges of expected lives in years | 5-Jan | 5-Apr | 5-Apr | |||||||||||
The Company granted approximately 155,000 and 109,000 PSUs in fiscal 2014 and 2013, respectively that will vest if the employees remain continuously employed through the third anniversary date of the grant and the Company achieves a return on invested capital target for fiscal years 2016 and 2015, respectively. The number of underlying shares that may be issued upon vesting will range from 0% to 150%, depending upon the Company achieving the financial targets in fiscal years 2016 and 2015, respectively. At the date of the grants, the fair values were $10.26 per unit and $11.85 per unit for the 2014 and 2013 awards, respectively. The Company also granted approximately 77,000 and 55,000 PSUs for fiscal 2014 and 2013, respectively, that will vest if the employees remain continuously employed through the third anniversary date of the grant and will become exercisable if the Company satisfies a total shareholder return target in fiscal 2016 and 2015, respectively. The number of underlying shares that may become exercisable will range from 0% to 175% depending on whether the market condition is achieved. The Company used a Monte Carlo simulation to estimate a $9.13 per unit and $13.41 per unit grant date fair value for the 2014 and 2013 PSUs, respectively. The non-vested restricted stock award table reflects the maximum vesting of underlying shares for performance and market based awards granted in both 2014 and 2013. | ||||||||||||||
During fiscal 2014 and 2013, the Company granted approximately 900 and 4,000 restricted stock units, respectfully, for officers' deferred bonus matches under the Company's non-qualified deferred compensation plan, which vest over a three-year period. The fair value of these awards was $12.27 and $11.25 per unit and the compensation expense recorded for these awards was immaterial. The Company did not grant any restricted stock units for officers' deferred bonus matches under the Company's non-qualified deferred compensation plan during fiscal 2012. | ||||||||||||||
During fiscal 2014, the Company granted approximately 58,000 restricted stock units to its non-employee directors of the board, which vest over a one-year period with a quarter vesting on each of the first four quarters following their grant date. The fair value for these awards was $11.25 per unit. During fiscal 2013, the Company granted approximately 54,000 restricted stock units to its non-employee directors of the board, which vest over a one-year period with a quarter vesting on each of the first four quarters following their grant date. The fair value for these awards was $12.05 per unit. During fiscal 2012, the Company granted approximately 33,000 restricted stock units to its non-employee directors of the board, which vest over a one-year period with a quarter vesting on each of the first four quarters following their grant date. The fair value was $9.98 per unit. | ||||||||||||||
The Company reflects in its consolidated statement of cash flows any tax benefits realized upon the exercise of stock options or issuance of RSUs in excess of that which is associated with the expense recognized for financial reporting purposes. The amounts reflected as financing cash inflows and operating cash outflows in the Consolidated Statement of Cash Flows for fiscal 2014, 2013 and 2012 are immaterial. | ||||||||||||||
During fiscal 2011, the Company began an employee stock purchase plan which provides eligible employees the opportunity to purchase shares of the Company's stock at a stated discount through regular payroll deductions. The aggregate number of shares of common stock that may be issued or transferred under the plan is 2,000,000 shares. All shares purchased by employees under this plan will be issued through treasury stock. The Company's expense for the discount during fiscal years 2014, 2013 and 2012 was immaterial. As of January 31, 2015, there were 1,803,880 shares available for issuance under this plan. | ||||||||||||||
INTEREST_RATE_SWAP_AGREEMENT
INTEREST RATE SWAP AGREEMENT | 12 Months Ended |
Jan. 31, 2015 | |
INTEREST RATE SWAP AGREEMENT | |
INTEREST RATE SWAP AGREEMENT | NOTE 16—INTEREST RATE SWAP AGREEMENT |
In the third quarter of fiscal 2012, the Company settled its interest rate swap designated as a cash flow hedge on $145.0 million of the Company's Term Loan prior to its amendment and restatement. The swap was used to minimize interest rate exposure and overall interest costs by converting the variable component of the total interest rate to a fixed rate of 5.04%. Since February 1, 2008, this swap was deemed to be fully effective and all adjustments in the interest rate swap's fair value were recorded to accumulated other comprehensive loss. The settlement of this swap resulted in an interest charge of $7.5 million, which was previously recorded within accumulated other comprehensive loss. Immediately subsequent to the previous interest rate swap's settlement, on October 11, 2012, the Company entered into two new interest rate swaps for a notional amount of $50.0 million each that together are designated as a cash flow hedge on the first $100.0 million of the amended and restated Term Loan. The Company uses interest rate swap agreements to hedge the variability in cash flows related to interest payments. The interest rate swaps convert the variable LIBOR portion of the interest payments due on the first $100.0 million of the Term Loan to a fixed rate of 1.86%. As of January 31, 2015 and February 1, 2014, the fair value of the new swap was a net $0.6 million liability and a net $0.6 million asset, respectively, recorded within other long-term liabilities and other long-term assets on the balance sheet. | |
The Company's refinancing of the $200.0 million Term Loan on November 12, 2013, which lowered the interest rate payable by the Company from LIBOR, subject to a 1.25% floor plus 3.75%, to LIBOR, subject to a 1.25% floor plus 3.00%, had no impact on the Company's interest rate swap or hedge accounting. | |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 17—FAIR VALUE MEASUREMENTS | |||||||||||||
The Company's fair value measurements consist of (a) non-financial assets and liabilities that are recognized or disclosed at fair value in the Company's financial statements on a recurring basis (at least annually) and (b) all financial assets and liabilities. | ||||||||||||||
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. There is a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | ||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis: | ||||||||||||||
The Company's long-term investments and interest rate swap agreements are measured at fair value on a recurring basis. The information in the following paragraphs and tables primarily addresses matters relative to these assets and liabilities. | ||||||||||||||
Cash equivalents: | ||||||||||||||
Cash equivalents, other than credit card receivables, include highly liquid investments with an original maturity of three months or less at acquisition. The Company carries these investments at fair value. As a result, the Company has determined that its cash equivalents in their entirety are classified as a Level 1 measure within the fair value hierarchy. | ||||||||||||||
Collateral investments: | ||||||||||||||
Collateral investments include monies on deposit that are restricted. The Company carries these investments at fair value. As a result, the Company has determined that its collateral investments are classified as a Level 1 measure within the fair value hierarchy. | ||||||||||||||
Deferred compensation assets: | ||||||||||||||
Deferred compensation assets include variable life insurance policies held in a Rabbi Trust. The Company values these policies using observable market data. The inputs used to value the variable life insurance policy fall within Level 2 of the fair value hierarchy. | ||||||||||||||
Derivative liability: | ||||||||||||||
The Company has two interest rate swaps designated as cash flow hedges on $100.0 million of the Company's Senior Secured Term Loan facility that expires in October 2018. The Company values this swap using observable market data to discount projected cash flows and for credit risk adjustments. The inputs used to value derivatives fall within Level 2 of the fair value hierarchy. | ||||||||||||||
The following table provides information by level for assets and liabilities that are measured at fair value, on a recurring basis. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||
January 31, | ||||||||||||||
(dollar amounts in thousands) | 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Description | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 38,044 | $ | 38,044 | $ | — | $ | — | ||||||
Collateral investments(a) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets(a) | 4,382 | — | 4,382 | — | ||||||||||
Other liabilities | ||||||||||||||
Derivative liability(b) | 625 | — | 625 | — | ||||||||||
(a) | included in other long-term assets | |||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||
February 1, | ||||||||||||||
(dollar amounts in thousands) | 2014 | Level 1 | Level 2 | Level 3 | ||||||||||
Description | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 33,431 | $ | 33,431 | $ | — | $ | — | ||||||
Collateral investments(a) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets(a) | 4,242 | — | 4,242 | — | ||||||||||
Other assets | ||||||||||||||
Derivative asset(a) | 606 | — | 606 | — | ||||||||||
(a) | included in other long-term assets | |||||||||||||
(b) | included in other long-term liabilities | |||||||||||||
The following represents the impact of fair value accounting for the Company's derivative liability on its consolidated financial statements: | ||||||||||||||
(dollar amounts in thousands) | Amount of Gain | Earnings Statement | Amount of Loss | |||||||||||
(Loss) in Other | Classification | Recognized in | ||||||||||||
Comprehensive | Earnings | |||||||||||||
Income | (Effective Portion) | |||||||||||||
(Effective Portion) | ||||||||||||||
Fiscal 2014 | $ | (770 | ) | Interest expense | $ | 613 | ||||||||
Fiscal 2013 | 1,359 | Interest expense | 614 | |||||||||||
Non-financial assets measured at fair value on a non-recurring basis: | ||||||||||||||
Certain assets are measured at fair value on a non-recurring basis, that is, the assets are subject to fair value adjustments in certain circumstances such as when there is evidence of impairment. These measures of fair value, and related inputs, are considered level 2 or level 3 measures under the fair value hierarchy. Measurements of assets held and used are discussed in Note 11, "Store Closures and Asset Impairments." | ||||||||||||||
LEGAL_MATTERS
LEGAL MATTERS | 12 Months Ended |
Jan. 31, 2015 | |
LEGAL MATTERS | |
LEGAL MATTERS | NOTE 18—LEGAL MATTERS |
The Company is party to various actions and claims arising in the normal course of business. The Company believes that amounts accrued for awards or assessments in connection with all such matters are adequate and that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position. However, there exists a possibility of loss in excess of the amounts accrued, the amount of which cannot currently be estimated. While the Company does not believe that the amount of such excess loss will be material to the Company's financial position, any such loss could have a material adverse effect on the Company's results of operations in the period(s) during which the underlying matters are resolved. | |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 19—QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||||||||||||
(Loss) / | |||||||||||||||||||||||||||||||||||
Earnings Per | |||||||||||||||||||||||||||||||||||
Share from | |||||||||||||||||||||||||||||||||||
(Loss) / | Continuing | (Loss) / | Market Price | ||||||||||||||||||||||||||||||||
Earnings | Operations | Earnings Per | Per Share | ||||||||||||||||||||||||||||||||
from | Share | ||||||||||||||||||||||||||||||||||
Total | Gross | Operating | Continuing | (Loss) / | |||||||||||||||||||||||||||||||
Revenues | Profit | (Loss) / | Operations | Earnings | |||||||||||||||||||||||||||||||
Profit | Basic | Diluted | Basic | Diluted | High | Low | |||||||||||||||||||||||||||||
Year Ended January 31, 2015 | |||||||||||||||||||||||||||||||||||
4th quarter | $ | 502,423 | $ | 99,685 | $ | (28,752 | ) | $ | (26,653 | ) | $ | (26,666 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | 10.09 | $ | 8.43 | ||||||
3rd quarter | 517,584 | 118,334 | 574 | (1,770 | ) | (1,964 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | 11.52 | 8.45 | ||||||||||||||||||
2nd quarter | 525,773 | 124,297 | 3,273 | (177 | ) | (273 | ) | 0 | 0 | 0 | 0 | 11.52 | 9.86 | ||||||||||||||||||||||
1st quarter | 538,821 | 133,126 | 6,045 | 1,637 | 1,608 | 0.03 | 0.03 | 0.03 | 0.03 | 13.27 | 10.17 | ||||||||||||||||||||||||
Year Ended February 1, 2014 | |||||||||||||||||||||||||||||||||||
4th quarter | $ | 495,733 | $ | 104,016 | $ | (6,614 | ) | $ | (3,267 | ) | $ | (3,331 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | 13.86 | $ | 11.36 | ||||||
3rd quarter | 507,042 | 122,812 | 7,641 | 1,013 | 964 | 0.02 | 0.02 | 0.02 | 0.02 | 13.05 | 11.01 | ||||||||||||||||||||||||
2nd quarter | 527,619 | 138,708 | 17,748 | 5,379 | 5,368 | 0.1 | 0.1 | 0.1 | 0.1 | 12.94 | 11.14 | ||||||||||||||||||||||||
1st quarter | 536,173 | 121,840 | 3,521 | 3,928 | 3,863 | 0.07 | 0.07 | 0.07 | 0.07 | 12.14 | 10.29 | ||||||||||||||||||||||||
In the fourth quarter of fiscal 2014, the Company recorded on a pre-tax basis, a $23.9 million goodwill impairment charge and a gain on sale of certain properties of $14.3 million. There were no cash dividends paid in Fiscal 2014 or Fiscal 2013. | |||||||||||||||||||||||||||||||||||
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | FINANCIAL STATEMENT SCHEDULES FURNISHED PURSUANT TO | ||||||||||||||||
THE REQUIREMENTS OF FORM 10-K | |||||||||||||||||
THE PEP BOYS—MANNY, MOE & JACK AND SUBSIDIARIES | |||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Description | Balance at | Additions Charged | Additions Charged | Deductions(1) | Balance at | ||||||||||||
Beginning of Period | to Costs | to Other | End of Period | ||||||||||||||
and Expenses | Accounts | ||||||||||||||||
(in thousands) | |||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS: | |||||||||||||||||
Year ended January 31, 2015 | $ | 1,320 | $ | 3,029 | $ | — | $ | 2,745 | $ | 1,604 | |||||||
Year ended February 1, 2014 | $ | 1,302 | $ | 2,563 | $ | — | $ | 2,546 | $ | 1,320 | |||||||
Year ended February 2, 2013 | $ | 1,303 | $ | 2,479 | $ | — | $ | 2,480 | $ | 1,302 | |||||||
-1 | Uncollectible accounts written off. | ||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Description | Balance at | Additions Charged | Additions Charged | Deductions(2) | Balance at | ||||||||||||
Beginning of Period | to Costs | to Other | End of Period | ||||||||||||||
and Expenses | Accounts(2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
SALES RETURNS AND ALLOWANCES: | |||||||||||||||||
Year ended January 31, 2015 | $ | 806 | $ | — | $ | 63,545 | $ | 63,231 | $ | 1,120 | |||||||
Year ended February 1, 2014 | $ | 896 | $ | — | $ | 62,596 | $ | 62,686 | $ | 806 | |||||||
Year ended February 2, 2013 | $ | 773 | $ | — | $ | 63,068 | $ | 62,945 | $ | 896 | |||||||
-2 | Sales return and allowance activity is recorded through a reduction of merchandise sales and costs of merchandise sales. | ||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
FISCAL YEAR END | FISCAL YEAR END The Company's fiscal year ends on the Saturday nearest to January 31. Fiscal 2014 and Fiscal 2013, which ended January 31, 2015 and February 2, 2014, respectively, were comprised of 52 weeks. Fiscal 2012, which ended February 2, 2013, was comprised of 53 weeks | ||||||||||
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. | ||||||||||
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash equivalents include all short-term, highly liquid investments with an initial maturity of three months or less when purchased. All credit and debit card transactions that settle in less than seven days are also classified as cash and cash equivalents. | ||||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable are primarily comprised of amounts due from commercial customers. The Company records an allowance for doubtful accounts based on an evaluation of the credit worthiness of its customers. The allowance is reviewed for adequacy at least quarterly and adjusted as necessary. Specific accounts are written off against the allowance when management determines the account is uncollectible. | ||||||||||
MERCHANDISE INVENTORIES | MERCHANDISE INVENTORIES Merchandise inventories are valued at the lower of cost or market. Cost is determined by using the last-in, first-out (LIFO) method. If the first-in, first-out (FIFO) method of costing inventory had been used by the Company, inventory would have been $570.2 million and $579.8 million as of January 31, 2015 and February 1, 2014, respectively. During fiscal 2014, 2013 and 2012, the effect of LIFO layer liquidations on gross profit was immaterial. | ||||||||||
The Company's inventory, consisting primarily of automotive tires, parts, and accessories, is used on vehicles typically having long lives. Because of this, and combined with the Company's historical experience of returning excess inventory to the Company's suppliers for full credit, the risk of obsolescence is minimal. The Company establishes a reserve for excess inventory for instances where less than full credit will be received for such returns or where the Company anticipates items will be sold at retail prices that are less than recorded costs. The reserve is based on management's judgment, including estimates and assumptions regarding marketability of products, the market value of inventory to be sold in future periods and on historical experiences where the Company received less than full credit from suppliers for product returns. The Company also provides for estimated inventory shrinkage based on historical levels and the results of its cycle counting program. The Company's inventory adjustments for these matters were immaterial for fiscal 2014 and fiscal 2013. In future periods, the company may be exposed to material losses should the company's suppliers alter their policies with regard to accepting excess inventory returns. | |||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the following estimated useful lives: building and improvements, 5 to 40 years, and furniture, fixtures and equipment, 3 to 10 years. Maintenance and repairs are charged to expense as incurred. Upon retirement or sale, the cost and accumulated depreciation are eliminated and the gain or loss, if any, is included in the determination of net income. Property and equipment information follows: | ||||||||||
(dollar amounts in thousands) | January 31, | February 1, | |||||||||
2015 | 2014 | ||||||||||
Land | $ | 200,235 | $ | 202,038 | |||||||
Buildings and improvements | 895,214 | 888,389 | |||||||||
Furniture, fixtures and equipment | 759,008 | 760,170 | |||||||||
Construction in progress | 1,720 | 2,049 | |||||||||
Accumulated depreciation | (1,251,797 | ) | (1,227,121 | ) | |||||||
| | | | | | | | ||||
Property and equipment—net | $ | 604,380 | $ | 625,525 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
GOODWILL | GOODWILL The accompanying Consolidated Balance Sheet has goodwill recorded as the result of acquisitions. The Company reviews goodwill for impairment annually during the fourth quarter, or when events or changes in circumstances indicate the carrying value of these reporting units might exceed their current fair values. The goodwill impairment test includes a quantitative assessment, which compares the fair value of the reporting unit to the carrying amount, including goodwill. At fiscal year end 2014, the Company had eight reporting units, of which six included goodwill. See Note 12 "Goodwill" for assessment and testing. | ||||||||||
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS The Company amortizes intangible assets with finite lives on a straight-line basis over their estimated useful lives. | ||||||||||
LEASES | LEASES The Company amortizes leasehold improvements over the lesser of the lease term or the economic life of those assets. Generally, for stores the lease term is the base lease term and for distribution centers the lease term includes the base lease term plus certain renewal option periods for which renewal is reasonably assured and for which failure to exercise the renewal option would result in an economic penalty to the Company. The calculation of straight-line rent expense is based on the same lease term with consideration for step rent provisions, escalation clauses, rent holidays and other lease concessions. The Company begins expensing rent upon completion of the Company's due diligence or when the Company has the right to use the property, whichever comes earlier. | ||||||||||
SOFTWARE CAPITALIZATION | SOFTWARE CAPITALIZATION The Company capitalizes certain direct development costs associated with internal-use software, including external direct costs of material and services, and payroll costs for employees devoting time to the software projects. These costs are amortized over a period not to exceed five years beginning when the asset is substantially ready for use. Costs incurred during the preliminary project stage, as well as maintenance and training costs are expensed as incurred. | ||||||||||
TRADE PAYABLE PROGRAM LIABILITY | TRADE PAYABLE PROGRAM LIABILITY The Company has a trade payable program which is funded by various bank participants who have the ability, but not the obligation, to purchase account receivables owed by the Company directly from its suppliers. The Company, in turn, makes the regularly scheduled full supplier payments to the bank participants. | ||||||||||
INCOME TAXES | INCOME TAXES The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are determined based upon enacted tax laws and rates applied to the differences between the financial statement and tax bases of assets and liabilities. | ||||||||||
The Company recognizes taxes payable for the current year, as well as deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The Company must assess the likelihood that any recorded deferred tax assets will be recovered against future taxable income. To the extent the Company believes it is more likely than not that the asset will not be recoverable, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or changes the allowance in a future period, income tax expense will be impacted. | |||||||||||
In evaluating income tax positions, the Company records liabilities for potential exposures. These tax liabilities are adjusted in the period actual developments give rise to such change. Those developments could be, but are not limited to, settlement of tax audits, expiration of the statute of limitations, and changes in the tax code and regulations, along with varying application of tax policy and administration within those jurisdictions. Refer to Note 8, "Income Taxes," for further discussion of income taxes and changes in unrecognized tax benefit. | |||||||||||
SALES TAXES | SALES TAXES The Company presents sales net of sales taxes in its consolidated statements of operations. | ||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION The Company recognizes revenue from the sale of merchandise at the time the merchandise is sold and the product is delivered to the customer, net of an allowance for estimated future returns. Service revenues are recognized on completion of the service. Service revenue consists of the labor charged for installing merchandise or maintaining or repairing vehicles, excluding the sale of any installed parts or materials. The Company records revenue net of an allowance for estimated future returns. The Company establishes reserves for sales returns and allowances based on current sales levels and historical return rates. Revenue from gift card sales is recognized on gift card redemption. The Company's gift cards do not have expiration dates. The Company recognizes breakage on gift cards when, among other things, sufficient gift card history is available to estimate potential breakage and the Company determines there are no legal obligations to remit the value of unredeemed gift cards to the relevant jurisdictions. Estimated gift card breakage revenue is immaterial for all periods presented. | ||||||||||
The Company's Customer Loyalty program allows members to earn points for each qualifying purchase. Points earned allow members to receive a certificate that may be redeemed on future purchases within 90 days of issuance. The retail value of points earned by loyalty program members is included in accrued liabilities as deferred income and recorded as a reduction of revenue at the time the points are earned, based on the historic and projected rate of redemption. The Company recognizes deferred revenue and the cost of the free products distributed to loyalty program members when the awards are redeemed. The cost of the free products distributed to program members is recorded within costs of revenues. | |||||||||||
A portion of the Company's transactions includes the sale of auto parts that contain a core component. These components represent the recyclable portion of the auto part. Customers are not charged for the core component of the new part if a used core is returned at the point of sale of the new part; otherwise the Company charges customers a specified amount for the core component. The Company refunds that same amount if the customer returns a used core to the store at a later date. The Company does not recognize sales or cost of sales for the core component of these transactions when a used part is returned by the customer at the point of sale. | |||||||||||
COSTS OF REVENUES | COSTS OF REVENUES Costs of merchandise sales include the cost of products sold, buying, warehousing and store occupancy costs. Costs of service revenue include service center payroll and related employee benefits, service center occupancy costs and cost of providing free or discounted towing services to customers. Occupancy costs include utilities, rents, real estate and property taxes, repairs, maintenance, depreciation and amortization expenses. | ||||||||||
VENDOR SUPPORT FUNDS | VENDOR SUPPORT FUNDS The Company receives various incentives in the form of discounts and allowances from its suppliers based on purchases or for services that the Company provides to the suppliers. These incentives received from suppliers include rebates, allowances and promotional funds and are generally based on a percentage of the gross amount purchased. Funds are recorded when title of goods purchased have transferred to the Company as the amount is known and not contingent on future events. The amount of funds to be received are subject to supplier agreements and ongoing negotiations that may be impacted in the future based on changes in market conditions, supplier marketing strategies and changes in the profitability or sell-through of the related merchandise for the Company. | ||||||||||
Generally vendor support funds are earned based on purchases or product sales. These incentives are treated as a reduction of inventories and are recognized as a reduction to cost of sales as the inventories are sold. Certain supplier allowances are used exclusively for promotions and to offset certain other direct expenses if the Company determines the allowances are for specific, identifiable incremental expenses. Vendor support funds used to offset direct advertising costs were immaterial for fiscal years 2014, 2013, and 2012. | |||||||||||
WARRANTY RESERVE | WARRANTY RESERVE The Company provides warranties for both its merchandise sales and service labor. Warranties for merchandise are generally covered by the respective suppliers with the Company covering any costs above the supplier's stipulated allowance. Service labor is warranted in full by the Company for a limited specific time period. The Company establishes its warranty reserves based on historical experience. These costs are included in either costs of merchandise sales or costs of service revenue in the consolidated statement of operations. | ||||||||||
The reserve for warranty activity for the years ended January 31, 2015 and February 1, 2014, respectively, are as follows: | |||||||||||
(dollar amounts in thousands) | |||||||||||
Balance, February 2, 2013 | $ | 864 | |||||||||
Additions related to sales in the current year | 13,748 | ||||||||||
Warranty costs incurred in the current year | (13,930 | ) | |||||||||
| | | | | |||||||
Balance, February 1, 2014 | 682 | ||||||||||
Additions related to sales in the current year | 14,435 | ||||||||||
Warranty costs incurred in the current year | (14,435 | ) | |||||||||
| | | | | |||||||
Balance, January 31, 2015 | $ | 682 | |||||||||
| | | | | |||||||
| | | | | |||||||
ADVERTISING | ADVERTISING The Company expenses the costs of advertising the first time the advertising takes place. Gross advertising expense for fiscal 2014, 2013 and 2012 was $71.4 million, $65.8 million and $66.3 million, respectively, and is recorded within selling, general and administrative expenses. No advertising costs were recorded as assets as of January 31, 2015 or February 1, 2014. | ||||||||||
STORE OPENING COSTS | STORE OPENING COSTS The costs of opening new stores are expensed as incurred | ||||||||||
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS The Company evaluates the ability to recover long-lived assets whenever events or circumstances indicate that the carrying value of the asset may not be recoverable. In the event assets are impaired, losses are recognized to the extent the carrying value exceeds fair value. In addition, the Company reports assets to be disposed of at the lower of the carrying amount or the fair market value less selling costs. See discussion of current year impairments in Note 11, "Store Closures and Asset Impairments." | ||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share are computed by dividing earnings by the weighted average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing earnings by the weighted average number of common shares outstanding during the year plus incremental shares that would have been outstanding upon the assumed exercise of dilutive stock based compensation awards. | ||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS The Company's discontinued operations reflect the operating results for closed stores where the customer base could not be maintained. Loss from discontinued operations relates to expenses for previously closed stores and principally includes costs for rent, taxes, payroll, repairs and maintenance, asset impairments, and gains or losses on disposal. | ||||||||||
ACCOUNTING FOR STOCK-BASED COMPENSATION | ACCOUNTING FOR STOCK-BASED COMPENSATION At January 31, 2015, the Company has two stock-based employee compensation plans, which are described in Note 15, "Equity Compensation Plans." Compensation costs relating to share-based payment transactions are recognized in the financial statements. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award). | ||||||||||
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME Other comprehensive income includes changes in the fair market value of cash flow hedges. | ||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company may enter into interest rate swap agreements to hedge the exposure to increasing rates with respect to its certain variable rate debt agreements. The Company recognizes all derivatives as either assets or liabilities in the statement of financial position and measures those instruments at fair value. See further discussion in Note 5, "Debt and Financing Arrangements." | ||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has eight operating segments defined by geographic regions. Each segment serves both DIY and DIFM lines of business. The Company aggregates all of its operating segments into one reportable segment. Sales by major product categories are as follows: | ||||||||||
52 weeks ended | 52 weeks ended | 53 weeks ended | |||||||||
(dollar amounts in thousands) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Parts and accessories | $ | 1,217,520 | $ | 1,238,384 | $ | 1,252,617 | |||||
Tires | 376,363 | 370,313 | 391,331 | ||||||||
Service labor | 490,720 | 457,871 | 446,782 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 2,084,603 | $ | 2,066,568 | $ | 2,090,730 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
SIGNIFICANT SUPPLIERS | SIGNIFICANT SUPPLIERS During fiscal 2014, the Company's ten largest suppliers accounted for approximately 42% of merchandise purchased. Only one supplier accounted for more than 10% of the Company's purchases. Other than a commitment to purchase 3.5 million units of oil products at various prices over a two-year period, the Company has no long-term contracts or minimum purchase commitments under which the Company is required to purchase merchandise. Open purchase orders are based on current inventory or operational needs and are fulfilled by suppliers within short periods of time and generally are not binding agreements. | ||||||||||
SELF INSURANCE | SELF INSURANCE The Company has risk participation arrangements with respect to workers' compensation, general liability, automobile liability, and other casualty coverages. The Company has a wholly owned captive insurance subsidiary through which it reinsures this retained exposure. This subsidiary uses both risk sharing treaties and third party insurance to manage this exposure. The Company records both liabilities and reinsurance receivables using actuarial methods utilized in the insurance industry based upon historical claims experience. The Company maintains stop loss coverage with third party insurers through which it reinsures certain of its casualty liabilities. The Company's stop loss coverage receivables were immaterial as of January 31, 2015 and February 1, 2014. As of February 1, 2014, the Company moved to a premium-based health insurance program with third party providers. | ||||||||||
RECLASSIFICATION | RECLASSIFICATION Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications had no effect on reported totals for assets, liabilities, shareholders' equity, cash flows or net income. | ||||||||||
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS | ||||||||||
In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2014-15, "Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; earlier adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on the consolidated financial statements. | |||||||||||
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period", which is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the new standard, but does not expect adoption of ASU 2014-12 to have a material impact on our consolidated financial statements. | |||||||||||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in "Topic 605, Revenue Recognition" and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective retrospectively for annual or interim reporting periods beginning after December 15, 2016, with early adoption not permitted. The Company is currently evaluating the new standard, but does not expect the adoption of ASU 2014-09 to have a material impact on the consolidated financial statements. | |||||||||||
In April 2014, the FASB issued ASU No. 2014-08, "Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 provides a narrower definition of discontinued operations than under existing U.S. GAAP. ASU 2014-08 requires that only a disposal of a component of an entity, or a group of components of an entity, that represents a strategic shift that has, or will have, a major effect on the reporting entity's operations and financial results should be reported in the financial statements as discontinued operations. ASU 2014-08 also provides guidance on the financial statement presentations and disclosures of discontinued operations. ASU 2014-08 is effective prospectively for disposals (or classifications as held for disposal) of components of an entity that occur in annual or interim periods beginning after December 15, 2014. The Company does not expect the adoption of ASU 2014-08 to have a material impact on the consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". ASU 2013-11 states that an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward, if available at the reporting date under the applicable tax law to settle any additional income taxes that would result from the disallowance of a tax position. If the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 did not have a material impact on the Company's consolidated financial statements. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Schedule of property and equipment | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | |||||||||
2015 | 2014 | ||||||||||
Land | $ | 200,235 | $ | 202,038 | |||||||
Buildings and improvements | 895,214 | 888,389 | |||||||||
Furniture, fixtures and equipment | 759,008 | 760,170 | |||||||||
Construction in progress | 1,720 | 2,049 | |||||||||
Accumulated depreciation | (1,251,797 | ) | (1,227,121 | ) | |||||||
| | | | | | | | ||||
Property and equipment—net | $ | 604,380 | $ | 625,525 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reserve for warranty cost activity | |||||||||||
(dollar amounts in thousands) | |||||||||||
Balance, February 2, 2013 | $ | 864 | |||||||||
Additions related to sales in the current year | 13,748 | ||||||||||
Warranty costs incurred in the current year | (13,930 | ) | |||||||||
| | | | | |||||||
Balance, February 1, 2014 | 682 | ||||||||||
Additions related to sales in the current year | 14,435 | ||||||||||
Warranty costs incurred in the current year | (14,435 | ) | |||||||||
| | | | | |||||||
Balance, January 31, 2015 | $ | 682 | |||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of sales by major product categories | |||||||||||
52 weeks ended | 52 weeks ended | 53 weeks ended | |||||||||
(dollar amounts in thousands) | January 31, 2015 | February 1, 2014 | February 2, 2013 | ||||||||
Parts and accessories | $ | 1,217,520 | $ | 1,238,384 | $ | 1,252,617 | |||||
Tires | 376,363 | 370,313 | 391,331 | ||||||||
Service labor | 490,720 | 457,871 | 446,782 | ||||||||
| | | | | | | | | | | |
Total revenues | $ | 2,084,603 | $ | 2,066,568 | $ | 2,090,730 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
OTHER CURRENT ASSETS | ||||||||
Schedule of components of other current assets | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Reinsurance receivable | $ | 55,405 | $ | 61,182 | ||||
Income taxes receivable | 270 | 1,643 | ||||||
Other | 311 | 580 | ||||||
| | | | | | | | |
Total | $ | 55,986 | $ | 63,405 | ||||
| | | | | | | | |
| | | | | | | | |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
ACCRUED EXPENSES | ||||||||
Schedule of components of accrued expenses | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Casualty and medical risk insurance | $ | 141,594 | $ | 153,830 | ||||
Accrued compensation and related taxes | 29,984 | 30,645 | ||||||
Sales tax payable | 13,178 | 12,245 | ||||||
Other | 41,420 | 40,683 | ||||||
| | | | | | | | |
Total | $ | 226,176 | $ | 237,403 | ||||
| | | | | | | | |
| | | | | | | | |
DEBT_AND_FINANCING_ARRANGEMENT1
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
DEBT AND FINANCING ARRANGEMENTS | ||||||||
Schedule of debt and financing arrangements | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Senior Secured Term Loan, due October 2018 | $ | 196,000 | $ | 198,000 | ||||
Revolving Credit Agreement, through July 2016 | 17,000 | 3,500 | ||||||
| | | | | | | | |
Long-term debt | 213,000 | 201,500 | ||||||
Current maturities | (2,000 | ) | (2,000 | ) | ||||
| | | | | | | | |
Long-term debt less current maturities | $ | 211,000 | $ | 199,500 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of the annual maturities of long-term debt, for the next five fiscal years | ||||||||
(dollar amounts in thousands) | Long-Term Debt | |||||||
Fiscal Year | ||||||||
2015 | $ | 2,000 | ||||||
2016 | 19,000 | |||||||
2017 | 2,000 | |||||||
2018 | 190,000 | |||||||
2019 | — | |||||||
Thereafter | — | |||||||
| | | | | ||||
Total | $ | 213,000 | ||||||
| | | | | ||||
| | | | | ||||
LEASE_AND_OTHER_COMMITMENTS_Ta
LEASE AND OTHER COMMITMENTS (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
LEASE AND OTHER COMMITMENTS | |||||
Schedule of aggregate minimum rental payments | |||||
(dollar amounts in thousands) | Operating | ||||
Leases | |||||
Fiscal Year | |||||
2015 | $ | 114,258 | |||
2016 | 106,774 | ||||
2017 | 99,370 | ||||
2018 | 87,919 | ||||
2019 | 78,813 | ||||
Thereafter | 259,087 | ||||
| | | | | |
Aggregate minimum lease payments | $ | 746,221 | |||
| | | | | |
| | | | | |
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
ASSET RETIREMENT OBLIGATIONS | |||||
Schedule of liability for asset retirement obligations activity | |||||
(dollar amounts in thousands) | |||||
Asset retirement obligation at February 2, 2013 | $ | 5,963 | |||
Additions | 245 | ||||
Change in assumptions | (287 | ) | |||
Settlements | (12 | ) | |||
Accretion expense | 334 | ||||
| | | | | |
Asset retirement obligation at February 1, 2014 | 6,243 | ||||
Additions | 113 | ||||
Change in assumptions | (734 | ) | |||
Settlements | (48 | ) | |||
Accretion expense | 350 | ||||
| | | | | |
Asset retirement obligation at January 31, 2015 | $ | 5,924 | |||
| | | | | |
| | | | | |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
INCOME TAXES | |||||||||||
Schedule of components of (loss) income from continuing operations before income tax (benefit) expenses | |||||||||||
Year Ended | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Domestic | $ | (32,878 | ) | $ | 8,533 | $ | 14,577 | ||||
Foreign | 1,336 | 757 | 7,923 | ||||||||
| | | | | | | | | | | |
Total | $ | (31,542 | ) | $ | 9,290 | $ | 22,500 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of provision for income tax (benefit) expense | |||||||||||
Year Ended | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (267 | ) | $ | (338 | ) | |||
State | 689 | 451 | 471 | ||||||||
Foreign | 1,383 | 2,132 | 1,636 | ||||||||
Deferred: | |||||||||||
Federal(a) | (6,716 | ) | 2,765 | 6,548 | |||||||
State | 1,028 | 840 | 988 | ||||||||
Foreign | (965 | ) | (3,684 | ) | 40 | ||||||
| | | | | | | | | | | |
Total income tax (benefit) expense from continuing operations(a) | $ | (4,581 | ) | $ | 2,237 | $ | 9,345 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
(a) | Excludes tax benefit recorded to discontinued operations of $0.2 million, $0.1 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||
Schedule of reconciliation of the statutory federal income tax rate to the effective rate for income tax (benefit) expense | |||||||||||
Year Ended | |||||||||||
January 31, | February 1, | February 2, | |||||||||
2015 | 2014 | 2013 | |||||||||
Statutory tax rate | (35.0 | )% | 35 | % | 35 | % | |||||
State income taxes, net of federal tax | 3.7 | 6 | 4.1 | ||||||||
Foreign taxes, net of federal tax | 1.4 | 4.4 | 5.6 | ||||||||
Tax credits, net of valuation allowance | (1.8 | ) | (7.5 | ) | (3.2 | ) | |||||
Foreign deferred adjustment | — | (8.4 | ) | — | |||||||
Foreign tax law change impact | — | (3.8 | ) | — | |||||||
Tax uncertainty adjustment | (0.8 | ) | (3.0 | ) | (1.5 | ) | |||||
Goodwill impairment charge | 17.1 | — | — | ||||||||
Non deductible expenses | 0.9 | 3.5 | 0.5 | ||||||||
Stock compensation | — | — | 1.8 | ||||||||
Other, net | — | (2.1 | ) | (0.8 | ) | ||||||
| | | | | | | | | | | |
(14.5 | )% | 24.1 | % | 41.5 | % | ||||||
Schedule of items that gave rise to the deferred tax accounts | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | |||||||||
2015 | 2014 | ||||||||||
Deferred tax assets: | |||||||||||
Employee compensation | $ | 5,608 | $ | 3,544 | |||||||
Store closing reserves | 1,179 | 673 | |||||||||
Legal reserve | 1,619 | 182 | |||||||||
Benefit accruals | 1,655 | 2,109 | |||||||||
Net operating loss carryforwards—Federal | 6,253 | 1,115 | |||||||||
Net operating loss carryforwards—State | 112,411 | 111,258 | |||||||||
Tax credit carryforwards | 28,179 | 26,605 | |||||||||
Accrued leases | 13,876 | 15,215 | |||||||||
Deferred gain on sale leaseback | 41,385 | 46,176 | |||||||||
Deferred revenue | 1,965 | 2,987 | |||||||||
Other | 4,226 | 1,312 | |||||||||
| | | | | | | | ||||
Gross deferred tax assets | 218,356 | 211,176 | |||||||||
Valuation allowance | (108,845 | ) | (106,695 | ) | |||||||
| | | | | | | | ||||
109,511 | 104,481 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | $ | 33,610 | $ | 33,059 | |||||||
Inventories | 67,420 | 71,630 | |||||||||
Real estate tax | 3,495 | 3,300 | |||||||||
Insurance and other | 7,176 | 4,299 | |||||||||
Interest rate derivatives | — | 274 | |||||||||
Debt related liabilities | 2,454 | 3,606 | |||||||||
| | | | | | | | ||||
114,155 | 116,168 | ||||||||||
Net deferred tax (liability) asset | $ | (4,644 | ) | $ | (11,687 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | |||||||||||
(dollar amounts in thousands) | January 31, | February 1, | February 2, | ||||||||
2015 | 2014 | 2013 | |||||||||
Unrecognized tax benefit balance at the beginning of the year | $ | 1,941 | $ | 2,274 | $ | 3,364 | |||||
Gross increases for tax positions taken in prior years | — | — | — | ||||||||
Gross decreases for tax positions taken in prior years | — | — | (338 | ) | |||||||
Gross increases for tax positions taken in current year | 2 | 13 | 201 | ||||||||
Settlements taken in current year | (181 | ) | — | — | |||||||
Lapse of statute of limitations | (276 | ) | (346 | ) | (953 | ) | |||||
| | | | | | | | | | | |
Unrecognized tax benefit balance at the end of the year | $ | 1,486 | $ | 1,941 | $ | 2,274 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
Schedule of changes in accumulated other comprehensive (loss) income | ||||||||
(Loss) Gain on Cash Flow | ||||||||
Hedges | ||||||||
(dollar amounts in thousands) | January 31, | February 1, | ||||||
2015 | 2014 | |||||||
Beginning balance | $ | 379 | $ | (980 | ) | |||
Other comprehensive (loss) income before reclassifications, net of ($691) tax benefit and $584 tax | (1,154 | ) | 975 | |||||
Amounts reclassified from accumulated other comprehensive (loss) income, net of $230 and $231 tax(a) | 384 | 384 | ||||||
| | | | | | | | |
Net current-period other comprehensive (loss) income | (770 | ) | 1,359 | |||||
Ending balance | (391 | 379 | ||||||
$ | ) | $ | ||||||
| | | | | | | | |
| | | | | | | | |
(a) | Reclassified amount increased interest expense. | |||||||
STORE_CLOSURES_AND_ASSET_IMPAI1
STORE CLOSURES AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
STORE CLOSURES AND ASSET IMPAIRMENTS | |||||
Schedule of assets held for disposal | |||||
Year Ended | |||||
(dollar amounts in thousands) | January 31, | ||||
2015 | |||||
Land | $ | 1,983 | |||
Building and improvements | 4,653 | ||||
Accumulated depreciation | (3,988 | ) | |||
| | | | | |
Property and equipment—net | $ | 2,648 | |||
| | | | | |
| | | | | |
Number of properties | 5 | ||||
Schedule of activity in the reserve for closed locations | |||||
(dollar amounts in thousands) | |||||
Balance, January 28, 2012 | $ | 1,801 | |||
Accretion of present value of liabilities | 137 | ||||
Change in assumptions about future sublease income, lease termination | 367 | ||||
Cash payments | (664 | ) | |||
| | | | | |
Balance, February 2, 2013 | 1,641 | ||||
Accretion of present value of liabilities | 36 | ||||
Change in assumptions about future sublease income, lease termination | 322 | ||||
Cash payments | (1,449 | ) | |||
| | | | | |
Balance, February 1, 2014 | 550 | ||||
Accretion of present value of liabilities | 29 | ||||
Change in assumptions about future sublease income, lease termination | 1,434 | ||||
Cash payments | (538 | ) | |||
| | | | | |
Balance, January 31, 2015 | $ | 1,475 | |||
| | | | | |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
GOODWILL | |||||
Schedule of carrying amount and changes in goodwill | |||||
(dollar amounts in thousands) | |||||
Balance, February 2, 2013 | $ | 46,917 | |||
Acquisitions | 9,877 | ||||
Impairments | — | ||||
| | | | | |
Balance, February 1, 2014 | 56,794 | ||||
Acquisitions | — | ||||
Impairments(a) | (23,925 | ) | |||
| | | | | |
Balance, January 31, 2015 | $ | 32,869 | |||
| | | | | |
| | | | | |
(a) | Cumulative charge to date of $23.9 million | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
EARNINGS PER SHARE | |||||||||||||
Schedule of calculation of basic and diluted earnings per share | |||||||||||||
Year Ended | |||||||||||||
(dollar amounts in thousands, except per share amounts) | January 31, | February 1, | February 2, | ||||||||||
2015 | 2014 | 2013 | |||||||||||
(a) | (Loss)earnings from continuing operations before discontinued operations | $ | (26,961 | ) | $ | 7,053 | $ | 13,155 | |||||
Loss from discontinued operations, net of tax benefit of $179, $102 and $186 | (332 | ) | (188 | ) | (345 | ) | |||||||
| | | | | | | | | | | | | |
Net (loss) earnings | $ | (27,293 | ) | $ | 6,865 | $ | 12,810 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
(b) | Basic average number of common shares outstanding during period | 53,608 | 53,378 | 53,225 | |||||||||
Common shares assumed issued upon exercise of dilutive equity awards, net of assumed repurchase, at the average market price | — | 585 | 729 | ||||||||||
| | | | | | | | | | | | | |
(c) | Diluted average number of common shares assumed outstanding during period | 53,608 | 53,963 | 53,954 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Basic earnings per share: | |||||||||||||
Earnings from continuing operations (a/b) | $ | (0.50 | ) | $ | 0.13 | $ | 0.25 | ||||||
Discontinued operations, net of tax | (0.01 | ) | — | (0.01 | ) | ||||||||
| | | | | | | | | | | | | |
Basic earnings per share | $ | (0.51 | ) | $ | 0.13 | $ | 0.24 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Diluted earnings per share: | |||||||||||||
Earnings from continuing operations (a/c) | $ | (0.50 | ) | $ | 0.13 | $ | 0.24 | ||||||
Discontinued operations, net of tax | (0.01 | ) | — | — | |||||||||
| | | | | | | | | | | | | |
Diluted earnings per share | $ | (0.51 | ) | $ | 0.13 | $ | 0.24 | ||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
BENEFIT_PLANS_Tables
BENEFIT PLANS (Tables) | 12 Months Ended | ||||
Jan. 31, 2015 | |||||
BENEFIT PLANS | |||||
Schedule of pension expense | |||||
Year ended | |||||
(dollar amounts in thousands) | February 2, | ||||
2013 | |||||
Service cost | $ | — | |||
Interest cost | 2,170 | ||||
Expected return on plan assets | (2,658 | ) | |||
Amortization of prior service cost | 13 | ||||
Recognized actuarial loss | 1,896 | ||||
| | | | | |
Net Period Pension Cost | 1,421 | ||||
Settlement Charge | 17,753 | ||||
| | | | | |
Net Period Pension Cost | $ | 19,174 | |||
| | | | | |
| | | | | |
EQUITY_COMPENSATION_PLANS_Tabl
EQUITY COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
EQUITY COMPENSATION PLANS | ||||||||||||||
Schedule of options under the Stock Incentive Plan | ||||||||||||||
Fiscal Year 2014 | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Exercise Price | ||||||||||||||
Outstanding—beginning of year | 1,658,471 | $ | 8.67 | |||||||||||
Granted | 1,234,447 | 8.02 | ||||||||||||
Exercised | (255,023 | ) | 3.73 | |||||||||||
Forfeited | (878,801 | ) | 7.15 | |||||||||||
Expired | (212,818 | ) | 13.11 | |||||||||||
| | | | | | | | |||||||
Outstanding—end of year | 1,546,276 | 9.22 | ||||||||||||
| | | | | | | | |||||||
Vested and expected to vest options—end of year | 1,499,115 | 9.18 | ||||||||||||
| | | | | | | | |||||||
Options exercisable—end of year | 921,422 | 8.28 | ||||||||||||
| | | | | | | | |||||||
Schedule of weighted average fair value at grant date and intrinsic value of options exercised | The following table summarizes information about options during the last three fiscal years (dollars in thousands except per option): | |||||||||||||
Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | ||||||||||||
Weighted average fair value at grant date per option | $ | 2.25 | $ | 5.11 | $ | 4.65 | ||||||||
Intrinsic value of options exercised | $ | 1,532 | $ | 1,059 | $ | 874 | ||||||||
Schedule of non-vested PSUs and RSUs | ||||||||||||||
Number of | Number of | Total | Weighted Average | |||||||||||
PSUs | RSUs | Fair Value | ||||||||||||
Nonvested at February 1, 2014 | 675,513 | 149,945 | 825,458 | $ | 10.68 | |||||||||
Granted | 367,102 | 337,111 | 704,213 | 8.03 | ||||||||||
Forfeited | (581,609 | ) | (45,604 | ) | (627,213 | ) | 7.37 | |||||||
Vested | — | (142,942 | ) | (142,942 | ) | 10.59 | ||||||||
| | | | | | | | | | | | | | |
Nonvested at January 31, 2015 | 461,006 | 298,510 | 759,516 | 7.93 | ||||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of information about PSUs and RSUs | ||||||||||||||
(dollar amounts in thousands) | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||||
Weighted average fair value at grant date per unit | $ | 8.03 | $ | 12.23 | $ | 9.48 | ||||||||
Fair value at vesting date | $ | 1,463 | $ | 758 | $ | 768 | ||||||||
Intrinsic value at conversion date | $ | 188 | $ | 525 | $ | 218 | ||||||||
Tax benefits realized from conversions | $ | 71 | $ | 197 | $ | 82 | ||||||||
Schedule of weighted-average assumptions | ||||||||||||||
Year ended | ||||||||||||||
January 31, | February 1, | February 2, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Expected volatility | 41 | % | 53 | % | 58 | % | ||||||||
Risk-free interest rate range: | ||||||||||||||
High | 1.5 | % | 0.7 | % | 0.6 | % | ||||||||
Low | 0.1 | % | 0.7 | % | 0.5 | % | ||||||||
Ranges of expected lives in years | 5-Jan | 5-Apr | 5-Apr | |||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
Schedule of assets and liabilities measured at fair value on recurring basis | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||
January 31, | ||||||||||||||
(dollar amounts in thousands) | 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Description | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 38,044 | $ | 38,044 | $ | — | $ | — | ||||||
Collateral investments(a) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets(a) | 4,382 | — | 4,382 | — | ||||||||||
Other liabilities | ||||||||||||||
Derivative liability(b) | 625 | — | 625 | — | ||||||||||
(a) | included in other long-term assets | |||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value at | Using Inputs Considered as | |||||||||||||
February 1, | ||||||||||||||
(dollar amounts in thousands) | 2014 | Level 1 | Level 2 | Level 3 | ||||||||||
Description | ||||||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 33,431 | $ | 33,431 | $ | — | $ | — | ||||||
Collateral investments(a) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets(a) | 4,242 | — | 4,242 | — | ||||||||||
Other assets | ||||||||||||||
Derivative asset(a) | 606 | — | 606 | — | ||||||||||
(a) | included in other long-term assets | |||||||||||||
(b) | included in other long-term liabilities | |||||||||||||
Schedule of impact of fair value accounting for the Company's derivative liability on its consolidated financial statements | ||||||||||||||
(dollar amounts in thousands) | Amount of Gain | Earnings Statement | Amount of Loss | |||||||||||
(Loss) in Other | Classification | Recognized in | ||||||||||||
Comprehensive | Earnings | |||||||||||||
Income | (Effective Portion) | |||||||||||||
(Effective Portion) | ||||||||||||||
Fiscal 2014 | $ | (770 | ) | Interest expense | $ | 613 | ||||||||
Fiscal 2013 | 1,359 | Interest expense | 614 | |||||||||||
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Schedule of quarterly financial data | |||||||||||||||||||||||||||||||||||
(Loss) / | |||||||||||||||||||||||||||||||||||
Earnings Per | |||||||||||||||||||||||||||||||||||
Share from | |||||||||||||||||||||||||||||||||||
(Loss) / | Continuing | (Loss) / | Market Price | ||||||||||||||||||||||||||||||||
Earnings | Operations | Earnings Per | Per Share | ||||||||||||||||||||||||||||||||
from | Share | ||||||||||||||||||||||||||||||||||
Total | Gross | Operating | Continuing | (Loss) / | |||||||||||||||||||||||||||||||
Revenues | Profit | (Loss) / | Operations | Earnings | |||||||||||||||||||||||||||||||
Profit | Basic | Diluted | Basic | Diluted | High | Low | |||||||||||||||||||||||||||||
Year Ended January 31, 2015 | |||||||||||||||||||||||||||||||||||
4th quarter | $ | 502,423 | $ | 99,685 | $ | (28,752 | ) | $ | (26,653 | ) | $ | (26,666 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | (0.50 | ) | $ | 10.09 | $ | 8.43 | ||||||
3rd quarter | 517,584 | 118,334 | 574 | (1,770 | ) | (1,964 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | 11.52 | 8.45 | ||||||||||||||||||
2nd quarter | 525,773 | 124,297 | 3,273 | (177 | ) | (273 | ) | 0 | 0 | 0 | 0 | 11.52 | 9.86 | ||||||||||||||||||||||
1st quarter | 538,821 | 133,126 | 6,045 | 1,637 | 1,608 | 0.03 | 0.03 | 0.03 | 0.03 | 13.27 | 10.17 | ||||||||||||||||||||||||
Year Ended February 1, 2014 | |||||||||||||||||||||||||||||||||||
4th quarter | $ | 495,733 | $ | 104,016 | $ | (6,614 | ) | $ | (3,267 | ) | $ | (3,331 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | 13.86 | $ | 11.36 | ||||||
3rd quarter | 507,042 | 122,812 | 7,641 | 1,013 | 964 | 0.02 | 0.02 | 0.02 | 0.02 | 13.05 | 11.01 | ||||||||||||||||||||||||
2nd quarter | 527,619 | 138,708 | 17,748 | 5,379 | 5,368 | 0.1 | 0.1 | 0.1 | 0.1 | 12.94 | 11.14 | ||||||||||||||||||||||||
1st quarter | 536,173 | 121,840 | 3,521 | 3,928 | 3,863 | 0.07 | 0.07 | 0.07 | 0.07 | 12.14 | 10.29 | ||||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
item | item | item | |
BUSINESS | |||
Number of general lines of business | 2 | ||
Number of states in which entity operates | 35 | ||
FISCAL YEAR END | |||
Number of weeks in a fiscal year | 52 | 52 | 53 |
CASH AND CASH EQUIVALENTS | |||
Maximum period during which credit and debit card transactions settle are classified as cash and cash equivalents | 7 days | ||
MERCHANDISE INVENTORIES | |||
Value of inventory under FIFO method | $570,200,000 | $579,800,000 | |
Property and Equipment | |||
Accumulated depreciation | -1,251,797,000 | -1,227,121,000 | |
Property and equipment - net | 604,380,000 | 625,525,000 | |
Land | |||
Property and Equipment | |||
Property and equipment - gross | 200,235,000 | 202,038,000 | |
Buildings and improvements | |||
Property and Equipment | |||
Property and equipment - gross | 895,181,000 | 888,389,000 | |
Buildings and improvements | Minimum | |||
Property and equipment | |||
Estimated useful lives | 5 years | ||
Buildings and improvements | Maximum | |||
Property and equipment | |||
Estimated useful lives | 40 years | ||
Furniture, fixtures and equipment | |||
Property and Equipment | |||
Property and equipment - gross | 758,073,000 | 760,170,000 | |
Furniture, fixtures and equipment | Minimum | |||
Property and equipment | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and equipment | |||
Estimated useful lives | 10 years | ||
Construction in progress | |||
Property and Equipment | |||
Property and equipment - gross | $2,688,000 | $2,049,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
item | item | ||||||||||
GOODWILL | |||||||||||
Number of reporting units | 8 | ||||||||||
Number of reporting units which included goodwill | 6 | ||||||||||
SOFTWARE CAPITALIZATION | |||||||||||
Maximum amortization period | 5 years | ||||||||||
REVENUE RECOGNITION | |||||||||||
Period during which certificates can be redeemed | 90 days | ||||||||||
Legal obligations of unredeemed gift cards to the relevant jurisdictions | $0 | $0 | |||||||||
Warranty reserve | |||||||||||
Beginning balance | 682,000 | 864,000 | 682,000 | 864,000 | |||||||
Additions related to sales in the current year | 14,435,000 | 13,748,000 | |||||||||
Warranty costs incurred in the current year | -14,435,000 | -13,930,000 | |||||||||
Ending balance | 682,000 | 682,000 | 682,000 | 682,000 | 864,000 | ||||||
ADVERTISING | |||||||||||
Gross advertising expense | 71,400,000 | 65,800,000 | 66,300,000 | ||||||||
Advertising costs recorded as assets | 0 | 0 | 0 | 0 | |||||||
ACCOUNTING FOR STOCK BASED COMPENSATION | |||||||||||
Number of stock-based employee compensation plans | 2 | 2 | |||||||||
SEGMENT INFORMATION | |||||||||||
Number of operating segments | 8 | ||||||||||
Number of reportable segments | 1 | ||||||||||
Sales by major product categories | |||||||||||
Total revenues | 502,423,000 | 517,584,000 | 525,773,000 | 538,821,000 | 495,733,000 | 507,042,000 | 527,619,000 | 536,173,000 | 2,084,603,000 | 2,066,568,000 | 2,090,730,000 |
Parts and accessories | |||||||||||
Sales by major product categories | |||||||||||
Total revenues | 1,217,520,000 | 1,238,384,000 | 1,252,617,000 | ||||||||
Tires | |||||||||||
Sales by major product categories | |||||||||||
Total revenues | 376,363,000 | 370,313,000 | 391,331,000 | ||||||||
Service labor | |||||||||||
Sales by major product categories | |||||||||||
Total revenues | $490,720,000 | $457,871,000 | $446,782,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Jan. 31, 2015 | |
item | |
SIGNIFICANT SUPPLIERS | |
Commitment to purchase number of units of oil products at various prices | 3,500,000 |
Period for commitment to purchase oil products | 2 years |
Merchandise purchased | Supplier concentration risk | |
SIGNIFICANT SUPPLIERS | |
Number of largest suppliers | 1 |
Merchandise purchased | Supplier concentration risk | Maximum | |
SIGNIFICANT SUPPLIERS | |
Concentration risk percentage | 10.00% |
Merchandise purchased | Supplier concentration risk | Ten largest suppliers | |
SIGNIFICANT SUPPLIERS | |
Number of largest suppliers | 10 |
Concentration risk percentage | 42.00% |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 12 Months Ended | |||
Feb. 01, 2014 | Jan. 31, 2015 | Feb. 02, 2013 | Nov. 02, 2013 | |
item | ||||
Purchase price allocation | ||||
Goodwill | $56,794,000 | $32,869,000 | $46,917,000 | |
Acquisitions | ||||
ACQUISITIONS | ||||
Purchase price of Service & Tire Centers | 10,700,000 | |||
Number of Service & Tire Centers purchased | 18 | |||
Revenues in previous full fiscal year of acquired company based on unaudited pre-acquisition historical information | 26,100,000 | |||
Purchase price allocation | ||||
Tangible assets | 800,000 | |||
Intangible assets | 100,000 | |||
Goodwill | $9,900,000 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
OTHER CURRENT ASSETS | ||
Reinsurance receivable | $55,405 | $61,182 |
Income taxes receivable | 270 | 1,643 |
Other | 311 | 580 |
Total | $55,986 | $63,405 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Thousands, unless otherwise specified | ||
ACCRUED EXPENSES | ||
Casualty and medical risk insurance | $141,594 | $153,830 |
Accrued compensation and related taxes | 29,984 | 30,645 |
Sales tax payable | 13,178 | 12,245 |
Other | 41,420 | 40,683 |
Total | $226,176 | $237,403 |
DEBT_AND_FINANCING_ARRANGEMENT2
DEBT AND FINANCING ARRANGEMENTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
Nov. 12, 2013 | Oct. 11, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Oct. 27, 2012 | |
item | ||||||
Debt and financing arrangements | ||||||
Long-term debt | $213,000,000 | $201,500,000 | ||||
Current maturities | -2,000,000 | -2,000,000 | ||||
Long-term debt less current maturities | 211,000,000 | 199,500,000 | ||||
Variable interest rate base | LIBOR | LIBOR | ||||
Number Of Collateralized Stores | 141 | |||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | 613,000 | 614,000 | ||||
Weighted average interest rate (as a percent) | 4.10% | 4.90% | ||||
Vendor financing program | ||||||
Trade payable program availability | 200,000,000 | |||||
Trade payable program liability | 140,904,000 | 129,801,000 | ||||
Amount for which the entity is contingently liable for surety bonds | 12,800,000 | 10,600,000 | ||||
Annual maturities of all long-term debt for the next five fiscal years | ||||||
2015 | 2,000,000 | |||||
2016 | 19,000,000 | |||||
2017 | 2,000,000 | |||||
2018 | 190,000,000 | |||||
Long-term debt | 213,000,000 | 201,500,000 | ||||
Long-term debt estimated fair value | 211,000,000 | 203,700,000 | ||||
Senior Secured Term Loan, due October 2018 | ||||||
Debt and financing arrangements | ||||||
Long-term debt | 200,000,000 | 196,000,000 | 198,000,000 | |||
Variable interest rate base | LIBOR | |||||
Floor rate on LIBOR (as a percent) | 1.25% | 1.25% | 1.25% | |||
Margin added to derive interest rate (as a percent) | 3.75% | 3.75% | 3.00% | |||
Number Of Stores Collateralized | 16 | |||||
Deferred financing costs | 800,000 | 6,500,000 | ||||
Number of interest rate swaps designated as cash flow hedge | 2 | |||||
Value of term loan | 100,000,000 | |||||
Fixed percentage to be paid under hedge | 1.86% | |||||
Annual maturities of all long-term debt for the next five fiscal years | ||||||
Long-term debt | 200,000,000 | 196,000,000 | 198,000,000 | |||
Senior Secured Term Loan, due October 2018 | Cash flow hedging | Interest rate swaps | ||||||
Debt and financing arrangements | ||||||
Notional amount | 50,000,000 | |||||
Revolving Credit Agreement, through July 2016 | ||||||
Debt and financing arrangements | ||||||
Long-term debt | 17,000,000 | 3,500,000 | ||||
Maximum borrowing facility | 300,000,000 | |||||
Outstanding borrowings | 17,000,000 | |||||
Outstanding letters of credit | 35,100,000 | |||||
Available borrowing capacity remaining | 138,400,000 | |||||
Annual maturities of all long-term debt for the next five fiscal years | ||||||
Long-term debt | 17,000,000 | 3,500,000 | ||||
Revolving Credit Agreement, through July 2016 | Minimum | LIBOR rate | ||||||
Debt and financing arrangements | ||||||
Margin added to derive interest rate (as a percent) | 2.00% | |||||
Revolving Credit Agreement, through July 2016 | Minimum | Prime Rate | ||||||
Debt and financing arrangements | ||||||
Margin added to derive interest rate (as a percent) | 1.00% | |||||
Revolving Credit Agreement, through July 2016 | Maximum | LIBOR rate | ||||||
Debt and financing arrangements | ||||||
Margin added to derive interest rate (as a percent) | 2.50% | |||||
Revolving Credit Agreement, through July 2016 | Maximum | Prime Rate | ||||||
Debt and financing arrangements | ||||||
Margin added to derive interest rate (as a percent) | 1.50% | |||||
7.50% Senior Subordinated Notes, due December 2014 | ||||||
Debt and financing arrangements | ||||||
Interest rate on debt instrument (as a percent) | 7.50% | |||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | -7,500,000 | |||||
Amortization of financing costs and discounts | 1,900,000 | |||||
Vendor financing program | ||||||
Vendor financing program | ||||||
Trade payable program liability | 140,900,000 | 129,800,000 | ||||
Revolving Credit Agreement, through January 2016 | Minimum | ||||||
Debt and financing arrangements | ||||||
Minimum Borrowing Availability Required To Prevent The Triggering Of EBITDA Covenant | 50,000,000 | |||||
Term loan prior to its amendment and restatement | ||||||
Debt and financing arrangements | ||||||
Long-term debt | 200,000,000 | |||||
Floor rate on LIBOR (as a percent) | 1.25% | 1.25% | ||||
Margin added to derive interest rate (as a percent) | 3.00% | 3.75% | 3.00% | |||
Annual maturities of all long-term debt for the next five fiscal years | ||||||
Long-term debt | 200,000,000 | |||||
Term loan prior to its amendment and restatement | Cash flow hedging | Interest rate swaps | ||||||
Debt and financing arrangements | ||||||
Value of term loan | 145,000,000 | |||||
Commercial Letter of Credit | ||||||
Debt and financing arrangements | ||||||
Outstanding letters of credit | 8,100,000 | 13,900,000 | ||||
Standby letters of credit | ||||||
Debt and financing arrangements | ||||||
Outstanding letters of credit | $27,000,000 | $30,900,000 |
LEASE_AND_OTHER_COMMITMENTS_De
LEASE AND OTHER COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Aggregate minimum rental payments | |||
2015 | $114,258,000 | ||
2016 | 106,774,000 | ||
2017 | 99,370,000 | ||
2018 | 87,919,000 | ||
2019 | 78,813,000 | ||
Thereafter | 259,087,000 | ||
Aggregate minimum lease payments | 746,221,000 | ||
Rental expense | $108,200,000 | $102,300,000 | $97,900,000 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Liability for asset retirement obligations activity | ||
Asset retirement obligation at the beginning of the period | $6,243 | $5,963 |
Additions | 113 | 245 |
Change in assumptions | -734 | -287 |
Settlements | -48 | -12 |
Accretion expense | 350 | 334 |
Asset retirement obligation at the end of the period | $5,924 | $6,243 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
Components of (loss) income before income (benefit) expense | ||||||
Domestic | ($32,878) | $8,533 | $14,577 | |||
Foreign | 1,336 | 757 | 7,923 | |||
(Loss) earnings from continuing operations before income taxes and discontinued operations | -31,542 | 9,290 | 22,500 | |||
Current: | ||||||
Federal | -267 | -338 | ||||
State | 689 | 451 | 471 | |||
Foreign | 1,383 | 2,132 | 1,636 | |||
Deferred: | ||||||
Federal | -6,716 | [1] | 2,765 | [1] | 6,548 | [1] |
State | 1,028 | 840 | 988 | |||
Foreign | -965 | -3,684 | 40 | |||
Total income tax (benefit) expense from continuing operations | -4,581 | [1] | 2,237 | [1] | 9,345 | [1] |
Tax benefit recorded to discontinued operations | 179 | 102 | 186 | |||
Reconciliation of the statutory federal income tax rate to the effective rate for income tax expense | ||||||
Statutory tax rate (as a percent) | -35.00% | 35.00% | 35.00% | |||
State income taxes, net of federal tax (a a percent) | 3.70% | 6.00% | 4.10% | |||
Foreign taxes, net of federal tax (as a percent) | 1.40% | 4.40% | 5.60% | |||
Tax credits net of valuation allowance (as a percent) | -1.80% | -7.50% | -3.20% | |||
Foreign deferred adjustment (as a percent) | -8.40% | |||||
Foreign tax law change impact (as a percent) | -3.80% | |||||
Tax uncertainty adjustment (as a percent) | -0.80% | -3.00% | -1.50% | |||
Goodwill impairment charge (as a percent) | 17.10% | |||||
Non deductible expenses (as a percent) | 0.90% | 3.50% | 0.50% | |||
Stock compensation (as a percent) | 1.80% | |||||
Other, net (as a percent) | -2.10% | -0.80% | ||||
Effective rate (as a percent) | -14.50% | 24.10% | 41.50% | |||
Deferred tax assets: | ||||||
Employee compensation | 5,608 | 3,544 | ||||
Store closing reserves | 1,179 | 673 | ||||
Legal reserve | 1,619 | 182 | ||||
Benefit accruals | 1,655 | 2,109 | ||||
Net operating loss carryforwards-Federal | 6,253 | 1,115 | ||||
Net operating loss carryforwards-State | 112,411 | 111,258 | ||||
Tax credit carryforwards | 28,179 | 26,605 | ||||
Accrued leases | 13,876 | 15,215 | ||||
Deferred gain on sale leaseback | 41,385 | 46,176 | ||||
Deferred revenue | 1,965 | 2,987 | ||||
Other | 4,226 | 1,312 | ||||
Gross deferred tax assets | 218,356 | 211,176 | ||||
Valuation allowance | -108,845 | -106,695 | ||||
Net deferred tax assets | 109,511 | 104,481 | ||||
Deferred tax liabilities: | ||||||
Depreciation | 33,610 | 33,059 | ||||
Inventories | 67,420 | 71,630 | ||||
Real estate tax | 3,495 | 3,300 | ||||
Insurance and other | 7,176 | 4,299 | ||||
Interest rate derivatives | 274 | |||||
Debt related liabilities | 2,454 | 3,606 | ||||
Deferred tax liabilities | 114,155 | 116,168 | ||||
Net deferred tax (liability) asset | ($4,644) | ($11,687) | ||||
[1] | Excludes tax benefit recorded to discontinued operations of $0.2 million, $0.1 million and $0.2 million in fiscal years 2014, 2013 and 2012, respectively. |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
INCOME TAXES | ||
Deferred tax assets related to federal net operating loss carryforwards | $6,253,000 | $1,115,000 |
Deferred tax assets related to state tax net operating loss carryforwards related to unitary filings | 2,800,000 | |
Deferred tax assets for net operating loss carryforwards relate to separate company filing jurisdictions | 109,600,000 | |
Tax credit carryforward | ||
Tax credit carryforward amount for which full valuation allowances are recorded | 7,400,000 | |
Gross state hiring credits | 6,300,000 | |
Gross valuation allowances released on certain state net operating loss carryforwards and state credits | 6,700,000 | |
Minimum period for which state, local and foreign income tax returns are generally subject to examination | 3 years | |
Maximum period for which state, local and foreign income tax returns are generally subject to examination | 5 years | |
Alternative minimum tax credits | ||
Tax credit carryforward | ||
Tax credit carryforward amount | 7,900,000 | |
Hiring tax credits | ||
Tax credit carryforward | ||
Tax credit carryforward amount | 7,900,000 | |
State and foreign credits | ||
Tax credit carryforward | ||
Tax credit carryforward amount | 12,400,000 | |
State net operating loss carryforward | ||
Tax credit carryforward | ||
Gross valuation allowance | $2,100,000 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Unrecognized tax benefit balance at the beginning of the year | $1,941 | $2,274 | $3,364 |
Gross decreases for tax positions taken in prior years | -338 | ||
Gross increases for tax positions taken in current year | 2 | 13 | 201 |
Settlements taken in current year | -181 | ||
Lapse of statute of limitations | -276 | -346 | -953 |
Unrecognized tax benefit balance at the end of the year | 1,486 | 1,941 | 2,274 |
Interest and penalties recognized associated with uncertain tax positions | 0.1 | 0.1 | |
Interest and penalties recognized which are excluded from the uncertain tax positions | 0.2 | 0.5 | 0.5 |
Unrecognized tax benefits that would affect annual effective tax rate, if recognized | $0.40 | $0.70 | $0.90 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | ||
Feb. 01, 2014 | Feb. 02, 2013 | Dec. 12, 2012 | |
STOCKHOLDERS' EQUITY | |||
Amount of shares authorized to be repurchased | $50,000,000 | ||
Number of shares repurchased | 237,624 | ||
Shares repurchased | ($2,750,000) | ($342,000) |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
Changes in accumulated other comprehensive (loss) income | |||||
Beginning balance | $379 | ||||
Other comprehensive (loss) income | -770 | 1,359 | 16,669 | ||
Ending balance | -391 | 379 | |||
(Loss) Gain on Cash Flow Hedges | |||||
Changes in accumulated other comprehensive (loss) income | |||||
Beginning balance | 379 | -980 | |||
Other comprehensive (loss) income before reclassifications, net of ($691) tax benefit and $584 tax | -1,154 | 975 | |||
Amounts reclassified from accumulated other comprehensive (loss) income, net of $230 and $231 tax | 384 | [1] | 384 | [1] | |
Other comprehensive (loss) income | -770 | 1,359 | |||
Ending balance | -391 | 379 | |||
Other comprehensive (loss) income before reclassifications, tax effect | -691 | 584 | |||
Amounts reclassified from accumulated other comprehensive income, tax effect | $230 | $231 | |||
[1] | Reclassified amount increased interest expense. |
STORE_CLOSURES_AND_ASSET_IMPAI2
STORE CLOSURES AND ASSET IMPAIRMENTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
store | store | store | ||
STORE CLOSURES AND ASSET IMPAIRMENTS | ||||
Depreciation Expense on Assets Classified as Held for Disposal | $0 | |||
Activity in the reserve for closed locations | ||||
Balance at the beginning of the period | 1,475,000 | 550,000 | 1,641,000 | 1,801,000 |
Accretion of present value of liabilities | 29,000 | 36,000 | 137,000 | |
Change in assumptions about future sublease income, lease termination | 1,434,000 | 322,000 | 367,000 | |
Cash payments | -538,000 | -1,449,000 | -664,000 | |
Balance at the end of the period | 1,475,000 | 1,475,000 | 550,000 | 1,641,000 |
Impairment charge | 7,500,000 | 7,700,000 | 10,600,000 | |
Depreciation expense recognized on assets held for disposal | 0 | |||
Store closures and asset impairments | ||||
Number of stores for which impairment charge has been recorded | 35 | 47 | 49 | |
Impairment charges | 7,535,000 | 7,659,000 | 10,555,000 | |
Assets held for disposal | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Property and equipment-net | 2,648,000 | 2,648,000 | ||
Number of properties | 5 | |||
Assets held for disposal | Land | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Property and equipment-net | 1,983,000 | 1,983,000 | ||
Assets held for disposal | Buildings and improvements | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Property and equipment-net | 4,653,000 | 4,653,000 | ||
Assets held for disposal | Accumulated Depreciation | ||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||||
Accumulated depreciation | -3,988,000 | -3,988,000 | ||
Stores classified as held for disposal | ||||
Store closures and asset impairments | ||||
Number of stores for which impairment charge has been recorded | 1 | 4 | ||
Impairment charge on stores held for disposal | 1,200,000 | 900,000 | ||
Stores classified as held and used | ||||
Store closures and asset impairments | ||||
Number of stores for which impairment charge has been recorded | 34 | 43 | ||
Level 2 and 3 | ||||
Store closures and asset impairments | ||||
Fair value of the impaired stores classified as level 2 or 3 measure | 2,900,000 | 2,900,000 | 4,200,000 | 2,300,000 |
Merchandise cost of sales | ||||
Store closures and asset impairments | ||||
Impairment charges | 2,500,000 | 2,400,000 | 5,100,000 | |
Merchandise cost of sales | Stores classified as held for disposal | ||||
Store closures and asset impairments | ||||
Impairment charges | 800,000 | 700,000 | ||
Service cost of sales | ||||
Store closures and asset impairments | ||||
Impairment charges | 5,000,000 | 5,300,000 | 5,500,000 | |
Service cost of sales | Stores classified as held for disposal | ||||
Store closures and asset impairments | ||||
Impairment charges | $400,000 | $200,000 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | |
item | ||||
Goodwill | ||||
Balance at the beginning of the year | $56,794 | $46,917 | ||
Acquisitions | 9,877 | |||
Impairment | -23,900 | -23,925 | [1] | |
Balance at the end of the year | 32,869 | 32,869 | 56,794 | |
Number of reporting units | 8 | |||
Cumulative charge to goodwill | ||||
Goodwill | ||||
Impairment | 23,900 | |||
Fair value below carrying value | ||||
Goodwill | ||||
Impairment | -23,900 | |||
Number of reporting units | 3 | |||
Fair value exceeds carrying value | ||||
Goodwill | ||||
Balance at the end of the year | $32,900 | $32,900 | ||
Number of reporting units | 3 | |||
Minimum | ||||
Goodwill | ||||
Period for projection of financial report | 1 year | |||
Maximum | ||||
Goodwill | ||||
Period for projection of financial report | 5 years | |||
[1] | Cumulative charge to date of $23.9 million. |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
EARNINGS PER SHARE | |||||||||||
(Loss) earnings from continuing operations before discontinued operations | ($26,653) | ($1,770) | ($177) | $1,637 | ($3,267) | $1,013 | $5,379 | $3,928 | ($26,961) | $7,053 | $13,155 |
Loss from discontinued operations, net of tax benefit of $179, $102 and $186 | -332 | -188 | -345 | ||||||||
Net (loss) earnings | -26,666 | -1,964 | -273 | 1,608 | -3,331 | 964 | 5,368 | 3,863 | -27,293 | 6,865 | 12,810 |
Basic average number of common shares outstanding during period | 53,608,000 | 53,378,000 | 53,225,000 | ||||||||
Common shares assumed issued upon exercise of dilutive equity awards, net of assumed repurchase, at the average market price | 585,000 | 729,000 | |||||||||
Diluted average number of common shares assumed outstanding during period | 53,608,000 | 53,963,000 | 53,954,000 | ||||||||
Basic (loss) earnings per share: | |||||||||||
Earnings from continuing operations (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.50) | $0.13 | $0.25 |
Discontinued operations, net of tax (in dollars per share) | ($0.01) | ($0.01) | |||||||||
Basic (loss) earnings per share (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.51) | $0.13 | $0.24 |
Diluted (loss) earnings per share: | |||||||||||
Earnings from continuing operations (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.50) | $0.13 | $0.24 |
Discontinued operations, net of tax (in dollars per share) | ($0.01) | ||||||||||
Diluted (loss) earnings per share (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.51) | $0.13 | $0.24 |
Additional disclosures | |||||||||||
Loss from discontinued operations, tax benefit | $179 | $102 | $186 | ||||||||
Anti-dilutive stock options, restricted stock units and performance share units excluded from computation of diluted earnings per share (in shares) | 2,407,000 | 937,000 | 859,000 |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 31, 2015 | |
CONTRIBUTION PLANS | ||||
Contribution by employer to fully fund the plan on a termination basis | $14,100,000 | |||
Account Plan | ||||
CONTRIBUTION PLANS | ||||
Contribution expense | 800,000 | 100,000 | ||
401(k) savings plan | ||||
CONTRIBUTION PLANS | ||||
Minimum age of employee to qualify for qualified savings plan | 18 years | |||
Percentage of participant's discretionary contribution matched by 50% of employer contribution | 50.00% | |||
Maximum employer match of employee compensation under both savings plans (as a percent) | 6.00% | |||
Employer matching contribution of the first 6% of participant's discretionary contribution (as a percent) | 3.00% | |||
Contribution by employer | $3,500,000 | $0 | $3,200,000 | |
401(k) savings plan | Condition 1 | ||||
CONTRIBUTION PLANS | ||||
Minimum service period of employee to qualify for qualified savings plan | 6 months | |||
Minimum working hours of employee to qualify for qualified savings plan | 500 hours | |||
401(k) savings plan | Condition 2 | ||||
CONTRIBUTION PLANS | ||||
Minimum service period of employee to qualify for qualified savings plan | 12 months | |||
Minimum working hours of employee to qualify for qualified savings plan | 1000 hours |
BENEFIT_PLANS_Details_2
BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 02, 2013 |
Pension expense | |
Interest cost | $2,170 |
Expected return on plan assets | -2,658 |
Amortization of prior service cost | 13 |
Recognized actuarial loss | 1,896 |
Net Period Pension Cost | 1,421 |
Settlement Charge | 17,753 |
Net periodic benefit cost | $19,174 |
BENEFIT_PLANS_Details_3
BENEFIT PLANS (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
DEFERRED COMPENSATION PLAN | ||
Percentage of employee annual salary that can be deferred | 20.00% | |
Percentage of employee annual bonus that can be deferred | 100.00% | |
Percentage of officer deferred bonus which is matched with Company stock | 20.00% | |
Employer matching ratio | 1 | |
Vesting period of stock contribution | 3 years | |
RABBI TRUST | ||
Liability related to Rabbi Trust | $5.10 | $6.90 |
EQUITY_COMPENSATION_PLANS_Deta
EQUITY COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | |||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |
EQUITY COMPENSATION PLANS | ||||
Vesting period | 3 years | |||
Percentage of officer deferred bonus which is matched with Company stock | 20.00% | |||
Employer matching ratio | 1 | |||
Compensation expense | ||||
Tax benefits realized from compensation expenses (in dollars) | $900,000 | $1,100,000 | $400,000 | |
Maximum | ||||
Weighted-average assumptions used for estimated fair value of stock options using Black-Scholes option pricing model | ||||
Expected life in years | 5 years | 5 years | 5 years | |
Options | ||||
EQUITY COMPENSATION PLANS | ||||
Expiration term for options granted on or after March 3, 2004 | 7 years | |||
Information about options | ||||
Weighted average fair value at grant date fair value (in dollars per share) | $2.25 | $5.11 | $4.65 | |
Intrinsic value of options exercised (in dollars) | 1,532,000 | 1,059,000 | 874,000 | |
Additional disclosures | ||||
Aggregate intrinsic value of outstanding options (in dollars) | 1,500,000 | |||
Aggregate intrinsic value of exercisable options (in dollars) | 1,500,000 | |||
Aggregate intrinsic value of expected to vest options (in dollars) | 0 | |||
Weighted average remaining contractual term of outstanding options | 4 years 2 months 12 days | |||
Weighted average remaining contractual term of exercisable options | 2 years 10 months 24 days | |||
Weighted average remaining contractual term of expected to vest options | 6 years 2 months 12 days | |||
Unrecognized compensation expense | ||||
Total unrecognized pre-tax compensation cost related to non-vested stock options (in dollars) | 1,700,000 | |||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 1 year 4 months 24 days | |||
Compensation expense | ||||
Compensation expense recognized (in dollars) | 1,200,000 | 1,200,000 | 1,100,000 | |
Weighted-average assumptions used for estimated fair value of stock options using Black-Scholes option pricing model | ||||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |
Expected volatility (as a percent) | 41.00% | 53.00% | 58.00% | |
Risk-free interest rate range, high (as a percent) | 1.50% | 0.70% | 0.60% | |
Risk-free interest rate range, low (as a percent) | 0.10% | 0.70% | 0.50% | |
Options | Minimum | ||||
Weighted-average assumptions used for estimated fair value of stock options using Black-Scholes option pricing model | ||||
Expected life in years | 1 year | 4 years | 4 years | |
Performance Based Awards | ||||
Number of RSUs | ||||
Nonvested at the Beginning balance (in shares) | 675,513 | |||
Granted (in shares) | 367,102 | |||
Forfeited (in shares) | -581,609 | |||
Nonvested at the end of the period (in shares) | 461,006 | |||
Performance Based Awards | Return on invested capital target | ||||
Number of RSUs | ||||
Granted (in shares) | 155,000 | 109,000 | ||
Weighted Average Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $11.85 | |||
Nonvested at the end of the period (in dollars per share) | $10.26 | $11.85 | ||
Additional disclosures | ||||
Fair value at grant date (in dollars per share) | $10.26 | $11.85 | ||
Performance Based Awards | Return on invested capital target | Minimum | ||||
Additional disclosures | ||||
Number of underlying shares issued upon vesting (as a percent) | 0.00% | |||
Performance Based Awards | Return on invested capital target | Maximum | ||||
Additional disclosures | ||||
Number of underlying shares issued upon vesting (as a percent) | 150.00% | |||
Performance Based Awards | Total shareholder return target | ||||
Number of RSUs | ||||
Granted (in shares) | 77,000 | 55,000 | ||
Weighted Average Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $13.41 | |||
Nonvested at the end of the period (in dollars per share) | $9.13 | $13.41 | ||
Additional disclosures | ||||
Fair value at grant date (in dollars per share) | $9.13 | $13.41 | ||
Performance Based Awards | Total shareholder return target | Minimum | ||||
Additional disclosures | ||||
Number of underlying shares issued upon vesting (as a percent) | 0.00% | |||
Performance Based Awards | Total shareholder return target | Maximum | ||||
Additional disclosures | ||||
Number of underlying shares issued upon vesting (as a percent) | 175.00% | |||
RSUs | ||||
Number of RSUs | ||||
Nonvested at the Beginning balance (in shares) | 149,945 | |||
Granted (in shares) | 337,111 | |||
Forfeited (in shares) | -45,604 | |||
Vested (in shares) | -142,942 | |||
Nonvested at the end of the period (in shares) | 298,510 | |||
RSUs | Officer | ||||
EQUITY COMPENSATION PLANS | ||||
Vesting period | 3 years | |||
RSUs | Non-officer | Minimum | ||||
EQUITY COMPENSATION PLANS | ||||
Vesting period | 3 years | |||
RSUs | Non-employee director | ||||
EQUITY COMPENSATION PLANS | ||||
Vesting period | 1 year | 1 year | 1 year | |
Number of RSUs | ||||
Granted (in shares) | 58,000 | 54,000 | 33,000 | |
Weighted Average Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $12.05 | $9.98 | ||
Nonvested at the end of the period (in dollars per share) | $11.25 | $12.05 | $9.98 | |
Additional disclosures | ||||
Fair value at grant date (in dollars per share) | $11.25 | $12.05 | $9.98 | |
PSUs and RSUs | ||||
Unrecognized compensation expense | ||||
Total unrecognized pre-tax compensation cost | 3,000,000 | |||
Weighted-average period for recognition of unrecognized stock-based compensation expense | 1 year 2 months 12 days | |||
Number of RSUs | ||||
Nonvested at the Beginning balance (in shares) | 825,458 | |||
Granted (in shares) | 704,213 | |||
Forfeited (in shares) | -627,213 | |||
Vested (in shares) | -142,942 | |||
Nonvested at the end of the period (in shares) | 759,516 | 825,458 | ||
Weighted Average Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $10.68 | |||
Granted (in dollars per share) | $8.03 | $12.23 | $9.48 | |
Forfeited (in dollars per share) | $7.37 | |||
Vested (in dollars per share) | $10.59 | |||
Nonvested at the end of the period (in dollars per share) | $7.93 | $10.68 | ||
Information about RSUs | ||||
Weighted average fair value at grant date per unit (in dollars per share) | $8.03 | $12.23 | $9.48 | |
Fair value at vesting date (in dollars) | 1,463,000 | 758,000 | 768,000 | |
Intrinsic value at conversion date (in dollars) | 188,000 | 525,000 | 218,000 | |
Tax benefits realized from conversions (in dollars) | 71,000 | 197,000 | 82,000 | |
Additional disclosures | ||||
Fair value at grant date (in dollars per share) | $7.93 | $10.68 | ||
PSUs and RSUs | Selling, General and Administrative Expenses | ||||
Compensation expense | ||||
Compensation expense recognized (in dollars) | $1,100,000 | $1,800,000 | $200,000 | |
Employee Stock purchase plan | ||||
EQUITY COMPENSATION PLANS | ||||
Number of shares available for grant | 1,803,880 | |||
Additional disclosures | ||||
Aggregate number of shares of common stock that may be issued or transferred | 2,000,000 | |||
Non-qualified deferred compensation plan | RSUs | Officer | ||||
EQUITY COMPENSATION PLANS | ||||
Vesting period | 3 years | |||
Number of RSUs | ||||
Granted (in shares) | 900 | 4,000 | ||
Weighted Average Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $11.25 | |||
Nonvested at the end of the period (in dollars per share) | $12.27 | $11.25 | ||
Additional disclosures | ||||
Fair value at grant date (in dollars per share) | $12.27 | $11.25 | ||
Stock Incentive Plan | ||||
EQUITY COMPENSATION PLANS | ||||
Awards outstanding (in shares) | 2,643,520 | |||
Number of shares available for grant | 2,455,697 | |||
Shares | ||||
Outstanding - beginning balance (in shares) | 1,658,471 | |||
Granted (in shares) | 1,234,447 | |||
Exercised (in shares) | -255,023 | |||
Forfeited (in shares) | -878,801 | |||
Expired (in shares) | -212,818 | |||
Outstanding - ending balance (in shares) | 1,546,276 | |||
Vested and expected to vest options at the end of the period (in shares) | 1,499,115 | |||
Options exercisable at the end of the period (in shares) | 921,422 | |||
Weighted Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $8.67 | |||
Granted (in dollars per share) | $8.02 | |||
Exercised (in dollars per share) | $3.73 | |||
Forfeited (in dollars per share) | $7.15 | |||
Expired (in dollars per share) | $13.11 | |||
Outstanding at the end of the period (in dollars per share) | $9.22 | |||
Vested and expected to vest options at the end of the period (in dollars per share) | $9.18 | |||
Options exercisable at the end of the period (in dollars per share) | $8.28 | |||
Stock Incentive Plan | Options | Minimum | ||||
EQUITY COMPENSATION PLANS | ||||
Minimum exercise price as a percentage of quoted market price of the common stock on the grant date | 100.00% | |||
Stock Incentive Plan | RSUs | Officer | ||||
EQUITY COMPENSATION PLANS | ||||
Percentage of officer deferred bonus which is matched with Company stock | 20.00% | |||
Employer matching ratio | 0.01 | |||
Ratio of vesting on each anniversary (as a percent) | 0.33% | |||
Number of grant date anniversaries | 3 |
INTEREST_RATE_SWAP_AGREEMENT_D
INTEREST RATE SWAP AGREEMENT (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | ||
Nov. 12, 2013 | Oct. 11, 2012 | Jan. 31, 2015 | Feb. 01, 2014 | Oct. 27, 2012 | |
Interest rate swap agreement | |||||
Amount of loss recognized in earnings (effective portion) | $613,000 | $614,000 | |||
Variable interest rate base | LIBOR | LIBOR | |||
Long-term debt | 213,000,000 | 201,500,000 | |||
Term loan prior to its amendment and restatement | |||||
Interest rate swap agreement | |||||
Long-term debt | 200,000,000 | ||||
Floor rate on LIBOR (as a percent) | 1.25% | 1.25% | |||
Margin added to derive interest rate (as a percent) | 3.00% | 3.75% | 3.00% | ||
Term loan prior to its amendment and restatement | Cash flow hedging | Interest rate swaps | |||||
Interest rate swap agreement | |||||
Value of senior secured term loan | 145,000,000 | ||||
Senior Secured Term Loan, due October 2018 | |||||
Interest rate swap agreement | |||||
Value of senior secured term loan | 100,000,000 | ||||
Fixed percentage to be paid under hedge | 1.86% | ||||
Number of interest rate swaps designated as cash flow hedge | 2 | ||||
Variable interest rate base | LIBOR | ||||
Long-term debt | 200,000,000 | 196,000,000 | 198,000,000 | ||
Floor rate on LIBOR (as a percent) | 1.25% | 1.25% | 1.25% | ||
Margin added to derive interest rate (as a percent) | 3.75% | 3.75% | 3.00% | ||
Swap Agreement | Term loan prior to its amendment and restatement | |||||
Interest rate swap agreement | |||||
Value of senior secured term loan | 100,000,000 | ||||
Fixed percentage to be paid under hedge | 1.86% | 5.04% | |||
Amount of loss recognized in earnings (effective portion) | 7,500,000 | ||||
Fair value of derivative asset | 600,000 | ||||
Fair value of derivative liability | 600,000 | ||||
Number of interest rate swaps designated as cash flow hedge | 2 | ||||
Notional amount of interest rate swaps | 50,000,000 | ||||
Swap Agreement | Senior Secured Term Loan, due October 2018 | |||||
Interest rate swap agreement | |||||
Value of senior secured term loan | $100,000,000 | ||||
Number of interest rate swaps designated as cash flow hedge | 2 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 12 Months Ended | ||||
Jan. 31, 2015 | Feb. 01, 2014 | Oct. 11, 2012 | |||
item | |||||
Effect of interest rate swap on the consolidated financial statements | |||||
Amount of Gain (Loss) in Other Comprehensive Income (Effective Portion) | ($770,000) | $1,359,000 | |||
Amount of loss recognized in earnings (effective portion) | 613,000 | 614,000 | |||
Senior Secured Term Loan, due October 2018 | |||||
Information by level for assets and liabilities that are measured at fair value on a recurring basis | |||||
Number of interest rate swaps designated as cash flow hedge | 2 | ||||
Value of senior secured term loan | 100,000,000 | ||||
Swap Agreement | Senior Secured Term Loan, due October 2018 | |||||
Information by level for assets and liabilities that are measured at fair value on a recurring basis | |||||
Number of interest rate swaps designated as cash flow hedge | 2 | ||||
Value of senior secured term loan | 100,000,000 | ||||
Recurring basis | Fair Value | Other Assets | |||||
assets: | |||||
Derivative asset | 606,000 | [1] | |||
Recurring basis | Fair Value | Other liabilities | |||||
Other liabilities: | |||||
Derivative liability | 625,000 | [2] | |||
Recurring basis | Fair Value | Cash and cash equivalents | |||||
assets: | |||||
Assets | 38,044,000 | 33,431,000 | |||
Recurring basis | Fair Value | Collateral investments | |||||
assets: | |||||
Assets | 21,611,000 | [1] | 21,611,000 | [1] | |
Recurring basis | Fair Value | Deferred compensation assets | |||||
assets: | |||||
Assets | 4,382,000 | [1] | |||
Recurring basis | Fair Value Measurements Using Inputs Considered as Level 1 | Cash and cash equivalents | |||||
assets: | |||||
Assets | 38,044,000 | 33,431,000 | |||
Recurring basis | Fair Value Measurements Using Inputs Considered as Level 1 | Collateral investments | |||||
assets: | |||||
Assets | 21,611,000 | [1] | 21,611,000 | [1] | |
Recurring basis | Level 2 | Other Assets | |||||
assets: | |||||
Derivative asset | 606,000 | [1] | |||
Recurring basis | Level 2 | Other liabilities | |||||
Other liabilities: | |||||
Derivative liability | 625,000 | [2] | |||
Recurring basis | Level 2 | Deferred compensation assets | |||||
assets: | |||||
Assets | $4,382,000 | [1] | $4,242,000 | [1] | |
[1] | included in other long-term assets | ||||
[2] | included in other long-term liabilities |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | ||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||
Total revenues | $502,423,000 | $517,584,000 | $525,773,000 | $538,821,000 | $495,733,000 | $507,042,000 | $527,619,000 | $536,173,000 | $2,084,603,000 | $2,066,568,000 | $2,090,730,000 | |
Gross Profit | 99,685,000 | 118,334,000 | 124,297,000 | 133,126,000 | 104,016,000 | 122,812,000 | 138,708,000 | 121,840,000 | 475,444,000 | 487,377,000 | 491,500,000 | |
Operating (loss) / Profit | -28,752,000 | 574,000 | 3,273,000 | 6,045,000 | -6,614,000 | 7,641,000 | 17,748,000 | 3,521,000 | -18,857,000 | 22,298,000 | 11,654,000 | |
(Loss) / Earnings from Continuing Operations | -26,653,000 | -1,770,000 | -177,000 | 1,637,000 | -3,267,000 | 1,013,000 | 5,379,000 | 3,928,000 | -26,961,000 | 7,053,000 | 13,155,000 | |
Net (loss) earnings | -26,666,000 | -1,964,000 | -273,000 | 1,608,000 | -3,331,000 | 964,000 | 5,368,000 | 3,863,000 | -27,293,000 | 6,865,000 | 12,810,000 | |
(Loss) / Earnings Per Share from Continuing Operations | ||||||||||||
(Loss) earnings from continuing operations before discontinued operations (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.50) | $0.13 | $0.25 | |
(Loss) earnings from continuing operations before discontinued operations (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.50) | $0.13 | $0.24 | |
(Loss) / Earnings Per Share | ||||||||||||
Basic (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.51) | $0.13 | $0.24 | |
Diluted (in dollars per share) | ($0.50) | ($0.03) | $0 | $0.03 | ($0.06) | $0.02 | $0.10 | $0.07 | ($0.51) | $0.13 | $0.24 | |
Cash Dividends Per Share (in dollars per share) | $0 | $0 | ||||||||||
Market price per share, High | $10.09 | $11.52 | $11.52 | $13.27 | $13.86 | $13.05 | $12.94 | $12.14 | ||||
Market price per share, Low | $8.43 | $8.45 | $9.86 | $10.17 | $11.36 | $11.01 | $11.14 | $10.29 | ||||
Goodwill impairment charge | 23,900,000 | 23,925,000 | [1] | |||||||||
Gain on sale of certain properties | $14,300,000 | |||||||||||
[1] | Cumulative charge to date of $23.9 million. |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |||
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ||||||
Movement in valuation and qualifying accounts and reserves | ||||||
Balance at Beginning of Period | $1,320 | $1,302 | $1,303 | |||
Additions Charged to Costs and Expenses | 3,029 | 2,563 | 2,479 | |||
Deductions | 2,745 | [1] | 2,546 | [1] | 2,480 | [1] |
Balance at End of Period | 1,604 | 1,320 | 1,302 | |||
SALES RETURNS AND ALLOWANCES | ||||||
Movement in valuation and qualifying accounts and reserves | ||||||
Balance at Beginning of Period | 806 | 896 | 773 | |||
Additions Charged to Other Accounts | 63,545 | [2] | 62,596 | [2] | 63,068 | [2] |
Deductions | 63,231 | [2] | 62,686 | [2] | 62,945 | [2] |
Balance at End of Period | $1,120 | $806 | $896 | |||
[1] | Uncollectible accounts written off. | |||||
[2] | Sales return and allowance activity is recorded through a reduction of merchandise sales and costs of merchandise sales. |