Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
2-May-15 | 30-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | PEP BOYS MANNY MOE & JACK | |
Entity Central Index Key | 77449 | |
Document Type | 10-Q | |
Document Period End Date | 2-May-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -29 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,863,871 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $42,166 | $38,044 |
Accounts receivable, less allowance for uncollectible accounts of $1,680 and $1,604 | 29,101 | 31,013 |
Merchandise inventories | 651,461 | 656,957 |
Prepaid expenses | 26,159 | 27,952 |
Other current assets | 52,450 | 55,986 |
Assets held for disposal | 2,377 | 2,648 |
Total current assets | 803,714 | 812,600 |
Property and equipment, net of accumulated depreciation of $1,264,412 and $1,251,797 | 597,783 | 604,380 |
Goodwill | 32,869 | 32,869 |
Deferred income taxes | 51,666 | 56,571 |
Other long-term assets | 34,696 | 35,321 |
Total assets | 1,520,728 | 1,541,741 |
Current liabilities: | ||
Accounts payable | 230,211 | 227,132 |
Trade payable program liability | 139,279 | 140,904 |
Accrued expenses | 208,794 | 226,176 |
Deferred income taxes | 64,357 | 61,216 |
Current maturities of long-term debt | 2,000 | 2,000 |
Total current liabilities | 644,641 | 657,428 |
Long-term debt less current maturities | 193,500 | 211,000 |
Other long-term liabilities | 44,128 | 45,567 |
Deferred gain from asset sales | 100,360 | 103,596 |
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 | 297,563 | 298,299 |
Retained earnings | 404,465 | 397,890 |
Accumulated other comprehensive income | -245 | -391 |
Treasury stock, at cost - 14,693,191 shares and 14,988,205 shares | -232,241 | -240,205 |
Total stockholders' equity | 538,099 | 524,150 |
Total liabilities and stockholders' equity | $1,520,728 | $1,541,741 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for uncollectible accounts (in dollars) | $1,680 | $1,604 |
Property and equipment, accumulated depreciation | $1,264,412 | $1,251,797 |
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 | 14,693,191 | 14,988,205 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||
Merchandise sales | $413,125 | $411,906 |
Service revenue | 129,136 | 126,915 |
Total revenues | 542,261 | 538,821 |
Costs of merchandise sales | 286,243 | 285,047 |
Costs of service revenue | 122,251 | 120,648 |
Total costs of revenues | 408,494 | 405,695 |
Gross profit from merchandise sales | 126,882 | 126,859 |
Gross profit from service revenue | 6,885 | 6,267 |
Total gross profit | 133,767 | 133,126 |
Selling, general and administrative expenses | 120,847 | 127,071 |
Net gain (loss) from dispositions of assets | 218 | -10 |
Gain from sale of leasehold interest | 10,000 | |
Operating profit | 23,138 | 6,045 |
Other income | 372 | 441 |
Interest expense | -3,329 | -3,782 |
Earnings from continuing operations before income taxes and discontinued operations | 20,181 | 2,704 |
Income tax expense | -8,322 | -1,067 |
Earnings from continuing operations before discontinued operations | 11,859 | 1,637 |
Gain (loss) from discontinued operations, net of tax | 34 | -29 |
Net earnings | 11,893 | 1,608 |
Basic earnings per share: | ||
Earnings from continuing operations before discontinued operations (in dollars per share) | $0.22 | $0.03 |
Basic earnings per share (in dollars per share) | $0.22 | $0.03 |
Diluted earnings per share: | ||
Earnings from continuing operations before discontinued operations (in dollars per share) | $0.22 | $0.03 |
Diluted earnings per share (in dollars per share) | $0.22 | $0.03 |
Other comprehensive income (loss): | ||
Derivative financial instrument adjustment, net of tax | 146 | -38 |
Other comprehensive income (loss) | 146 | -38 |
Comprehensive income | $12,039 | $1,570 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 |
Cash flows from operating activities: | ||
Net earnings | $11,893 | $1,608 |
Adjustments to reconcile net earnings to net cash provided by continuing operations: | ||
Net (earnings) loss from discontinued operations, net of tax | -34 | 29 |
Depreciation | 16,894 | 18,320 |
Amortization of deferred gain from asset sales | -3,236 | -3,151 |
Amortization of deferred financing costs | 626 | 664 |
Stock compensation expense | 1,017 | 826 |
Deferred income taxes | 7,927 | 743 |
Net (gain) loss from disposition of assets | -218 | 10 |
Loss from asset impairment | 798 | 1,172 |
Other | -473 | -111 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable, prepaid expenses and other | 7,347 | 4,174 |
Decrease in merchandise inventories | 5,496 | 8,800 |
Increase (decrease) in accounts payable | 4,735 | -8,903 |
Decrease in accrued expenses | -17,829 | -12,467 |
Decrease in other long-term liabilities | -859 | -231 |
Net cash provided by continuing operations | 34,084 | 11,483 |
Net cash used in discontinued operations | -255 | -29 |
Net cash provided by operating activities | 33,829 | 11,454 |
Cash flows from investing activities: | ||
Capital expenditures | -12,267 | -14,565 |
Proceeds from dispositions of assets | 515 | |
Net cash used in investing activities | -11,752 | -14,565 |
Cash flows from financing activities: | ||
Borrowings under line of credit agreements | 95,155 | 164,206 |
Payments under line of credit agreements | -112,155 | -160,706 |
Borrowings on trade payable program liability | 40,872 | 49,708 |
Payments on trade payable program liability | -42,497 | -45,388 |
Debt payments | -500 | -500 |
Proceeds from stock issuance | 1,170 | 177 |
Net cash (used in) provided by financing activities | -17,955 | 7,497 |
Net increase in cash and cash equivalents | 4,122 | 4,386 |
Cash and cash equivalents at beginning of period | 38,044 | 33,431 |
Cash and cash equivalents at end of period | 42,166 | 37,817 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 42 | |
Cash received from income tax refunds | 174 | |
Cash paid for interest | 2,674 | 2,659 |
Non-cash investing activities: | ||
Accrued purchases of property and equipment | $2,247 | $5,748 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
2-May-15 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1—BASIS OF PRESENTATION |
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, 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. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted, as permitted by Rule 10-01 of the Securities and Exchange Commission’s Regulation S-X, “Interim Financial Statements.” It is suggested that these consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2015. The results of operations for the thirteen weeks ended May 2, 2015 are not necessarily indicative of the operating results for the full fiscal year. | |
The consolidated financial statements presented herein are unaudited. In the opinion of management, all adjustments necessary to present fairly the financial position, results of operations and cash flows as of May 2, 2015 and for all periods presented have been made. | |
The Company’s fiscal year ends on the Saturday nearest to January 31. Fiscal 2015, which ends January 30, 2016, and Fiscal 2014, which ended January 31, 2015, are comprised of 52 weeks. The Company operated 803 store locations as of May 2, 2015, of which 226 were owned and 577 were leased. | |
NEW_ACCOUNTING_STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
2-May-15 | |
NEW ACCOUNTING STANDARDS | |
NEW ACCOUNTING STANDARDS | NOTE 2—NEW ACCOUNTING STANDARDS |
In April of 2015, the FASB issued ASU No. 2015-03, “Interest - Imputation of Interest.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including periods within that reporting period, requires retrospective application, and early adoption is permitted. The Company is currently evaluating the new standard, but does not expect the adoption of ASU 2015-03 to have a material impact on the consolidated financial statements as the application of this guidance affects balance sheet classification only. | |
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 application 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. | |
MERCHANDISE_INVENTORIES
MERCHANDISE INVENTORIES | 3 Months Ended |
2-May-15 | |
MERCHANDISE INVENTORIES | |
MERCHANDISE INVENTORIES | NOTE 3—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. An actual valuation of inventory under the LIFO method can be made only at the end of each fiscal year based on inventory and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected fiscal year-end inventory levels and costs. If the first-in, first-out (“FIFO”) method of costing inventory had been used by the Company, inventory would have been $566.5 million and $570.2 million as of May 2, 2015 and January 31, 2015, respectively. | |
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 upon historical levels and the results of its cycle counting program. The Company’s inventory adjustments for these matters were immaterial as of May 2, 2015 and January 31, 2015, respectively. | |
WARRANTY_RESERVE
WARRANTY RESERVE | 3 Months Ended | |||||||
2-May-15 | ||||||||
WARRANTY RESERVE | ||||||||
WARRANTY RESERVE | NOTE 4—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 experiences. These costs are included in either costs of merchandise sales or costs of service revenues in the consolidated statements of operations. | ||||||||
The reserve for warranty cost activity for the thirteen weeks ended May 2, 2015 and the fifty-two weeks ended January 31, 2015 is as follows: | ||||||||
(dollar amounts in thousands) | May 2, 2015 | January 31, 2015 | ||||||
Beginning balance | $ | 682 | $ | 682 | ||||
Additions related to current period sales | 3,135 | 14,435 | ||||||
Warranty costs incurred in current period | (3,135 | ) | (14,435 | ) | ||||
Ending balance | $ | 682 | $ | 682 | ||||
DEBT_AND_FINANCING_ARRANGEMENT
DEBT AND FINANCING ARRANGEMENTS | 3 Months Ended | |||||||
2-May-15 | ||||||||
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) | May 2, 2015 | January 31, 2015 | ||||||
Senior Secured Term Loan, due October 2018 | $ | 195,500 | $ | 196,000 | ||||
Revolving Credit Agreement, through July 2016 | — | 17,000 | ||||||
Long-term debt | 195,500 | 213,000 | ||||||
Current maturities | (2,000 | ) | (2,000 | ) | ||||
Long-term debt less current maturities | $ | 193,500 | $ | 211,000 | ||||
The Company has a Revolving Credit Agreement (the “Agreement”) with available borrowings up to $300.0 million and a maturity of July 2016. As of May 2, 2015, the Company had no borrowings outstanding under the Agreement and $37.8 million of availability was utilized to support outstanding letters of credit. Taking this into account and the borrowing base requirements (including reduction for amounts outstanding under the supplier financing program), as of May 2, 2015 there was $149.6 million of availability remaining under the Agreement. | ||||||||
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 May 2, 2015, the Company was in compliance with all financial covenants contained in its debt agreements. | ||||||||
The Company has a supplier financing 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. There was an outstanding balance of $139.3 million and $140.9 million under the program as of May 2, 2015 and January 31, 2015, respectively. | ||||||||
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 $195.5 million and $211.0 million as of May 2, 2015 and January 31, 2015, respectively. | ||||||||
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
2-May-15 | |
INCOME TAXES | |
INCOME TAXES | NOTE 6—INCOME TAXES |
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’s effective income tax rate differs from the U.S. statutory rate principally due to state taxes, foreign taxes related to the Company’s Puerto Rico operations and certain other permanent tax items. The annual rate depends on a number of factors, including the jurisdiction in which pre-tax earnings is derived and the timing and nature of discrete items. For the thirteen weeks ended May 2, 2015 the effective tax rate was 41.2% as compared to 39.5% for the corresponding period of the prior year. | |
For income tax benefits related to uncertain tax positions to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. During the thirteen weeks ended May 2, 2015, there were no material changes to the Company’s liability for uncertain tax positions. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
2-May-15 | |||||||||
EARNINGS PER SHARE | |||||||||
EARNINGS PER SHARE | NOTE 7—EARNINGS PER SHARE | ||||||||
The following table presents the calculation of basic and diluted earnings per share for earnings from continuing operations and net earnings: | |||||||||
Thirteen Weeks Ended | |||||||||
(dollar amounts in thousands, except per share amounts) | May 2, | May 3, | |||||||
2015 | 2014 | ||||||||
(a) | Earnings from continuing operations | $ | 11,859 | $ | 1,637 | ||||
Gain (loss) from discontinued operations, net of tax | 34 | (29 | ) | ||||||
Net earnings | $ | 11,893 | $ | 1,608 | |||||
(b) | Basic average number of common shares outstanding during period | 54,094 | 53,470 | ||||||
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price | 90 | 539 | |||||||
(c) | Diluted average number of common shares assumed outstanding during period | 54,184 | 54,009 | ||||||
Basic earnings per share: | |||||||||
Earnings from continuing operations (a/b) | $ | 0.22 | $ | 0.03 | |||||
Discontinued operations, net of tax | — | — | |||||||
Basic earnings per share | $ | 0.22 | $ | 0.03 | |||||
Diluted earnings per share: | |||||||||
Earnings from continuing operations (a/c) | $ | 0.22 | $ | 0.03 | |||||
Discontinued operations, net of tax | — | — | |||||||
Diluted earnings per share | $ | 0.22 | $ | 0.03 | |||||
As of May 2, 2015 and May 3, 2014, respectively, there were 2,965,000 and 3,501,000 outstanding options, restricted stock units and performance share units. Certain stock options were excluded from the calculation of diluted earnings per share because their exercise prices were greater than the average market price of the common shares for the periods then ended and therefore would be anti-dilutive. The total number of options, restricted stock units and performance share units excluded from the diluted earnings per share calculation is 2,346,000 and 1,255,000 for the thirteen weeks ended May 2, 2015 and May 3, 2014, respectively. | |||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended | |||||||
2-May-15 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 8—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
The following table presents changes in accumulated other comprehensive income (loss), net of tax: | ||||||||
Gain/(Loss) on Cash Flow Hedges | ||||||||
Thirteen weeks | Thirteen weeks | |||||||
ended | ended | |||||||
(dollar amounts in thousands) | May 2, 2015 | May 3, 2014 | ||||||
Beginning balance | $ | (391 | ) | $ | 379 | |||
Other comprehensive income/(loss) before reclassifications, net of $32 tax and $78 tax benefit | 52 | (132 | ) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of $57 and $57 tax (a) | 94 | 94 | ||||||
Net current-period other comprehensive income/(loss) | 146 | (38 | ) | |||||
Ending balance | $ | (245 | ) | $ | 341 | |||
(a) | Reclassified amount increased interest expense. | |||||||
BENEFIT_PLANS
BENEFIT PLANS | 3 Months Ended |
2-May-15 | |
BENEFIT PLANS | |
BENEFIT PLANS | NOTE 9—BENEFIT PLANS |
The Company has a qualified 401(k) savings plan and a separate 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 contributions or 3% of the participant’s compensation under both savings plans. The Company’s savings plans’ contribution expense was $0.7 million and $0.8 million in the first quarter of fiscal 2015 and fiscal 2014, respectively. | |
EQUITY_COMPENSATION_PLANS
EQUITY COMPENSATION PLANS | 3 Months Ended |
2-May-15 | |
EQUITY COMPENSATION PLANS | |
EQUITY COMPENSATION PLANS | NOTE 10—EQUITY COMPENSATION PLANS |
The Company has stock-based compensation plans under which it grants stock options, performance share units and restricted stock units to key employees and members of its Board of Directors. The Company generally recognizes compensation expense on a straight-line basis over the vesting period. | |
In the first quarter of fiscal 2015 and fiscal 2014, the Company granted approximately 611,000 and 677,000 stock options, respectively, with a weighted average grant date fair value of $3.15 per unit and $3.95 per unit, respectively. These options have a seven-year term and vest over a three-year period with a third vesting on each of the first three anniversaries of their grant date. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The compensation expense recorded for the options granted during the thirteen weeks ended May 2, 2015 and May 3, 2014 was immaterial. | |
In the first quarter of fiscal 2015 and fiscal 2014, the Company granted approximately 116,000 and 153,000 performance share units, 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 2017 and fiscal 2016, 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 2017 and fiscal 2016, respectively. The fair value for these awards was $9.31 per unit and $10.26 per unit, respectively, at the date of the grant. The compensation expense recorded for these performance share units during the thirteen weeks ended May 2, 2015 and May 3, 2014 was immaterial. | |
In the first quarter of fiscal 2015 and fiscal 2014, the Company granted approximately 58,000 and 76,000 performance share units, 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 for the three-year period ending with fiscal 2017 and fiscal 2016, respectively. The number of underlying shares that may become exercisable will range from 0% to 175% depending upon whether the market condition is achieved. The Company used a Monte Carlo simulation to estimate a $9.13 per unit grant date fair value for the fiscal 2014 award. The compensation expense recorded for these performance share units during the thirteen weeks ended May 2, 2015 and May 3, 2014 was immaterial. | |
In the first quarter of fiscal 2015 and fiscal 2014, the Company granted approximately 87,000 and 115,000 restricted stock units, respectively, that will vest if the employees remain continuously employed through the third anniversary date of the grant. The fair value for these awards was $9.31 and $10.26 per unit, respectively, at the date of the grant. The compensation expense recorded for these performance share units during the thirteen weeks ended May 2, 2015 and May 3, 2014 was immaterial. | |
FAIR_VALUE_MEASUREMENTS_AND_DE
FAIR VALUE MEASUREMENTS AND DERIVATIVES | 3 Months Ended | |||||||||||||
2-May-15 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
FAIR VALUE MEASUREMENTS AND DERIVATIVES | NOTE 11—FAIR VALUE MEASUREMENTS AND DERIVATIVES | |||||||||||||
The Company’s fair value measurements consist of (a) 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 non-financial assets and liabilities that are recognized or disclosed at fair value on a non-recurring basis. | ||||||||||||||
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 asset: | ||||||||||||||
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 these swaps 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 tables provide information by level for assets and liabilities that are measured at fair value, on a recurring basis: | ||||||||||||||
(dollar amounts in thousands) | Fair Value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||
Description | May 2, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 42,166 | $ | 42,166 | $ | — | $ | — | ||||||
Collateral investments (1) | 21,612 | 21,612 | — | — | ||||||||||
Deferred compensation assets (1) | 4,488 | — | 4,488 | — | ||||||||||
Other liabilities: | ||||||||||||||
Derivative liability (2) | 393 | — | 393 | — | ||||||||||
(dollar amounts in thousands) | Fair Value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||
Description | January 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 38,044 | $ | 38,044 | $ | — | $ | — | ||||||
Collateral investments (1) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets (1) | 4,382 | — | 4,382 | — | ||||||||||
Other liabilities: | ||||||||||||||
Derivative liability(2) | 625 | — | 625 | — | ||||||||||
-1 | Included in other long-term assets. | |||||||||||||
-2 | Included in other long-term liabilities. | |||||||||||||
The following represents the impact of fair value accounting for the Company’s derivative asset on its consolidated financial statements: | ||||||||||||||
(dollar amounts in thousands) | Amount of Gain/(Loss) in | Earnings Statement | Amount of Loss | |||||||||||
Other Comprehensive | Classification | Recognized in Earnings | ||||||||||||
Income/(Loss) | (Effective Portion) (a) | |||||||||||||
(Effective Portion) | ||||||||||||||
Thirteen weeks ended May 2, 2015 | $ | 146 | Interest expense | $ | (151 | ) | ||||||||
Thirteen weeks ended May 3, 2014 | $ | (38 | ) | Interest expense | $ | (151 | ) | |||||||
(a) | Represents the effective portion of the loss reclassified from accumulated other comprehensive income (loss). | |||||||||||||
The fair value of the derivative was $0.4 million and $0.6 payable as of May 2, 2015 and January 31, 2015, respectively. Of the $0.2 million decrease in the fair value during the thirteen weeks ended May 2, 2015, an immaterial portion was recorded to accumulated other comprehensive income (loss) on the consolidated balance sheet. | ||||||||||||||
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 3 measures under the fair value hierarchy. Measurements of assets held and used are discussed in Note 12, “Impairments”. | ||||||||||||||
IMPAIRMENTS
IMPAIRMENTS | 3 Months Ended |
2-May-15 | |
IMPAIRMENTS | |
IMPAIRMENTS | NOTE 12—IMPAIRMENTS |
During the first quarter of fiscal 2015, the Company recorded a $0.8 million impairment charge related to 5 stores classified as held and used. The $0.8 million impairment was charged to service cost of sales. In the first quarter of fiscal 2014, the Company recorded a $1.2 million impairment charge related to 8 stores classified as held and used. Of the $1.2 million impairment charge, $0.2 million was charged to merchandise cost of sales, and $1.0 million was charged to costs of service revenue. In both 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 remaining fair value of the impaired assets is approximately $0.3 million as of May 2, 2015 and is classified as a Level 2 or 3 measure within the fair value hierarchy. | |
SALE_OF_LEASEHOLD_INTEREST
SALE OF LEASEHOLD INTEREST | 3 Months Ended |
2-May-15 | |
SALE OF LEASEHOLD INTEREST | |
SALE OF LEASEHOLD INTEREST | NOTE 13—SALE OF LEASEHOLD INTEREST |
During the first quarter of fiscal 2015, the Company sold a leasehold interest in one store for $10.0 million in exchange for termination and extinguishment of all obligations, liabilities, and benefits associated with the lease. | |
LEGAL_MATTERS
LEGAL MATTERS | 3 Months Ended |
2-May-15 | |
LEGAL MATTERS | |
LEGAL MATTERS | NOTE 14—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. | |
WARRANTY_RESERVE_Tables
WARRANTY RESERVE (Tables) | 3 Months Ended | |||||||
2-May-15 | ||||||||
WARRANTY RESERVE | ||||||||
Schedule of reserve for warranty cost activity | ||||||||
(dollar amounts in thousands) | May 2, 2015 | January 31, 2015 | ||||||
Beginning balance | $ | 682 | $ | 682 | ||||
Additions related to current period sales | 3,135 | 14,435 | ||||||
Warranty costs incurred in current period | (3,135 | ) | (14,435 | ) | ||||
Ending balance | $ | 682 | $ | 682 | ||||
DEBT_AND_FINANCING_ARRANGEMENT1
DEBT AND FINANCING ARRANGEMENTS (Tables) | 3 Months Ended | |||||||
2-May-15 | ||||||||
DEBT AND FINANCING ARRANGEMENTS | ||||||||
Schedule of debt and financing arrangements | ||||||||
(dollar amounts in thousands) | May 2, 2015 | January 31, 2015 | ||||||
Senior Secured Term Loan, due October 2018 | $ | 195,500 | $ | 196,000 | ||||
Revolving Credit Agreement, through July 2016 | — | 17,000 | ||||||
Long-term debt | 195,500 | 213,000 | ||||||
Current maturities | (2,000 | ) | (2,000 | ) | ||||
Long-term debt less current maturities | $ | 193,500 | $ | 211,000 | ||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
2-May-15 | |||||||||
EARNINGS PER SHARE | |||||||||
Schedule of calculation of basic and diluted earnings per share | |||||||||
Thirteen Weeks Ended | |||||||||
(dollar amounts in thousands, except per share amounts) | May 2, | May 3, | |||||||
2015 | 2014 | ||||||||
(a) | Earnings from continuing operations | $ | 11,859 | $ | 1,637 | ||||
Gain (loss) from discontinued operations, net of tax | 34 | (29 | ) | ||||||
Net earnings | $ | 11,893 | $ | 1,608 | |||||
(b) | Basic average number of common shares outstanding during period | 54,094 | 53,470 | ||||||
Common shares assumed issued upon exercise of dilutive stock options, net of assumed repurchase, at the average market price | 90 | 539 | |||||||
(c) | Diluted average number of common shares assumed outstanding during period | 54,184 | 54,009 | ||||||
Basic earnings per share: | |||||||||
Earnings from continuing operations (a/b) | $ | 0.22 | $ | 0.03 | |||||
Discontinued operations, net of tax | — | — | |||||||
Basic earnings per share | $ | 0.22 | $ | 0.03 | |||||
Diluted earnings per share: | |||||||||
Earnings from continuing operations (a/c) | $ | 0.22 | $ | 0.03 | |||||
Discontinued operations, net of tax | — | — | |||||||
Diluted earnings per share | $ | 0.22 | $ | 0.03 | |||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended | |||||||
2-May-15 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
Schedule of changes in accumulated other comprehensive income (loss) | ||||||||
Gain/(Loss) on Cash Flow Hedges | ||||||||
Thirteen weeks | Thirteen weeks | |||||||
ended | ended | |||||||
(dollar amounts in thousands) | May 2, 2015 | May 3, 2014 | ||||||
Beginning balance | $ | (391 | ) | $ | 379 | |||
Other comprehensive income/(loss) before reclassifications, net of $32 tax and $78 tax benefit | 52 | (132 | ) | |||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of $57 and $57 tax (a) | 94 | 94 | ||||||
Net current-period other comprehensive income/(loss) | 146 | (38 | ) | |||||
Ending balance | $ | (245 | ) | $ | 341 | |||
(a) | Reclassified amount increased interest expense. | |||||||
FAIR_VALUE_MEASUREMENTS_AND_DE1
FAIR VALUE MEASUREMENTS AND DERIVATIVES (Tables) | 3 Months Ended | |||||||||||||
2-May-15 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
Schedule of assets and liabilities measured at fair value on recurring basis | ||||||||||||||
(dollar amounts in thousands) | Fair Value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||
Description | May 2, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 42,166 | $ | 42,166 | $ | — | $ | — | ||||||
Collateral investments (1) | 21,612 | 21,612 | — | — | ||||||||||
Deferred compensation assets (1) | 4,488 | — | 4,488 | — | ||||||||||
Other liabilities: | ||||||||||||||
Derivative liability (2) | 393 | — | 393 | — | ||||||||||
(dollar amounts in thousands) | Fair Value at | Fair Value Measurements Using Inputs Considered as | ||||||||||||
Description | January 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 38,044 | $ | 38,044 | $ | — | $ | — | ||||||
Collateral investments (1) | 21,611 | 21,611 | — | — | ||||||||||
Deferred compensation assets (1) | 4,382 | — | 4,382 | — | ||||||||||
Other liabilities: | ||||||||||||||
Derivative liability(2) | 625 | — | 625 | — | ||||||||||
-1 | Included in other long-term assets. | |||||||||||||
-2 | 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/(Loss) in | Earnings Statement | Amount of Loss | |||||||||||
Other Comprehensive | Classification | Recognized in Earnings | ||||||||||||
Income/(Loss) | (Effective Portion) (a) | |||||||||||||
(Effective Portion) | ||||||||||||||
Thirteen weeks ended May 2, 2015 | $ | 146 | Interest expense | $ | (151 | ) | ||||||||
Thirteen weeks ended May 3, 2014 | $ | (38 | ) | Interest expense | $ | (151 | ) | |||||||
(a) | Represents the effective portion of the loss reclassified from accumulated other comprehensive income (loss). | |||||||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) | 0 Months Ended | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | 2-May-15 | |
item | item | item | |
BASIS OF PRESENTATION | |||
Number of weeks in a fiscal year | 52 | 52 | |
Number of operated stores | 803 | ||
Number of operated stores owned | 226 | ||
Number of operated stores leased | 577 |
MERCHANDISE_INVENTORIES_Detail
MERCHANDISE INVENTORIES (Details) (USD $) | 2-May-15 | Jan. 31, 2015 |
In Millions, unless otherwise specified | ||
MERCHANDISE INVENTORIES | ||
Value of inventory under FIFO method | $566.50 | $570.20 |
WARRANTY_RESERVE_Details
WARRANTY RESERVE (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | 2-May-15 | Jan. 31, 2015 |
Warranty reserve | ||
Beginning balance | $682 | $682 |
Additions related to current period sales | 3,135 | 14,435 |
Warranty costs incurred in current period | -3,135 | -14,435 |
Ending balance | $682 | $682 |
DEBT_AND_FINANCING_ARRANGEMENT2
DEBT AND FINANCING ARRANGEMENTS (Details) (USD $) | 3 Months Ended | |
2-May-15 | Jan. 31, 2015 | |
Debt and financing arrangements | ||
Long-term debt | 195,500,000 | $213,000,000 |
Current maturities | -2,000,000 | -2,000,000 |
Long-term debt less current maturities | 193,500,000 | 211,000,000 |
Vendor financing program | ||
Trade payable program liability | 139,279,000 | 140,904,000 |
Long-term debt estimated fair value | 195,500,000 | 211,000,000 |
Senior Secured Term Loan, due October 2018 | ||
Debt and financing arrangements | ||
Long-term debt | 195,500,000 | 196,000,000 |
Revolving Credit Agreement, through July 2016 | ||
Debt and financing arrangements | ||
Long-term debt | 0 | 17,000,000 |
Maximum borrowing facility | 300,000,000 | |
Outstanding letters of credit | 37,800,000 | |
Available borrowing capacity remaining | 149,600,000 | |
Revolving Credit Agreement, through July 2016 | Minimum | ||
Debt and financing arrangements | ||
Minimum borrowing availability required to prevent the triggering of an EBITDA requirement covenant | 50,000,000 | |
Vendor financing program | ||
Vendor financing program | ||
Trade payable program availability | 200,000,000 | |
Trade payable program liability | 139,300,000 | $140,900,000 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
INCOME TAXES | ||
Effective rate (as a percent) | 41.20% | 39.50% |
Minimum percentage of possibility for an income tax benefit related to uncertain tax positions to be recognized | 50% | |
Unrecognized tax benefits | $0 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | 2-May-15 | 3-May-14 |
EARNINGS PER SHARE | ||
Earnings from continuing operations | $11,859 | $1,637 |
Gain (loss) from discontinued operations, net of tax | 34 | -29 |
Net earnings | $11,893 | $1,608 |
Basic average number of common shares outstanding during period | 54,094 | 53,470 |
Common shares assumed issued upon exercise of dilutive equity awards, net of assumed repurchase, at the average market price | 90 | 539 |
Diluted average number of common shares assumed outstanding during period | 54,184 | 54,009 |
Basic earnings per share: | ||
Earnings from continuing operations (in dollars per share) | $0.22 | $0.03 |
Basic earnings per share (in dollars per share) | $0.22 | $0.03 |
Diluted earnings per share: | ||
Earnings from continuing operations (in dollars per share) | $0.22 | $0.03 |
Diluted earnings per share (in dollars per share) | $0.22 | $0.03 |
Additional disclosures | ||
Outstanding options, restricted stock units and performance share units (in shares) | 2,965,000 | 3,501,000 |
Anti-dilutive stock options, restricted stock units and performance share units excluded from computation of diluted earnings per share (in shares) | 2,346,000 | 1,255,000 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 2-May-15 | 3-May-14 | ||
Changes in accumulated other comprehensive (loss) income | ||||
Beginning balance | ($391) | |||
Other comprehensive income (loss) | 146 | -38 | ||
Ending balance | -245 | |||
Gain/(Loss) on Cash Flow Hedges | ||||
Changes in accumulated other comprehensive (loss) income | ||||
Beginning balance | -391 | 379 | ||
Other comprehensive income/(loss) before reclassifications, net of $32 tax and $78 tax benefit | 52 | -132 | ||
Amounts reclassified from accumulated other comprehensive income/(loss), net of $57 and $57 tax | 94 | [1] | 94 | [1] |
Other comprehensive income (loss) | 146 | -38 | ||
Ending balance | -245 | 341 | ||
Other comprehensive (loss) income before reclassifications, tax effect | 32 | 78 | ||
Amounts reclassified from accumulated other comprehensive income, tax effect | $57 | [1] | $57 | [1] |
[1] | Reclassified amount increased interest expense. |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (401(k) savings plans, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | 3-May-14 |
CONTRIBUTION PLANS | ||
Contribution expense | $0.70 | $0.80 |
Minimum age of employee to qualify for qualified savings plan | 18 years | |
Employer matching contribution of the first 6% of participant's discretionary contribution (as a percent) | 50.00% | |
Percentage of participant's discretionary contribution matched by 50% of employer contribution | 6.00% | |
Maximum employer match of employee compensation under both savings plans (as a percent) | 3.00% | |
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 | |
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 |
EQUITY_COMPENSATION_PLANS_Deta
EQUITY COMPENSATION PLANS (Details) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
item | ||
Options | ||
EQUITY COMPENSATION PLANS | ||
Vesting period | 3 years | |
Number of grant date anniversaries | 3 | |
Shares | ||
Granted (in shares) | 611,000 | 677,000 |
Information about options | ||
Weighted average fair value at grant date fair value (in dollars per share) | $3.15 | $3.95 |
Additional disclosures | ||
Options expiration term | 7 years | |
Performance Based Awards | Return on invested capital target | ||
Number of RSUs | ||
Granted (in shares) | 116,000 | 153,000 |
Additional disclosures | ||
Fair value at grant date (in dollars per share) | $9.31 | $10.26 |
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) | 58,000 | 76,000 |
Additional disclosures | ||
Fair value at grant date (in dollars per share) | $9.13 | |
The anniversary, from date of grant, through which an employee must be continuously employed in order to vest in the award | 3 years | 3 years |
Performance Based Awards | Total shareholder return target | Minimum | ||
Additional disclosures | ||
Number of underlying shares issued upon vesting (as a percent) | 0.00% | 0.00% |
Performance Based Awards | Total shareholder return target | Maximum | ||
Additional disclosures | ||
Number of underlying shares issued upon vesting (as a percent) | 175.00% | 175.00% |
RSUs | ||
Number of RSUs | ||
Granted (in shares) | 87,000 | 115,000 |
Information about RSUs | ||
Weighted average fair value at grant date per unit (in dollars per share) | $9.31 | $10.26 |
FAIR_VALUE_MEASUREMENTS_AND_DE2
FAIR VALUE MEASUREMENTS AND DERIVATIVES (Details) (USD $) | 3 Months Ended | ||||
2-May-15 | 3-May-14 | Jan. 31, 2015 | |||
Other liabilities: | |||||
Derivative liability | $400,000 | $600,000 | |||
Effect of interest rate swap on the consolidated financial statements | |||||
Amount of Gain/(Loss) in Other Comprehensive Income/(Loss) (Effective Portion) | 146,000 | -38,000 | |||
Amount of Loss Recognized in Earnings (Effective Portion) | -151,000 | -151,000 | |||
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 liabilities: | |||||
Derivative liability | 393,000 | [1] | 625,000 | [1] | |
Recurring basis | Fair Value | Cash and cash equivalents | |||||
Assets: | |||||
Assets | 42,166,000 | 38,044,000 | |||
Recurring basis | Fair Value | Collateral investments | |||||
Assets: | |||||
Assets | 21,612,000 | [2] | 21,611,000 | [2] | |
Recurring basis | Fair Value | Deferred compensation assets | |||||
Assets: | |||||
Assets | 4,488,000 | [2] | 4,382,000 | [2] | |
Recurring basis | Level 1 | Cash and cash equivalents | |||||
Assets: | |||||
Assets | 42,166,000 | 38,044,000 | |||
Recurring basis | Level 1 | Collateral investments | |||||
Assets: | |||||
Assets | 21,612,000 | [2] | 21,611,000 | [2] | |
Recurring basis | Level 2 | |||||
Other liabilities: | |||||
Derivative liability | 393,000 | [1] | 625,000 | [1] | |
Recurring basis | Level 2 | Deferred compensation assets | |||||
Assets: | |||||
Assets | $4,488,000 | [2] | $4,382,000 | [2] | |
[1] | Included in other long-term liabilities. | ||||
[2] | Included in other long-term assets. |
FAIR_VALUE_MEASUREMENTS_AND_DE3
FAIR VALUE MEASUREMENTS AND DERIVATIVES (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | 2-May-15 | Jan. 31, 2015 |
FAIR VALUE MEASUREMENTS | ||
Increase (decrease) in fair value of derivative | ($0.20) | |
Fair value of derivative liability | $0.40 | $0.60 |
IMPAIRMENTS_Details
IMPAIRMENTS (Details) (USD $) | 3 Months Ended | |
2-May-15 | 3-May-14 | |
item | item | |
IMPAIRMENTS | ||
Number of stores with impairment classified as held and used | 5 | 8 |
Impairments | ||
Impairment charges | $798,000 | $1,172,000 |
Level 2 and 3 | ||
Impairments | ||
Fair value of the impaired stores classified as level 2 or 3 measure | 300,000 | |
Merchandise cost of sales | ||
Impairments | ||
Impairment charges | 200,000 | |
Service cost of sales | ||
Impairments | ||
Impairment charges | $800,000 | $1,000,000 |
SALE_OF_LEASEHOLD_INTEREST_Det
SALE OF LEASEHOLD INTEREST (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | 2-May-15 |
item | |
SALE OF LEASEHOLD INTEREST | |
Number of locations with lease rights sold (in locations) | 1 |
Gain from sale of leasehold interest | $10,000 |