Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 01, 2014 | Dec. 15, 2014 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 1-Nov-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ck0000786110 | |
Entity Registrant Name | GYMBOREE CORP | |
Entity Central Index Key | 786110 | |
Current Fiscal Year End Date | -30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,000 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $20,828 | $39,429 | $19,079 |
Accounts receivable, net of allowance of $2,174, $1,370 and $649 | 23,377 | 21,882 | 32,485 |
Merchandise inventories | 259,266 | 175,495 | 222,414 |
Prepaid income taxes | 2,715 | 1,979 | 1,815 |
Prepaid expenses | 21,090 | 18,801 | 19,986 |
Deferred income taxes | 9,182 | 13,454 | 11,721 |
Total current assets | 336,458 | 271,040 | 307,500 |
Property and equipment: | |||
Land and buildings | 22,428 | 22,428 | 22,428 |
Leasehold improvements | 200,948 | 195,556 | 199,308 |
Furniture, fixtures and equipment | 122,427 | 117,131 | 108,650 |
Property, Plant and Equipment, Gross, Total | 345,803 | 335,115 | 330,386 |
Less accumulated depreciation and amortization | -154,628 | -128,807 | -121,119 |
Net property and equipment | 191,175 | 206,308 | 209,267 |
Goodwill | 375,345 | 758,777 | 898,983 |
Other intangible assets, net | 344,829 | 559,824 | 576,744 |
Deferred financing costs | 27,338 | 32,455 | 34,067 |
Other assets | 8,866 | 11,700 | 12,604 |
Total assets | 1,284,011 | 1,840,104 | 2,039,165 |
Current liabilities: | |||
Accounts payable | 146,066 | 101,959 | 87,323 |
Accrued liabilities | 108,334 | 100,303 | 113,472 |
Line of credit | 42,000 | 24,000 | |
Current obligation under capital lease | 539 | 503 | 492 |
Total current liabilities | 296,939 | 202,765 | 225,287 |
Long-term liabilities: | |||
Long-term debt | 1,113,970 | 1,113,742 | 1,113,668 |
Long-term obligation under capital lease | 2,993 | 3,402 | 3,532 |
Lease incentives and other liabilities | 54,129 | 50,432 | 49,772 |
Unrecognized tax benefits | 6,186 | 6,157 | 12,416 |
Deferred income taxes | 131,137 | 214,464 | 217,908 |
Total liabilities | 1,605,354 | 1,590,962 | 1,622,583 |
Commitments and contingencies | |||
Stockholders' (deficit) equity | |||
Common stock, including additional paid-in capital ($.001 par value: 1,000 shares authorized, issued and outstanding) | 521,237 | 517,932 | 516,629 |
Accumulated deficit | -845,917 | -279,258 | -112,102 |
Accumulated other comprehensive loss | -9,255 | -4,880 | -5,795 |
Total stockholders' (deficit) equity | -333,935 | 233,794 | 398,732 |
Noncontrolling interest | 12,592 | 15,348 | 17,850 |
Total (deficit) equity | -321,343 | 249,142 | 416,582 |
Total liabilities and stockholders' (deficit) equity | $1,284,011 | $1,840,104 | $2,039,165 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Accounts receivable, allowance | $2,174 | $1,370 | $649 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 1,000 | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 | 1,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Net sales: | ||||
Net sales | $316,819 | $309,838 | $853,132 | $893,537 |
Cost of goods sold, including buying and occupancy expenses | -190,898 | -186,370 | -522,489 | -542,010 |
Gross profit | 125,921 | 123,468 | 330,643 | 351,527 |
Selling, general and administrative expenses | -113,679 | -111,199 | -323,109 | -317,351 |
Goodwill and intangible asset impairment | -591,396 | -591,396 | ||
Operating (loss) income | -579,154 | 12,269 | -583,862 | 34,176 |
Interest income | 42 | 41 | 157 | 143 |
Interest expense | -20,768 | -20,483 | -61,597 | -61,352 |
Loss on extinguishment of debt | -834 | -834 | ||
Other (expense) income, net | -19 | 853 | -521 | 751 |
(Loss) income before income taxes | -599,899 | -8,154 | -645,823 | -27,116 |
Income tax benefit (expense) | 77,505 | -16,244 | 75,573 | -9,455 |
Net (loss) income | -522,394 | -24,398 | -570,250 | -36,571 |
Net loss attributable to noncontrolling interest | 319 | 413 | 3,591 | 700 |
Net (loss) income attributable to The Gymboree Corporation | -522,075 | -23,985 | -566,659 | -35,871 |
Retail Stores | ||||
Net sales: | ||||
Net sales | 304,265 | 297,352 | 816,765 | 857,173 |
Gymboree Play & Music | ||||
Net sales: | ||||
Net sales | 7,744 | 6,821 | 21,895 | 19,409 |
International Retail Franchise | ||||
Net sales: | ||||
Net sales | $4,810 | $5,665 | $14,472 | $16,955 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Net loss | ($522,394) | ($24,398) | ($570,250) | ($36,571) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments, net of tax | -4,940 | 8 | -5,090 | -415 |
Unrealized net gain (loss) on cash flow hedges, net of tax expense of $127, $501, $127, and $0 | 522 | -871 | 536 | 635 |
Total other comprehensive (loss) income | -4,418 | -863 | -4,554 | 220 |
Comprehensive loss | -526,812 | -25,261 | -574,804 | -36,351 |
Comprehensive loss attributable to noncontrolling interest | 193 | 369 | 3,770 | 599 |
Comprehensive loss attributable to The Gymboree Corporation | ($526,619) | ($24,892) | ($571,034) | ($35,752) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Unrealized net gain (loss) on cash flow hedges, tax expense | $127 | $501 | $127 | $0 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($570,250) | ($36,571) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Loss on extinguishment of debt | 834 | |
Goodwill and intangible asset impairment | 591,396 | |
Depreciation and amortization | 33,469 | 34,825 |
Amortization of deferred financing costs and accretion of original issue discount | 5,345 | 5,112 |
Interest rate cap contracts - adjustment to market | 1,441 | 742 |
Loss on disposal/impairment of assets | 6,089 | 5,662 |
Deferred income taxes | -79,214 | 2,969 |
Share-based compensation expense | 3,389 | 4,417 |
Other | -106 | 40 |
Change in assets and liabilities: | ||
Accounts receivable | -1,507 | 4,382 |
Merchandise inventories | -84,093 | -24,264 |
Prepaid income taxes | -744 | 1,223 |
Prepaid expenses and other assets | 630 | -5,144 |
Accounts payable | 44,115 | -2,807 |
Accrued liabilities | 8,237 | 17,344 |
Lease incentives and other liabilities | 5,304 | 14,522 |
Net cash (used in) provided by operating activities | -36,499 | 23,286 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -24,372 | -35,213 |
Other | -45 | -235 |
Net cash provided by (used in) investing activities | -24,417 | -35,448 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from ABL facility | 300,000 | 79,000 |
Payments on ABL facility | -258,000 | -55,000 |
Repurchase of notes | -24,760 | |
Payments on capital lease | -373 | -78 |
Dividend payment to Parent | -84 | -7,475 |
Capital contribution received by noncontrolling interest | 992 | 6,506 |
Net cash provided by (used in) financing activities | 42,535 | -1,807 |
Effect of exchange rate fluctuations on cash and cash equivalents | -220 | -280 |
Net decrease in cash and cash equivalents | -18,601 | -14,249 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 39,429 | 33,328 |
End of period | 20,828 | 19,079 |
OTHER CASH FLOW INFORMATION: | ||
Cash paid for income taxes, net | 3,677 | 1,591 |
Cash paid for interest | $46,862 | $47,948 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Nov. 01, 2014 | |
Basis of Presentation | 1. Basis of Presentation |
The unaudited interim condensed consolidated financial statements, which include The Gymboree Corporation (the “Company,” “we” or “us”) and our 100%-owned subsidiaries, as well as Gymboree (China) Commercial and Trading Co. Ltd. (“Gymboree China”) and Gymboree (Tianjin) Educational Information Consultation Co. Ltd. (“Gymboree Tianjin”) (collectively, the “VIEs”), have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with generally accepted accounting principles have been omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended February 1, 2014 filed with the Securities and Exchange Commission on May 2, 2014. | |
The accompanying condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations, comprehensive income (loss) and cash flows for the periods presented. The results of operations for the 13 weeks (“third quarter of fiscal 2014”) and 39 weeks ended November 1, 2014 are not necessarily indicative of the operating results that may be expected for the 52-week period ending January 31, 2015 (“fiscal 2014”) or any future period. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Nov. 01, 2014 | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, to provide guidance on principles and definitions to reduce diversity in the timing and content of disclosures when evaluating whether there is substantial doubt about an organization’s ability to continue as a going concern. This ASU is effective in the annual period ending after December 15, 2016, with early application permitted. We have not yet determined the impact of the new standard on our condensed consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. generally accepted accounting principles and International Financial Reporting Standards. This ASU is effective for fiscal years and interim periods within those years, beginning after December 15, 2016, and is to be applied either retrospectively to each prior reporting period presented or with the cumulative effect recognized at the date of initial adoption as an adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets). We have not yet determined the impact of the new standard on our condensed consolidated financial statements. | |
In July 2013, the FASB issued authoritative guidance that requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or 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 and should not be combined with deferred tax assets. The guidance is effective prospectively for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of this guidance in the first quarter of fiscal 2014 did not have a material impact on our condensed consolidated financial statements. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets and Liabilities | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Goodwill and Intangible Assets and Liabilities | 3. Goodwill and Intangible Assets and Liabilities | ||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill allocated to our reportable segments as of November 1, 2014, February 1, 2014 and November 2, 2013 was as follows (in thousands): | |||||||||||||||||
Retail Stores | Gymboree Play | International Retail | Total | ||||||||||||||
Segment | & Music Segment | Franchise Segment | |||||||||||||||
Balance as of November 1, 2014 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,389 | $ | 23,636 | $ | 927,266 | |||||||||
Accumulated impairment losses | (547,285 | ) | — | — | (547,285 | ) | |||||||||||
Effect of exchange rate fluctuations | (4,636 | ) | (4,636 | ) | |||||||||||||
$ | 335,320 | $ | 16,389 | $ | 23,636 | $ | 375,345 | ||||||||||
Balance as of February 1, 2014 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,389 | $ | 23,636 | $ | 927,266 | |||||||||
Accumulated impairment losses | (168,489 | ) | — | — | (168,489 | ) | |||||||||||
$ | 718,752 | $ | 16,389 | $ | 23,636 | $ | 758,777 | ||||||||||
Balance as of November 2, 2013 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,406 | $ | 23,636 | $ | 927,283 | |||||||||
Accumulated impairment losses | (28,300 | ) | — | — | (28,300 | ) | |||||||||||
$ | 858,941 | $ | 16,406 | $ | 23,636 | $ | 898,983 | ||||||||||
Goodwill impairment charges were as follows (in thousands): | |||||||||||||||||
Retail Stores | Gymboree Play | International Retail | Total | ||||||||||||||
Segment | & Music Segment | Franchise Segment | |||||||||||||||
13 and 39 weeks ended November 1, 2014 | $ | (378,796 | ) | $ | — | $ | — | $ | (378,796 | ) | |||||||
52 weeks ended February 1, 2014 | $ | (140,189 | ) | $ | — | $ | — | $ | (140,189 | ) | |||||||
13 and 39 weeks ended November 2, 2013 | $ | — | $ | — | $ | — | $ | — | |||||||||
Goodwill Impairment | |||||||||||||||||
Goodwill is allocated to our reporting units, which are the same as our operating segments: Gymboree Retail (including an online store), Gymboree Outlet, Janie and Jack (including an online store), Crazy 8 (including an online store), Gymboree Play & Music and International Retail Franchise. We evaluate goodwill for impairment on an annual basis at the end of our tenth fiscal period (fiscal November) each year and at an interim date if indicators of impairment exist. | |||||||||||||||||
In connection with our long-range planning process in the third quarter of fiscal 2014, we revised our growth assumptions based on estimates of future operations. The updated assumptions resulted in a plan that reflects slower growth in revenues and margins in the reporting units of our retail stores segment. As a result, we considered this to be a triggering event and performed the first step of the two-step goodwill impairment test during the quarter ended November 1, 2014. We determined that the fair value of the Gymboree Retail, Gymboree Outlet and Crazy 8 reporting units, components of our retail stores reporting segment, were below their carrying values. We performed step two of the goodwill impairment test to measure the goodwill impairment loss specific to these three reporting units. Under step two, the fair values of all Gymboree Retail, Gymboree Outlet and Crazy 8 reporting unit tangible and intangible assets and liabilities were estimated for the purpose of deriving an estimate of the implied fair value of goodwill for each reporting unit. The implied fair value of each reporting unit’s goodwill was then compared to its carrying value to determine the amount of goodwill impairment. | |||||||||||||||||
The goodwill impairment analysis for the reporting units was based on our projection of revenues, gross margin, operating costs and cash flows considering historical and estimated future results, general economic and market conditions, as well as the impact of planned business and operational strategies. We based our fair value estimates on assumptions we believed to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates. The valuations employed present value techniques to measure fair value and considered market factors and reporting unit specific developments. We primarily used an income approach to value these reporting units. The discount rates used in the income approach ranged from 13.0% to 15.5%. We also considered a market approach. Assumptions used in the market approach include valuation multiples based on analysis of multiples for comparable public companies. Finally, specific weights were applied to the components of each approach to estimate the total implied fair value. These weights are estimates by management and are developed based on the specific characteristics, risks and uncertainties of each reporting unit. | |||||||||||||||||
During the third quarter of 2014, we concluded that there was goodwill impairment in the Gymboree Retail, Gymboree Outlet and Crazy 8 reporting units of $252.3 million, $67.2 million and $59.3 million, respectively. The impairment charge is subject to finalization of fair values, which we will complete in the fourth quarter of fiscal 2014. We believe that the preliminary estimate of impairment is reasonable and represents our best estimate of the impairment charge to be incurred; however, it is possible that material adjustments to the preliminary estimate may be required as the analysis is finalized. | |||||||||||||||||
During the 13 and 39 week periods ended November 2, 2013, we did not identify impairment indicators for goodwill or other indefinite-lived intangible assets. | |||||||||||||||||
In fiscal 2013, due to weak results, particularly in the fourth quarter, we concluded that there was goodwill impairment in the Gymboree Retail, Gymboree Outlet and Crazy 8 reporting units. We recorded an estimate of impairment for goodwill of $140.2 million in the fourth quarter of fiscal 2013. The impairment charges were subject to finalization of fair values, which we completed during the first quarter of fiscal 2014, with no change to the previously recorded estimate. | |||||||||||||||||
Intangible Assets and Liabilities | |||||||||||||||||
Indefinite-lived intangible assets Impairment | |||||||||||||||||
We test indefinite-lived intangible assets for impairment as of our annual test date, which is the end of our tenth fiscal period each year (fiscal November), and more frequently if indicators of potential impairment exist and indicate it is more likely than not that the carrying value of the assets may not be recoverable. | |||||||||||||||||
In connection with our long-range planning process in the third quarter of fiscal 2014, we revised our growth assumptions based on estimates of future operations. The updated assumptions resulted in a plan that reflects slower growth in revenues and margins in the reporting units of our retail stores segment. We considered this to be a triggering event and tested our indefinite-lived intangible assets for impairment during the quarter ended November 1, 2014. As a result, we recorded a $212.6 million impairment charge in the third quarter of fiscal 2014 related to trade names of our retail stores segment, which is included as a component of goodwill and intangible asset impairment. The impairment charge is subject to finalization of fair values, which we will complete in the fourth quarter of fiscal 2014. | |||||||||||||||||
We did not identify impairment indicators for indefinite-lived intangible assets during the 13 and 39 weeks ended November 2, 2013. | |||||||||||||||||
Intangible assets and liabilities consist of the following (in thousands): | |||||||||||||||||
November 1, 2014 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | (229,600 | ) | $ | 337,894 | ||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 37,551 | (37,248 | ) | — | 303 | ||||||||||||
Below market leases | 7,055 | (4,995 | ) | — | 2,060 | ||||||||||||
Co-branded credit card agreement | 4,000 | (2,419 | ) | — | 1,581 | ||||||||||||
Franchise agreements and reacquired franchise rights | 6,632 | (3,641 | ) | — | 2,991 | ||||||||||||
55,238 | (48,303 | ) | — | 6,935 | |||||||||||||
Total other intangible assets | $ | 622,732 | $ | (48,303 | ) | $ | (229,600 | ) | $ | 344,829 | |||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 11,517 | $ | — | $ | (5,114 | ) | |||||||
February 1, 2014 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | (17,000 | ) | $ | 550,494 | ||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 37,551 | (36,803 | ) | — | 748 | ||||||||||||
Below market leases | 7,055 | (4,195 | ) | — | 2,860 | ||||||||||||
Co-branded credit card agreement | 4,000 | (1,958 | ) | — | 2,042 | ||||||||||||
Franchise agreements and reacquired franchise rights | 6,632 | (2,952 | ) | — | 3,680 | ||||||||||||
55,238 | (45,908 | ) | — | 9,330 | |||||||||||||
Total other intangible assets | $ | 622,732 | $ | (45,908 | ) | $ | (17,000 | ) | $ | 559,824 | |||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 9,999 | $ | — | $ | (6,632 | ) | |||||||
November 2, 2013 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | — | $ | 567,494 | |||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 36,400 | (36,400 | ) | — | — | ||||||||||||
Below market leases | 7,055 | (3,908 | ) | — | 3,147 | ||||||||||||
Co-branded credit card agreement | 4,000 | (1,804 | ) | — | 2,196 | ||||||||||||
Franchise agreements | 6,600 | (2,693 | ) | — | 3,907 | ||||||||||||
54,055 | (44,805 | ) | — | 9,250 | |||||||||||||
Total other intangible assets | $ | 621,549 | $ | (44,805 | ) | $ | — | $ | 576,744 | ||||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 9,366 | $ | — | $ | (7,265 | ) | |||||||
Included in cost of goods sold (“COGS”), is amortization of below market leases and above market leases. During the 13 weeks ended November 1, 2014 and November 2, 2013, we recorded net amortization income of approximately $0.2 million and $0.3 million, respectively, in COGS. During the 39 weeks ended November 1, 2014 and November 2, 2013, we recorded net amortization income of approximately $0.7 million and $1.1 million, respectively, in COGS. | |||||||||||||||||
Included in selling, general and administrative expenses (“SG&A”), is amortization of customer relationships, co-branded credit card agreement and franchise agreements and reacquired franchise rights. During the 13 weeks ended November 1, 2014 and November 2, 2013, we recorded amortization expense of approximately $0.5 million and $0.4 million, respectively, in SG&A. During the 39 weeks ended November 1, 2014 and November 2, 2013, we recorded amortization expense of approximately $1.6 million and $3.0 million, respectively, in SG&A. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Derivative Financial Instruments | 4. Derivative Financial Instruments | ||||||||||||||||||||||||
We enter into forward foreign exchange contracts with respect to certain purchases in United States dollars (“U.S. dollars”) of inventory to be sold in our retail stores in Canada. The purpose of these contracts is to protect our margins on the eventual sale of the inventory from fluctuations in the exchange rate for Canadian and U.S. dollars. The term of these forward foreign exchange contracts is generally less than one year. These contracts are treated as cash flow hedges. Amounts reported in accumulated other comprehensive income (loss) related to these forward foreign exchange contracts will be reclassified to COGS over a three-month period. We also enter into forward foreign exchange contracts with respect to short-term intercompany balances between U.S. and foreign entities in Canada and Australia. The purpose of these contracts is to protect us from fluctuations in the exchange rates upon the settlement of such balances. These contracts are not designated as hedges. Consequently, changes in the fair value of these contracts are included in other income. | |||||||||||||||||||||||||
In December 2010, we paid approximately $12.1 million to enter into interest rate caps to hedge against rising interest rates associated with our Term Loan (see Note 7) above the strike rate of the cap through December 23, 2016, the maturity date of the caps. The interest rate caps were designated on the date of execution as cash flow hedges. The premium, and any related amounts reported in accumulated other comprehensive loss, are being amortized to interest expense through December 23, 2016, as interest payments are made on the underlying Term Loan. During the 13 weeks ended November 1, 2014 and November 2, 2013, we reclassified approximately $0.5 million and $0.3 million, respectively, from accumulated other comprehensive loss to interest expense. During the 39 weeks ended November 1, 2014 and November 2, 2013, we reclassified approximately $1.4 million and $0.7 million, respectively, from accumulated other comprehensive loss to interest expense. We estimate approximately $3.4 million will be reclassified from accumulated other comprehensive loss to interest expense within the next 12 months. | |||||||||||||||||||||||||
For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (loss) and is subsequently recognized in earnings when the hedged exposure is recognized in earnings. Gains or losses on the derivative representing either hedge components excluded from the assessment of effectiveness or hedge ineffectiveness are recognized in earnings. | |||||||||||||||||||||||||
We had the following outstanding derivatives designated as cash flow hedges (U.S. dollars in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Number of | Notional | Number of | Notional | Number of | Notional | ||||||||||||||||||||
Instruments | (USD) | Instruments | (USD) | Instruments | (USD) | ||||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||||
Purchased interest rate caps | 4 | $ | 700,000 | 4 | $ | 700,000 | 4 | $ | 700,000 | ||||||||||||||||
Foreign exchange derivatives | |||||||||||||||||||||||||
Forward foreign exchange contracts | 3 | 4,682 | 6 | 5,029 | 3 | 3,420 | |||||||||||||||||||
Total | 7 | $ | 704,682 | 10 | $ | 705,029 | 7 | $ | 703,420 | ||||||||||||||||
We had the following outstanding derivatives which were not designated as hedges (U.S. dollars in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Number of | Notional | Number of | Notional | Number of | Notional | ||||||||||||||||||||
Instruments | (USD) | Instruments | (USD) | Instruments | (USD) | ||||||||||||||||||||
Forward foreign exchange contracts | — | $ | — | 2 | $ | 10,339 | 1 | $ | 380 | ||||||||||||||||
The table below presents the fair value of all of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets (in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Derivative | Derivative | Derivative | |||||||||||||||||||||||
Assets | Assets | Assets | |||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||
Purchased interest rate caps | $ | 41 | $ | 599 | $ | 641 | |||||||||||||||||||
Forward foreign exchange contracts | 134 | 348 | 107 | ||||||||||||||||||||||
Total | $ | 175 | $ | 947 | $ | 748 | |||||||||||||||||||
The tables below present the effect of all of our derivative financial instruments on the condensed consolidated statements of operations and comprehensive income (loss) (in thousands). No amounts were reclassified from accumulated other comprehensive loss into earnings as a result of forecasted transactions that failed to occur or as a result of hedge ineffectiveness. | |||||||||||||||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (1 | ) | Interest expense | $ | (509 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 181 | Cost of goods sold | 40 | ||||||||||||||||||||||
Total | $ | 180 | $ | (469 | ) | ||||||||||||||||||||
13 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (546 | ) | Interest expense | $ | (310 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 3 | Cost of goods sold | 137 | ||||||||||||||||||||||
Total | $ | (543 | ) | $ | (173 | ) | |||||||||||||||||||
39 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (558 | ) | Interest expense | $ | (1,441 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 109 | Cost of goods sold | 329 | ||||||||||||||||||||||
Total | $ | (449 | ) | $ | (1,112 | ) | |||||||||||||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (323 | ) | Interest expense | $ | (742 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 407 | Cost of goods sold | 191 | ||||||||||||||||||||||
Total | $ | 84 | $ | (551 | ) | ||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Fair Value Measurements | 5. Fair Value Measurements | ||||||||||||||||||||||||
We record our money market funds, interest rate caps and forward foreign exchange contracts at fair value. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Accounting guidance prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||||||||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||||||||
Level 2 – Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. | |||||||||||||||||||||||||
Level 3 – Inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques. | |||||||||||||||||||||||||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement in its entirety is classified is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
The tables below present our assets and liabilities measured at fair value on a recurring basis as of November 1, 2014, February 1, 2014 and November 2, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands). There were no transfers into or out of Level 1 and Level 2 during the 13 and 39 weeks ended November 1, 2014 and November 2, 2013, or for the year ended February 1, 2014. | |||||||||||||||||||||||||
November 1, 2014 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest rate caps | $ | — | $ | 41 | $ | — | $ | 41 | |||||||||||||||||
Forward foreign exchange contracts | — | 134 | — | 134 | |||||||||||||||||||||
Total | $ | — | $ | 175 | $ | — | $ | 175 | |||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Money market funds | $ | 14,571 | $ | — | $ | — | $ | 14,571 | |||||||||||||||||
Interest rate caps | — | 599 | — | 599 | |||||||||||||||||||||
Forward foreign exchange contracts | — | 348 | — | 348 | |||||||||||||||||||||
Total | $ | 14,571 | $ | 947 | $ | — | $ | 15,518 | |||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets and | (Level 2) | Inputs | |||||||||||||||||||||||
Liabilities | (Level 3) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest rate caps | $ | — | $ | 641 | $ | — | $ | 641 | |||||||||||||||||
Forward foreign exchange contracts | — | 107 | — | 107 | |||||||||||||||||||||
Total | $ | — | $ | 748 | $ | — | $ | 748 | |||||||||||||||||
Our cash equivalents, which are primarily placed in money market funds, are valued at their original purchase prices plus interest that has accrued at the stated rate. | |||||||||||||||||||||||||
The fair value of our interest rate caps was determined using the market standard methodology of discounting future cash receipts. The variable cash receipts were based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves and volatilities. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, were incorporated in the fair values to account for potential nonperformance risk. In adjusting the fair value of these contracts for the effect of nonperformance risk, we have considered any applicable credit enhancements such as collateral postings, thresholds, mutual puts, and guarantees. | |||||||||||||||||||||||||
Although we have determined the majority of the inputs used to value our interest rate caps fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of November 1, 2014, February 1, 2014, and November 2, 2013, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our interest rate cap positions and determined the credit valuation adjustment was not significant to the overall valuation. As a result, we classified our interest rate caps derivative valuations in Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||
The fair value of our forward foreign exchange contracts was determined using the market approach and Level 2 inputs. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. | |||||||||||||||||||||||||
The carrying value of cash and cash equivalents, receivables and payables balances approximate their estimated fair values due to the short maturities of these instruments. We estimate the fair value of our long-term debt using current market yields. These current market yields are considered Level 2 inputs. The estimated fair value of long-term debt is as follows (in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Term loan | $ | 767,970 | $ | 488,380 | $ | 767,742 | $ | 692,192 | $ | 767,668 | $ | 746,029 | |||||||||||||
Notes | 346,000 | 110,720 | 346,000 | 308,805 | 346,000 | 332,160 | |||||||||||||||||||
$ | 1,113,970 | $ | 599,100 | $ | 1,113,742 | $ | 1,000,997 | $ | 1,113,668 | $ | 1,078,189 | ||||||||||||||
We had no other financial assets or liabilities measured at fair value as of November 1, 2014, February 1, 2014, and November 2, 2013. | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||||||||||||||
Our non-financial assets, which primarily consist of goodwill, other intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis whenever events or changes in circumstances indicate their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial assets are assessed for impairment and, if applicable, written-down to and recorded at fair value, considering external market participant assumptions. | |||||||||||||||||||||||||
During the 13 and 39 weeks ended November 1, 2014, we recorded $378.8 million of goodwill impairment related to our Gymboree Retail, Gymboree Outlet, and Crazy 8 reporting units and $212.6 million of impairment related to our indefinite-lived intangible assets (see Note 3). We did not recognize any goodwill or indefinite-lived intangible assets impairment charges during the 13 and 39 weeks ended November 2, 2013. | |||||||||||||||||||||||||
During the 13 and 39 weeks ended November 1, 2014, we recorded impairment charges of $2.0 million and $5.2 million, respectively, related to assets for under-performing stores. During the 13 and 39 weeks ended November 2, 2013, we recorded impairment charges of $0.5 million and $1.5 million, respectively, related to assets for under-performing stores. The fair market value of these non-financial assets was determined using the income approach and Level 3 inputs, which required management to make significant estimates about future cash flows. Management estimates the amount and timing of future cash flows based on historical operating results and its experience and knowledge of the retail market in which each store operates. These impairment charges are included in SG&A expenses in the accompanying condensed consolidated statement of operations. |
Line_of_Credit
Line of Credit | 9 Months Ended |
Nov. 01, 2014 | |
Line of Credit | 6. Line of Credit |
We have a senior secured asset-based revolving credit facility (“ABL”) that provides financing of up to $225 million, subject to a borrowing base. Availability under the ABL is subject to the assets of the Company, any subsidiary co-borrowers and any subsidiary guarantors that are available to collateralize the borrowings thereunder, and is reduced by the level of outstanding letters of credit. Line of credit borrowings outstanding under the ABL as of November 1, 2014, February 1, 2014 and November 2, 2013 were $42.0 million, $0 and $24.0 million, respectively. Amounts available under the ABL are reduced by letter of credit utilization totaling $29.6 million as of November 1, 2014. Undrawn availability under the ABL, after being reduced by letter of credit utilization and outstanding borrowings, was $146.0 million as of November 1, 2014. | |
Average borrowings for the 13 and 39 weeks ended November 1, 2014 under the ABL amounted to $48.5 million and $28.9 million, respectively. Average borrowings for the year ended February 1, 2014 under the ABL amounted to $4.3 million. Average borrowings for the 13 and 39 weeks ended November 2, 2013 under the ABL amounted to $10.6 million and $3.5 million, respectively. | |
The ABL provides us the right to request up to $125 million of additional commitments under this facility (or, if less, the amount permitted under the Term Loan described in Note 7), subject to the satisfaction of certain conditions. Principal amounts outstanding under the ABL are due and payable in full in March 2017. Borrowings under the ABL bear interest at a rate per annum equal to, at our option, either (a) a base rate determined by reference to the highest of (1) the prime rate of Bank of America, N.A., (2) the federal funds effective rate plus 0.50%, and (3) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month adjusted for certain additional costs, plus 1.00%, or (b) a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs (“Adjusted LIBOR”), in each case plus an applicable margin. In addition to paying interest on outstanding principal under the ABL, we are required to pay a commitment fee on unutilized commitments thereunder, which is 0.375% per annum under the amended ABL. | |
If at any time the aggregate amount of outstanding loans, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL exceeds the lesser of (a) the commitment amount and (b) the borrowing base, we will be required to repay outstanding loans and/or cash collateralize letters of credit in an aggregate amount equal to such excess, with no reduction of the commitment amount. The ABL contains financial and other covenants that, among other things, restrict our ability to incur additional indebtedness and pay dividends. As of November 1, 2014, we were in compliance with these covenants. The obligations under the ABL are secured, subject to certain exceptions, by substantially all of our assets. Our 100%-owned domestic subsidiaries have fully and unconditionally guaranteed our obligations under the ABL. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Long-Term Debt | 7. Long-Term Debt | ||||||||||||
Long-term debt consists of (in thousands): | |||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||
Term loan due February 2018, Adjusted LIBOR (with a floor of 1.5%) plus 3.5%, net of discount of $1,133, $1,360, and $1,434 | $ | 767,970 | $ | 767,742 | $ | 767,668 | |||||||
Senior notes due December 2018, 9.125% | 346,000 | 346,000 | 346,000 | ||||||||||
Long-term debt | $ | 1,113,970 | $ | 1,113,742 | $ | 1,113,668 | |||||||
Term Loan | |||||||||||||
We have an agreement with several lenders for an $820 million senior secured Term Loan, with a maturity date of February 2018. The Term Loan allows us to request additional tranches of term loans in an aggregate amount not to exceed $200 million, subject to the satisfaction of certain conditions, provided such amount will be subject to reduction by the amount of any additional commitments incurred under the ABL described in Note 6. The interest rate for borrowings under the Term Loan is, at our option, a base rate plus an additional marginal rate of 2.5% or the Adjusted LIBOR rate (with a 1.5% floor) plus an additional rate of 3.5%. As of November 1, 2014, the interest rate under our Term Loan was 5%. | |||||||||||||
The Term Loan requires us to make quarterly payments equal to 0.25% of the original $820 million principal amount of the Term Loan made on the closing date plus accrued and unpaid interest thereon, with the balance due in February 2018. The Term Loan also has mandatory and voluntary pre-payment provisions, including a requirement that we prepay the Term Loan with a certain percentage of our annual excess cash flow. We calculated our excess cash flow using fiscal 2013 operating results and concluded we are not required to make any excess cash flow payments on the Term Loan during fiscal 2014. Excess cash flow payments on the Term Loan for fiscal 2015 will be calculated with our fiscal 2014 annual operating results. Voluntary prepayments and the excess cash flow prepayments made in prior fiscal years were applied toward our remaining quarterly amortization payments payable under the Term Loan through fiscal 2016. Our next quarterly payment payable under the Term Loan is due in the first quarter of fiscal 2017. | |||||||||||||
The obligations under the Term Loan are secured, subject to certain exceptions, by substantially all of our assets and those of our 100%-owned domestic subsidiaries. Our 100%-owned domestic subsidiaries also have fully and unconditionally guaranteed the Company’s obligations under the Term Loan. | |||||||||||||
Notes | |||||||||||||
In fiscal 2010, we issued $400 million aggregate principal amount of 9.125% senior notes due in December 2018 (the “Notes”). Interest on the Notes is payable semi-annually. If the Company or our subsidiaries sell certain assets, we generally must either invest the net cash proceeds from such sale in our business within a certain period of time, use the proceeds to prepay senior secured debt, or make an offer to purchase a principal amount of the Notes equal to the excess net cash proceeds at a redemption price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest. Upon a change in control, we may also be required to make an offer to purchase all of the Notes at a redemption price equal to 101% of the principal amount of the Notes redeemed plus accrued and unpaid interest. We may redeem the Notes, in whole or in part, upon at least 30 days prior notice, at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 1 of each of the years indicated below: | |||||||||||||
Year | Percentage | ||||||||||||
2014 | 104.563 | % | |||||||||||
2015 | 102.281 | % | |||||||||||
2016 and thereafter | 100 | % | |||||||||||
The Notes are unsecured senior obligations of The Gymboree Corporation. The Company’s 100%-owned domestic subsidiaries have fully and unconditionally guaranteed the Company’s obligations under the Notes (see Note 16). The guarantees of the Notes are joint and several and will terminate upon the following circumstances: (A) the sale, exchange, disposition or transfer (by merger or otherwise) of (x) the capital stock of the guarantor providing the applicable guarantee, if after such sale, exchange, disposition or transfer such guarantor is no longer a subsidiary of The Gymboree Corporation, or (y) all or substantially all of the assets of such guarantor, (B) the release or discharge of the guarantee by such guarantor of the other indebtedness which resulted in the creation of the subsidiary guarantee by such guarantor under the Indenture, (C) the designation of such guarantor as an “unrestricted subsidiary” under the Indenture or (D) the legal defeasance, covenant defeasance or satisfaction and discharge of the Indenture, in each such case specified in clauses (A) through (D) above in accordance with the requirements therefore set forth in the Indenture. | |||||||||||||
Future minimum principal payments on long-term debt, excluding accretion of original issue discount (“OID”) of $1.1 million, as of November 1, 2014, are as follows (in thousands): | |||||||||||||
Fiscal years | Principal Payments | ||||||||||||
Remainder of 2014 | $ | — | |||||||||||
2015 | — | ||||||||||||
2016 | — | ||||||||||||
2017 | 6,502 | ||||||||||||
2018 | 1,108,600 | ||||||||||||
Total | $ | 1,115,102 | |||||||||||
Interest Expense on Long-Term Debt and ABL | |||||||||||||
Interest expense on long-term debt and the ABL was $20.6 million and $20.5 million for the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. Interest expense on long-term debt and the ABL was $61.2 million and $61.4 million for the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. | |||||||||||||
Amortization of deferred financing costs and accretion of OID are also included in interest expense. Deferred financing costs allocated to the Term Loan and Notes are amortized over the term of the related financing agreements using the effective interest method. Deferred financing costs allocated to the ABL are amortized on a straight-line basis over 6.4 years. The weighted-average remaining amortization period is 3.5 years. Amortization of deferred financing costs was $1.7 million for both the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. Amortization of deferred financing costs was $5.1 million and $4.9 million for the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. Accretion of OID was not material for the 13 and 39 weeks ended November 1, 2014 and November 2, 2013. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended |
Nov. 01, 2014 | |
Share-Based Compensation | 8. Share-Based Compensation |
Share-based compensation expense included as a component of SG&A expenses was $1.1 million and $1.4 million during the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. Share-based compensation expense was $3.4 million and $4.4 million during the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. We include an estimate of forfeitures in determining share-based compensation expense. |
Dividends
Dividends | 9 Months Ended |
Nov. 01, 2014 | |
Dividends | 9. Dividends |
During the third quarter of fiscal 2014, we distributed $0.1 million in the form of a dividend to our indirect parent, Giraffe Holding, Inc. (“Parent”). The dividend was used by Parent’s shareholders, which are investment funds sponsored by Bain Capital Partners, LLC (“Bain Capital”), to repurchase shares. During the first and third quarter of fiscal 2013, we distributed $0.2 million and $0.6 million, respectively, in the form of a dividend to Parent, which was used by Parent’s shareholders to repurchase shares. | |
During the third quarter of 2013, we distributed $6.7 million in the form of a dividend to Parent, which was used by Parent’s shareholders to fund their equity investment in the VIE (see Note 15). | |
Equity investments received by the VIE as capital contributions from affiliate of Parent during the second quarter of fiscal 2014 were $1.0 million and zero in the first and third quarters of fiscal 2014. Total equity investments received by the VIE as capital contributions from affiliate of Parent during the first and second quarter of fiscal 2013, were $1.0 million and $5.5 million, respectively, and zero in the third quarter of fiscal 2013. |
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 01, 2014 | |
Income Taxes | 10. Income Taxes |
As of November 1, 2014, February 1, 2014 and November 2, 2013, unrecognized tax benefits were $6.9 million, $6.6 million and $12.1 million, respectively. We believe it is reasonably possible that the total amount of unrecognized tax benefits of $6.9 million as of November 1, 2014 will decrease by as much as $1.2 million during the next twelve months due to the resolution of certain tax contingencies and lapses of applicable statutes of limitations. | |
As of November 1, 2014, February 1, 2014 and November 2, 2013, the total valuation allowance against deferred tax assets was $52.4 million, $31.9 million and $25.2 million, respectively. We establish a valuation allowance when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. We consider all available positive and negative evidence in evaluating whether a valuation allowance is required, including prior earnings history, actual earnings over the previous 12 quarters on a cumulative basis, carryback and carryforward periods, and tax planning strategies that could potentially enhance the likelihood of realization of a deferred tax asset. We continue to have a valuation allowance against all net deferred tax assets in U.S. federal and unitary state jurisdictions, excluding indefinite-lived deferred tax assets and liabilities, and against the tax benefit on losses from our VIEs. We intend to maintain a valuation allowance until sufficient positive evidence exists to support its reversal. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Accumulated Other Comprehensive Loss | 11. Accumulated Other Comprehensive Loss | ||||||||||||
The following table shows the components of accumulated other comprehensive income (loss) (“OCI”), net of tax for the periods ended (in thousands): | |||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||
Foreign currency translation | $ | (4,288 | ) | $ | 623 | $ | 292 | ||||||
Accumulated changes in fair value of derivative financial instruments, net of tax benefit of $3,855, $3,982 and $3,982 | (4,967 | ) | (5,503 | ) | (6,087 | ) | |||||||
Total accumulated other comprehensive loss | $ | (9,255 | ) | $ | (4,880 | ) | $ | (5,795 | ) | ||||
Changes in accumulated OCI balance by component were as follows for the periods ended (in thousands): | |||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,489 | ) | $ | 778 | $ | (4,711 | ) | |||||
Other comprehensive income (loss) recognized before reclassifications | 180 | (4,940 | ) | (4,760 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 469 | — | 469 | ||||||||||
Tax expense | (127 | ) | — | (127 | ) | ||||||||
Net current-period other comprehensive income (loss) | 522 | (4,940 | ) | (4,418 | ) | ||||||||
Other comprehensive income attributable to noncontrolling interest | — | (126 | ) | (126 | ) | ||||||||
Ending balance | $ | (4,967 | ) | $ | (4,288 | ) | $ | (9,255 | ) | ||||
13 Weeks Ended November 2, 2013 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,216 | ) | $ | 328 | $ | (4,888 | ) | |||||
Other comprehensive (loss) income recognized before reclassifications | (543 | ) | 8 | (535 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 173 | — | 173 | ||||||||||
Tax expense | (501 | ) | — | (501 | ) | ||||||||
Net current-period other comprehensive (loss) income | (871 | ) | 8 | (863 | ) | ||||||||
Other comprehensive income attributable to noncontrolling interest | — | (44 | ) | (44 | ) | ||||||||
Ending balance | $ | (6,087 | ) | $ | 292 | $ | (5,795 | ) | |||||
39 Weeks Ended November 1, 2014 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,503 | ) | $ | 623 | $ | (4,880 | ) | |||||
Other comprehensive loss recognized before reclassifications | (449 | ) | (5,090 | ) | (5,539 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 1,112 | — | 1,112 | ||||||||||
Tax expense | (127 | ) | — | (127 | ) | ||||||||
Net current-period other comprehensive income (loss) | 536 | (5,090 | ) | (4,554 | ) | ||||||||
Other comprehensive loss attributable to noncontrolling interest | — | 179 | 179 | ||||||||||
Ending balance | $ | (4,967 | ) | $ | (4,288 | ) | $ | (9,255 | ) | ||||
39 Weeks Ended November 2, 2013 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (6,722 | ) | $ | 808 | $ | (5,914 | ) | |||||
Other comprehensive income (loss) recognized before reclassifications | 84 | (415 | ) | (331 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 551 | — | 551 | ||||||||||
Net current-period other comprehensive income (loss) | 635 | (415 | ) | 220 | |||||||||
Other comprehensive income attributable to noncontrolling interest | — | (101 | ) | (101 | ) | ||||||||
Ending balance | $ | (6,087 | ) | $ | 292 | $ | (5,795 | ) | |||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Nov. 01, 2014 | |
Related Party Transactions | 12. Related Party Transactions |
Related Party Transactions – Excluding VIEs | |
We incurred approximately $0.7 million and $0.9 million in management fees and reimbursement of out-of-pocket expenses from Bain Capital during the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. We incurred approximately $2.3 million and $2.7 million in management fees and reimbursement of out-of-pocket expenses from Bain Capital during the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. As of November 1, 2014, February 1, 2014 and November 2, 2013, we had a payable balance of $0.2 million, $0.4 million and $0.2 million, respectively, to Bain Capital. | |
We incurred approximately $0.5 million and $0.6 million in expenses related to services purchased from LogicSource, a company owned by funds associated with Bain Capital, during the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. We incurred approximately $1.4 million and $1.8 million in expenses related to services purchased from LogicSource during the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. As of November 1, 2014, February 1, 2014 and November 2, 2013, we had a payable balance of $0.2 million, $0.2 million and $0.3 million, respectively, to LogicSource. | |
During the 13 and 39 weeks ended November 1, 2014, we did not sell inventory to Burlington Coat Factory Investments Holdings, Inc., a company owned by funds associated with Bain Capital. During the 13 and 39 weeks ended November 2, 2013, we sold inventory to Burlington Coat Factory Investments Holdings, Inc. for $0.7 million and $8.7 million, respectively. As of November 1, 2014, February 1, 2014 and November 2, 2013, we had a receivable balance of $0, $1.0 million and $0, respectively, from Burlington Coat Factory Investments Holdings, Inc. | |
As of February 1, 2014, we had a receivable balance of $0.8 million, from our indirect parent, Giraffe Holding, Inc., related to income taxes and none as of November 1, 2014 and November 2, 2013. | |
In April 2014, Gymboree Play Programs, Inc. (“GPPI”), a wholly owned subsidiary of the Company, entered into a 10-year master franchise agreement with Gymboree Tianjin, an affiliate of the Company and VIE. Effective April 2014, Gymboree Tianjin became the master franchisor of Play & Music centers in the People’s Republic of China (“PRC”) Territory, with the rights to operate primary Play & Music centers, award and service unit franchises in the PRC. GPPI will receive a percentage of royalties and franchise fees earned by Gymboree Tianjin. Intercompany revenues and expenses have been eliminated upon consolidation. | |
Related Party Transactions –VIEs | |
Our VIE incurred approximately $0.1 million in management fees from Bain Capital Advisors (China) Ltd. during the 13 weeks ended November 1, 2014 and November 2, 2013. Our VIE incurred approximately $0.4 million in management fees from Bain Capital Advisors (China) Ltd. for the 39 weeks ended November 1, 2014 and November 2, 2013. | |
As of November 1, 2014, February 1, 2014 and November 2, 2013, our VIEs had a balance of $1.1 million, payable to their indirect parent, Gymboree Investment Holding GP, Ltd., related to funds used to pay operating costs of the VIEs. As of November 1, 2014, February 1, 2014 and November 2, 2013, our VIEs had a payable balance of $0.4 million related to funds used to pay operating costs of the VIEs, due to Gymboree Hong Kong Limited, the unconsolidated direct parent of the VIEs. The Company is part of a related party group that controls Gymboree Hong Kong Limited. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 01, 2014 | |
Commitments and Contingencies | 13. Commitments and Contingencies |
Commitments | |
There have been no significant changes to our contractual obligations and commercial commitments as disclosed in our Annual Report on Form 10-K as of February 1, 2014, other than those which occur in the normal course of business. | |
Contingencies | |
From time to time, we are subject to various legal actions arising in the ordinary course of our business. Many of these legal actions raise complex factual and legal issues, which are subject to uncertainties. We cannot predict with reasonable assurance the outcome of these legal actions brought against us. Accordingly, any settlements or resolutions in these legal actions may occur and affect our net income in the quarter of such settlement or resolution. However, we do not believe the outcome of any legal actions would have a material effect on our condensed consolidated financial statements taken as a whole. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Segment Information | 14. Segment Information | ||||||||||||||||||||||||
We have four reportable segments: retail stores (including online stores), Gymboree Play & Music, International Retail Franchise (“Retail Franchise”), and one reportable segment related to the activities of our consolidated VIEs. These reportable segments were identified based on how our business is managed and evaluated by our chief operating decision maker. The retail stores segment includes four operating segments (brands), which sell high-quality apparel for children: Gymboree Retail (including an online store), Gymboree Outlet, Janie and Jack (including an online store), and Crazy 8 (including an online store). These four operating segments have been aggregated into one reportable segment because these operating segments have similar historical economic characteristics and/or are expected to have similar economic characteristics and similar long-term financial performance in the future. Gross margin is the principal measure we consider in determining whether the economic characteristics are similar. In addition, each operating segment has similar products, production processes and type or class of customer. We believe disaggregating our operating segments would not provide material additional information. Corporate overhead (costs related to our distribution centers and shared corporate services) is included in the retail stores segment. | |||||||||||||||||||||||||
Summary financial data of each reportable segment were as follows for the periods ended (in thousands): | |||||||||||||||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 303,166 | $ | 4,178 | $ | 4,914 | $ | 6,055 | $ | (1,494 | ) | $ | 316,819 | ||||||||||||
Operating (loss) income | $ | (583,758 | ) | $ | 1,981 | $ | 2,452 | $ | 172 | $ | (1 | ) | $ | (579,154 | ) | ||||||||||
13 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 295,969 | $ | 3,879 | $ | 5,791 | $ | 5,395 | $ | (1,196 | ) | $ | 309,838 | ||||||||||||
Operating income (loss) | $ | 8,786 | $ | 1,836 | $ | 2,430 | $ | (803 | ) | $ | 20 | $ | 12,269 | ||||||||||||
39 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 812,887 | $ | 13,069 | $ | 14,838 | $ | 17,705 | $ | (5,367 | ) | $ | 853,132 | ||||||||||||
Operating (loss) income | $ | (596,894 | ) | $ | 8,227 | $ | 7,340 | $ | (2,525 | ) | $ | (10 | ) | $ | (583,862 | ) | |||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 853,422 | $ | 11,524 | $ | 17,318 | $ | 15,027 | $ | (3,754 | ) | $ | 893,537 | ||||||||||||
Operating income (loss) | $ | 22,657 | $ | 5,284 | $ | 7,499 | $ | (1,318 | ) | $ | 54 | $ | 34,176 | ||||||||||||
Total Assets | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
November 1, 2014 | $ | 1,175,445 | $ | 59,655 | $ | 28,252 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||||||
February 1, 2014 | $ | 1,728,186 | $ | 60,942 | $ | 29,256 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||||||
November 2, 2013 | $ | 1,924,170 | $ | 61,034 | $ | 29,403 | $ | 26,028 | $ | (1,470 | ) | $ | 2,039,165 | ||||||||||||
Interest expense, depreciation and amortization expense and capital expenditures have not been separately disclosed above as the amounts primarily relate to the retail segment. The Gymboree Play & Music and Retail Franchise reportable segments recorded intersegment revenues of $1.4 million and $0.1 million, respectively, for the 13 weeks ended November 1, 2014, and $1.1 million and $0.1 million, respectively, for the 13 weeks ended November 2, 2013. The Gymboree Play & Music and Retail Franchise reportable segments recorded intersegment revenues of $5.0 million and $0.4 million, respectively, for the 39 weeks ended November 1, 2014, and $3.4 million and $0.4 million, respectively, for the 39 weeks ended November 2, 2013. | |||||||||||||||||||||||||
We attribute retail store revenues to individual countries based on the selling location. For Retail Franchise, all sales are attributed to the U.S. geographic segment. | |||||||||||||||||||||||||
VIE Play & Music sales are attributable to the international geographic segment and all other Gymboree Play & Music sales are attributable to the U.S. geographic segment (see Note 15). | |||||||||||||||||||||||||
Summary financial data of each of our two geographical segments, United States and international were as follows for the fiscal periods ended (in thousands): | |||||||||||||||||||||||||
13 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||
Net sales | $ | 296,839 | $ | 19,980 | $ | 290,962 | $ | 18,876 | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||
Net sales | $ | 801,409 | $ | 51,723 | $ | 841,855 | $ | 51,682 | |||||||||||||||||
Long-lived assets which include net property and equipment were as follows for the fiscal periods ended (in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
United States | $ | 179,982 | $ | 196,990 | $ | 199,156 | |||||||||||||||||||
International | $ | 11,193 | $ | 9,318 | $ | 10,111 |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Variable Interest Entities | 15. Variable Interest Entities | ||||||||||||||||
Gymboree China, Gymboree Tianjin and the Company are indirectly controlled by Gymboree Holding, Ltd. and investment funds sponsored by Bain Capital. Gymboree China and Gymboree Tianjin have been determined to be variable interest entities, and we (as well as our 100%-owned subsidiaries) are a member of a related party group that controls the VIEs and absorbs the economics of the VIEs. Based on our relationship with the VIEs, we determined we are most closely associated with the VIEs, and therefore, consolidate them as the primary beneficiary. However, as we have a 0% ownership interest in the VIEs, 100% of the results of operations of the VIEs are recorded as noncontrolling interest. The assets of the VIEs cannot be used by us. The liabilities of the VIEs are comprised mainly of short-term accrued expenses, and their creditors have no recourse to our general credit or assets. | |||||||||||||||||
The following tables reflect the impact of the VIEs on the condensed consolidated balance sheets as of November 1, 2014, February 1, 2014 and November 2, 2013, and the condensed consolidated statements of operations for the 13 and 39 weeks ended November 1, 2014 and November 2, 2013 (in thousands): | |||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 10,653 | $ | 10,175 | $ | — | $ | 20,828 | |||||||||
Other current assets | 310,491 | 6,461 | (1,322 | ) | 315,630 | ||||||||||||
Total current assets | 321,144 | 16,636 | (1,322 | ) | 336,458 | ||||||||||||
Non-current assets | 942,208 | 5,345 | — | 947,553 | |||||||||||||
Total assets | $ | 1,263,352 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||
Current liabilities | $ | 289,155 | $ | 8,959 | $ | (1,175 | ) | $ | 296,939 | ||||||||
Non-current liabilities | 1,307,985 | 430 | — | 1,308,415 | |||||||||||||
Total liabilities | 1,597,140 | 9,389 | (1,175 | ) | 1,605,354 | ||||||||||||
Total stockholders’ deficit | (333,788 | ) | — | (147 | ) | (333,935 | ) | ||||||||||
Noncontrolling interest | — | 12,592 | — | 12,592 | |||||||||||||
Total liabilities and stockholders’ deficit | $ | 1,263,352 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||
February 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 25,635 | $ | 13,794 | $ | — | $ | 39,429 | |||||||||
Other current assets | 228,129 | 4,970 | (1,488 | ) | 231,611 | ||||||||||||
Total current assets | 253,764 | 18,764 | (1,488 | ) | 271,040 | ||||||||||||
Non-current assets | 1,564,620 | 4,444 | — | 1,569,064 | |||||||||||||
Total assets | $ | 1,818,384 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||
Current liabilities | $ | 196,631 | $ | 7,490 | $ | (1,356 | ) | $ | 202,765 | ||||||||
Non-current liabilities | 1,387,828 | 370 | (1 | ) | 1,388,197 | ||||||||||||
Total liabilities | 1,584,459 | 7,860 | (1,357 | ) | 1,590,962 | ||||||||||||
Total stockholders’ equity | 233,925 | — | (131 | ) | 233,794 | ||||||||||||
Noncontrolling interest | — | 15,348 | — | 15,348 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,818,384 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||
November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 13,743 | $ | 5,336 | $ | — | $ | 19,079 | |||||||||
Other current assets | 273,798 | 16,093 | (1,470 | ) | 288,421 | ||||||||||||
Total current assets | 287,541 | 21,429 | (1,470 | ) | 307,500 | ||||||||||||
Non-current assets | 1,727,065 | 4,599 | 1 | 1,731,665 | |||||||||||||
Total assets | $ | 2,014,606 | $ | 26,028 | $ | (1,469 | ) | $ | 2,039,165 | ||||||||
Current liabilities | $ | 218,665 | $ | 7,916 | $ | (1,294 | ) | $ | 225,287 | ||||||||
Non-current liabilities | 1,397,034 | 262 | — | 1,397,296 | |||||||||||||
Total liabilities | 1,615,699 | 8,178 | (1,294 | ) | 1,622,583 | ||||||||||||
Total stockholders’ equity | 398,907 | — | (175 | ) | 398,732 | ||||||||||||
Noncontrolling interest | — | 17,850 | — | 17,850 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,014,606 | $ | 26,028 | $ | (1,469 | ) | $ | 2,039,165 | ||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
For the 13 Weeks Ended November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 312,258 | $ | 6,055 | $ | (1,494 | ) | $ | 316,819 | ||||||||
Cost of goods sold | (189,729 | ) | (1,561 | ) | 392 | (190,898 | ) | ||||||||||
Selling, general and administrative expenses | (701,854 | ) | (4,322 | ) | 1,101 | (705,075 | ) | ||||||||||
Operating loss (income) | (579,325 | ) | 172 | (1 | ) | (579,154 | ) | ||||||||||
Other non-operating (expense) income | (20,772 | ) | 27 | — | (20,745 | ) | |||||||||||
(Loss) income before income taxes | (600,097 | ) | 199 | (1 | ) | (599,899 | ) | ||||||||||
Income tax benefit (expense) | 78,023 | (518 | ) | — | 77,505 | ||||||||||||
Net loss | (522,074 | ) | (319 | ) | (1 | ) | (522,394 | ) | |||||||||
Net loss attributable to noncontrolling interest | — | 319 | — | 319 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (522,074 | ) | $ | — | $ | (1 | ) | $ | (522,075 | ) | ||||||
For the 13 Weeks Ended November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 305,639 | $ | 5,395 | $ | (1,196 | ) | $ | 309,838 | ||||||||
Cost of goods sold | (185,116 | ) | (1,297 | ) | 43 | (186,370 | ) | ||||||||||
Selling, general and administrative expenses | (107,471 | ) | (4,901 | ) | 1,173 | (111,199 | ) | ||||||||||
Operating income (loss) | 13,052 | (803 | ) | 20 | 12,269 | ||||||||||||
Other non-operating (expense) income | (21,140 | ) | 717 | — | (20,423 | ) | |||||||||||
Loss before income taxes | (8,088 | ) | (86 | ) | 20 | (8,154 | ) | ||||||||||
Income tax expense | (15,917 | ) | (327 | ) | — | (16,244 | ) | ||||||||||
Net loss | (24,005 | ) | (413 | ) | 20 | (24,398 | ) | ||||||||||
Net loss attributable to noncontrolling interest | — | 413 | — | 413 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (24,005 | ) | $ | — | $ | 20 | $ | (23,985 | ) | |||||||
For the 39 Weeks Ended November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 840,794 | $ | 17,705 | $ | (5,367 | ) | $ | 853,132 | ||||||||
Cost of goods sold | (518,426 | ) | (4,874 | ) | 811 | (522,489 | ) | ||||||||||
Selling, general and administrative expenses | (903,695 | ) | (15,356 | ) | 4,546 | (914,505 | ) | ||||||||||
Operating loss | (581,327 | ) | (2,525 | ) | (10 | ) | (583,862 | ) | |||||||||
Other non-operating expense | (61,955 | ) | (6 | ) | — | (61,961 | ) | ||||||||||
Loss before income taxes | (643,282 | ) | (2,531 | ) | (10 | ) | (645,823 | ) | |||||||||
Income tax benefit (expense) | 76,633 | (1,060 | ) | — | 75,573 | ||||||||||||
Net loss | (566,649 | ) | (3,591 | ) | (10 | ) | (570,250 | ) | |||||||||
Net loss attributable to noncontrolling interest | — | 3,591 | — | 3,591 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (566,649 | ) | $ | — | $ | (10 | ) | $ | (566,659 | ) | ||||||
For the 39 Weeks Ended November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 882,264 | $ | 15,027 | $ | (3,754 | ) | $ | 893,537 | ||||||||
Cost of goods sold | (538,591 | ) | (3,868 | ) | 449 | (542,010 | ) | ||||||||||
Selling, general and administrative expenses | (308,233 | ) | (12,477 | ) | 3,359 | (317,351 | ) | ||||||||||
Operating income (loss) | 35,440 | (1,318 | ) | 54 | 34,176 | ||||||||||||
Other non-operating (expense) income | (62,163 | ) | 871 | — | (61,292 | ) | |||||||||||
Loss before income taxes | (26,723 | ) | (447 | ) | 54 | (27,116 | ) | ||||||||||
Income tax expense | (9,202 | ) | (253 | ) | — | (9,455 | ) | ||||||||||
Net loss | (35,925 | ) | (700 | ) | 54 | (36,571 | ) | ||||||||||
Net loss attributable to noncontrolling interest | — | 700 | — | 700 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (35,925 | ) | $ | — | $ | 54 | $ | (35,871 | ) | |||||||
Condensed_Guarantor_Data
Condensed Guarantor Data | 9 Months Ended | ||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||
Condensed Guarantor Data | 16. Condensed Guarantor Data | ||||||||||||||||||||
The Company’s 100%-owned domestic subsidiaries have fully and unconditionally guaranteed the Notes, subject to the customary automatic release provisions described above (see Note 7). The following condensed consolidating financial information presents the financial position, results of operations, comprehensive income (loss) and cash flows of The Gymboree Corporation and the guarantor and non-guarantor subsidiaries. The VIEs financial results are included in those of the non-guarantor subsidiaries. Intercompany transactions are eliminated. | |||||||||||||||||||||
Effective during the first quarter of fiscal 2014, our Canadian subsidiary, which is part of the non-guarantor subsidiaries, issued common shares to The Gymboree Corporation valued at $18.5 million. No cash was exchanged since we immediately net settled $15.3 million and $3.2 million of intercompany liabilities payable to The Gymboree Corporation related to business operations and to our Advanced Pricing Agreement, respectively. The $18.5 million is a non-cash investing and financing activity for purposes of condensed consolidating statements of cash flows. During the second quarter of fiscal 2014, our Canadian subsidiary repurchased common shares from The Gymboree Corporation valued at $3.2 million. | |||||||||||||||||||||
During the third quarter of fiscal 2014, our guarantor subsidiaries distributed $3.0 million in the form of a dividend to The Gymboree Corporation. | |||||||||||||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of November 1, 2014 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 2,195 | $ | 3,236 | $ | 15,397 | $ | — | $ | 20,828 | |||||||||||
Accounts receivable, net of allowance | 687 | 20,693 | 1,997 | — | 23,377 | ||||||||||||||||
Merchandise inventories | — | 252,102 | 7,684 | (520 | ) | 259,266 | |||||||||||||||
Prepaid income taxes | 2,029 | 486 | 200 | — | 2,715 | ||||||||||||||||
Prepaid expenses | 4,461 | 15,164 | 1,465 | — | 21,090 | ||||||||||||||||
Deferred income taxes | — | 13,745 | 645 | (5,208 | ) | 9,182 | |||||||||||||||
Intercompany receivable | — | 542,194 | — | (542,194 | ) | — | |||||||||||||||
Total current assets | 9,372 | 847,620 | 27,388 | (547,922 | ) | 336,458 | |||||||||||||||
Property and equipment, net | 12,063 | 167,676 | 11,436 | — | 191,175 | ||||||||||||||||
Goodwill | — | 362,022 | 13,323 | — | 375,345 | ||||||||||||||||
Other intangible assets, net | — | 344,436 | 393 | — | 344,829 | ||||||||||||||||
Deferred financing costs | 27,338 | — | — | — | 27,338 | ||||||||||||||||
Other assets | 6,992 | 1,673 | 9,140 | (8,939 | ) | 8,866 | |||||||||||||||
Investment in subsidiaries | 1,362,644 | — | — | (1,362,644 | ) | — | |||||||||||||||
Total assets | $ | 1,418,409 | $ | 1,723,427 | $ | 61,680 | $ | (1,919,505 | ) | $ | 1,284,011 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 17,823 | $ | 126,192 | $ | 2,051 | $ | — | $ | 146,066 | |||||||||||
Accrued liabilities | 32,221 | 67,963 | 8,086 | 64 | 108,334 | ||||||||||||||||
Deferred income taxes | 5,150 | — | 123 | (5,273 | ) | — | |||||||||||||||
Line of credit | 42,000 | — | — | — | 42,000 | ||||||||||||||||
Current obligation under capital lease | — | 539 | — | — | 539 | ||||||||||||||||
Intercompany payable | 536,282 | — | 6,431 | (542,713 | ) | — | |||||||||||||||
Total current liabilities | 633,476 | 194,694 | 16,691 | (547,922 | ) | 296,939 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,970 | — | — | — | 1,113,970 | ||||||||||||||||
Long-term obligation under capital lease | — | 2,993 | — | — | 2,993 | ||||||||||||||||
Lease incentives and other liabilities | 4,898 | 50,056 | 5,361 | — | 60,315 | ||||||||||||||||
Deferred income taxes | — | 140,076 | — | (8,939 | ) | 131,137 | |||||||||||||||
Total liabilities | 1,752,344 | 387,819 | 22,052 | (556,861 | ) | 1,605,354 | |||||||||||||||
Total stockholders’ (deficit) equity | (333,935 | ) | 1,335,608 | 27,036 | (1,362,644 | ) | (333,935 | ) | |||||||||||||
Noncontrolling interest | — | — | 12,592 | — | 12,592 | ||||||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 1,418,409 | $ | 1,723,427 | $ | 61,680 | $ | (1,919,505 | ) | $ | 1,284,011 | ||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of February 1, 2014 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 15,479 | $ | 4,659 | $ | 19,291 | $ | — | $ | 39,429 | |||||||||||
Accounts receivable, net of allowance | 1,237 | 18,634 | 2,011 | — | 21,882 | ||||||||||||||||
Merchandise inventories | — | 170,126 | 5,823 | (454 | ) | 175,495 | |||||||||||||||
Prepaid income taxes | 1,659 | 284 | 36 | — | 1,979 | ||||||||||||||||
Prepaid expenses | 3,538 | 14,095 | 1,168 | — | 18,801 | ||||||||||||||||
Deferred income taxes | — | 13,303 | 918 | (767 | ) | 13,454 | |||||||||||||||
Intercompany receivable | — | 559,280 | — | (559,280 | ) | — | |||||||||||||||
Total current assets | 21,913 | 780,381 | 29,247 | (560,501 | ) | 271,040 | |||||||||||||||
Property and equipment, net | 14,288 | 182,421 | 9,599 | — | 206,308 | ||||||||||||||||
Goodwill | — | 721,844 | 36,933 | — | 758,777 | ||||||||||||||||
Other intangible assets, net | — | 558,962 | 862 | — | 559,824 | ||||||||||||||||
Deferred financing costs | 32,455 | — | — | — | 32,455 | ||||||||||||||||
Other assets | 15,139 | 2,340 | 10,920 | (16,699 | ) | 11,700 | |||||||||||||||
Investment in subsidiaries | 1,870,800 | — | — | (1,870,800 | ) | — | |||||||||||||||
Total assets | $ | 1,954,595 | $ | 2,245,948 | $ | 87,561 | $ | (2,448,000 | ) | $ | 1,840,104 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 27,184 | $ | 73,218 | $ | 1,557 | $ | — | $ | 101,959 | |||||||||||
Accrued liabilities | 34,328 | 58,430 | 7,545 | — | 100,303 | ||||||||||||||||
Deferred income taxes | 654 | — | 113 | (767 | ) | — | |||||||||||||||
Current obligation under capital lease | — | 503 | — | — | 503 | ||||||||||||||||
Intercompany payable | 541,397 | — | 18,337 | (559,734 | ) | — | |||||||||||||||
Total current liabilities | 603,563 | 132,151 | 27,552 | (560,501 | ) | 202,765 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,742 | — | — | — | 1,113,742 | ||||||||||||||||
Long-term obligation under capital lease | — | 3,402 | — | — | 3,402 | ||||||||||||||||
Lease incentives and other liabilities | 3,496 | 48,117 | 4,976 | — | 56,589 | ||||||||||||||||
Deferred income taxes | — | 231,163 | — | (16,699 | ) | 214,464 | |||||||||||||||
Total liabilities | 1,720,801 | 414,833 | 32,528 | (577,200 | ) | 1,590,962 | |||||||||||||||
Total stockholders’ equity | 233,794 | 1,831,115 | 39,685 | (1,870,800 | ) | 233,794 | |||||||||||||||
Noncontrolling interest | — | — | 15,348 | — | 15,348 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,954,595 | $ | 2,245,948 | $ | 87,561 | $ | (2,448,000 | ) | $ | 1,840,104 | ||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of November 2, 2013 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,438 | $ | 3,381 | $ | 14,260 | $ | — | $ | 19,079 | |||||||||||
Accounts receivable, net of allowance | 367 | 20,087 | 12,031 | — | 32,485 | ||||||||||||||||
Merchandise inventories | — | 216,605 | 6,231 | (422 | ) | 222,414 | |||||||||||||||
Prepaid income taxes | 1,478 | — | 337 | — | 1,815 | ||||||||||||||||
Prepaid expenses | 4,011 | 14,659 | 1,316 | — | 19,986 | ||||||||||||||||
Deferred income taxes | — | 15,295 | 864 | (4,438 | ) | 11,721 | |||||||||||||||
Intercompany receivable | — | 489,942 | — | (489,942 | ) | — | |||||||||||||||
Total current assets | 7,294 | 759,969 | 35,039 | (494,802 | ) | 307,500 | |||||||||||||||
Property and equipment, net | 13,166 | 185,689 | 10,412 | — | 209,267 | ||||||||||||||||
Goodwill | — | 859,165 | 39,818 | — | 898,983 | ||||||||||||||||
Other intangible assets, net | — | 576,623 | 121 | — | 576,744 | ||||||||||||||||
Deferred financing costs | 34,067 | — | — | — | 34,067 | ||||||||||||||||
Other assets | 21,321 | 2,142 | 13,696 | (24,555 | ) | 12,604 | |||||||||||||||
Investment in subsidiaries | 1,985,248 | — | — | (1,985,248 | ) | — | |||||||||||||||
Total assets | $ | 2,061,096 | $ | 2,383,588 | $ | 99,086 | $ | (2,504,605 | ) | $ | 2,039,165 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 8,756 | $ | 77,192 | $ | 1,375 | $ | — | $ | 87,323 | |||||||||||
Accrued liabilities | 38,548 | 66,832 | 8,092 | — | 113,472 | ||||||||||||||||
Deferred income taxes | 4,363 | — | 75 | (4,438 | ) | — | |||||||||||||||
Line of credit | 24,000 | — | — | — | 24,000 | ||||||||||||||||
Current obligation under capital lease | — | 492 | — | — | 492 | ||||||||||||||||
Intercompany payable | 468,686 | — | 21,678 | (490,364 | ) | — | |||||||||||||||
Total current liabilities | 544,353 | 144,516 | 31,220 | (494,802 | ) | 225,287 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,668 | — | — | — | 1,113,668 | ||||||||||||||||
Long-term obligation under capital lease | — | 3,532 | — | — | 3,532 | ||||||||||||||||
Lease incentives and other liabilities | 4,343 | 47,638 | 10,207 | — | 62,188 | ||||||||||||||||
Deferred income taxes | — | 242,463 | — | (24,555 | ) | 217,908 | |||||||||||||||
Total liabilities | 1,662,364 | 438,149 | 41,427 | (519,357 | ) | 1,622,583 | |||||||||||||||
Total stockholders’ equity | 398,732 | 1,945,439 | 39,809 | (1,985,248 | ) | 398,732 | |||||||||||||||
Noncontrolling interest | — | — | 17,850 | — | 17,850 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,061,096 | $ | 2,383,588 | $ | 99,086 | $ | (2,504,605 | ) | $ | 2,039,165 | ||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 647 | $ | 296,195 | $ | 15,461 | $ | (8,038 | ) | $ | 304,265 | ||||||||||
Gymboree Play & Music | — | 2,786 | 4,958 | — | 7,744 | ||||||||||||||||
Retail Franchise | — | 4,810 | — | — | 4,810 | ||||||||||||||||
Intercompany revenue | 18,249 | 1,800 | — | (20,049 | ) | — | |||||||||||||||
Total net sales | 18,896 | 305,591 | 20,419 | (28,087 | ) | 316,819 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (2,258 | ) | (185,288 | ) | (11,736 | ) | 8,384 | (190,898 | ) | ||||||||||||
Gross profit | 16,638 | 120,303 | 8,683 | (19,703 | ) | 125,921 | |||||||||||||||
Selling, general and administrative expenses | (17,956 | ) | (106,741 | ) | (8,657 | ) | 19,675 | (113,679 | ) | ||||||||||||
Goodwill and intangible asset impairment | — | (572,422 | ) | (18,974 | ) | — | (591,396 | ) | |||||||||||||
Operating loss | (1,318 | ) | (558,860 | ) | (18,948 | ) | (28 | ) | (579,154 | ) | |||||||||||
Interest income | — | 7 | 39 | (4 | ) | 42 | |||||||||||||||
Interest expense | (20,568 | ) | (200 | ) | (4 | ) | 4 | (20,768 | ) | ||||||||||||
Other (expense) income, net | (48 | ) | 31 | (2 | ) | — | (19 | ) | |||||||||||||
Loss before income taxes | (21,934 | ) | (559,022 | ) | (18,915 | ) | (28 | ) | (599,899 | ) | |||||||||||
Income tax benefit (expense) | 8,306 | 70,407 | (1,208 | ) | — | 77,505 | |||||||||||||||
Equity in earnings of affiliates, net of tax | (508,447 | ) | — | — | 508,447 | — | |||||||||||||||
Net loss | (522,075 | ) | (488,615 | ) | (20,123 | ) | 508,419 | (522,394 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 319 | — | 319 | ||||||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (522,075 | ) | $ | (488,615 | ) | $ | (19,804 | ) | $ | 508,419 | $ | (522,075 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 443 | $ | 287,574 | $ | 16,232 | $ | (6,897 | ) | $ | 297,352 | ||||||||||
Gymboree Play & Music | — | 2,808 | 4,013 | — | 6,821 | ||||||||||||||||
Retail Franchise | — | 5,665 | — | — | 5,665 | ||||||||||||||||
Intercompany revenue | 12,866 | 1,490 | — | (14,356 | ) | — | |||||||||||||||
Total net sales | 13,309 | 297,537 | 20,245 | (21,253 | ) | 309,838 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (1,435 | ) | (180,116 | ) | (10,720 | ) | 5,901 | (186,370 | ) | ||||||||||||
Gross profit | 11,874 | 117,421 | 9,525 | (15,352 | ) | 123,468 | |||||||||||||||
Selling, general and administrative expenses | (14,271 | ) | (103,254 | ) | (9,090 | ) | 15,416 | (111,199 | ) | ||||||||||||
Operating (loss) income | (2,397 | ) | 14,167 | 435 | 64 | 12,269 | |||||||||||||||
Interest income | 29 | 6 | 5 | 1 | 41 | ||||||||||||||||
Interest expense | (20,421 | ) | (62 | ) | — | — | (20,483 | ) | |||||||||||||
Loss on extinguishment of debt | (834 | ) | — | — | — | (834 | ) | ||||||||||||||
Other (expense) income, net | (37 | ) | (4 | ) | 894 | — | 853 | ||||||||||||||
(Loss) income before income taxes | (23,660 | ) | 14,107 | 1,334 | 65 | (8,154 | ) | ||||||||||||||
Income tax (expense) benefit | (2,244 | ) | (14,626 | ) | 626 | — | (16,244 | ) | |||||||||||||
Equity in earnings of affiliates, net of tax | 1,919 | — | — | (1,919 | ) | — | |||||||||||||||
Net (loss) income | (23,985 | ) | (519 | ) | 1,960 | (1,854 | ) | (24,398 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 413 | — | 413 | ||||||||||||||||
Net (loss) income attributable to The Gymboree Corporation | $ | (23,985 | ) | $ | (519 | ) | $ | 2,373 | $ | (1,854 | ) | $ | (23,985 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 1,278 | $ | 794,856 | $ | 39,365 | $ | (18,734 | ) | $ | 816,765 | ||||||||||
Gymboree Play & Music | — | 8,067 | 13,828 | — | 21,895 | ||||||||||||||||
Retail Franchise | — | 14,472 | — | — | 14,472 | ||||||||||||||||
Intercompany revenue | 46,632 | 6,182 | — | (52,814 | ) | — | |||||||||||||||
Total net sales | 47,910 | 823,577 | 53,193 | (71,548 | ) | 853,132 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (5,160 | ) | (506,120 | ) | (30,661 | ) | 19,452 | (522,489 | ) | ||||||||||||
Gross profit | 42,750 | 317,457 | 22,532 | (52,096 | ) | 330,643 | |||||||||||||||
Selling, general and administrative expenses | (48,003 | ) | (299,394 | ) | (27,768 | ) | 52,056 | (323,109 | ) | ||||||||||||
Goodwill and intangible asset impairment | — | (572,422 | ) | (18,974 | ) | — | (591,396 | ) | |||||||||||||
Operating loss | (5,253 | ) | (554,359 | ) | (24,210 | ) | (40 | ) | (583,862 | ) | |||||||||||
Interest income | 1 | 54 | 147 | (45 | ) | 157 | |||||||||||||||
Interest expense | (61,224 | ) | (373 | ) | (45 | ) | 45 | (61,597 | ) | ||||||||||||
Other (expense) income, net | (480 | ) | 31 | (72 | ) | — | (521 | ) | |||||||||||||
Loss before income taxes | (66,956 | ) | (554,647 | ) | (24,180 | ) | (40 | ) | (645,823 | ) | |||||||||||
Income tax benefit (expense) | 15,677 | 62,141 | (2,245 | ) | — | 75,573 | |||||||||||||||
Equity in earnings of affiliates, net of tax | (515,380 | ) | — | — | 515,380 | — | |||||||||||||||
Net loss | (566,659 | ) | (492,506 | ) | (26,425 | ) | 515,340 | (570,250 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 3,591 | — | 3,591 | ||||||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (566,659 | ) | $ | (492,506 | ) | $ | (22,834 | ) | $ | 515,340 | $ | (566,659 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 1,365 | $ | 831,597 | $ | 44,597 | $ | (20,386 | ) | $ | 857,173 | ||||||||||
Gymboree Play & Music | — | 8,132 | 11,277 | — | 19,409 | ||||||||||||||||
Retail Franchise | — | 16,955 | — | — | 16,955 | ||||||||||||||||
Intercompany revenue | 45,883 | 4,592 | — | (50,475 | ) | — | |||||||||||||||
Total net sales | 47,248 | 861,276 | 55,874 | (70,861 | ) | 893,537 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (4,389 | ) | (525,280 | ) | (30,172 | ) | 17,831 | (542,010 | ) | ||||||||||||
Gross profit | 42,859 | 335,996 | 25,702 | (53,030 | ) | 351,527 | |||||||||||||||
Selling, general and administrative expenses | (49,249 | ) | (295,002 | ) | (26,150 | ) | 53,050 | (317,351 | ) | ||||||||||||
Operating (loss) income | (6,390 | ) | 40,994 | (448 | ) | 20 | 34,176 | ||||||||||||||
Interest income | 62 | 29 | 52 | — | 143 | ||||||||||||||||
Interest expense | (61,290 | ) | (62 | ) | (1 | ) | 1 | (61,352 | ) | ||||||||||||
Loss on extinguishment of debt | (834 | ) | — | — | — | (834 | ) | ||||||||||||||
Other (expense) income, net | (261 | ) | (5 | ) | 1,017 | — | 751 | ||||||||||||||
(Loss) income before income taxes | (68,713 | ) | 40,956 | 620 | 21 | (27,116 | ) | ||||||||||||||
Income tax benefit (expense) | 19,834 | (29,467 | ) | 178 | — | (9,455 | ) | ||||||||||||||
Equity in earnings of affiliates, net of tax | 13,008 | — | — | (13,008 | ) | — | |||||||||||||||
Net (loss) income | (35,871 | ) | 11,489 | 798 | (12,987 | ) | (36,571 | ) | |||||||||||||
Net loss attributable to noncontrolling interest | — | — | 700 | — | 700 | ||||||||||||||||
Net (loss) income attributable to The Gymboree Corporation | $ | (35,871 | ) | $ | 11,489 | $ | 1,498 | $ | (12,987 | ) | $ | (35,871 | ) | ||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
Net loss | $ | (522,075 | ) | $ | (488,615 | ) | $ | (20,123 | ) | $ | 508,419 | $ | (522,394 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (5,066 | ) | — | (4,945 | ) | 5,071 | (4,940 | ) | |||||||||||||
Unrealized net gain on cash flowhedges, net of tax expense of $127 | 522 | — | 142 | (142 | ) | 522 | |||||||||||||||
Total other comprehensive loss, net of tax | (4,544 | ) | — | (4,803 | ) | 4,929 | (4,418 | ) | |||||||||||||
Comprehensive loss | (526,619 | ) | (488,615 | ) | (24,926 | ) | 513,348 | (526,812 | ) | ||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 193 | — | 193 | ||||||||||||||||
Comprehensive loss attributable to The Gymboree Corporation | $ | (526,619 | ) | $ | (488,615 | ) | $ | (24,733 | ) | $ | 513,348 | $ | (526,619 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
Net (loss) income | $ | (23,985 | ) | $ | (519 | ) | $ | 1,960 | $ | (1,854 | ) | $ | (24,398 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (36 | ) | — | (11 | ) | 55 | 8 | ||||||||||||||
Unrealized net loss on cash flowhedges, net of tax expense of $501 | (871 | ) | — | (191 | ) | 191 | (871 | ) | |||||||||||||
Total other comprehensive loss, net of tax | (907 | ) | — | (202 | ) | 246 | (863 | ) | |||||||||||||
Comprehensive (loss) income | (24,892 | ) | (519 | ) | 1,758 | (1,608 | ) | (25,261 | ) | ||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 369 | — | 369 | ||||||||||||||||
Comprehensive (loss) income attributable to The Gymboree Corporation | $ | (24,892 | ) | $ | (519 | ) | $ | 2,127 | $ | (1,608 | ) | $ | (24,892 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net loss | $ | (566,659 | ) | $ | (492,506 | ) | $ | (26,425 | ) | $ | 515,340 | $ | (570,250 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (4,911 | ) | — | (5,065 | ) | 4,886 | (5,090 | ) | |||||||||||||
Unrealized net gain (loss) on cash flow hedges, net of tax expense of $127 | 536 | — | (219 | ) | 219 | 536 | |||||||||||||||
Total other comprehensive loss, net of tax | (4,375 | ) | — | (5,284 | ) | 5,105 | (4,554 | ) | |||||||||||||
Comprehensive loss | (571,034 | ) | (492,506 | ) | (31,709 | ) | 520,445 | (574,804 | ) | ||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 3,770 | — | 3,770 | ||||||||||||||||
Comprehensive loss attributable to The Gymboree Corporation | $ | (571,034 | ) | $ | (492,506 | ) | $ | (27,939 | ) | $ | 520,445 | $ | (571,034 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net (loss) income | $ | (35,871 | ) | $ | 11,489 | $ | 798 | $ | (12,987 | ) | $ | (36,571 | ) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (516 | ) | — | (456 | ) | 557 | (415 | ) | |||||||||||||
Unrealized net gain on cash flow hedges, net of tax benefit of $0 | 635 | — | 217 | (217 | ) | 635 | |||||||||||||||
Total other comprehensive income (loss), net of tax | 119 | — | (239 | ) | 340 | 220 | |||||||||||||||
Comprehensive (loss) income | (35,752 | ) | 11,489 | 559 | (12,647 | ) | (36,351 | ) | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 599 | — | 599 | ||||||||||||||||
Comprehensive (loss) income attributable to The Gymboree Corporation | $ | (35,752 | ) | $ | 11,489 | $ | 1,158 | $ | (12,647 | ) | $ | (35,752 | ) | ||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (58,088 | ) | $ | 29,216 | $ | (4,627 | ) | $ | (3,000 | ) | $ | (36,499 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Capital expenditures | (2,403 | ) | (17,798 | ) | (4,171 | ) | — | (24,372 | ) | ||||||||||||
Proceeds from sale of shares | 3,207 | — | — | (3,207 | ) | — | |||||||||||||||
Intercompany transfers | — | (9,490 | ) | — | 9,490 | — | |||||||||||||||
Other | — | 22 | (67 | ) | — | (45 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 804 | (27,266 | ) | (4,238 | ) | 6,283 | (24,417 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | 2,084 | — | 7,406 | (9,490 | ) | — | |||||||||||||||
Proceeds from ABL facility | 300,000 | — | — | — | 300,000 | ||||||||||||||||
Payments on ABL facility | (258,000 | ) | — | — | — | (258,000 | ) | ||||||||||||||
Payments on capital lease | — | (373 | ) | — | — | (373 | ) | ||||||||||||||
Dividend to The Gymboree Corporation | — | (3,000 | ) | — | 3,000 | — | |||||||||||||||
Dividend payment to Parent | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Repurchase of shares | — | — | (3,207 | ) | 3,207 | — | |||||||||||||||
Capital contribution received by noncontrolling interest | — | — | 992 | — | 992 | ||||||||||||||||
Net cash provided by (used in) financing activities | 44,000 | (3,373 | ) | 5,191 | (3,283 | ) | 42,535 | ||||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (220 | ) | — | (220 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (13,284 | ) | (1,423 | ) | (3,894 | ) | — | (18,601 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Beginning of Period | 15,479 | 4,659 | 19,291 | — | 39,429 | ||||||||||||||||
End of Period | $ | 2,195 | $ | 3,236 | $ | 15,397 | $ | — | $ | 20,828 | |||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (52,645 | ) | $ | 85,441 | $ | (9,510 | ) | $ | — | $ | 23,286 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Capital expenditures | (1,648 | ) | (30,438 | ) | (3,127 | ) | — | (35,213 | ) | ||||||||||||
Intercompany transfers | — | (54,683 | ) | — | 54,683 | — | |||||||||||||||
Other | — | 11 | (246 | ) | — | (235 | ) | ||||||||||||||
Net cash used in investing activities | (1,648 | ) | (85,110 | ) | (3,373 | ) | 54,683 | (35,448 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | 45,535 | — | 9,148 | (54,683 | ) | — | |||||||||||||||
Proceeds from ABL facility | 79,000 | — | — | — | 79,000 | ||||||||||||||||
Payments on ABL facility | (55,000 | ) | — | — | — | (55,000 | ) | ||||||||||||||
Repurchase of notes | (24,760 | ) | — | — | — | (24,760 | ) | ||||||||||||||
Payments on capital lease | — | (78 | ) | — | — | (78 | ) | ||||||||||||||
Dividend payment to parent | (7,475 | ) | — | — | — | (7,475 | ) | ||||||||||||||
Capital contribution received by noncontrolling interest | — | — | 6,506 | — | 6,506 | ||||||||||||||||
Net cash provided by (used in) financing activities | 37,300 | (78 | ) | 15,654 | (54,683 | ) | (1,807 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (280 | ) | — | (280 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (16,993 | ) | 253 | 2,491 | — | (14,249 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Beginning of Period | 18,431 | 3,128 | 11,769 | — | 33,328 | ||||||||||||||||
End of Period | $ | 1,438 | $ | 3,381 | $ | 14,260 | $ | — | $ | 19,079 | |||||||||||
The Company and its guarantor subsidiaries participate in a cash pooling program. As part of this program, cash balances are generally swept on a daily basis between the guarantor subsidiary bank accounts and those of the Company. In addition, we pay expenses on behalf of our guarantor and non-guarantor subsidiaries on a regular basis. These types of transactions have been accounted for as intercompany transfers within investing and financing activities. | |||||||||||||||||||||
The Company’s transactions include interest, tax payments and intercompany sales transactions related to administrative costs incurred by the Company, which are billed to guarantor and non-guarantor subsidiaries on a cost plus basis. All intercompany transactions are presumed to be settled in cash and therefore are included in operating activities. Non-operating cash flow changes have been classified as investing and financing activities. | |||||||||||||||||||||
Subsequent to the issuance of the third quarter of fiscal 2013 condensed consolidated financial statements, management determined that within the condensed consolidating statements of cash flows, the intercompany transfers of the guarantor subsidiaries previously presented as financing activities should be classified as investing activities. The classification of these intercompany transfers has been corrected in the above condensed consolidating statements of cash flows for the 39 weeks ended November 2, 2013 to be presented within investing activities. This correction has no impact on the condensed consolidated statement of cash flows for the 39 weeks ended November 2, 2013. The effect is summarized as follows: | |||||||||||||||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||
Guarantor | Guarantor | Eliminations | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | (As Previously | (As Corrected) | ||||||||||||||||||
(As Previously | (As Corrected) | Reported) | |||||||||||||||||||
Reported) | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | $ | — | $ | (54,683 | ) | $ | — | $ | 54,683 | ||||||||||||
Net cash used in investing activities | $ | (30,427 | ) | $ | (85,110 | ) | $ | — | $ | 54,683 | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | $ | (54,683 | ) | $ | — | $ | — | $ | (54,683 | ) | |||||||||||
Net cash used in financing activities | $ | (54,761 | ) | $ | (78 | ) | $ | — | $ | (54,683 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Goodwill Allocated to Reportable Segments | Goodwill allocated to our reportable segments as of November 1, 2014, February 1, 2014 and November 2, 2013 was as follows (in thousands): | ||||||||||||||||
Retail Stores | Gymboree Play | International Retail | Total | ||||||||||||||
Segment | & Music Segment | Franchise Segment | |||||||||||||||
Balance as of November 1, 2014 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,389 | $ | 23,636 | $ | 927,266 | |||||||||
Accumulated impairment losses | (547,285 | ) | — | — | (547,285 | ) | |||||||||||
Effect of exchange rate fluctuations | (4,636 | ) | (4,636 | ) | |||||||||||||
$ | 335,320 | $ | 16,389 | $ | 23,636 | $ | 375,345 | ||||||||||
Balance as of February 1, 2014 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,389 | $ | 23,636 | $ | 927,266 | |||||||||
Accumulated impairment losses | (168,489 | ) | — | — | (168,489 | ) | |||||||||||
$ | 718,752 | $ | 16,389 | $ | 23,636 | $ | 758,777 | ||||||||||
Balance as of November 2, 2013 | |||||||||||||||||
Goodwill | $ | 887,241 | $ | 16,406 | $ | 23,636 | $ | 927,283 | |||||||||
Accumulated impairment losses | (28,300 | ) | — | — | (28,300 | ) | |||||||||||
$ | 858,941 | $ | 16,406 | $ | 23,636 | $ | 898,983 | ||||||||||
Goodwill Impairment Changes | Goodwill impairment charges were as follows (in thousands): | ||||||||||||||||
Retail Stores | Gymboree Play | International Retail | Total | ||||||||||||||
Segment | & Music Segment | Franchise Segment | |||||||||||||||
13 and 39 weeks ended November 1, 2014 | $ | (378,796 | ) | $ | — | $ | — | $ | (378,796 | ) | |||||||
52 weeks ended February 1, 2014 | $ | (140,189 | ) | $ | — | $ | — | $ | (140,189 | ) | |||||||
13 and 39 weeks ended November 2, 2013 | $ | — | $ | — | $ | — | $ | — | |||||||||
Intangible Assets and Liabilities | Intangible assets and liabilities consist of the following (in thousands): | ||||||||||||||||
November 1, 2014 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | (229,600 | ) | $ | 337,894 | ||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 37,551 | (37,248 | ) | — | 303 | ||||||||||||
Below market leases | 7,055 | (4,995 | ) | — | 2,060 | ||||||||||||
Co-branded credit card agreement | 4,000 | (2,419 | ) | — | 1,581 | ||||||||||||
Franchise agreements and reacquired franchise rights | 6,632 | (3,641 | ) | — | 2,991 | ||||||||||||
55,238 | (48,303 | ) | — | 6,935 | |||||||||||||
Total other intangible assets | $ | 622,732 | $ | (48,303 | ) | $ | (229,600 | ) | $ | 344,829 | |||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 11,517 | $ | — | $ | (5,114 | ) | |||||||
February 1, 2014 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | (17,000 | ) | $ | 550,494 | ||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 37,551 | (36,803 | ) | — | 748 | ||||||||||||
Below market leases | 7,055 | (4,195 | ) | — | 2,860 | ||||||||||||
Co-branded credit card agreement | 4,000 | (1,958 | ) | — | 2,042 | ||||||||||||
Franchise agreements and reacquired franchise rights | 6,632 | (2,952 | ) | — | 3,680 | ||||||||||||
55,238 | (45,908 | ) | — | 9,330 | |||||||||||||
Total other intangible assets | $ | 622,732 | $ | (45,908 | ) | $ | (17,000 | ) | $ | 559,824 | |||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 9,999 | $ | — | $ | (6,632 | ) | |||||||
November 2, 2013 | |||||||||||||||||
Gross Carrying | Accumulated | Accumulated | Net Amount | ||||||||||||||
Amount | Amortization | Impairment | |||||||||||||||
Intangible Assets Not Subject to Amortization: | |||||||||||||||||
Trade names | $ | 567,494 | $ | — | $ | — | $ | 567,494 | |||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||
Customer relationships | 36,400 | (36,400 | ) | — | — | ||||||||||||
Below market leases | 7,055 | (3,908 | ) | — | 3,147 | ||||||||||||
Co-branded credit card agreement | 4,000 | (1,804 | ) | — | 2,196 | ||||||||||||
Franchise agreements | 6,600 | (2,693 | ) | — | 3,907 | ||||||||||||
54,055 | (44,805 | ) | — | 9,250 | |||||||||||||
Total other intangible assets | $ | 621,549 | $ | (44,805 | ) | $ | — | $ | 576,744 | ||||||||
Intangible Liabilities Subject to Amortization: | |||||||||||||||||
Above market leases (included in Lease incentives and other liabilities) | $ | (16,631 | ) | $ | 9,366 | $ | — | $ | (7,265 | ) | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments | The table below presents the fair value of all of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets (in thousands): | ||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Derivative | Derivative | Derivative | |||||||||||||||||||||||
Assets | Assets | Assets | |||||||||||||||||||||||
Other Assets | |||||||||||||||||||||||||
Purchased interest rate caps | $ | 41 | $ | 599 | $ | 641 | |||||||||||||||||||
Forward foreign exchange contracts | 134 | 348 | 107 | ||||||||||||||||||||||
Total | $ | 175 | $ | 947 | $ | 748 | |||||||||||||||||||
Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | The tables below present the effect of all of our derivative financial instruments on the condensed consolidated statements of operations and comprehensive income (loss) (in thousands). No amounts were reclassified from accumulated other comprehensive loss into earnings as a result of forecasted transactions that failed to occur or as a result of hedge ineffectiveness. | ||||||||||||||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (1 | ) | Interest expense | $ | (509 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 181 | Cost of goods sold | 40 | ||||||||||||||||||||||
Total | $ | 180 | $ | (469 | ) | ||||||||||||||||||||
13 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (546 | ) | Interest expense | $ | (310 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 3 | Cost of goods sold | 137 | ||||||||||||||||||||||
Total | $ | (543 | ) | $ | (173 | ) | |||||||||||||||||||
39 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (558 | ) | Interest expense | $ | (1,441 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 109 | Cost of goods sold | 329 | ||||||||||||||||||||||
Total | $ | (449 | ) | $ | (1,112 | ) | |||||||||||||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Gains / (Losses) | Location of Gains | Gains / (Losses) | |||||||||||||||||||||||
Recognized in OCI on | (Losses) Reclassified | Reclassified from | |||||||||||||||||||||||
Derivative (Effective | from Accumulated OCI | Accumulated OCI into | |||||||||||||||||||||||
Portion) | into Income (Effective | Income (Effective | |||||||||||||||||||||||
Portion) | Portion) | ||||||||||||||||||||||||
Interest rate caps | $ | (323 | ) | Interest expense | $ | (742 | ) | ||||||||||||||||||
Forward foreign exchange contracts | 407 | Cost of goods sold | 191 | ||||||||||||||||||||||
Total | $ | 84 | $ | (551 | ) | ||||||||||||||||||||
Designated as Hedging Instrument | |||||||||||||||||||||||||
Outstanding Derivatives - Cash Flow Hedges | We had the following outstanding derivatives designated as cash flow hedges (U.S. dollars in thousands): | ||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Number of | Notional | Number of | Notional | Number of | Notional | ||||||||||||||||||||
Instruments | (USD) | Instruments | (USD) | Instruments | (USD) | ||||||||||||||||||||
Interest rate derivatives | |||||||||||||||||||||||||
Purchased interest rate caps | 4 | $ | 700,000 | 4 | $ | 700,000 | 4 | $ | 700,000 | ||||||||||||||||
Foreign exchange derivatives | |||||||||||||||||||||||||
Forward foreign exchange contracts | 3 | 4,682 | 6 | 5,029 | 3 | 3,420 | |||||||||||||||||||
Total | 7 | $ | 704,682 | 10 | $ | 705,029 | 7 | $ | 703,420 | ||||||||||||||||
Not Designated as Hedging Instrument | |||||||||||||||||||||||||
Outstanding Derivatives - Cash Flow Hedges | We had the following outstanding derivatives which were not designated as hedges (U.S. dollars in thousands): | ||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Number of | Notional | Number of | Notional | Number of | Notional | ||||||||||||||||||||
Instruments | (USD) | Instruments | (USD) | Instruments | (USD) | ||||||||||||||||||||
Forward foreign exchange contracts | — | $ | — | 2 | $ | 10,339 | 1 | $ | 380 | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The tables below present our assets and liabilities measured at fair value on a recurring basis as of November 1, 2014, February 1, 2014 and November 2, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands). There were no transfers into or out of Level 1 and Level 2 during the 13 and 39 weeks ended November 1, 2014 and November 2, 2013, or for the year ended February 1, 2014. | ||||||||||||||||||||||||
November 1, 2014 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest rate caps | $ | — | $ | 41 | $ | — | $ | 41 | |||||||||||||||||
Forward foreign exchange contracts | — | 134 | — | 134 | |||||||||||||||||||||
Total | $ | — | $ | 175 | $ | — | $ | 175 | |||||||||||||||||
February 1, 2014 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Money market funds | $ | 14,571 | $ | — | $ | — | $ | 14,571 | |||||||||||||||||
Interest rate caps | — | 599 | — | 599 | |||||||||||||||||||||
Forward foreign exchange contracts | — | 348 | — | 348 | |||||||||||||||||||||
Total | $ | 14,571 | $ | 947 | $ | — | $ | 15,518 | |||||||||||||||||
November 2, 2013 | |||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total Fair Value | ||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||
Identical Assets and | (Level 2) | Inputs | |||||||||||||||||||||||
Liabilities | (Level 3) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest rate caps | $ | — | $ | 641 | $ | — | $ | 641 | |||||||||||||||||
Forward foreign exchange contracts | — | 107 | — | 107 | |||||||||||||||||||||
Total | $ | — | $ | 748 | $ | — | $ | 748 | |||||||||||||||||
Estimated Fair Value of Long-Term Debt | The estimated fair value of long-term debt is as follows (in thousands): | ||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
Term loan | $ | 767,970 | $ | 488,380 | $ | 767,742 | $ | 692,192 | $ | 767,668 | $ | 746,029 | |||||||||||||
Notes | 346,000 | 110,720 | 346,000 | 308,805 | 346,000 | 332,160 | |||||||||||||||||||
$ | 1,113,970 | $ | 599,100 | $ | 1,113,742 | $ | 1,000,997 | $ | 1,113,668 | $ | 1,078,189 | ||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Long-Term Debt | Long-term debt consists of (in thousands): | ||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||
Term loan due February 2018, Adjusted LIBOR (with a floor of 1.5%) plus 3.5%, net of discount of $1,133, $1,360, and $1,434 | $ | 767,970 | $ | 767,742 | $ | 767,668 | |||||||
Senior notes due December 2018, 9.125% | 346,000 | 346,000 | 346,000 | ||||||||||
Long-term debt | $ | 1,113,970 | $ | 1,113,742 | $ | 1,113,668 | |||||||
Schedule of Redemption Prices | We may redeem the Notes, in whole or in part, upon at least 30 days prior notice, at the redemption prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 1 of each of the years indicated below: | ||||||||||||
Year | Percentage | ||||||||||||
2014 | 104.563 | % | |||||||||||
2015 | 102.281 | % | |||||||||||
2016 and thereafter | 100 | % | |||||||||||
Scheduled Future Minimum Principal Payments on Long-Term Debt | Future minimum principal payments on long-term debt, excluding accretion of original issue discount (“OID”) of $1.1 million, as of November 1, 2014, are as follows (in thousands): | ||||||||||||
Fiscal years | Principal Payments | ||||||||||||
Remainder of 2014 | $ | — | |||||||||||
2015 | — | ||||||||||||
2016 | — | ||||||||||||
2017 | 6,502 | ||||||||||||
2018 | 1,108,600 | ||||||||||||
Total | $ | 1,115,102 | |||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Components of Accumulated OCI, net of Taxes | The following table shows the components of accumulated other comprehensive income (loss) (“OCI”), net of tax for the periods ended (in thousands): | ||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||
Foreign currency translation | $ | (4,288 | ) | $ | 623 | $ | 292 | ||||||
Accumulated changes in fair value of derivative financial instruments, net of tax benefit of $3,855, $3,982 and $3,982 | (4,967 | ) | (5,503 | ) | (6,087 | ) | |||||||
Total accumulated other comprehensive loss | $ | (9,255 | ) | $ | (4,880 | ) | $ | (5,795 | ) | ||||
Changes in Accumulated OCI Balance by Component | Changes in accumulated OCI balance by component were as follows for the periods ended (in thousands): | ||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,489 | ) | $ | 778 | $ | (4,711 | ) | |||||
Other comprehensive income (loss) recognized before reclassifications | 180 | (4,940 | ) | (4,760 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 469 | — | 469 | ||||||||||
Tax expense | (127 | ) | — | (127 | ) | ||||||||
Net current-period other comprehensive income (loss) | 522 | (4,940 | ) | (4,418 | ) | ||||||||
Other comprehensive income attributable to noncontrolling interest | — | (126 | ) | (126 | ) | ||||||||
Ending balance | $ | (4,967 | ) | $ | (4,288 | ) | $ | (9,255 | ) | ||||
13 Weeks Ended November 2, 2013 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,216 | ) | $ | 328 | $ | (4,888 | ) | |||||
Other comprehensive (loss) income recognized before reclassifications | (543 | ) | 8 | (535 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 173 | — | 173 | ||||||||||
Tax expense | (501 | ) | — | (501 | ) | ||||||||
Net current-period other comprehensive (loss) income | (871 | ) | 8 | (863 | ) | ||||||||
Other comprehensive income attributable to noncontrolling interest | — | (44 | ) | (44 | ) | ||||||||
Ending balance | $ | (6,087 | ) | $ | 292 | $ | (5,795 | ) | |||||
39 Weeks Ended November 1, 2014 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (5,503 | ) | $ | 623 | $ | (4,880 | ) | |||||
Other comprehensive loss recognized before reclassifications | (449 | ) | (5,090 | ) | (5,539 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 1,112 | — | 1,112 | ||||||||||
Tax expense | (127 | ) | — | (127 | ) | ||||||||
Net current-period other comprehensive income (loss) | 536 | (5,090 | ) | (4,554 | ) | ||||||||
Other comprehensive loss attributable to noncontrolling interest | — | 179 | 179 | ||||||||||
Ending balance | $ | (4,967 | ) | $ | (4,288 | ) | $ | (9,255 | ) | ||||
39 Weeks Ended November 2, 2013 | |||||||||||||
Derivatives | Foreign Currency | Total Accumulated | |||||||||||
Comprehensive (Loss) | |||||||||||||
Income Including | |||||||||||||
Noncontrolling Interest | |||||||||||||
Beginning balance | $ | (6,722 | ) | $ | 808 | $ | (5,914 | ) | |||||
Other comprehensive income (loss) recognized before reclassifications | 84 | (415 | ) | (331 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss to earnings | 551 | — | 551 | ||||||||||
Net current-period other comprehensive income (loss) | 635 | (415 | ) | 220 | |||||||||
Other comprehensive income attributable to noncontrolling interest | — | (101 | ) | (101 | ) | ||||||||
Ending balance | $ | (6,087 | ) | $ | 292 | $ | (5,795 | ) | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||||||
Financial Data of Each Reportable Segment | Summary financial data of each reportable segment were as follows for the periods ended (in thousands): | ||||||||||||||||||||||||
13 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 303,166 | $ | 4,178 | $ | 4,914 | $ | 6,055 | $ | (1,494 | ) | $ | 316,819 | ||||||||||||
Operating (loss) income | $ | (583,758 | ) | $ | 1,981 | $ | 2,452 | $ | 172 | $ | (1 | ) | $ | (579,154 | ) | ||||||||||
13 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 295,969 | $ | 3,879 | $ | 5,791 | $ | 5,395 | $ | (1,196 | ) | $ | 309,838 | ||||||||||||
Operating income (loss) | $ | 8,786 | $ | 1,836 | $ | 2,430 | $ | (803 | ) | $ | 20 | $ | 12,269 | ||||||||||||
39 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 812,887 | $ | 13,069 | $ | 14,838 | $ | 17,705 | $ | (5,367 | ) | $ | 853,132 | ||||||||||||
Operating (loss) income | $ | (596,894 | ) | $ | 8,227 | $ | 7,340 | $ | (2,525 | ) | $ | (10 | ) | $ | (583,862 | ) | |||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
Net sales | $ | 853,422 | $ | 11,524 | $ | 17,318 | $ | 15,027 | $ | (3,754 | ) | $ | 893,537 | ||||||||||||
Operating income (loss) | $ | 22,657 | $ | 5,284 | $ | 7,499 | $ | (1,318 | ) | $ | 54 | $ | 34,176 | ||||||||||||
Total Assets | |||||||||||||||||||||||||
Retail | Gymboree | International Retail | VIEs | Intersegment | Total | ||||||||||||||||||||
Stores | Play & Music | Franchise | Elimination | ||||||||||||||||||||||
November 1, 2014 | $ | 1,175,445 | $ | 59,655 | $ | 28,252 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||||||
February 1, 2014 | $ | 1,728,186 | $ | 60,942 | $ | 29,256 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||||||
November 2, 2013 | $ | 1,924,170 | $ | 61,034 | $ | 29,403 | $ | 26,028 | $ | (1,470 | ) | $ | 2,039,165 | ||||||||||||
Financial Data of Each Geographical Segment | Summary financial data of each of our two geographical segments, United States and international were as follows for the fiscal periods ended (in thousands): | ||||||||||||||||||||||||
13 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||
Net sales | $ | 296,839 | $ | 19,980 | $ | 290,962 | $ | 18,876 | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||
Net sales | $ | 801,409 | $ | 51,723 | $ | 841,855 | $ | 51,682 | |||||||||||||||||
Long-lived assets which include net property and equipment were as follows for the fiscal periods ended (in thousands): | |||||||||||||||||||||||||
November 1, 2014 | February 1, 2014 | November 2, 2013 | |||||||||||||||||||||||
United States | $ | 179,982 | $ | 196,990 | $ | 199,156 | |||||||||||||||||||
International | $ | 11,193 | $ | 9,318 | $ | 10,111 |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Impact of Variable Interest Entities on Condensed Consolidating Balance Sheets and Condensed Consolidating Statements of Operations | The following tables reflect the impact of the VIEs on the condensed consolidated balance sheets as of November 1, 2014, February 1, 2014 and November 2, 2013, and the condensed consolidated statements of operations for the 13 and 39 weeks ended November 1, 2014 and November 2, 2013 (in thousands): | ||||||||||||||||
Condensed Consolidating Balance Sheets | |||||||||||||||||
November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 10,653 | $ | 10,175 | $ | — | $ | 20,828 | |||||||||
Other current assets | 310,491 | 6,461 | (1,322 | ) | 315,630 | ||||||||||||
Total current assets | 321,144 | 16,636 | (1,322 | ) | 336,458 | ||||||||||||
Non-current assets | 942,208 | 5,345 | — | 947,553 | |||||||||||||
Total assets | $ | 1,263,352 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||
Current liabilities | $ | 289,155 | $ | 8,959 | $ | (1,175 | ) | $ | 296,939 | ||||||||
Non-current liabilities | 1,307,985 | 430 | — | 1,308,415 | |||||||||||||
Total liabilities | 1,597,140 | 9,389 | (1,175 | ) | 1,605,354 | ||||||||||||
Total stockholders’ deficit | (333,788 | ) | — | (147 | ) | (333,935 | ) | ||||||||||
Noncontrolling interest | — | 12,592 | — | 12,592 | |||||||||||||
Total liabilities and stockholders’ deficit | $ | 1,263,352 | $ | 21,981 | $ | (1,322 | ) | $ | 1,284,011 | ||||||||
February 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 25,635 | $ | 13,794 | $ | — | $ | 39,429 | |||||||||
Other current assets | 228,129 | 4,970 | (1,488 | ) | 231,611 | ||||||||||||
Total current assets | 253,764 | 18,764 | (1,488 | ) | 271,040 | ||||||||||||
Non-current assets | 1,564,620 | 4,444 | — | 1,569,064 | |||||||||||||
Total assets | $ | 1,818,384 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||
Current liabilities | $ | 196,631 | $ | 7,490 | $ | (1,356 | ) | $ | 202,765 | ||||||||
Non-current liabilities | 1,387,828 | 370 | (1 | ) | 1,388,197 | ||||||||||||
Total liabilities | 1,584,459 | 7,860 | (1,357 | ) | 1,590,962 | ||||||||||||
Total stockholders’ equity | 233,925 | — | (131 | ) | 233,794 | ||||||||||||
Noncontrolling interest | — | 15,348 | — | 15,348 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,818,384 | $ | 23,208 | $ | (1,488 | ) | $ | 1,840,104 | ||||||||
November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Cash and cash equivalents | $ | 13,743 | $ | 5,336 | $ | — | $ | 19,079 | |||||||||
Other current assets | 273,798 | 16,093 | (1,470 | ) | 288,421 | ||||||||||||
Total current assets | 287,541 | 21,429 | (1,470 | ) | 307,500 | ||||||||||||
Non-current assets | 1,727,065 | 4,599 | 1 | 1,731,665 | |||||||||||||
Total assets | $ | 2,014,606 | $ | 26,028 | $ | (1,469 | ) | $ | 2,039,165 | ||||||||
Current liabilities | $ | 218,665 | $ | 7,916 | $ | (1,294 | ) | $ | 225,287 | ||||||||
Non-current liabilities | 1,397,034 | 262 | — | 1,397,296 | |||||||||||||
Total liabilities | 1,615,699 | 8,178 | (1,294 | ) | 1,622,583 | ||||||||||||
Total stockholders’ equity | 398,907 | — | (175 | ) | 398,732 | ||||||||||||
Noncontrolling interest | — | 17,850 | — | 17,850 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 2,014,606 | $ | 26,028 | $ | (1,469 | ) | $ | 2,039,165 | ||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
For the 13 Weeks Ended November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 312,258 | $ | 6,055 | $ | (1,494 | ) | $ | 316,819 | ||||||||
Cost of goods sold | (189,729 | ) | (1,561 | ) | 392 | (190,898 | ) | ||||||||||
Selling, general and administrative expenses | (701,854 | ) | (4,322 | ) | 1,101 | (705,075 | ) | ||||||||||
Operating loss (income) | (579,325 | ) | 172 | (1 | ) | (579,154 | ) | ||||||||||
Other non-operating (expense) income | (20,772 | ) | 27 | — | (20,745 | ) | |||||||||||
(Loss) income before income taxes | (600,097 | ) | 199 | (1 | ) | (599,899 | ) | ||||||||||
Income tax benefit (expense) | 78,023 | (518 | ) | — | 77,505 | ||||||||||||
Net loss | (522,074 | ) | (319 | ) | (1 | ) | (522,394 | ) | |||||||||
Net loss attributable to noncontrolling interest | — | 319 | — | 319 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (522,074 | ) | $ | — | $ | (1 | ) | $ | (522,075 | ) | ||||||
For the 13 Weeks Ended November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 305,639 | $ | 5,395 | $ | (1,196 | ) | $ | 309,838 | ||||||||
Cost of goods sold | (185,116 | ) | (1,297 | ) | 43 | (186,370 | ) | ||||||||||
Selling, general and administrative expenses | (107,471 | ) | (4,901 | ) | 1,173 | (111,199 | ) | ||||||||||
Operating income (loss) | 13,052 | (803 | ) | 20 | 12,269 | ||||||||||||
Other non-operating (expense) income | (21,140 | ) | 717 | — | (20,423 | ) | |||||||||||
Loss before income taxes | (8,088 | ) | (86 | ) | 20 | (8,154 | ) | ||||||||||
Income tax expense | (15,917 | ) | (327 | ) | — | (16,244 | ) | ||||||||||
Net loss | (24,005 | ) | (413 | ) | 20 | (24,398 | ) | ||||||||||
Net loss attributable to noncontrolling interest | — | 413 | — | 413 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (24,005 | ) | $ | — | $ | 20 | $ | (23,985 | ) | |||||||
For the 39 Weeks Ended November 1, 2014 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 840,794 | $ | 17,705 | $ | (5,367 | ) | $ | 853,132 | ||||||||
Cost of goods sold | (518,426 | ) | (4,874 | ) | 811 | (522,489 | ) | ||||||||||
Selling, general and administrative expenses | (903,695 | ) | (15,356 | ) | 4,546 | (914,505 | ) | ||||||||||
Operating loss | (581,327 | ) | (2,525 | ) | (10 | ) | (583,862 | ) | |||||||||
Other non-operating expense | (61,955 | ) | (6 | ) | — | (61,961 | ) | ||||||||||
Loss before income taxes | (643,282 | ) | (2,531 | ) | (10 | ) | (645,823 | ) | |||||||||
Income tax benefit (expense) | 76,633 | (1,060 | ) | — | 75,573 | ||||||||||||
Net loss | (566,649 | ) | (3,591 | ) | (10 | ) | (570,250 | ) | |||||||||
Net loss attributable to noncontrolling interest | — | 3,591 | — | 3,591 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (566,649 | ) | $ | — | $ | (10 | ) | $ | (566,659 | ) | ||||||
For the 39 Weeks Ended November 2, 2013 | |||||||||||||||||
Balance Before | VIEs | Eliminations | As | ||||||||||||||
Consolidation | Reported | ||||||||||||||||
of VIEs | |||||||||||||||||
Net sales | $ | 882,264 | $ | 15,027 | $ | (3,754 | ) | $ | 893,537 | ||||||||
Cost of goods sold | (538,591 | ) | (3,868 | ) | 449 | (542,010 | ) | ||||||||||
Selling, general and administrative expenses | (308,233 | ) | (12,477 | ) | 3,359 | (317,351 | ) | ||||||||||
Operating income (loss) | 35,440 | (1,318 | ) | 54 | 34,176 | ||||||||||||
Other non-operating (expense) income | (62,163 | ) | 871 | — | (61,292 | ) | |||||||||||
Loss before income taxes | (26,723 | ) | (447 | ) | 54 | (27,116 | ) | ||||||||||
Income tax expense | (9,202 | ) | (253 | ) | — | (9,455 | ) | ||||||||||
Net loss | (35,925 | ) | (700 | ) | 54 | (36,571 | ) | ||||||||||
Net loss attributable to noncontrolling interest | — | 700 | — | 700 | |||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (35,925 | ) | $ | — | $ | 54 | $ | (35,871 | ) | |||||||
Condensed_Guarantor_Data_Table
Condensed Guarantor Data (Tables) | 9 Months Ended | ||||||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||||||
Condensed Consolidating Balance Sheets | THE GYMBOREE CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of November 1, 2014 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 2,195 | $ | 3,236 | $ | 15,397 | $ | — | $ | 20,828 | |||||||||||
Accounts receivable, net of allowance | 687 | 20,693 | 1,997 | — | 23,377 | ||||||||||||||||
Merchandise inventories | — | 252,102 | 7,684 | (520 | ) | 259,266 | |||||||||||||||
Prepaid income taxes | 2,029 | 486 | 200 | — | 2,715 | ||||||||||||||||
Prepaid expenses | 4,461 | 15,164 | 1,465 | — | 21,090 | ||||||||||||||||
Deferred income taxes | — | 13,745 | 645 | (5,208 | ) | 9,182 | |||||||||||||||
Intercompany receivable | — | 542,194 | — | (542,194 | ) | — | |||||||||||||||
Total current assets | 9,372 | 847,620 | 27,388 | (547,922 | ) | 336,458 | |||||||||||||||
Property and equipment, net | 12,063 | 167,676 | 11,436 | — | 191,175 | ||||||||||||||||
Goodwill | — | 362,022 | 13,323 | — | 375,345 | ||||||||||||||||
Other intangible assets, net | — | 344,436 | 393 | — | 344,829 | ||||||||||||||||
Deferred financing costs | 27,338 | — | — | — | 27,338 | ||||||||||||||||
Other assets | 6,992 | 1,673 | 9,140 | (8,939 | ) | 8,866 | |||||||||||||||
Investment in subsidiaries | 1,362,644 | — | — | (1,362,644 | ) | — | |||||||||||||||
Total assets | $ | 1,418,409 | $ | 1,723,427 | $ | 61,680 | $ | (1,919,505 | ) | $ | 1,284,011 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 17,823 | $ | 126,192 | $ | 2,051 | $ | — | $ | 146,066 | |||||||||||
Accrued liabilities | 32,221 | 67,963 | 8,086 | 64 | 108,334 | ||||||||||||||||
Deferred income taxes | 5,150 | — | 123 | (5,273 | ) | — | |||||||||||||||
Line of credit | 42,000 | — | — | — | 42,000 | ||||||||||||||||
Current obligation under capital lease | — | 539 | — | — | 539 | ||||||||||||||||
Intercompany payable | 536,282 | — | 6,431 | (542,713 | ) | — | |||||||||||||||
Total current liabilities | 633,476 | 194,694 | 16,691 | (547,922 | ) | 296,939 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,970 | — | — | — | 1,113,970 | ||||||||||||||||
Long-term obligation under capital lease | — | 2,993 | — | — | 2,993 | ||||||||||||||||
Lease incentives and other liabilities | 4,898 | 50,056 | 5,361 | — | 60,315 | ||||||||||||||||
Deferred income taxes | — | 140,076 | — | (8,939 | ) | 131,137 | |||||||||||||||
Total liabilities | 1,752,344 | 387,819 | 22,052 | (556,861 | ) | 1,605,354 | |||||||||||||||
Total stockholders’ (deficit) equity | (333,935 | ) | 1,335,608 | 27,036 | (1,362,644 | ) | (333,935 | ) | |||||||||||||
Noncontrolling interest | — | — | 12,592 | — | 12,592 | ||||||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | 1,418,409 | $ | 1,723,427 | $ | 61,680 | $ | (1,919,505 | ) | $ | 1,284,011 | ||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of February 1, 2014 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 15,479 | $ | 4,659 | $ | 19,291 | $ | — | $ | 39,429 | |||||||||||
Accounts receivable, net of allowance | 1,237 | 18,634 | 2,011 | — | 21,882 | ||||||||||||||||
Merchandise inventories | — | 170,126 | 5,823 | (454 | ) | 175,495 | |||||||||||||||
Prepaid income taxes | 1,659 | 284 | 36 | — | 1,979 | ||||||||||||||||
Prepaid expenses | 3,538 | 14,095 | 1,168 | — | 18,801 | ||||||||||||||||
Deferred income taxes | — | 13,303 | 918 | (767 | ) | 13,454 | |||||||||||||||
Intercompany receivable | — | 559,280 | — | (559,280 | ) | — | |||||||||||||||
Total current assets | 21,913 | 780,381 | 29,247 | (560,501 | ) | 271,040 | |||||||||||||||
Property and equipment, net | 14,288 | 182,421 | 9,599 | — | 206,308 | ||||||||||||||||
Goodwill | — | 721,844 | 36,933 | — | 758,777 | ||||||||||||||||
Other intangible assets, net | — | 558,962 | 862 | — | 559,824 | ||||||||||||||||
Deferred financing costs | 32,455 | — | — | — | 32,455 | ||||||||||||||||
Other assets | 15,139 | 2,340 | 10,920 | (16,699 | ) | 11,700 | |||||||||||||||
Investment in subsidiaries | 1,870,800 | — | — | (1,870,800 | ) | — | |||||||||||||||
Total assets | $ | 1,954,595 | $ | 2,245,948 | $ | 87,561 | $ | (2,448,000 | ) | $ | 1,840,104 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 27,184 | $ | 73,218 | $ | 1,557 | $ | — | $ | 101,959 | |||||||||||
Accrued liabilities | 34,328 | 58,430 | 7,545 | — | 100,303 | ||||||||||||||||
Deferred income taxes | 654 | — | 113 | (767 | ) | — | |||||||||||||||
Current obligation under capital lease | — | 503 | — | — | 503 | ||||||||||||||||
Intercompany payable | 541,397 | — | 18,337 | (559,734 | ) | — | |||||||||||||||
Total current liabilities | 603,563 | 132,151 | 27,552 | (560,501 | ) | 202,765 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,742 | — | — | — | 1,113,742 | ||||||||||||||||
Long-term obligation under capital lease | — | 3,402 | — | — | 3,402 | ||||||||||||||||
Lease incentives and other liabilities | 3,496 | 48,117 | 4,976 | — | 56,589 | ||||||||||||||||
Deferred income taxes | — | 231,163 | — | (16,699 | ) | 214,464 | |||||||||||||||
Total liabilities | 1,720,801 | 414,833 | 32,528 | (577,200 | ) | 1,590,962 | |||||||||||||||
Total stockholders’ equity | 233,794 | 1,831,115 | 39,685 | (1,870,800 | ) | 233,794 | |||||||||||||||
Noncontrolling interest | — | — | 15,348 | — | 15,348 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,954,595 | $ | 2,245,948 | $ | 87,561 | $ | (2,448,000 | ) | $ | 1,840,104 | ||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
As of November 2, 2013 | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,438 | $ | 3,381 | $ | 14,260 | $ | — | $ | 19,079 | |||||||||||
Accounts receivable, net of allowance | 367 | 20,087 | 12,031 | — | 32,485 | ||||||||||||||||
Merchandise inventories | — | 216,605 | 6,231 | (422 | ) | 222,414 | |||||||||||||||
Prepaid income taxes | 1,478 | — | 337 | — | 1,815 | ||||||||||||||||
Prepaid expenses | 4,011 | 14,659 | 1,316 | — | 19,986 | ||||||||||||||||
Deferred income taxes | — | 15,295 | 864 | (4,438 | ) | 11,721 | |||||||||||||||
Intercompany receivable | — | 489,942 | — | (489,942 | ) | — | |||||||||||||||
Total current assets | 7,294 | 759,969 | 35,039 | (494,802 | ) | 307,500 | |||||||||||||||
Property and equipment, net | 13,166 | 185,689 | 10,412 | — | 209,267 | ||||||||||||||||
Goodwill | — | 859,165 | 39,818 | — | 898,983 | ||||||||||||||||
Other intangible assets, net | — | 576,623 | 121 | — | 576,744 | ||||||||||||||||
Deferred financing costs | 34,067 | — | — | — | 34,067 | ||||||||||||||||
Other assets | 21,321 | 2,142 | 13,696 | (24,555 | ) | 12,604 | |||||||||||||||
Investment in subsidiaries | 1,985,248 | — | — | (1,985,248 | ) | — | |||||||||||||||
Total assets | $ | 2,061,096 | $ | 2,383,588 | $ | 99,086 | $ | (2,504,605 | ) | $ | 2,039,165 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 8,756 | $ | 77,192 | $ | 1,375 | $ | — | $ | 87,323 | |||||||||||
Accrued liabilities | 38,548 | 66,832 | 8,092 | — | 113,472 | ||||||||||||||||
Deferred income taxes | 4,363 | — | 75 | (4,438 | ) | — | |||||||||||||||
Line of credit | 24,000 | — | — | — | 24,000 | ||||||||||||||||
Current obligation under capital lease | — | 492 | — | — | 492 | ||||||||||||||||
Intercompany payable | 468,686 | — | 21,678 | (490,364 | ) | — | |||||||||||||||
Total current liabilities | 544,353 | 144,516 | 31,220 | (494,802 | ) | 225,287 | |||||||||||||||
Long-term liabilities: | |||||||||||||||||||||
Long-term debt | 1,113,668 | — | — | — | 1,113,668 | ||||||||||||||||
Long-term obligation under capital lease | — | 3,532 | — | — | 3,532 | ||||||||||||||||
Lease incentives and other liabilities | 4,343 | 47,638 | 10,207 | — | 62,188 | ||||||||||||||||
Deferred income taxes | — | 242,463 | — | (24,555 | ) | 217,908 | |||||||||||||||
Total liabilities | 1,662,364 | 438,149 | 41,427 | (519,357 | ) | 1,622,583 | |||||||||||||||
Total stockholders’ equity | 398,732 | 1,945,439 | 39,809 | (1,985,248 | ) | 398,732 | |||||||||||||||
Noncontrolling interest | — | — | 17,850 | — | 17,850 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,061,096 | $ | 2,383,588 | $ | 99,086 | $ | (2,504,605 | ) | $ | 2,039,165 | ||||||||||
Condensed Consolidating Statements of Operations | THE GYMBOREE CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 647 | $ | 296,195 | $ | 15,461 | $ | (8,038 | ) | $ | 304,265 | ||||||||||
Gymboree Play & Music | — | 2,786 | 4,958 | — | 7,744 | ||||||||||||||||
Retail Franchise | — | 4,810 | — | — | 4,810 | ||||||||||||||||
Intercompany revenue | 18,249 | 1,800 | — | (20,049 | ) | — | |||||||||||||||
Total net sales | 18,896 | 305,591 | 20,419 | (28,087 | ) | 316,819 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (2,258 | ) | (185,288 | ) | (11,736 | ) | 8,384 | (190,898 | ) | ||||||||||||
Gross profit | 16,638 | 120,303 | 8,683 | (19,703 | ) | 125,921 | |||||||||||||||
Selling, general and administrative expenses | (17,956 | ) | (106,741 | ) | (8,657 | ) | 19,675 | (113,679 | ) | ||||||||||||
Goodwill and intangible asset impairment | — | (572,422 | ) | (18,974 | ) | — | (591,396 | ) | |||||||||||||
Operating loss | (1,318 | ) | (558,860 | ) | (18,948 | ) | (28 | ) | (579,154 | ) | |||||||||||
Interest income | — | 7 | 39 | (4 | ) | 42 | |||||||||||||||
Interest expense | (20,568 | ) | (200 | ) | (4 | ) | 4 | (20,768 | ) | ||||||||||||
Other (expense) income, net | (48 | ) | 31 | (2 | ) | — | (19 | ) | |||||||||||||
Loss before income taxes | (21,934 | ) | (559,022 | ) | (18,915 | ) | (28 | ) | (599,899 | ) | |||||||||||
Income tax benefit (expense) | 8,306 | 70,407 | (1,208 | ) | — | 77,505 | |||||||||||||||
Equity in earnings of affiliates, net of tax | (508,447 | ) | — | — | 508,447 | — | |||||||||||||||
Net loss | (522,075 | ) | (488,615 | ) | (20,123 | ) | 508,419 | (522,394 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 319 | — | 319 | ||||||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (522,075 | ) | $ | (488,615 | ) | $ | (19,804 | ) | $ | 508,419 | $ | (522,075 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 443 | $ | 287,574 | $ | 16,232 | $ | (6,897 | ) | $ | 297,352 | ||||||||||
Gymboree Play & Music | — | 2,808 | 4,013 | — | 6,821 | ||||||||||||||||
Retail Franchise | — | 5,665 | — | — | 5,665 | ||||||||||||||||
Intercompany revenue | 12,866 | 1,490 | — | (14,356 | ) | — | |||||||||||||||
Total net sales | 13,309 | 297,537 | 20,245 | (21,253 | ) | 309,838 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (1,435 | ) | (180,116 | ) | (10,720 | ) | 5,901 | (186,370 | ) | ||||||||||||
Gross profit | 11,874 | 117,421 | 9,525 | (15,352 | ) | 123,468 | |||||||||||||||
Selling, general and administrative expenses | (14,271 | ) | (103,254 | ) | (9,090 | ) | 15,416 | (111,199 | ) | ||||||||||||
Operating (loss) income | (2,397 | ) | 14,167 | 435 | 64 | 12,269 | |||||||||||||||
Interest income | 29 | 6 | 5 | 1 | 41 | ||||||||||||||||
Interest expense | (20,421 | ) | (62 | ) | — | — | (20,483 | ) | |||||||||||||
Loss on extinguishment of debt | (834 | ) | — | — | — | (834 | ) | ||||||||||||||
Other (expense) income, net | (37 | ) | (4 | ) | 894 | — | 853 | ||||||||||||||
(Loss) income before income taxes | (23,660 | ) | 14,107 | 1,334 | 65 | (8,154 | ) | ||||||||||||||
Income tax (expense) benefit | (2,244 | ) | (14,626 | ) | 626 | — | (16,244 | ) | |||||||||||||
Equity in earnings of affiliates, net of tax | 1,919 | — | — | (1,919 | ) | — | |||||||||||||||
Net (loss) income | (23,985 | ) | (519 | ) | 1,960 | (1,854 | ) | (24,398 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 413 | — | 413 | ||||||||||||||||
Net (loss) income attributable to The Gymboree Corporation | $ | (23,985 | ) | $ | (519 | ) | $ | 2,373 | $ | (1,854 | ) | $ | (23,985 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 1,278 | $ | 794,856 | $ | 39,365 | $ | (18,734 | ) | $ | 816,765 | ||||||||||
Gymboree Play & Music | — | 8,067 | 13,828 | — | 21,895 | ||||||||||||||||
Retail Franchise | — | 14,472 | — | — | 14,472 | ||||||||||||||||
Intercompany revenue | 46,632 | 6,182 | — | (52,814 | ) | — | |||||||||||||||
Total net sales | 47,910 | 823,577 | 53,193 | (71,548 | ) | 853,132 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (5,160 | ) | (506,120 | ) | (30,661 | ) | 19,452 | (522,489 | ) | ||||||||||||
Gross profit | 42,750 | 317,457 | 22,532 | (52,096 | ) | 330,643 | |||||||||||||||
Selling, general and administrative expenses | (48,003 | ) | (299,394 | ) | (27,768 | ) | 52,056 | (323,109 | ) | ||||||||||||
Goodwill and intangible asset impairment | — | (572,422 | ) | (18,974 | ) | — | (591,396 | ) | |||||||||||||
Operating loss | (5,253 | ) | (554,359 | ) | (24,210 | ) | (40 | ) | (583,862 | ) | |||||||||||
Interest income | 1 | 54 | 147 | (45 | ) | 157 | |||||||||||||||
Interest expense | (61,224 | ) | (373 | ) | (45 | ) | 45 | (61,597 | ) | ||||||||||||
Other (expense) income, net | (480 | ) | 31 | (72 | ) | — | (521 | ) | |||||||||||||
Loss before income taxes | (66,956 | ) | (554,647 | ) | (24,180 | ) | (40 | ) | (645,823 | ) | |||||||||||
Income tax benefit (expense) | 15,677 | 62,141 | (2,245 | ) | — | 75,573 | |||||||||||||||
Equity in earnings of affiliates, net of tax | (515,380 | ) | — | — | 515,380 | — | |||||||||||||||
Net loss | (566,659 | ) | (492,506 | ) | (26,425 | ) | 515,340 | (570,250 | ) | ||||||||||||
Net loss attributable to noncontrolling interest | — | — | 3,591 | — | 3,591 | ||||||||||||||||
Net loss attributable to The Gymboree Corporation | $ | (566,659 | ) | $ | (492,506 | ) | $ | (22,834 | ) | $ | 515,340 | $ | (566,659 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net sales: | |||||||||||||||||||||
Retail | $ | 1,365 | $ | 831,597 | $ | 44,597 | $ | (20,386 | ) | $ | 857,173 | ||||||||||
Gymboree Play & Music | — | 8,132 | 11,277 | — | 19,409 | ||||||||||||||||
Retail Franchise | — | 16,955 | — | — | 16,955 | ||||||||||||||||
Intercompany revenue | 45,883 | 4,592 | — | (50,475 | ) | — | |||||||||||||||
Total net sales | 47,248 | 861,276 | 55,874 | (70,861 | ) | 893,537 | |||||||||||||||
Cost of goods sold, including buying and occupancy expenses | (4,389 | ) | (525,280 | ) | (30,172 | ) | 17,831 | (542,010 | ) | ||||||||||||
Gross profit | 42,859 | 335,996 | 25,702 | (53,030 | ) | 351,527 | |||||||||||||||
Selling, general and administrative expenses | (49,249 | ) | (295,002 | ) | (26,150 | ) | 53,050 | (317,351 | ) | ||||||||||||
Operating (loss) income | (6,390 | ) | 40,994 | (448 | ) | 20 | 34,176 | ||||||||||||||
Interest income | 62 | 29 | 52 | — | 143 | ||||||||||||||||
Interest expense | (61,290 | ) | (62 | ) | (1 | ) | 1 | (61,352 | ) | ||||||||||||
Loss on extinguishment of debt | (834 | ) | — | — | — | (834 | ) | ||||||||||||||
Other (expense) income, net | (261 | ) | (5 | ) | 1,017 | — | 751 | ||||||||||||||
(Loss) income before income taxes | (68,713 | ) | 40,956 | 620 | 21 | (27,116 | ) | ||||||||||||||
Income tax benefit (expense) | 19,834 | (29,467 | ) | 178 | — | (9,455 | ) | ||||||||||||||
Equity in earnings of affiliates, net of tax | 13,008 | — | — | (13,008 | ) | — | |||||||||||||||
Net (loss) income | (35,871 | ) | 11,489 | 798 | (12,987 | ) | (36,571 | ) | |||||||||||||
Net loss attributable to noncontrolling interest | — | — | 700 | — | 700 | ||||||||||||||||
Net (loss) income attributable to The Gymboree Corporation | $ | (35,871 | ) | $ | 11,489 | $ | 1,498 | $ | (12,987 | ) | $ | (35,871 | ) | ||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | THE GYMBOREE CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
Net loss | $ | (522,075 | ) | $ | (488,615 | ) | $ | (20,123 | ) | $ | 508,419 | $ | (522,394 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (5,066 | ) | — | (4,945 | ) | 5,071 | (4,940 | ) | |||||||||||||
Unrealized net gain on cash flowhedges, net of tax expense of $127 | 522 | — | 142 | (142 | ) | 522 | |||||||||||||||
Total other comprehensive loss, net of tax | (4,544 | ) | — | (4,803 | ) | 4,929 | (4,418 | ) | |||||||||||||
Comprehensive loss | (526,619 | ) | (488,615 | ) | (24,926 | ) | 513,348 | (526,812 | ) | ||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 193 | — | 193 | ||||||||||||||||
Comprehensive loss attributable to The Gymboree Corporation | $ | (526,619 | ) | $ | (488,615 | ) | $ | (24,733 | ) | $ | 513,348 | $ | (526,619 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 13 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | Eliminations | Consolidated | |||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | |||||||||||||||||||
Net (loss) income | $ | (23,985 | ) | $ | (519 | ) | $ | 1,960 | $ | (1,854 | ) | $ | (24,398 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (36 | ) | — | (11 | ) | 55 | 8 | ||||||||||||||
Unrealized net loss on cash flowhedges, net of tax expense of $501 | (871 | ) | — | (191 | ) | 191 | (871 | ) | |||||||||||||
Total other comprehensive loss, net of tax | (907 | ) | — | (202 | ) | 246 | (863 | ) | |||||||||||||
Comprehensive (loss) income | (24,892 | ) | (519 | ) | 1,758 | (1,608 | ) | (25,261 | ) | ||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | 369 | — | 369 | ||||||||||||||||
Comprehensive (loss) income attributable to The Gymboree Corporation | $ | (24,892 | ) | $ | (519 | ) | $ | 2,127 | $ | (1,608 | ) | $ | (24,892 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net loss | $ | (566,659 | ) | $ | (492,506 | ) | $ | (26,425 | ) | $ | 515,340 | $ | (570,250 | ) | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (4,911 | ) | — | (5,065 | ) | 4,886 | (5,090 | ) | |||||||||||||
Unrealized net gain (loss) on cash flow hedges, net of tax expense of $127 | 536 | — | (219 | ) | 219 | 536 | |||||||||||||||
Total other comprehensive loss, net of tax | (4,375 | ) | — | (5,284 | ) | 5,105 | (4,554 | ) | |||||||||||||
Comprehensive loss | (571,034 | ) | (492,506 | ) | (31,709 | ) | 520,445 | (574,804 | ) | ||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 3,770 | — | 3,770 | ||||||||||||||||
Comprehensive loss attributable to The Gymboree Corporation | $ | (571,034 | ) | $ | (492,506 | ) | $ | (27,939 | ) | $ | 520,445 | $ | (571,034 | ) | |||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non-guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
Net (loss) income | $ | (35,871 | ) | $ | 11,489 | $ | 798 | $ | (12,987 | ) | $ | (36,571 | ) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||
Foreign currency translation adjustments | (516 | ) | — | (456 | ) | 557 | (415 | ) | |||||||||||||
Unrealized net gain on cash flow hedges, net of tax benefit of $0 | 635 | — | 217 | (217 | ) | 635 | |||||||||||||||
Total other comprehensive income (loss), net of tax | 119 | — | (239 | ) | 340 | 220 | |||||||||||||||
Comprehensive (loss) income | (35,752 | ) | 11,489 | 559 | (12,647 | ) | (36,351 | ) | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 599 | — | 599 | ||||||||||||||||
Comprehensive (loss) income attributable to The Gymboree Corporation | $ | (35,752 | ) | $ | 11,489 | $ | 1,158 | $ | (12,647 | ) | $ | (35,752 | ) | ||||||||
Condensed Consolidating Statements of Cash Flows | THE GYMBOREE CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 1, 2014 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (58,088 | ) | $ | 29,216 | $ | (4,627 | ) | $ | (3,000 | ) | $ | (36,499 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Capital expenditures | (2,403 | ) | (17,798 | ) | (4,171 | ) | — | (24,372 | ) | ||||||||||||
Proceeds from sale of shares | 3,207 | — | — | (3,207 | ) | — | |||||||||||||||
Intercompany transfers | — | (9,490 | ) | — | 9,490 | — | |||||||||||||||
Other | — | 22 | (67 | ) | — | (45 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 804 | (27,266 | ) | (4,238 | ) | 6,283 | (24,417 | ) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | 2,084 | — | 7,406 | (9,490 | ) | — | |||||||||||||||
Proceeds from ABL facility | 300,000 | — | — | — | 300,000 | ||||||||||||||||
Payments on ABL facility | (258,000 | ) | — | — | — | (258,000 | ) | ||||||||||||||
Payments on capital lease | — | (373 | ) | — | — | (373 | ) | ||||||||||||||
Dividend to The Gymboree Corporation | — | (3,000 | ) | — | 3,000 | — | |||||||||||||||
Dividend payment to Parent | (84 | ) | — | — | — | (84 | ) | ||||||||||||||
Repurchase of shares | — | — | (3,207 | ) | 3,207 | — | |||||||||||||||
Capital contribution received by noncontrolling interest | — | — | 992 | — | 992 | ||||||||||||||||
Net cash provided by (used in) financing activities | 44,000 | (3,373 | ) | 5,191 | (3,283 | ) | 42,535 | ||||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (220 | ) | — | (220 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (13,284 | ) | (1,423 | ) | (3,894 | ) | — | (18,601 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Beginning of Period | 15,479 | 4,659 | 19,291 | — | 39,429 | ||||||||||||||||
End of Period | $ | 2,195 | $ | 3,236 | $ | 15,397 | $ | — | $ | 20,828 | |||||||||||
THE GYMBOREE CORPORATION | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE 39 WEEKS ENDED NOVEMBER 2, 2013 | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
The Gymboree | Guarantor | Non- guarantor | |||||||||||||||||||
Corporation | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (52,645 | ) | $ | 85,441 | $ | (9,510 | ) | $ | — | $ | 23,286 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Capital expenditures | (1,648 | ) | (30,438 | ) | (3,127 | ) | — | (35,213 | ) | ||||||||||||
Intercompany transfers | — | (54,683 | ) | — | 54,683 | — | |||||||||||||||
Other | — | 11 | (246 | ) | — | (235 | ) | ||||||||||||||
Net cash used in investing activities | (1,648 | ) | (85,110 | ) | (3,373 | ) | 54,683 | (35,448 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | 45,535 | — | 9,148 | (54,683 | ) | — | |||||||||||||||
Proceeds from ABL facility | 79,000 | — | — | — | 79,000 | ||||||||||||||||
Payments on ABL facility | (55,000 | ) | — | — | — | (55,000 | ) | ||||||||||||||
Repurchase of notes | (24,760 | ) | — | — | — | (24,760 | ) | ||||||||||||||
Payments on capital lease | — | (78 | ) | — | — | (78 | ) | ||||||||||||||
Dividend payment to parent | (7,475 | ) | — | — | — | (7,475 | ) | ||||||||||||||
Capital contribution received by noncontrolling interest | — | — | 6,506 | — | 6,506 | ||||||||||||||||
Net cash provided by (used in) financing activities | 37,300 | (78 | ) | 15,654 | (54,683 | ) | (1,807 | ) | |||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (280 | ) | — | (280 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (16,993 | ) | 253 | 2,491 | — | (14,249 | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS: | |||||||||||||||||||||
Beginning of Period | 18,431 | 3,128 | 11,769 | — | 33,328 | ||||||||||||||||
End of Period | $ | 1,438 | $ | 3,381 | $ | 14,260 | $ | — | $ | 19,079 | |||||||||||
Intercompany Transfers of Guarantor Subsidiaries Previously Presented as Financing Activities Classified as Investing Activities | The classification of these intercompany transfers has been corrected in the above condensed consolidating statements of cash flows for the 39 weeks ended November 2, 2013 to be presented within investing activities. This correction has no impact on the condensed consolidated statement of cash flows for the 39 weeks ended November 2, 2013. The effect is summarized as follows: | ||||||||||||||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||||||||
Guarantor | Guarantor | Eliminations | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | (As Previously | (As Corrected) | ||||||||||||||||||
(As Previously | (As Corrected) | Reported) | |||||||||||||||||||
Reported) | |||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | $ | — | $ | (54,683 | ) | $ | — | $ | 54,683 | ||||||||||||
Net cash used in investing activities | $ | (30,427 | ) | $ | (85,110 | ) | $ | — | $ | 54,683 | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||
Intercompany transfers | $ | (54,683 | ) | $ | — | $ | — | $ | (54,683 | ) | |||||||||||
Net cash used in financing activities | $ | (54,761 | ) | $ | (78 | ) | $ | — | $ | (54,683 | ) |
Goodwill_Allocated_to_Reportab
Goodwill Allocated to Reportable Segments (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
Goodwill [Line Items] | |||
Goodwill gross | $927,266 | $927,266 | $927,283 |
Accumulated impairment losses | -547,285 | -168,489 | -28,300 |
Effect of exchange rate fluctuations | -4,636 | ||
Goodwill | 375,345 | 758,777 | 898,983 |
Retail Stores | |||
Goodwill [Line Items] | |||
Goodwill gross | 887,241 | 887,241 | 887,241 |
Accumulated impairment losses | -547,285 | -168,489 | -28,300 |
Effect of exchange rate fluctuations | -4,636 | ||
Goodwill | 335,320 | 718,752 | 858,941 |
Gymboree Play & Music | |||
Goodwill [Line Items] | |||
Goodwill gross | 16,389 | 16,389 | 16,406 |
Goodwill | 16,389 | 16,389 | 16,406 |
International Retail Franchise | |||
Goodwill [Line Items] | |||
Goodwill gross | 23,636 | 23,636 | 23,636 |
Goodwill | $23,636 | $23,636 | $23,636 |
Goodwill_Impairment_Changes_De
Goodwill Impairment Changes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 01, 2014 | Feb. 01, 2014 |
Goodwill [Line Items] | ||||
Impairment for goodwill | ($378,796) | ($140,189) | ($378,796) | ($140,189) |
Retail Stores | ||||
Goodwill [Line Items] | ||||
Impairment for goodwill | ($378,796) | ($378,796) | ($140,189) |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets and Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |
Nov. 01, 2014 | Feb. 01, 2014 | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Nov. 02, 2013 | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Impairment for goodwill | $378,796,000 | $140,189,000 | $378,796,000 | $140,189,000 | ||
Trade names | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Trade names impairment | 212,600,000 | 212,600,000 | ||||
Minimum | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Discount rate used in income approach | 13.00% | 13.00% | ||||
Maximum | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Discount rate used in income approach | 15.50% | 15.50% | ||||
Retail Segment | Gymboree Stores | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Impairment for goodwill | 252,300,000 | |||||
Retail Segment | Gymboree Outlet Stores | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Impairment for goodwill | 67,200,000 | |||||
Retail Segment | Crazy 8 Stores | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Impairment for goodwill | 59,300,000 | |||||
Cost of Goods Sold | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Net amortization income recorded in cost of goods sold | 200,000 | 700,000 | 300,000 | 1,100,000 | ||
Selling, General and Administrative Expenses | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Amortization expense recorded in selling, general and administrative expenses | $500,000 | $1,600,000 | $400,000 | $3,000,000 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $622,732 | $622,732 | $621,549 |
Intangible assets subject to amortization, gross carrying amount | 55,238 | 55,238 | 54,055 |
Accumulated Amortization | -48,303 | -45,908 | -44,805 |
Intangible assets subject to amortization, net amount | 6,935 | 9,330 | 9,250 |
Accumulated Impairment | -229,600 | -17,000 | |
Net Amount | 344,829 | 559,824 | 576,744 |
Trade names | |||
Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization, gross carrying amount | 567,494 | 567,494 | 567,494 |
Accumulated Impairment | -229,600 | -17,000 | |
Intangible assets not subject to amortization, net amount | 337,894 | 550,494 | 567,494 |
Customer relationships | |||
Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 37,551 | 37,551 | 36,400 |
Accumulated Amortization | -37,248 | -36,803 | -36,400 |
Intangible assets subject to amortization, net amount | 303 | 748 | |
Below Market Leases | |||
Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 7,055 | 7,055 | 7,055 |
Accumulated Amortization | -4,995 | -4,195 | -3,908 |
Intangible assets subject to amortization, net amount | 2,060 | 2,860 | 3,147 |
Co-branded credit card agreement | |||
Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 4,000 | 4,000 | 4,000 |
Accumulated Amortization | -2,419 | -1,958 | -1,804 |
Intangible assets subject to amortization, net amount | 1,581 | 2,042 | 2,196 |
Franchise agreements and reacquired franchise rights | |||
Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross carrying amount | 6,632 | 6,632 | 6,600 |
Accumulated Amortization | -3,641 | -2,952 | -2,693 |
Intangible assets subject to amortization, net amount | $2,991 | $3,680 | $3,907 |
Intangible_Liabilities_Detail
Intangible Liabilities (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Intangible Liabilities [Line Items] | |||
Gross carrying amount | ($16,631) | ($16,631) | ($16,631) |
Accumulated amount | 11,517 | 9,999 | 9,366 |
Net amount | ($5,114) | ($6,632) | ($7,265) |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2010 | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | |
Derivative [Line Items] | |||||
Forward exchange contracts term | 1 year | ||||
Reclassified from other comprehensive loss to interest expense | $20,768,000 | $20,483,000 | $61,597,000 | $61,352,000 | |
Derivatives | |||||
Derivative [Line Items] | |||||
Interest rate caps, maturity date | 23-Dec-16 | ||||
Payment for interest rate caps hedging | 12,100,000 | ||||
Reclassified from other comprehensive loss to interest expense | 500,000 | 300,000 | 1,400,000 | 700,000 | |
Reclassified from accumulated other comprehensive loss to interest expense within the next 12 months | $3,400,000 |
Outstanding_Derivatives_Design
Outstanding Derivatives Designated as Cash Flow Hedges (Detail) (Designated as Hedging Instrument, USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | Derivative | Derivative | Derivative |
Derivative [Line Items] | |||
Number of derivative instruments | 7 | 10 | 7 |
Notional | $704,682 | $705,029 | $703,420 |
Interest rate derivatives | Interest rate caps | |||
Derivative [Line Items] | |||
Number of interest rate derivative instruments | 4 | 4 | 4 |
Notional | 700,000 | 700,000 | 700,000 |
Foreign exchange derivatives | Forward foreign exchange contracts | |||
Derivative [Line Items] | |||
Number of foreign currency exchange rate derivatives, designated as cash flow hedges | 3 | 6 | 3 |
Notional | $4,682 | $5,029 | $3,420 |
Outstanding_Derivatives_Not_De
Outstanding Derivatives Not Designated as Hedges (Detail) (Not Designated as Hedging Instrument, Foreign exchange derivatives, Forward foreign exchange contracts, USD $) | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | Derivative | Derivative |
Not Designated as Hedging Instrument | Foreign exchange derivatives | Forward foreign exchange contracts | ||
Derivative [Line Items] | ||
Number of foreign currency exchange rate derivatives, not designated as cash flow hedges | 2 | 1 |
Notional | $10,339 | $380 |
Fair_Value_of_Derivative_Finan
Fair Value of Derivative Financial Instruments (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $175 | $947 | $748 |
Interest rate derivatives | Interest rate caps | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | 41 | 599 | 641 |
Foreign exchange derivatives | Forward foreign exchange contracts | Other Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Assets | $134 | $348 | $107 |
Effect_of_Derivative_Financial
Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (Losses) Recognized in OCI on Derivative (Effective Portion) | $180 | ($543) | ($449) | $84 |
Gains / (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | -469 | -173 | -1,112 | -551 |
Interest rate derivatives | Interest rate caps | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (Losses) Recognized in OCI on Derivative (Effective Portion) | -1 | -546 | -558 | -323 |
Gains / (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | -509 | -310 | -1,441 | -742 |
Foreign exchange derivatives | Forward foreign exchange contracts | Cost of Goods Sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (Losses) Recognized in OCI on Derivative (Effective Portion) | 181 | 3 | 109 | 407 |
Gains / (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | $40 | $137 | $329 | $191 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets Level 1 into Level 2 transfer amount | $0 | $0 | $0 | $0 | $0 | $0 |
Liabilities Level 1 into Level 2 transfer amount | 0 | 0 | 0 | 0 | 0 | 0 |
Assets Level 2 into Level 1 transfer amount | 0 | 0 | 0 | 0 | 0 | 0 |
Liabilities Level 2 into Level 1 transfer amount | 0 | 0 | 0 | 0 | 0 | 0 |
Other financial assets measured at fair value | 0 | 0 | 0 | 0 | 0 | 0 |
Other financial liabilities measured at fair value | 0 | 0 | 0 | 0 | 0 | 0 |
Impairment for goodwill | 378,796,000 | 140,189,000 | 378,796,000 | 140,189,000 | ||
Impairment charges | 2,000,000 | 500,000 | 5,200,000 | 1,500,000 | ||
Trade names | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long lived assets, Impairment | 212,600,000 | 212,600,000 | ||||
Retail Stores | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment for goodwill | $378,796,000 | $378,796,000 | $140,189,000 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | $175 | $15,518 | $748 |
Interest rate caps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 41 | 599 | 641 |
Forward foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 134 | 348 | 107 |
Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 14,571 | ||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 14,571 | ||
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 14,571 | ||
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 175 | 947 | 748 |
Significant Other Observable Inputs (Level 2) | Interest rate caps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | 41 | 599 | 641 |
Significant Other Observable Inputs (Level 2) | Forward foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Fair Value | $134 | $348 | $107 |
Estimated_Fair_Value_of_LongTe
Estimated Fair Value of Long-Term Debt (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | $1,113,970 | $1,113,742 | $1,113,668 |
Fair Value | 599,100 | 1,000,997 | 1,078,189 |
Term Loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 767,970 | 767,742 | 767,668 |
Fair Value | 488,380 | 692,192 | 746,029 |
Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 346,000 | 346,000 | 346,000 |
Fair Value | $110,720 | $308,805 | $332,160 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
Line of Credit Facility [Line Items] | |||||
Line of credit, outstanding | $42,000,000 | $24,000,000 | $42,000,000 | $24,000,000 | |
Senior Secured Asset Based Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, borrowing capacity | 225,000,000 | 225,000,000 | |||
Line of credit, outstanding | 42,000,000 | 24,000,000 | 42,000,000 | 24,000,000 | 0 |
Letter of credit, outstanding | 29,600,000 | 29,600,000 | |||
Line of credit, remaining borrowing capacity | 146,000,000 | 146,000,000 | |||
Line of credit, average borrowing | 48,500,000 | 10,600,000 | 28,900,000 | 3,500,000 | 4,300,000 |
Line of credit, Principal amounts outstanding due date | 2017-03 | ||||
Senior Secured Asset Based Revolving Credit Facility | Federal Funds Effective Rate | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, interest rate | 0.50% | ||||
Senior Secured Asset Based Revolving Credit Facility | Adjusted LIBOR Rate | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, interest rate | 1.00% | ||||
Senior Secured Asset Based Revolving Credit Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, additional commitments | $125,000,000 | $125,000,000 | |||
Senior Secured Asset Based Revolving Credit Facility | After Amendment | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, commitment fee | 0.38% |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Long-term debt | $1,113,970 | $1,113,742 | $1,113,668 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Long-term debt | 767,970 | 767,742 | 767,668 |
Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $346,000 | $346,000 | $346,000 |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 |
Term Loan | |||
Debt Instrument [Line Items] | |||
London interbank offering rate floor | 1.50% | 1.50% | 1.50% |
Term loan, discount | 1,133 | 1,434 | 1,360 |
Long-term debt, due date | 2018-02 | ||
Term Loan | Adjusted LIBOR Rate | |||
Debt Instrument [Line Items] | |||
Long-term debt, interest rate above basis rate | 3.50% | 3.50% | 3.50% |
Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, due date | 2018-12 | 2018-12 | 2018-12 |
Senior notes, interest rate | 9.13% | 9.13% | 9.13% |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
Debt Instrument [Line Items] | |||||
Long-term debt, interest expense | $20,768,000 | $20,483,000 | $61,597,000 | $61,352,000 | |
Deferred financing costs, amortization period | 6 years 4 months 24 days | ||||
Deferred financing costs, weighted-average remaining amortization period | 3 years 6 months | ||||
Deferred financing costs, amortization expense | 1,700,000 | 1,700,000 | 5,100,000 | 4,900,000 | |
Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, amount | 400,000,000 | 400,000,000 | |||
Long-term debt, due date | 2018-12 | 2018-12 | 2018-12 | ||
Long-term debt, interest rate | 9.13% | 9.13% | 9.13% | 9.13% | 9.13% |
Long-term debt, redemption price | 100.00% | ||||
Notes | Change in Control of Company | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, redemption price | 101.00% | ||||
Long-Term Debt and ABL | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest expense | 20,600,000 | 20,500,000 | 61,200,000 | 61,400,000 | |
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, amount | 820,000,000 | 820,000,000 | |||
Long-term debt, due date | 2018-02 | ||||
London interbank offering rate floor | 1.50% | 1.50% | 1.50% | 1.50% | 1.50% |
Interest rate under term loan | 5.00% | 5.00% | |||
Long-term debt, payment percentage | 0.25% | 0.25% | |||
Senior secured term loan facility, discount | 1,133,000 | 1,434,000 | 1,133,000 | 1,434,000 | 1,360,000 |
Term Loan | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate above basis rate | 2.50% | ||||
Term Loan | Adjusted LIBOR Rate | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, interest rate above basis rate | 3.50% | 3.50% | 3.50% | ||
Term Loan | Maximum | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, allowed additional tranches of loan | $200,000,000 |
Schedule_of_Redemption_Prices_
Schedule of Redemption Prices (Detail) (Notes) | 9 Months Ended |
Nov. 01, 2014 | |
Notes | |
Debt Instrument [Line Items] | |
2014 | 104.56% |
2015 | 102.28% |
2016 and thereafter | 100.00% |
Scheduled_Future_Minimum_Princ
Scheduled Future Minimum Principal Payments on Long-Term Debt (Detail) (USD $) | Nov. 01, 2014 |
In Thousands, unless otherwise specified | |
Long Term Debt Maturities Repayments Of Principal [Line Items] | |
Principal payments in Remainder of 2014 | $0 |
Principal payments in 2015 | 0 |
Principal payments in 2016 | 0 |
Principal payments in 2017 | 6,502 |
Principal payments in 2018 | 1,108,600 |
Total | $1,115,102 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $1,100 | $1,400 | $3,389 | $4,417 |
Dividend_Additional_Informatio
Dividend - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | 4-May-13 | Nov. 01, 2014 | Nov. 02, 2013 | Aug. 02, 2014 | 3-May-14 | Aug. 03, 2013 |
Dividends Payable [Line Items] | ||||||||
Dividend payment to Parent | $100 | $600 | $200 | $84 | $7,475 | |||
Capital contribution received by noncontrolling interest | 992 | 6,506 | ||||||
VIEs | ||||||||
Dividends Payable [Line Items] | ||||||||
Dividend payment to Parent | 6,700 | |||||||
Capital contribution received by noncontrolling interest | $0 | $0 | $1,000 | $1,000 | $0 | $5,500 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Millions, unless otherwise specified | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $6.90 | $6.60 | $12.10 |
Reasonably possible decrease in unrecognized tax benefits during next twelve months | 1.2 | ||
Valuation allowance | $52.40 | $31.90 | $25.20 |
Components_of_Accumulated_OCI_
Components of Accumulated OCI, net of Taxes (Detail) (USD $) | Nov. 01, 2014 | Aug. 02, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Foreign currency translation | ($4,288) | $623 | $292 | |||
Accumulated changes in fair value of derivative financial instruments, net of tax benefit of $3,855, $3,982 and $3,982 | -4,967 | -5,503 | -6,087 | |||
Total accumulated other comprehensive loss | ($9,255) | ($4,711) | ($4,880) | ($5,795) | ($4,888) | ($5,914) |
Components_of_Accumulated_OCI_1
Components of Accumulated OCI, net of Taxes (Parenthetical) (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated changes in fair value of derivative financial instruments, tax benefit | $3,855 | $3,982 | $3,982 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income Balance by Component (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | ($4,711) | ($4,888) | ($4,880) | ($5,914) |
Other comprehensive (loss) income recognized before reclassifications | -4,760 | -535 | -5,539 | -331 |
Amounts reclassified from accumulated other comprehensive loss to earnings | 469 | 173 | 1,112 | 551 |
Tax expense | -127 | -501 | -127 | |
Total other comprehensive (loss) income | -4,418 | -863 | -4,554 | 220 |
Other comprehensive loss (income) attributable to noncontrolling interest | -126 | -44 | 179 | -101 |
Ending balance | -9,255 | -5,795 | -9,255 | -5,795 |
Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | -5,489 | -5,216 | -5,503 | -6,722 |
Other comprehensive (loss) income recognized before reclassifications | 180 | -543 | -449 | 84 |
Amounts reclassified from accumulated other comprehensive loss to earnings | 469 | 173 | 1,112 | 551 |
Tax expense | -127 | -501 | -127 | |
Total other comprehensive (loss) income | 522 | -871 | 536 | 635 |
Ending balance | -4,967 | -6,087 | -4,967 | -6,087 |
Foreign Currency | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 778 | 328 | 623 | 808 |
Other comprehensive (loss) income recognized before reclassifications | -4,940 | 8 | -5,090 | -415 |
Total other comprehensive (loss) income | -4,940 | 8 | -5,090 | -415 |
Other comprehensive loss (income) attributable to noncontrolling interest | -126 | -44 | 179 | -101 |
Ending balance | ($4,288) | $292 | ($4,288) | $292 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2014 | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
Gymboree Play Programs Incorporated | ||||||
Related Party Transaction [Line Items] | ||||||
Master franchise agreement period with Gymboree Tianjin | 10 years | |||||
LogicSource | ||||||
Related Party Transaction [Line Items] | ||||||
Payable to related parties | $200,000 | $300,000 | $200,000 | $300,000 | $200,000 | |
Purchased services | 500,000 | 600,000 | 1,400,000 | 1,800,000 | ||
Bain Capital Partners Llc | ||||||
Related Party Transaction [Line Items] | ||||||
Payment for management fee and reimbursement of out-of-pocket expenses | 700,000 | 900,000 | 2,300,000 | 2,700,000 | ||
Payable to related parties | 200,000 | 200,000 | 200,000 | 200,000 | 400,000 | |
Bain Capital Partners Llc | VIEs | ||||||
Related Party Transaction [Line Items] | ||||||
Payment for management fee and reimbursement of out-of-pocket expenses | 100,000 | 100,000 | 400,000 | 400,000 | ||
Burlington Coat Factory | ||||||
Related Party Transaction [Line Items] | ||||||
Inventory sold | 0 | 700,000 | 0 | 8,700,000 | ||
Receivable from related parties | 0 | 0 | 0 | 0 | 1,000,000 | |
Giraffe Holding, Inc | ||||||
Related Party Transaction [Line Items] | ||||||
Receivable from related parties | 0 | 0 | 0 | 0 | 800,000 | |
Gymboree Investment Holding Gp Limited | VIEs | ||||||
Related Party Transaction [Line Items] | ||||||
Payable to related parties | 1,100,000 | 1,100,000 | 1,100,000 | 1,100,000 | 1,100,000 | |
Gymboree Hong Kong Limited | VIEs | ||||||
Related Party Transaction [Line Items] | ||||||
Payable to related parties | $400,000 | $400,000 | $400,000 | $400,000 | $400,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Segment | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 4 | |||
Reportable segment, sales | $316,819 | $309,838 | $853,132 | $893,537 |
Retail Segment | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 4 | |||
Gymboree Play & Music | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment, sales | 7,744 | 6,821 | 21,895 | 19,409 |
International Retail Franchise | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment, sales | 4,810 | 5,665 | 14,472 | 16,955 |
Intersegment elimination | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment, sales | -1,494 | -1,196 | -5,367 | -3,754 |
Intersegment elimination | Gymboree Play & Music | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment, sales | 1,400 | 1,100 | 5,000 | 3,400 |
Intersegment elimination | International Retail Franchise | ||||
Segment Reporting Information [Line Items] | ||||
Reportable segment, sales | $100 | $100 | $400 | $400 |
Financial_Data_of_Each_Reporta
Financial Data of Each Reportable Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 |
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | $316,819 | $309,838 | $853,132 | $893,537 | |
Reportable segment, operating income (loss) | -579,154 | 12,269 | -583,862 | 34,176 | |
Reportable segment, Total assets | 1,284,011 | 2,039,165 | 1,284,011 | 2,039,165 | 1,840,104 |
VIEs | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 6,055 | 5,395 | 17,705 | 15,027 | |
Reportable segment, operating income (loss) | 172 | -803 | -2,525 | -1,318 | |
Reportable segment, Total assets | 21,981 | 26,028 | 21,981 | 26,028 | 23,208 |
Retail Stores | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 304,265 | 297,352 | 816,765 | 857,173 | |
Gymboree Play & Music | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 7,744 | 6,821 | 21,895 | 19,409 | |
International Retail Franchise | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 4,810 | 5,665 | 14,472 | 16,955 | |
Operating Segments | VIEs | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 6,055 | 5,395 | 17,705 | 15,027 | |
Reportable segment, operating income (loss) | 172 | -803 | -2,525 | -1,318 | |
Reportable segment, Total assets | 21,981 | 26,028 | 21,981 | 26,028 | 23,208 |
Operating Segments | Retail Stores | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 303,166 | 295,969 | 812,887 | 853,422 | |
Reportable segment, operating income (loss) | -583,758 | 8,786 | -596,894 | 22,657 | |
Reportable segment, Total assets | 1,175,445 | 1,924,170 | 1,175,445 | 1,924,170 | 1,728,186 |
Operating Segments | Gymboree Play & Music | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 4,178 | 3,879 | 13,069 | 11,524 | |
Reportable segment, operating income (loss) | 1,981 | 1,836 | 8,227 | 5,284 | |
Reportable segment, Total assets | 59,655 | 61,034 | 59,655 | 61,034 | 60,942 |
Operating Segments | International Retail Franchise | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 4,914 | 5,791 | 14,838 | 17,318 | |
Reportable segment, operating income (loss) | 2,452 | 2,430 | 7,340 | 7,499 | |
Reportable segment, Total assets | 28,252 | 29,403 | 28,252 | 29,403 | 29,256 |
Intersegment elimination | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | -1,494 | -1,196 | -5,367 | -3,754 | |
Reportable segment, operating income (loss) | -1 | 20 | -10 | 54 | |
Reportable segment, Total assets | -1,322 | -1,470 | -1,322 | -1,470 | -1,488 |
Intersegment elimination | Gymboree Play & Music | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | 1,400 | 1,100 | 5,000 | 3,400 | |
Intersegment elimination | International Retail Franchise | |||||
Segment Reporting Information [Line Items] | |||||
Reportable segment, sales | $100 | $100 | $400 | $400 |
Financial_Data_of_Each_Geograp
Financial Data of Each Geographical Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 |
Geographic Reporting Disclosure [Line Items] | |||||
Net sales | $316,819 | $309,838 | $853,132 | $893,537 | |
Long-lived assets | 191,175 | 209,267 | 191,175 | 209,267 | 206,308 |
UNITED STATES | |||||
Geographic Reporting Disclosure [Line Items] | |||||
Net sales | 296,839 | 290,962 | 801,409 | 841,855 | |
Long-lived assets | 179,982 | 199,156 | 179,982 | 199,156 | 196,990 |
International geographical segment | |||||
Geographic Reporting Disclosure [Line Items] | |||||
Net sales | 19,980 | 18,876 | 51,723 | 51,682 | |
Long-lived assets | $11,193 | $10,111 | $11,193 | $10,111 | $9,318 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (VIEs) | 9 Months Ended |
Nov. 01, 2014 | |
VIEs | |
Variable Interest Entity [Line Items] | |
Variable interest entity, percentage of ownership interest | 0.00% |
Variable interest entity, percentage of result of operation recorded as noncontrolling interest | 100.00% |
Impact_of_VIES_on_Condensed_Co
Impact of VIES on Condensed Consolidated Balance sheets (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $20,828 | $39,429 | $19,079 | $33,328 |
Other current assets | 315,630 | 231,611 | 288,421 | |
Total current assets | 336,458 | 271,040 | 307,500 | |
Non-current assets | 947,553 | 1,569,064 | 1,731,665 | |
Total assets | 1,284,011 | 1,840,104 | 2,039,165 | |
Current liabilities | 296,939 | 202,765 | 225,287 | |
Non-current liabilities | 1,308,415 | 1,388,197 | 1,397,296 | |
Total liabilities | 1,605,354 | 1,590,962 | 1,622,583 | |
Total stockholders' (deficit) equity | -333,935 | 233,794 | 398,732 | |
Noncontrolling interest | 12,592 | 15,348 | 17,850 | |
Total liabilities and stockholders' (deficit) equity | 1,284,011 | 1,840,104 | 2,039,165 | |
Balance Before Consolidation of VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 10,653 | 25,635 | 13,743 | |
Other current assets | 310,491 | 228,129 | 273,798 | |
Total current assets | 321,144 | 253,764 | 287,541 | |
Non-current assets | 942,208 | 1,564,620 | 1,727,065 | |
Total assets | 1,263,352 | 1,818,384 | 2,014,606 | |
Current liabilities | 289,155 | 196,631 | 218,665 | |
Non-current liabilities | 1,307,985 | 1,387,828 | 1,397,034 | |
Total liabilities | 1,597,140 | 1,584,459 | 1,615,699 | |
Total stockholders' (deficit) equity | -333,788 | 233,925 | 398,907 | |
Total liabilities and stockholders' (deficit) equity | 1,263,352 | 1,818,384 | 2,014,606 | |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 10,175 | 13,794 | 5,336 | |
Other current assets | 6,461 | 4,970 | 16,093 | |
Total current assets | 16,636 | 18,764 | 21,429 | |
Non-current assets | 5,345 | 4,444 | 4,599 | |
Total assets | 21,981 | 23,208 | 26,028 | |
Current liabilities | 8,959 | 7,490 | 7,916 | |
Non-current liabilities | 430 | 370 | 262 | |
Total liabilities | 9,389 | 7,860 | 8,178 | |
Noncontrolling interest | 12,592 | 15,348 | 17,850 | |
Total liabilities and stockholders' (deficit) equity | 21,981 | 23,208 | 26,028 | |
VIE Eliminations | ||||
Variable Interest Entity [Line Items] | ||||
Other current assets | -1,322 | -1,488 | -1,470 | |
Total current assets | -1,322 | -1,488 | -1,470 | |
Non-current assets | 1 | |||
Total assets | -1,322 | -1,488 | -1,469 | |
Current liabilities | -1,175 | -1,356 | -1,294 | |
Non-current liabilities | -1 | |||
Total liabilities | -1,175 | -1,357 | -1,294 | |
Total stockholders' (deficit) equity | -147 | -131 | -175 | |
Total liabilities and stockholders' (deficit) equity | ($1,322) | ($1,488) | ($1,469) |
Impact_of_VIES_on_Condensed_Co1
Impact of VIES on Condensed Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Variable Interest Entity [Line Items] | ||||
Net sales | $316,819 | $309,838 | $853,132 | $893,537 |
Cost of goods sold | -190,898 | -186,370 | -522,489 | -542,010 |
Selling, general and administrative expenses | -113,679 | -111,199 | -323,109 | -317,351 |
Operating (loss) income | -579,154 | 12,269 | -583,862 | 34,176 |
Other non-operating (expense) income | -20,745 | -20,423 | -61,961 | -61,292 |
(Loss) income before income taxes | -599,899 | -8,154 | -645,823 | -27,116 |
Income tax benefit (expense) | 77,505 | -16,244 | 75,573 | -9,455 |
Net loss | -522,394 | -24,398 | -570,250 | -36,571 |
Net loss attributable to noncontrolling interest | 319 | 413 | 3,591 | 700 |
Net loss attributable to The Gymboree Corporation | -522,075 | -23,985 | -566,659 | -35,871 |
Total Selling, General and Administrative Expenses | ||||
Variable Interest Entity [Line Items] | ||||
Selling, general and administrative expenses | -705,075 | -111,199 | -914,505 | -317,351 |
Balance Before Consolidation of VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Net sales | 312,258 | 305,639 | 840,794 | 882,264 |
Cost of goods sold | -189,729 | -185,116 | -518,426 | -538,591 |
Operating (loss) income | -579,325 | 13,052 | -581,327 | 35,440 |
Other non-operating (expense) income | -20,772 | -21,140 | -61,955 | -62,163 |
(Loss) income before income taxes | -600,097 | -8,088 | -643,282 | -26,723 |
Income tax benefit (expense) | 78,023 | -15,917 | 76,633 | -9,202 |
Net loss | -522,074 | -24,005 | -566,649 | -35,925 |
Net loss attributable to The Gymboree Corporation | -522,074 | -24,005 | -566,649 | -35,925 |
Balance Before Consolidation of VIEs | Total Selling, General and Administrative Expenses | ||||
Variable Interest Entity [Line Items] | ||||
Selling, general and administrative expenses | -701,854 | -107,471 | -903,695 | -308,233 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Net sales | 6,055 | 5,395 | 17,705 | 15,027 |
Cost of goods sold | -1,561 | -1,297 | -4,874 | -3,868 |
Operating (loss) income | 172 | -803 | -2,525 | -1,318 |
Other non-operating (expense) income | 27 | 717 | -6 | 871 |
(Loss) income before income taxes | 199 | -86 | -2,531 | -447 |
Income tax benefit (expense) | -518 | -327 | -1,060 | -253 |
Net loss | -319 | -413 | -3,591 | -700 |
Net loss attributable to noncontrolling interest | 319 | 413 | 3,591 | 700 |
VIEs | Total Selling, General and Administrative Expenses | ||||
Variable Interest Entity [Line Items] | ||||
Selling, general and administrative expenses | -4,322 | -4,901 | -15,356 | -12,477 |
VIE Eliminations | ||||
Variable Interest Entity [Line Items] | ||||
Net sales | -1,494 | -1,196 | -5,367 | -3,754 |
Cost of goods sold | 392 | 43 | 811 | 449 |
Operating (loss) income | -1 | 20 | -10 | 54 |
(Loss) income before income taxes | -1 | 20 | -10 | 54 |
Net loss | -1 | 20 | -10 | 54 |
Net loss attributable to The Gymboree Corporation | -1 | 20 | -10 | 54 |
VIE Eliminations | Total Selling, General and Administrative Expenses | ||||
Variable Interest Entity [Line Items] | ||||
Selling, general and administrative expenses | $1,101 | $1,173 | $4,546 | $3,359 |
Condensed_Guarantor_Data_Addit
Condensed Guarantor Data - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Nov. 01, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Domestic subsidiaries, ownership percentage | 100.00% | 100.00% | ||
Dividend received from subsidiary | $3,000,000 | |||
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Issuance of common stock in non-cash investing and financing activity | 18,500,000 | |||
Repurchase of shares | 3,200,000 | 3,207,000 | ||
Non-Guarantor Subsidiaries | Business Operations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Issuance of common stock in non-cash investing and financing activity | 15,300,000 | |||
Non-Guarantor Subsidiaries | Advanced Pricing Agreement | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Issuance of common stock in non-cash investing and financing activity | $3,200,000 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $20,828 | $39,429 | $19,079 | $33,328 |
Accounts receivable, net of allowance | 23,377 | 21,882 | 32,485 | |
Merchandise inventories | 259,266 | 175,495 | 222,414 | |
Prepaid income taxes | 2,715 | 1,979 | 1,815 | |
Prepaid expenses | 21,090 | 18,801 | 19,986 | |
Deferred income taxes | 9,182 | 13,454 | 11,721 | |
Total current assets | 336,458 | 271,040 | 307,500 | |
Property and equipment, net | 191,175 | 206,308 | 209,267 | |
Goodwill | 375,345 | 758,777 | 898,983 | |
Other intangible assets, net | 344,829 | 559,824 | 576,744 | |
Deferred financing costs | 27,338 | 32,455 | 34,067 | |
Other assets | 8,866 | 11,700 | 12,604 | |
Total assets | 1,284,011 | 1,840,104 | 2,039,165 | |
Current liabilities: | ||||
Accounts payable | 146,066 | 101,959 | 87,323 | |
Accrued liabilities | 108,334 | 100,303 | 113,472 | |
Line of credit | 42,000 | 24,000 | ||
Current obligation under capital lease | 539 | 503 | 492 | |
Total current liabilities | 296,939 | 202,765 | 225,287 | |
Long-term liabilities: | ||||
Long-term debt | 1,113,970 | 1,113,742 | 1,113,668 | |
Long-term obligation under capital lease | 2,993 | 3,402 | 3,532 | |
Lease incentives and other liabilities | 60,315 | 56,589 | 62,188 | |
Deferred income taxes | 131,137 | 214,464 | 217,908 | |
Total liabilities | 1,605,354 | 1,590,962 | 1,622,583 | |
Total stockholders' (deficit) equity | -333,935 | 233,794 | 398,732 | |
Noncontrolling interest | 12,592 | 15,348 | 17,850 | |
Total liabilities and stockholders' (deficit) equity | 1,284,011 | 1,840,104 | 2,039,165 | |
The Gymboree Corporation | ||||
Current assets: | ||||
Cash and cash equivalents | 2,195 | 15,479 | 1,438 | 18,431 |
Accounts receivable, net of allowance | 687 | 1,237 | 367 | |
Prepaid income taxes | 2,029 | 1,659 | 1,478 | |
Prepaid expenses | 4,461 | 3,538 | 4,011 | |
Total current assets | 9,372 | 21,913 | 7,294 | |
Property and equipment, net | 12,063 | 14,288 | 13,166 | |
Deferred financing costs | 27,338 | 32,455 | 34,067 | |
Other assets | 6,992 | 15,139 | 21,321 | |
Investment in subsidiaries | 1,362,644 | 1,870,800 | 1,985,248 | |
Total assets | 1,418,409 | 1,954,595 | 2,061,096 | |
Current liabilities: | ||||
Accounts payable | 17,823 | 27,184 | 8,756 | |
Accrued liabilities | 32,221 | 34,328 | 38,548 | |
Deferred income taxes | 5,150 | 654 | 4,363 | |
Line of credit | 42,000 | 24,000 | ||
Intercompany payable | 536,282 | 541,397 | 468,686 | |
Total current liabilities | 633,476 | 603,563 | 544,353 | |
Long-term liabilities: | ||||
Long-term debt | 1,113,970 | 1,113,742 | 1,113,668 | |
Lease incentives and other liabilities | 4,898 | 3,496 | 4,343 | |
Total liabilities | 1,752,344 | 1,720,801 | 1,662,364 | |
Total stockholders' (deficit) equity | -333,935 | 233,794 | 398,732 | |
Total liabilities and stockholders' (deficit) equity | 1,418,409 | 1,954,595 | 2,061,096 | |
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 3,236 | 4,659 | 3,381 | 3,128 |
Accounts receivable, net of allowance | 20,693 | 18,634 | 20,087 | |
Merchandise inventories | 252,102 | 170,126 | 216,605 | |
Prepaid income taxes | 486 | 284 | ||
Prepaid expenses | 15,164 | 14,095 | 14,659 | |
Deferred income taxes | 13,745 | 13,303 | 15,295 | |
Intercompany receivable | 542,194 | 559,280 | 489,942 | |
Total current assets | 847,620 | 780,381 | 759,969 | |
Property and equipment, net | 167,676 | 182,421 | 185,689 | |
Goodwill | 362,022 | 721,844 | 859,165 | |
Other intangible assets, net | 344,436 | 558,962 | 576,623 | |
Other assets | 1,673 | 2,340 | 2,142 | |
Total assets | 1,723,427 | 2,245,948 | 2,383,588 | |
Current liabilities: | ||||
Accounts payable | 126,192 | 73,218 | 77,192 | |
Accrued liabilities | 67,963 | 58,430 | 66,832 | |
Current obligation under capital lease | 539 | 503 | 492 | |
Total current liabilities | 194,694 | 132,151 | 144,516 | |
Long-term liabilities: | ||||
Long-term obligation under capital lease | 2,993 | 3,402 | 3,532 | |
Lease incentives and other liabilities | 50,056 | 48,117 | 47,638 | |
Deferred income taxes | 140,076 | 231,163 | 242,463 | |
Total liabilities | 387,819 | 414,833 | 438,149 | |
Total stockholders' (deficit) equity | 1,335,608 | 1,831,115 | 1,945,439 | |
Total liabilities and stockholders' (deficit) equity | 1,723,427 | 2,245,948 | 2,383,588 | |
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 15,397 | 19,291 | 14,260 | 11,769 |
Accounts receivable, net of allowance | 1,997 | 2,011 | 12,031 | |
Merchandise inventories | 7,684 | 5,823 | 6,231 | |
Prepaid income taxes | 200 | 36 | 337 | |
Prepaid expenses | 1,465 | 1,168 | 1,316 | |
Deferred income taxes | 645 | 918 | 864 | |
Total current assets | 27,388 | 29,247 | 35,039 | |
Property and equipment, net | 11,436 | 9,599 | 10,412 | |
Goodwill | 13,323 | 36,933 | 39,818 | |
Other intangible assets, net | 393 | 862 | 121 | |
Other assets | 9,140 | 10,920 | 13,696 | |
Total assets | 61,680 | 87,561 | 99,086 | |
Current liabilities: | ||||
Accounts payable | 2,051 | 1,557 | 1,375 | |
Accrued liabilities | 8,086 | 7,545 | 8,092 | |
Deferred income taxes | 123 | 113 | 75 | |
Intercompany payable | 6,431 | 18,337 | 21,678 | |
Total current liabilities | 16,691 | 27,552 | 31,220 | |
Long-term liabilities: | ||||
Lease incentives and other liabilities | 5,361 | 4,976 | 10,207 | |
Total liabilities | 22,052 | 32,528 | 41,427 | |
Total stockholders' (deficit) equity | 27,036 | 39,685 | 39,809 | |
Noncontrolling interest | 12,592 | 15,348 | 17,850 | |
Total liabilities and stockholders' (deficit) equity | 61,680 | 87,561 | 99,086 | |
Eliminations | ||||
Current assets: | ||||
Merchandise inventories | -520 | -454 | -422 | |
Deferred income taxes | -5,208 | -767 | -4,438 | |
Intercompany receivable | -542,194 | -559,280 | -489,942 | |
Total current assets | -547,922 | -560,501 | -494,802 | |
Other assets | -8,939 | -16,699 | -24,555 | |
Investment in subsidiaries | -1,362,644 | -1,870,800 | -1,985,248 | |
Total assets | -1,919,505 | -2,448,000 | -2,504,605 | |
Current liabilities: | ||||
Accrued liabilities | 64 | |||
Deferred income taxes | -5,273 | -767 | -4,438 | |
Intercompany payable | -542,713 | -559,734 | -490,364 | |
Total current liabilities | -547,922 | -560,501 | -494,802 | |
Long-term liabilities: | ||||
Deferred income taxes | -8,939 | -16,699 | -24,555 | |
Total liabilities | -556,861 | -577,200 | -519,357 | |
Total stockholders' (deficit) equity | -1,362,644 | -1,870,800 | -1,985,248 | |
Total liabilities and stockholders' (deficit) equity | ($1,919,505) | ($2,448,000) | ($2,504,605) |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Net sales: | ||||
Net sales | $316,819 | $309,838 | $853,132 | $893,537 |
Cost of goods sold, including buying and occupancy expenses | -190,898 | -186,370 | -522,489 | -542,010 |
Gross profit | 125,921 | 123,468 | 330,643 | 351,527 |
Selling, general and administrative expenses | -113,679 | -111,199 | -323,109 | -317,351 |
Goodwill and intangible asset impairment | -591,396 | -591,396 | ||
Operating (loss) income | -579,154 | 12,269 | -583,862 | 34,176 |
Interest income | 42 | 41 | 157 | 143 |
Interest expense | -20,768 | -20,483 | -61,597 | -61,352 |
Loss on extinguishment of debt | -834 | -834 | ||
Other (expense) income, net | -19 | 853 | -521 | 751 |
(Loss) income before income taxes | -599,899 | -8,154 | -645,823 | -27,116 |
Income tax (expense) benefit | 77,505 | -16,244 | 75,573 | -9,455 |
Net (loss) income | -522,394 | -24,398 | -570,250 | -36,571 |
Net loss (income) attributable to noncontrolling interest | 319 | 413 | 3,591 | 700 |
Net (loss) income attributable to The Gymboree Corporation | -522,075 | -23,985 | -566,659 | -35,871 |
Retail Stores | ||||
Net sales: | ||||
Net sales | 304,265 | 297,352 | 816,765 | 857,173 |
Gymboree Play & Music | ||||
Net sales: | ||||
Net sales | 7,744 | 6,821 | 21,895 | 19,409 |
International Retail Franchise | ||||
Net sales: | ||||
Net sales | 4,810 | 5,665 | 14,472 | 16,955 |
The Gymboree Corporation | ||||
Net sales: | ||||
Net sales | 18,896 | 13,309 | 47,910 | 47,248 |
Cost of goods sold, including buying and occupancy expenses | -2,258 | -1,435 | -5,160 | -4,389 |
Gross profit | 16,638 | 11,874 | 42,750 | 42,859 |
Selling, general and administrative expenses | -17,956 | -14,271 | -48,003 | -49,249 |
Operating (loss) income | -1,318 | -2,397 | -5,253 | -6,390 |
Interest income | 29 | 1 | 62 | |
Interest expense | -20,568 | -20,421 | -61,224 | -61,290 |
Loss on extinguishment of debt | -834 | -834 | ||
Other (expense) income, net | -48 | -37 | -480 | -261 |
(Loss) income before income taxes | -21,934 | -23,660 | -66,956 | -68,713 |
Income tax (expense) benefit | 8,306 | -2,244 | 15,677 | 19,834 |
Equity in earnings of affiliates, net of tax | -508,447 | 1,919 | -515,380 | 13,008 |
Net (loss) income | -522,075 | -23,985 | -566,659 | -35,871 |
Net (loss) income attributable to The Gymboree Corporation | -522,075 | -23,985 | -566,659 | -35,871 |
The Gymboree Corporation | Retail Stores | ||||
Net sales: | ||||
Net sales | 647 | 443 | 1,278 | 1,365 |
The Gymboree Corporation | Intercompany revenue | ||||
Net sales: | ||||
Net sales | 18,249 | 12,866 | 46,632 | 45,883 |
Guarantor Subsidiaries | ||||
Net sales: | ||||
Net sales | 305,591 | 297,537 | 823,577 | 861,276 |
Cost of goods sold, including buying and occupancy expenses | -185,288 | -180,116 | -506,120 | -525,280 |
Gross profit | 120,303 | 117,421 | 317,457 | 335,996 |
Selling, general and administrative expenses | -106,741 | -103,254 | -299,394 | -295,002 |
Goodwill and intangible asset impairment | -572,422 | -572,422 | ||
Operating (loss) income | -558,860 | 14,167 | -554,359 | 40,994 |
Interest income | 7 | 6 | 54 | 29 |
Interest expense | -200 | -62 | -373 | -62 |
Other (expense) income, net | 31 | -4 | 31 | -5 |
(Loss) income before income taxes | -559,022 | 14,107 | -554,647 | 40,956 |
Income tax (expense) benefit | 70,407 | -14,626 | 62,141 | -29,467 |
Net (loss) income | -488,615 | -519 | -492,506 | 11,489 |
Net (loss) income attributable to The Gymboree Corporation | -488,615 | -519 | -492,506 | 11,489 |
Guarantor Subsidiaries | Retail Stores | ||||
Net sales: | ||||
Net sales | 296,195 | 287,574 | 794,856 | 831,597 |
Guarantor Subsidiaries | Gymboree Play & Music | ||||
Net sales: | ||||
Net sales | 2,786 | 2,808 | 8,067 | 8,132 |
Guarantor Subsidiaries | International Retail Franchise | ||||
Net sales: | ||||
Net sales | 4,810 | 5,665 | 14,472 | 16,955 |
Guarantor Subsidiaries | Intercompany revenue | ||||
Net sales: | ||||
Net sales | 1,800 | 1,490 | 6,182 | 4,592 |
Non-Guarantor Subsidiaries | ||||
Net sales: | ||||
Net sales | 20,419 | 20,245 | 53,193 | 55,874 |
Cost of goods sold, including buying and occupancy expenses | -11,736 | -10,720 | -30,661 | -30,172 |
Gross profit | 8,683 | 9,525 | 22,532 | 25,702 |
Selling, general and administrative expenses | -8,657 | -9,090 | -27,768 | -26,150 |
Goodwill and intangible asset impairment | -18,974 | -18,974 | ||
Operating (loss) income | -18,948 | 435 | -24,210 | -448 |
Interest income | 39 | 5 | 147 | 52 |
Interest expense | -4 | -45 | -1 | |
Other (expense) income, net | -2 | 894 | -72 | 1,017 |
(Loss) income before income taxes | -18,915 | 1,334 | -24,180 | 620 |
Income tax (expense) benefit | -1,208 | 626 | -2,245 | 178 |
Net (loss) income | -20,123 | 1,960 | -26,425 | 798 |
Net loss (income) attributable to noncontrolling interest | 319 | 413 | 3,591 | 700 |
Net (loss) income attributable to The Gymboree Corporation | -19,804 | 2,373 | -22,834 | 1,498 |
Non-Guarantor Subsidiaries | Retail Stores | ||||
Net sales: | ||||
Net sales | 15,461 | 16,232 | 39,365 | 44,597 |
Non-Guarantor Subsidiaries | Gymboree Play & Music | ||||
Net sales: | ||||
Net sales | 4,958 | 4,013 | 13,828 | 11,277 |
Eliminations | ||||
Net sales: | ||||
Net sales | -28,087 | -21,253 | -71,548 | -70,861 |
Cost of goods sold, including buying and occupancy expenses | 8,384 | 5,901 | 19,452 | 17,831 |
Gross profit | -19,703 | -15,352 | -52,096 | -53,030 |
Selling, general and administrative expenses | 19,675 | 15,416 | 52,056 | 53,050 |
Operating (loss) income | -28 | 64 | -40 | 20 |
Interest income | -4 | 1 | -45 | |
Interest expense | 4 | 45 | 1 | |
(Loss) income before income taxes | -28 | 65 | -40 | 21 |
Equity in earnings of affiliates, net of tax | 508,447 | -1,919 | 515,380 | -13,008 |
Net (loss) income | 508,419 | -1,854 | 515,340 | -12,987 |
Net (loss) income attributable to The Gymboree Corporation | 508,419 | -1,854 | 515,340 | -12,987 |
Eliminations | Retail Stores | ||||
Net sales: | ||||
Net sales | -8,038 | -6,897 | -18,734 | -20,386 |
Eliminations | Intercompany revenue | ||||
Net sales: | ||||
Net sales | ($20,049) | ($14,356) | ($52,814) | ($50,475) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income or Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | ($522,394) | ($24,398) | ($570,250) | ($36,571) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | -4,940 | 8 | -5,090 | -415 |
Unrealized net (loss) gain on cash flow hedges, net of tax expense | 522 | -871 | 536 | 635 |
Total other comprehensive income (loss), net of tax | -4,418 | -863 | -4,554 | 220 |
Comprehensive (loss) income | -526,812 | -25,261 | -574,804 | -36,351 |
Comprehensive loss (income) attributable to noncontrolling interest | 193 | 369 | 3,770 | 599 |
Comprehensive (loss) income attributable to The Gymboree Corporation | -526,619 | -24,892 | -571,034 | -35,752 |
The Gymboree Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | -522,075 | -23,985 | -566,659 | -35,871 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | -5,066 | -36 | -4,911 | -516 |
Unrealized net (loss) gain on cash flow hedges, net of tax expense | 522 | -871 | 536 | 635 |
Total other comprehensive income (loss), net of tax | -4,544 | -907 | -4,375 | 119 |
Comprehensive (loss) income | -526,619 | -24,892 | -571,034 | -35,752 |
Comprehensive (loss) income attributable to The Gymboree Corporation | -526,619 | -24,892 | -571,034 | -35,752 |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | -488,615 | -519 | -492,506 | 11,489 |
Other comprehensive (loss) income, net of tax: | ||||
Comprehensive (loss) income | -488,615 | -519 | -492,506 | 11,489 |
Comprehensive (loss) income attributable to The Gymboree Corporation | -488,615 | -519 | -492,506 | 11,489 |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | -20,123 | 1,960 | -26,425 | 798 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | -4,945 | -11 | -5,065 | -456 |
Unrealized net (loss) gain on cash flow hedges, net of tax expense | 142 | -191 | -219 | 217 |
Total other comprehensive income (loss), net of tax | -4,803 | -202 | -5,284 | -239 |
Comprehensive (loss) income | -24,926 | 1,758 | -31,709 | 559 |
Comprehensive loss (income) attributable to noncontrolling interest | 193 | 369 | 3,770 | 599 |
Comprehensive (loss) income attributable to The Gymboree Corporation | -24,733 | 2,127 | -27,939 | 1,158 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net (loss) income | 508,419 | -1,854 | 515,340 | -12,987 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | 5,071 | 55 | 4,886 | 557 |
Unrealized net (loss) gain on cash flow hedges, net of tax expense | -142 | 191 | 219 | -217 |
Total other comprehensive income (loss), net of tax | 4,929 | 246 | 5,105 | 340 |
Comprehensive (loss) income | 513,348 | -1,608 | 520,445 | -12,647 |
Comprehensive (loss) income attributable to The Gymboree Corporation | $513,348 | ($1,608) | $520,445 | ($12,647) |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Comprehensive Income or Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Unrealized net gain (loss) on cash flow hedges, tax expense (benefit) | $127 | $501 | $127 | $0 |
Condensed_Consolidating_Statem3
Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash (used in) provided by operating activities | ($36,499) | $23,286 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -24,372 | -35,213 |
Other | -45 | -235 |
Net cash provided by (used in) investing activities | -24,417 | -35,448 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from ABL facility | 300,000 | 79,000 |
Payments on ABL facility | -258,000 | -55,000 |
Repurchase of notes | -24,760 | |
Payments on capital lease | -373 | -78 |
Dividend payment to Parent | -84 | -7,475 |
Capital contribution received by noncontrolling interest | 992 | 6,506 |
Net cash provided by (used in) financing activities | 42,535 | -1,807 |
Effect of exchange rate fluctuations on cash and cash equivalents | -220 | -280 |
Net (decrease) increase in cash and cash equivalents | -18,601 | -14,249 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 39,429 | 33,328 |
End of period | 20,828 | 19,079 |
The Gymboree Corporation | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash (used in) provided by operating activities | -58,088 | -52,645 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -2,403 | -1,648 |
Proceeds from sale of shares | 3,207 | |
Net cash provided by (used in) investing activities | 804 | -1,648 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transfers | 2,084 | 45,535 |
Proceeds from ABL facility | 300,000 | 79,000 |
Payments on ABL facility | -258,000 | -55,000 |
Repurchase of notes | -24,760 | |
Dividend payment to Parent | -84 | -7,475 |
Net cash provided by (used in) financing activities | 44,000 | 37,300 |
Net (decrease) increase in cash and cash equivalents | -13,284 | -16,993 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 15,479 | 18,431 |
End of period | 2,195 | 1,438 |
Guarantor Subsidiaries | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash (used in) provided by operating activities | 29,216 | 85,441 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -17,798 | -30,438 |
Intercompany transfers | -9,490 | -54,683 |
Other | 22 | 11 |
Net cash provided by (used in) investing activities | -27,266 | -85,110 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on capital lease | -373 | -78 |
Dividend to The Gymboree Corporation | -3,000 | |
Net cash provided by (used in) financing activities | -3,373 | -78 |
Net (decrease) increase in cash and cash equivalents | -1,423 | 253 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 4,659 | 3,128 |
End of period | 3,236 | 3,381 |
Non-Guarantor Subsidiaries | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash (used in) provided by operating activities | -4,627 | -9,510 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -4,171 | -3,127 |
Other | -67 | -246 |
Net cash provided by (used in) investing activities | -4,238 | -3,373 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transfers | 7,406 | 9,148 |
Repurchase of shares | -3,207 | |
Capital contribution received by noncontrolling interest | 992 | 6,506 |
Net cash provided by (used in) financing activities | 5,191 | 15,654 |
Effect of exchange rate fluctuations on cash and cash equivalents | -220 | -280 |
Net (decrease) increase in cash and cash equivalents | -3,894 | 2,491 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 19,291 | 11,769 |
End of period | 15,397 | 14,260 |
Eliminations | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net cash (used in) provided by operating activities | -3,000 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of shares | -3,207 | |
Intercompany transfers | 9,490 | 54,683 |
Net cash provided by (used in) investing activities | 6,283 | 54,683 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transfers | -9,490 | -54,683 |
Dividend to The Gymboree Corporation | 3,000 | |
Repurchase of shares | 3,207 | |
Net cash provided by (used in) financing activities | ($3,283) | ($54,683) |
Intercompany_Transfers_of_Guar
Intercompany Transfers of Guarantor Subsidiaries Previously Presented as Financing Activities Classified as Investing Activities (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash provided by (used in) investing activities | ($24,417) | ($35,448) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash used in financing activities | 42,535 | -1,807 |
Guarantor Subsidiaries | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transfers | -9,490 | -54,683 |
Net cash provided by (used in) investing activities | -27,266 | -85,110 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash used in financing activities | -3,373 | -78 |
Guarantor Subsidiaries | Previously Reported | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash provided by (used in) investing activities | -30,427 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transfers | -54,683 | |
Net cash used in financing activities | -54,761 | |
Eliminations | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Intercompany transfers | 9,490 | 54,683 |
Net cash provided by (used in) investing activities | 6,283 | 54,683 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Intercompany transfers | -9,490 | -54,683 |
Net cash used in financing activities | ($3,283) | ($54,683) |