Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended |
Nov. 02, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'ANN INC. |
Trading Symbol | 'ANN |
Entity Central Index Key | '0000874214 |
Current Fiscal Year End Date | '--02-01 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 2-Nov-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 45,920,872 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $657,532 | $612,548 | $1,870,236 | $1,767,831 |
Cost of sales | 291,312 | 258,149 | 834,174 | 763,660 |
Gross margin | 366,220 | 354,399 | 1,036,062 | 1,004,171 |
Selling, general and administrative expenses | 295,813 | 287,480 | 871,764 | 838,954 |
Operating income | 70,407 | 66,919 | 164,298 | 165,217 |
Interest and investment income/(expense), net | -224 | 9 | 217 | -155 |
Other non-operating income/(expense), net | -140 | -24 | 57 | -24 |
Income before income taxes | 70,043 | 66,904 | 164,572 | 165,038 |
Income tax provision | 28,854 | 26,156 | 66,822 | 64,823 |
Net income | $41,189 | $40,748 | $97,750 | $100,215 |
Earnings per share: | ' | ' | ' | ' |
Basic earnings per share (dollars per share) | $0.90 | $0.85 | $2.10 | $2.07 |
Weighted average shares outstanding | 44,967 | 47,422 | 45,581 | 47,638 |
Diluted earnings per share (dollars per share) | $0.89 | $0.84 | $2.08 | $2.05 |
Weighted average shares outstanding, assuming dilution | 45,443 | 47,973 | 46,036 | 48,256 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Net income | $41,189 | $40,748 | $97,750 | $100,215 | |
Foreign currency translation adjustment | 31 | 12 | -395 | 12 | |
Pension settlement charge | 0 | 290 | 0 | 290 | |
Amortization of net actuarial loss | 158 | 175 | 473 | [1] | 525 |
Defined benefit pension plan: | ' | ' | ' | ' | |
Other comprehensive income, before tax | 189 | 477 | 78 | 827 | |
Income tax expense on other comprehensive income items | 60 | 170 | 181 | 325 | |
Other comprehensive income/(loss), net of tax | 129 | 307 | -103 | 502 | |
Comprehensive income | $41,318 | $41,055 | $97,647 | $100,717 | |
[1] | Amount is included in net periodic pension cost, which is presented in “Selling, general and administrative expenses†on the Company's Condensed Consolidated Statements of Operations. See Note 7, “Employee Benefits,†for further details. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | |||
Current assets | ' | ' | ' |
Cash | $118,692 | $167,011 | $166,532 |
Accounts receivable | 36,612 | 17,856 | 30,873 |
Merchandise inventories | 302,395 | 216,848 | 270,385 |
Refundable income taxes | 7,365 | 9,201 | 10,179 |
Deferred income taxes | 30,638 | 30,397 | 34,933 |
Prepaid expenses and other current assets | 67,752 | 64,716 | 66,611 |
Total current assets | 563,454 | 506,029 | 579,513 |
Property and equipment, net | 445,541 | 409,703 | 412,626 |
Deferred income taxes | 2,335 | 7,841 | 17,027 |
Other assets | 22,308 | 18,632 | 15,073 |
Total assets | 1,033,638 | 942,205 | 1,024,239 |
Current liabilities | ' | ' | ' |
Accounts payable | 123,257 | 105,691 | 120,303 |
Accrued salaries and bonus | 20,837 | 23,969 | 25,862 |
Current portion of long-term performance compensation | 19,945 | 34,233 | 32,069 |
Accrued tenancy | 40,529 | 38,647 | 46,419 |
Gift certificates and merchandise credits redeemable | 35,890 | 47,268 | 34,147 |
Accrued expenses and other current liabilities | 117,334 | 86,946 | 101,071 |
Total current liabilities | 357,792 | 336,754 | 359,871 |
Deferred lease costs | 170,221 | 162,620 | 162,092 |
Deferred income taxes | 3,361 | 228 | 402 |
Long-term performance compensation, less current portion | 14,295 | 26,368 | 24,777 |
Other liabilities | 38,648 | 31,125 | 28,669 |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity | ' | ' | ' |
Common stock, $.0068 par value; 200,000,000 shares authorized; 82,563,516 shares issued | 561 | 561 | 561 |
Additional paid-in capital | 750,934 | 768,215 | 776,388 |
Retained earnings | 774,592 | 676,842 | 674,473 |
Accumulated other comprehensive loss | -4,600 | -4,497 | -4,816 |
Treasury stock, 36,642,644; 35,958,318 and 34,192,540 shares, respectively, at cost | -1,072,166 | -1,056,011 | -998,178 |
Total stockholders' equity | 449,321 | 385,110 | 448,428 |
Total liabilities and stockholders' equity | $1,033,638 | $942,205 | $1,024,239 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
Statement of Financial Position [Abstract] | ' | ' | ' |
Common Stock, Par Value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 82,563,516 | 82,563,516 | 82,563,516 |
Treasury Stock, Shares | 36,642,644 | 35,958,318 | 34,192,540 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 |
Operating activities: | ' | ' |
Net income | $97,750 | $100,215 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Deferred income taxes | 8,217 | 17,232 |
Depreciation and amortization | 78,690 | 70,659 |
Recognition of gift card and merchandise credit breakage | -454 | -6,223 |
Loss on disposal and write-down of property and equipment | 3,584 | 2,358 |
Stock-based compensation | 11,621 | 12,324 |
Non-cash interest and other non-cash items | -16 | 357 |
Tax benefit from exercise/vesting of stock awards | 1,601 | 8,788 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -18,799 | -11,693 |
Merchandise inventories | -85,547 | -56,938 |
Prepaid expenses and other current assets | -1,352 | -12,860 |
Refundable income taxes | 1,836 | 1,786 |
Other non-current assets and liabilities, net | 13,869 | 7,422 |
Accounts payable, accrued expenses and other current liabilities | -6,210 | 26,522 |
Net cash provided by operating activities | 104,790 | 159,949 |
Investing activities: | ' | ' |
Purchases of marketable securities | -3,215 | -1,901 |
Sales of marketable securities | 574 | 158 |
Purchases of property and equipment | -103,607 | -111,185 |
Other, net | 813 | -649 |
Net cash used for investing activities | -105,435 | -113,577 |
Financing activities: | ' | ' |
Proceeds from the issuance of common stock pursuant to the Associate Discount Stock Purchase Plan | 1,660 | 1,602 |
Proceeds from exercise of stock options | 5,536 | 34,309 |
Excess tax benefits from stock-based compensation | 1,860 | 11,925 |
Repurchases of common and restricted stock | -53,854 | -79,123 |
Repayments of fixed asset financing and capital lease obligations | -1,565 | -1,089 |
Proceeds from fixed asset financing and capital leases | 4,317 | 0 |
Change in trade payable program obligation, net | -5,296 | 2,357 |
Net cash used for financing activities | -47,342 | -30,019 |
Effect of exchange rate on cash | -332 | -29 |
Net increase/(decrease) in cash | -48,319 | 16,324 |
Cash, beginning of period | 167,011 | 150,208 |
Cash, end of period | 118,692 | 166,532 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid during the period for interest | 793 | 951 |
Cash paid during the period for income taxes | 38,664 | 37,683 |
Accrual for purchases of property and equipment | 32,455 | 31,566 |
Property and equipment acquired through capital lease | $2,444 | $0 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Nov. 02, 2013 | |
Notes to Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Interim Financial Information | |
The Condensed Consolidated Financial Statements are unaudited but, in the opinion of management, contain all adjustments (which are of a normal recurring nature) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated. | |
The results of operations for the 2013 interim periods presented in the Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected for Fiscal 2013. | |
The February 2, 2013 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheets of ANN INC. (the “Company”) included in its Annual Report on Form 10-K for the fiscal year ended February 2, 2013. | |
Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. As such, the financial information set forth herein should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013. The Company believes that the disclosures made are adequate to prevent the interim financial statements from being misleading. | |
Immaterial Corrections to Condensed Consolidated Financial Statements | |
As previously disclosed in Note 1 to the Company’s Consolidated Financial Statements in its Fiscal 2012 Annual Report on Form 10-K, the Company made an immaterial correction to previously reported balance sheet amounts related to shares issued out of Treasury Stock in connection with the exercise of stock options, the issuance of restricted stock grants and the vesting, in shares, of restricted unit grants. The cumulative impact of this correction had the effect of reducing both Treasury Stock and Additional Paid-in Capital by $51.7 million as of October 27, 2012. In addition, as disclosed in Note 1 to the Company’s Condensed Consolidated Financial Statements for the quarter ended October 27, 2012, the Company recognized $6.2 million in revenue for a portion of the unredeemed value of gift cards and merchandise credits during the third quarter of Fiscal 2012. The Company has determined that this amount was incorrectly reported in the Changes in assets and liabilities section of the Condensed Consolidated Statement of Cash Flows and should have been separately presented as a direct adjustment to reconcile Net income to Net cash provided by operating activities. This correction had no impact on Net cash provided by operating activities. The Company has restated the previously presented Condensed Consolidated Statement of Cash Flows for the nine months ended October 27, 2012 to present Recognition of gift card and merchandise credit breakage as a separate line item and properly state the change in Accounts payable, accrued expenses and other current liabilities as $26.5 million (previously reported as $20.3 million). |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended | |
Nov. 02, 2013 | ||
Notes to Financial Statements [Abstract] | ' | |
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“AOCI”), which sets forth additional disclosure requirements for items reclassified out of AOCI and into net income, and is effective for annual and interim reporting periods beginning after December 15, 2012. The Company adopted ASU 2013-02 in the first quarter of Fiscal 2013 by presenting amounts reclassified out of AOCI as a separate disclosure in the Notes to the Condensed Consolidated Financial Statements. Amounts reclassified out of AOCI are related to the amortization of net actuarial loss associated with the Company's pension plan. | ||
2 | Recent Accounting Pronouncements (Continued) | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires that an unrecognized tax benefit, or portion of an unrecognized tax benefit, be presented as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If an applicable deferred tax asset is not available or a company does not expect to use the applicable deferred tax asset, the unrecognized tax benefit should be presented as a liability in the financial statements and should not be combined with an unrelated deferred tax asset. ASU 2013-11 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2013. ASU 2013-11 should be applied prospectively to all unrecognized tax benefits that exist at the effective date, however retrospective application is permitted. The Company plans to adopt ASU 2013-11 in the first quarter of Fiscal 2014 and does not expect it will have any impact on its Consolidated Financial Statements. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The Company follows a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||||
The Company maintains a self-directed, non-qualified deferred compensation plan structured as a rabbi trust for certain executives at the vice-president level and above. Certain of the investment assets of the rabbi trust are valued based on quoted market prices, which are considered Level 1 inputs, with the remainder based on the net asset value determined by the value of the underlying assets, which are considered Level 2 inputs. The following tables segregate the rabbi trust assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine fair value at each of the stated measurement dates: | |||||||||||||||||
November 2, | Quoted Prices | Significant | Significant | ||||||||||||||
2013 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 4,091 | $ | 4,091 | $ | — | $ | — | |||||||||
Fixed income funds | 777 | — | 777 | — | |||||||||||||
Equity funds | 6,648 | — | 6,648 | — | |||||||||||||
Total assets | $ | 11,516 | $ | 4,091 | $ | 7,425 | $ | — | |||||||||
February 2, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 3,868 | $ | 3,868 | $ | — | $ | — | |||||||||
Fixed income funds | 572 | — | 572 | — | |||||||||||||
Equity funds | 3,683 | — | 3,683 | — | |||||||||||||
Total assets | $ | 8,123 | $ | 3,868 | $ | 4,255 | $ | — | |||||||||
3 | Fair Value Measurements (Continued) | ||||||||||||||||
October 27, | Quoted Prices | Significant | Significant | ||||||||||||||
2012 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 2,578 | $ | 2,578 | $ | — | $ | — | |||||||||
Fixed income funds | 514 | — | 514 | — | |||||||||||||
Equity funds | 3,371 | — | 3,371 | — | |||||||||||||
Total assets | $ | 6,463 | $ | 2,578 | $ | 3,885 | $ | — | |||||||||
As of the dates presented, the Company believes that the carrying value of cash, receivables and payables approximates fair value, due to the short maturity of these financial instruments. As of the dates presented, the Company had no cash equivalents. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||||||||
Nov. 02, 2013 | ||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||
Net Income Per Share | ' | |||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the quarters and nine months ended November 2, 2013 and October 27, 2012: | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
November 2, 2013 | October 27, 2012 | |||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
Basic Earnings per Share: | Net | Shares | Per | Net | Shares | Per | ||||||||||||||||
Income | Share | Income | Share | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Net income | $ | 41,189 | $ | 40,748 | ||||||||||||||||||
Less net income associated with participating securities | 824 | 562 | ||||||||||||||||||||
Basic earnings per share | $ | 40,365 | 44,967 | $ | 0.9 | $ | 40,186 | 47,422 | $ | 0.85 | ||||||||||||
Diluted Earnings per Share: | ||||||||||||||||||||||
Net income | $ | 41,189 | $ | 40,748 | ||||||||||||||||||
Less net income associated with participating securities | 816 | 555 | ||||||||||||||||||||
Effect of dilutive securities | 476 | 551 | ||||||||||||||||||||
Diluted earnings per share | $ | 40,373 | 45,443 | $ | 0.89 | $ | 40,193 | 47,973 | $ | 0.84 | ||||||||||||
4 | Earnings Per Share (Continued) | |||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||
November 2, 2013 | October 27, 2012 | |||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
Basic Earnings per Share: | Net | Shares | Per | Net | Shares | Per | ||||||||||||||||
Income | Share | Income | Share | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Net income | $ | 97,750 | $ | 100,215 | ||||||||||||||||||
Less net income associated with participating securities | 1,892 | 1,454 | ||||||||||||||||||||
Basic earnings per share | $ | 95,858 | 45,581 | $ | 2.1 | $ | 98,761 | 47,638 | $ | 2.07 | ||||||||||||
Diluted Earnings per Share: | ||||||||||||||||||||||
Net income | $ | 97,750 | $ | 100,215 | ||||||||||||||||||
Less net income associated with participating securities | 1,874 | 1,436 | ||||||||||||||||||||
Effect of dilutive securities | 455 | 618 | ||||||||||||||||||||
Diluted earnings per share | $ | 95,876 | 46,036 | $ | 2.08 | $ | 98,779 | 48,256 | $ | 2.05 | ||||||||||||
For the quarter and nine months ended November 2, 2013, non-participating securities (stock options) representing 585,250 and 698,040 shares of common stock, respectively, were excluded from the computation of weighted average shares for diluted earnings per share due to their antidilutive effect, since their exercise prices exceeded the average market price of the common shares during those periods. | ||||||||||||||||||||||
For the quarter and nine months ended October 27, 2012, non-participating securities (stock options) representing 616,175 and 1,637,275 shares of common stock, respectively, were excluded from the computation of weighted average shares for diluted earnings per share due to their antidilutive effect, since their exercise prices exceeded the average market price of the common shares during those periods. In addition, for the quarter and nine months ended October 27, 2012, non-participating securities (performance-based restricted units) representing 23,003 and 15,890 shares of common stock, respectively, were excluded from the computation of weighted average shares for diluted earnings per share due to the fact that they are contingently issuable securities whose contingency was not met at certain dates during those periods. No such shares were excluded from the computation of weighted average shares for diluted earnings per share for the nine months ended November 2, 2013. In addition, no such shares were outstanding during the quarter ended November 2, 2013, as all outstanding performance-based restricted units vested in shares during the first quarter of Fiscal 2013. |
Equity_and_Incentive_Compensat
Equity and Incentive Compensation Plans | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||
Securities Repurchase Program | ' | |||||||||||||
Repurchase Program | ||||||||||||||
On August 21, 2013, the Company’s Board of Directors approved a new $250 million securities repurchase program (the "Repurchase Program"). The Repurchase Program will expire when the Company has repurchased all securities authorized for repurchase thereunder, unless terminated earlier by the Company’s Board of Directors. There were no repurchases made under the Repurchase Program during the quarter ended November 2, 2013. | ||||||||||||||
During the nine months ended November 2, 2013 and October 27, 2012, under its then existing $600 million securities repurchase program, the Company repurchased 1.5 million and 3.1 million shares of its common stock, respectively, through open market purchases at a cost of $49.1 million and $75.0 million, respectively. There were no repurchases made under the Company's former $600 million securities repurchase program during the quarter ended October 27, 2012. As of November 2, 2013, there were no amounts remaining for additional share repurchases under the Company's former $600 million securities repurchase program, as the Company exhausted that share repurchase authorization during the second quarter of Fiscal 2013. | ||||||||||||||
Equity and Incentive Compensation Plans | ' | |||||||||||||
Stock Incentive Plans | ||||||||||||||
During the quarter and nine months ended November 2, 2013, the Company recognized approximately $4.0 million and $11.6 million, respectively, in stock-based compensation expense. During the quarter and nine months ended October 27, 2012, the Company recognized approximately $4.8 million and $12.3 million, respectively, in stock-based compensation expense. As of November 2, 2013, there was $4.3 million and $14.9 million of unrecognized compensation cost related to unvested stock options and unvested restricted stock awards, respectively, which is expected to be recognized over a remaining weighted average vesting period of 1.6 years and 1.7 years, respectively. Restricted stock award grants, restricted unit award vestings and shares underlying stock option exercises during the nine months ended November 2, 2013 were issued out of treasury stock. In addition, restricted stock awards forfeited, as well as shares returned to cover employee tax withholding obligations related to stock option exercises and restricted stock vestings, were returned to treasury stock. | ||||||||||||||
On May 30, 2013, the Company’s shareholders approved certain amendments to the Company's 2003 Equity Incentive Plan, including increasing the total authorized shares reserved for issuance from 11.75 million to 13.4 million common shares. | ||||||||||||||
Stock Options | ||||||||||||||
The following table summarizes stock option activity for the nine months ended November 2, 2013: | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Exercise Price | ||||||||||||||
Options outstanding at beginning of period | 2,785,102 | $ | 25.61 | |||||||||||
Granted (1) | 101,400 | 30.73 | ||||||||||||
Exercised | (269,314 | ) | 20.56 | |||||||||||
Forfeited or expired | (104,100 | ) | 29.67 | |||||||||||
Options outstanding at end of period | 2,513,088 | $ | 26.19 | |||||||||||
Vested and exercisable at November 2, 2013 | 2,007,739 | $ | 25.6 | |||||||||||
Options expected to vest in the future as of November 2, 2013 | 437,422 | $ | 28.59 | |||||||||||
-1 | Awards vest annually over a three-year period and expire ten years after the grant date. | |||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted as of the grant date. For the quarters and nine months ended November 2, 2013 and October 27, 2012, the fair value of options granted was estimated using the following weighted average assumptions: | ||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Expected volatility | — | % | 53.4 | % | 52.9 | % | 54.6 | % | ||||||
Risk-free interest rate | — | % | 0.6 | % | 0.9 | % | 0.9 | % | ||||||
Expected life (years) | — | 4.4 | 5 | 4.4 | ||||||||||
Dividend yield | — | — | — | — | ||||||||||
There were no options granted during the quarter ended November 2, 2013. The weighted average fair value of options granted during the quarter ended October 27, 2012 was $16.60 per share. The weighted average fair value of options granted during the nine months ended November 2, 2013 and October 27, 2012 was $14.09 and $12.44 per share, respectively. The Company estimates the volatility of its common stock on the date of grant based on an average of its historical common stock volatility and the implied volatility of publicly traded options on its common stock. | ||||||||||||||
5 | Equity and Incentive Compensation Plans (Continued) | |||||||||||||
Restricted Stock | ||||||||||||||
The following table summarizes restricted stock activity for the nine months ended November 2, 2013: | ||||||||||||||
Time - Based | Performance - Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Restricted stock awards at February 2, 2013 | 461,396 | $ | 27.96 | 203,671 | $ | 27.81 | ||||||||
Granted | 401,228 | (1) | 30.82 | 184,699 | (2) | 30.86 | ||||||||
Vested | (187,942 | ) | 27.5 | (82,633 | ) | 27.92 | ||||||||
Forfeited | (59,917 | ) | 29.06 | (11,300 | ) | 30.73 | ||||||||
Restricted stock awards at November 2, 2013 | 614,765 | $ | 29.86 | 294,437 | $ | 29.58 | ||||||||
-1 | Of this amount, 181,500 shares vest in equal installments in each of March 2014, 2015 and 2016; 179,100 shares vest in March 2016; 27,628 shares vest in May 2014; and 13,000 shares vest in equal installments in each of June 2014, 2015 and 2016. | |||||||||||||
-2 | Of this amount, 175,500 of these shares vest over a three-year period based on achievement of performance targets set bi-annually for each tranche of the grant. Based on Company performance, grantees may earn 50% to 150% of the shares granted with respect to each tranche. If the Company does not achieve the minimum threshold goal associated with such shares, grantees will not earn any shares with respect to that tranche. In addition, 3,138 of these shares relate to over achievement of the Spring 2012 tranche and vested in March 2013 and 6,061 of these shares relate to the over achievement of the Spring 2013 tranche and will vest in March 2014. | |||||||||||||
Restricted Units | ||||||||||||||
The following table summarizes restricted unit activity for the nine months ended November 2, 2013: | ||||||||||||||
Time - Based | Performance - Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Restricted unit awards at February 2, 2013 | 75,016 | $ | 19.58 | 46,003 | $ | 19.58 | ||||||||
Vested (1) | (75,016 | ) | 19.58 | (46,003 | ) | 19.58 | ||||||||
Restricted unit awards at November 2, 2013 | — | $ | — | — | $ | — | ||||||||
-1 | All restricted unit awards vested in shares during the first quarter of Fiscal 2013. | |||||||||||||
Long-Term Performance Compensation | ||||||||||||||
The Company maintains a long-term cash incentive program, the Restricted Cash Program (“RCP”) for vice-presidents and above. During the quarters ended November 2, 2013 and October 27, 2012, the Company recognized $2.6 million and $6.5 million, respectively, in compensation expense under the RCP inclusive of the effect of changes in estimates. During the nine months ended November 2, 2013 and October 27, 2012, the Company recognized $9.4 million and $14.7 million, respectively, in compensation expense under the RCP inclusive of the effect of changes in estimates. As of November 2, 2013, there was $30.2 million of unrecognized compensation cost under the RCP, which is expected to be recognized over a remaining weighted average deferral period of 2.7 years. |
Revolving_Credit_Facility
Revolving Credit Facility | 9 Months Ended |
Nov. 02, 2013 | |
Notes to Financial Statements [Abstract] | ' |
Revolving Credit Facility | ' |
Revolving Credit Facility | |
On December 19, 2012, the Company’s wholly-owned subsidiary, AnnTaylor, Inc., and certain of its subsidiaries, entered into a Fourth Amended and Restated $250 million senior secured revolving credit facility with Bank of America, N.A. and a syndicate of lenders (the “Credit Facility”), which amended the existing senior secured revolving credit facility due to expire in April 2013. The Credit Facility provides the Company with a $75 million sub-facility solely for loans and letters of credit to be provided to ANN Canada Inc., a wholly-owned subsidiary of AnnTaylor, Inc., and an option to increase the total facility and the aggregate commitments thereunder up to $400 million, subject to the lenders’ agreement to increase their commitment for the requested amount. The Credit Facility expires on December 19, 2017 and may be used for working capital, letters of credit and other corporate purposes, and contains an acceleration clause which, upon the occurrence of an Event of Default, including but not limited to, a Material Adverse Effect, each as defined in the Credit Facility, may cause any outstanding borrowings to become immediately due and payable. | |
The maximum availability for loans and letters of credit under the Credit Facility is governed by a quarterly borrowing base, determined by the application of specified percentages of certain eligible assets, primarily accounts receivable and inventory. Commercial and standby letters of credit outstanding under the Credit Facility totaled approximately $11.6 million, $14.1 million and $16.3 million as of November 2, 2013, February 2, 2013 and October 27, 2012, respectively, leaving a remaining available balance for loans and letters of credit of $238.4 million, $150.8 million and $228.8 million, respectively. There were no borrowings outstanding under the Credit Facility at November 2, 2013, February 2, 2013, October 27, 2012 or as of November 22, 2013, the date of this filing. | |
The lenders have been granted a security interest in the inventory and accounts receivable of AnnTaylor, Inc. and certain of its subsidiaries, as collateral for the obligations under the Credit Facility. The Credit Facility contains financial and other covenants, including limitations on indebtedness and liens, and a fixed charge coverage ratio covenant that is triggered if certain liquidity thresholds are not met. |
Employee_Benefits
Employee Benefits | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
Employee Benefits | ' | |||||||||||||||
Employee Benefits | ||||||||||||||||
The following table summarizes the components of net periodic pension cost for the Company: | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Net periodic pension cost: | ||||||||||||||||
Interest cost | $ | 360 | $ | 437 | $ | 1,080 | $ | 1,312 | ||||||||
Expected return on plan assets | (323 | ) | (377 | ) | (968 | ) | (1,132 | ) | ||||||||
Amortization of actuarial loss | 158 | 175 | 473 | 525 | ||||||||||||
Settlement loss recognized | — | 290 | — | 290 | ||||||||||||
Net periodic pension cost | $ | 195 | $ | 525 | $ | 585 | $ | 995 | ||||||||
The Company froze its noncontributory defined benefit pension plan (the "Pension Plan") in October 2007. The Company was neither required to, nor did it make, any contributions to its Pension Plan during the quarters or nine months ended November 2, 2013 and October 27, 2012. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income Accumulted Other Comprehensive Income | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
8 | Accumulated Other Comprehensive Loss | |||||||||||
The following table summarizes the components of accumulated other comprehensive loss ("AOCL") for the nine months ended November 2, 2013: | ||||||||||||
Foreign Currency Translation | Unrecognized Pension Benefit Costs | Total | ||||||||||
(in thousands) | ||||||||||||
Balance at February 2, 2013 | $ | 19 | $ | (4,516 | ) | $ | (4,497 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | ||||||||||||
Foreign currency translation adjustment | (395 | ) | — | (395 | ) | |||||||
Amounts reclassified from AOCL: | ||||||||||||
Amortization of net actuarial loss (1) | — | 473 | 473 | |||||||||
Amounts reclassified from AOCL, before tax (2) | — | 473 | 473 | |||||||||
Income tax expense (3) | — | 181 | 181 | |||||||||
Net current period other comprehensive income/(loss), net of tax | (395 | ) | 292 | (103 | ) | |||||||
Balance at November 2, 2013 | $ | (376 | ) | $ | (4,224 | ) | $ | (4,600 | ) | |||
-1 | Amount is included in net periodic pension cost, which is presented in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Operations. See Note 7, “Employee Benefits,” for further details. | |||||||||||
-2 | During the quarter and nine months ended November 2, 2013, the Company reclassified income of $0.2 million ($0.1 million net of tax) and $0.5 million ($0.3 million net of tax), respectively, from AOCL related to the Company's employee benefit plan. | |||||||||||
-3 | Relates to amounts reclassified from AOCL to income tax expense. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Nov. 02, 2013 | |
Notes to Financial Statements [Abstract] | ' |
Legal Proceedings | ' |
Legal Proceedings | |
The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the amount of any liability that could arise with respect to these actions cannot be determined with certainty, in the Company’s opinion, any such liability will not have a material adverse effect on its consolidated financial position, consolidated results of operations or liquidity. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 02, 2013 | |||||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
The Company maintains a self-directed, non-qualified deferred compensation plan structured as a rabbi trust for certain executives at the vice-president level and above. Certain of the investment assets of the rabbi trust are valued based on quoted market prices, which are considered Level 1 inputs, with the remainder based on the net asset value determined by the value of the underlying assets, which are considered Level 2 inputs. The following tables segregate the rabbi trust assets that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine fair value at each of the stated measurement dates: | |||||||||||||||||
November 2, | Quoted Prices | Significant | Significant | ||||||||||||||
2013 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 4,091 | $ | 4,091 | $ | — | $ | — | |||||||||
Fixed income funds | 777 | — | 777 | — | |||||||||||||
Equity funds | 6,648 | — | 6,648 | — | |||||||||||||
Total assets | $ | 11,516 | $ | 4,091 | $ | 7,425 | $ | — | |||||||||
February 2, 2013 | Quoted Prices | Significant | Significant | ||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 3,868 | $ | 3,868 | $ | — | $ | — | |||||||||
Fixed income funds | 572 | — | 572 | — | |||||||||||||
Equity funds | 3,683 | — | 3,683 | — | |||||||||||||
Total assets | $ | 8,123 | $ | 3,868 | $ | 4,255 | $ | — | |||||||||
3 | Fair Value Measurements (Continued) | ||||||||||||||||
October 27, | Quoted Prices | Significant | Significant | ||||||||||||||
2012 | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Non-qualified deferred compensation plan assets: | |||||||||||||||||
Equity securities | $ | 2,578 | $ | 2,578 | $ | — | $ | — | |||||||||
Fixed income funds | 514 | — | 514 | — | |||||||||||||
Equity funds | 3,371 | — | 3,371 | — | |||||||||||||
Total assets | $ | 6,463 | $ | 2,578 | $ | 3,885 | $ | — | |||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||||||||
Nov. 02, 2013 | ||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||||||
Reconciliations of Basic and Diluted Share Calculations | ' | |||||||||||||||||||||
The following table presents a reconciliation of basic and diluted earnings per share for the quarters and nine months ended November 2, 2013 and October 27, 2012: | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||
November 2, 2013 | October 27, 2012 | |||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
Basic Earnings per Share: | Net | Shares | Per | Net | Shares | Per | ||||||||||||||||
Income | Share | Income | Share | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Net income | $ | 41,189 | $ | 40,748 | ||||||||||||||||||
Less net income associated with participating securities | 824 | 562 | ||||||||||||||||||||
Basic earnings per share | $ | 40,365 | 44,967 | $ | 0.9 | $ | 40,186 | 47,422 | $ | 0.85 | ||||||||||||
Diluted Earnings per Share: | ||||||||||||||||||||||
Net income | $ | 41,189 | $ | 40,748 | ||||||||||||||||||
Less net income associated with participating securities | 816 | 555 | ||||||||||||||||||||
Effect of dilutive securities | 476 | 551 | ||||||||||||||||||||
Diluted earnings per share | $ | 40,373 | 45,443 | $ | 0.89 | $ | 40,193 | 47,973 | $ | 0.84 | ||||||||||||
4 | Earnings Per Share (Continued) | |||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||
November 2, 2013 | October 27, 2012 | |||||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||||
Basic Earnings per Share: | Net | Shares | Per | Net | Shares | Per | ||||||||||||||||
Income | Share | Income | Share | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Net income | $ | 97,750 | $ | 100,215 | ||||||||||||||||||
Less net income associated with participating securities | 1,892 | 1,454 | ||||||||||||||||||||
Basic earnings per share | $ | 95,858 | 45,581 | $ | 2.1 | $ | 98,761 | 47,638 | $ | 2.07 | ||||||||||||
Diluted Earnings per Share: | ||||||||||||||||||||||
Net income | $ | 97,750 | $ | 100,215 | ||||||||||||||||||
Less net income associated with participating securities | 1,874 | 1,436 | ||||||||||||||||||||
Effect of dilutive securities | 455 | 618 | ||||||||||||||||||||
Diluted earnings per share | $ | 95,876 | 46,036 | $ | 2.08 | $ | 98,779 | 48,256 | $ | 2.05 | ||||||||||||
Equity_and_Incentive_Compensat1
Equity and Incentive Compensation Plans (Tables) | 9 Months Ended | |||||||||||||
Nov. 02, 2013 | ||||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
The following table summarizes stock option activity for the nine months ended November 2, 2013: | ||||||||||||||
Shares | Weighted Average | |||||||||||||
Exercise Price | ||||||||||||||
Options outstanding at beginning of period | 2,785,102 | $ | 25.61 | |||||||||||
Granted (1) | 101,400 | 30.73 | ||||||||||||
Exercised | (269,314 | ) | 20.56 | |||||||||||
Forfeited or expired | (104,100 | ) | 29.67 | |||||||||||
Options outstanding at end of period | 2,513,088 | $ | 26.19 | |||||||||||
Vested and exercisable at November 2, 2013 | 2,007,739 | $ | 25.6 | |||||||||||
Options expected to vest in the future as of November 2, 2013 | 437,422 | $ | 28.59 | |||||||||||
-1 | Awards vest annually over a three-year period and expire ten years after the grant date. | |||||||||||||
Weighted-Average Assumptions | ' | |||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted as of the grant date. For the quarters and nine months ended November 2, 2013 and October 27, 2012, the fair value of options granted was estimated using the following weighted average assumptions: | ||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Expected volatility | — | % | 53.4 | % | 52.9 | % | 54.6 | % | ||||||
Risk-free interest rate | — | % | 0.6 | % | 0.9 | % | 0.9 | % | ||||||
Expected life (years) | — | 4.4 | 5 | 4.4 | ||||||||||
Dividend yield | — | — | — | — | ||||||||||
Restricted Stock | ' | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||
The following table summarizes restricted stock activity for the nine months ended November 2, 2013: | ||||||||||||||
Time - Based | Performance - Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Restricted stock awards at February 2, 2013 | 461,396 | $ | 27.96 | 203,671 | $ | 27.81 | ||||||||
Granted | 401,228 | (1) | 30.82 | 184,699 | (2) | 30.86 | ||||||||
Vested | (187,942 | ) | 27.5 | (82,633 | ) | 27.92 | ||||||||
Forfeited | (59,917 | ) | 29.06 | (11,300 | ) | 30.73 | ||||||||
Restricted stock awards at November 2, 2013 | 614,765 | $ | 29.86 | 294,437 | $ | 29.58 | ||||||||
-1 | Of this amount, 181,500 shares vest in equal installments in each of March 2014, 2015 and 2016; 179,100 shares vest in March 2016; 27,628 shares vest in May 2014; and 13,000 shares vest in equal installments in each of June 2014, 2015 and 2016. | |||||||||||||
-2 | Of this amount, 175,500 of these shares vest over a three-year period based on achievement of performance targets set bi-annually for each tranche of the grant. Based on Company performance, grantees may earn 50% to 150% of the shares granted with respect to each tranche. If the Company does not achieve the minimum threshold goal associated with such shares, grantees will not earn any shares with respect to that tranche. In addition, 3,138 of these shares relate to over achievement of the Spring 2012 tranche and vested in March 2013 and 6,061 of these shares relate to the over achievement of the Spring 2013 tranche and will vest in March 2014. | |||||||||||||
Restricted Stock Units | ' | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||
The following table summarizes restricted unit activity for the nine months ended November 2, 2013: | ||||||||||||||
Time - Based | Performance - Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Restricted unit awards at February 2, 2013 | 75,016 | $ | 19.58 | 46,003 | $ | 19.58 | ||||||||
Vested (1) | (75,016 | ) | 19.58 | (46,003 | ) | 19.58 | ||||||||
Restricted unit awards at November 2, 2013 | — | $ | — | — | $ | — | ||||||||
-1 | All restricted unit awards vested in shares during the first quarter of Fiscal 2013. |
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | |||||||||||||||
Nov. 02, 2013 | ||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||
Summary of Components of Net Periodic Pension Cost | ' | |||||||||||||||
The following table summarizes the components of net periodic pension cost for the Company: | ||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||
November 2, | October 27, | November 2, | October 27, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Net periodic pension cost: | ||||||||||||||||
Interest cost | $ | 360 | $ | 437 | $ | 1,080 | $ | 1,312 | ||||||||
Expected return on plan assets | (323 | ) | (377 | ) | (968 | ) | (1,132 | ) | ||||||||
Amortization of actuarial loss | 158 | 175 | 473 | 525 | ||||||||||||
Settlement loss recognized | — | 290 | — | 290 | ||||||||||||
Net periodic pension cost | $ | 195 | $ | 525 | $ | 585 | $ | 995 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income Accumulated Other Compehensive Income (Tables) | 9 Months Ended | |||||||||||
Nov. 02, 2013 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
The following table summarizes the components of accumulated other comprehensive loss ("AOCL") for the nine months ended November 2, 2013: | ||||||||||||
Foreign Currency Translation | Unrecognized Pension Benefit Costs | Total | ||||||||||
(in thousands) | ||||||||||||
Balance at February 2, 2013 | $ | 19 | $ | (4,516 | ) | $ | (4,497 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | ||||||||||||
Foreign currency translation adjustment | (395 | ) | — | (395 | ) | |||||||
Amounts reclassified from AOCL: | ||||||||||||
Amortization of net actuarial loss (1) | — | 473 | 473 | |||||||||
Amounts reclassified from AOCL, before tax (2) | — | 473 | 473 | |||||||||
Income tax expense (3) | — | 181 | 181 | |||||||||
Net current period other comprehensive income/(loss), net of tax | (395 | ) | 292 | (103 | ) | |||||||
Balance at November 2, 2013 | $ | (376 | ) | $ | (4,224 | ) | $ | (4,600 | ) | |||
-1 | Amount is included in net periodic pension cost, which is presented in “Selling, general and administrative expenses” on the Company's Condensed Consolidated Statements of Operations. See Note 7, “Employee Benefits,” for further details. | |||||||||||
-2 | During the quarter and nine months ended November 2, 2013, the Company reclassified income of $0.2 million ($0.1 million net of tax) and $0.5 million ($0.3 million net of tax), respectively, from AOCL related to the Company's employee benefit plan. | |||||||||||
-3 | Relates to amounts reclassified from AOCL to income tax expense. |
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation - Additional Information (Details) (USD $) | 9 Months Ended | |
Nov. 02, 2013 | Oct. 27, 2012 | |
Quantifying Misstatement in Current Year Financial Statements, Amount | ' | $51,700,000 |
Recognition of gift card and merchandise credit breakage | -454,000 | -6,223,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -6,210,000 | 26,522,000 |
October 27, 2012 [Member] | ' | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | ' | $20,300,000 |
Fair_Value_Measurments_Financi
Fair Value Measurments - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Nov. 02, 2013 | Feb. 02, 2013 | Oct. 27, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | $11,516 | $8,123 | $6,463 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 4,091 | 3,868 | 2,578 |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 7,425 | 4,255 | 3,885 |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 | 0 |
Equity Securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 4,091 | 3,868 | 2,578 |
Equity Securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 4,091 | 3,868 | 2,578 |
Equity Securities | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 0 | 0 | 0 |
Equity Securities | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 0 | 0 | 0 |
Fixed Income Funds | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 777 | 572 | 514 |
Fixed Income Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 0 | 0 | 0 |
Fixed Income Funds | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 777 | 572 | 514 |
Fixed Income Funds | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 0 | 0 | 0 |
Equity Funds | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 6,648 | 3,683 | 3,371 |
Equity Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 0 | 0 | 0 |
Equity Funds | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | 6,648 | 3,683 | 3,371 |
Equity Funds | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' |
Investments, Fair Value Disclosure | $0 | $0 | $0 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Nonparticipating Securities - Stock Options | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Antidilutive securities excluded from the computations of earnings per share | 585,250 | 616,175 | 698,040 | 1,637,275 |
Nonparticipating Securities - Performance-based Restricted Units | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Antidilutive securities excluded from the computations of earnings per share | 0 | 23,003 | 0 | 15,890 |
Net_Income_Per_Share_Reconcili
Net Income Per Share - Reconciliations of Basic and Diluted Share Calculations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Net income | $41,189 | $40,748 | $97,750 | $100,215 |
Weighted Average Number of Shares Outstanding, Diluted | ' | ' | ' | ' |
Weighted average shares outstanding | 44,967 | 47,422 | 45,581 | 47,638 |
Effect of dilutive securities (shares) | 476 | 551 | 455 | 618 |
Weighted average shares outstanding assuming dilution | 45,443 | 47,973 | 46,036 | 48,256 |
Basic Earnings per Share | ' | ' | ' | ' |
Basic earnings per share (dollars per share) | $0.90 | $0.85 | $2.10 | $2.07 |
Diluted Earnings per Share | ' | ' | ' | ' |
Diluted earnings per share (dollars per share) | $0.89 | $0.84 | $2.08 | $2.05 |
Earnings Per Share, Basic. [Member] | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Net income | 41,189 | 40,748 | 97,750 | 100,215 |
Undistributed Earnings Allocated to Participating Securities | 824 | 562 | 1,892 | 1,454 |
Net Income Available to Common Stockholders, Basic | 40,365 | 40,186 | 95,858 | 98,761 |
Earnings Per Share, Diluted | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Net income | 41,189 | 40,748 | 97,750 | 100,215 |
Undistributed Earnings Allocated to Participating Securities | 816 | 555 | 1,874 | 1,436 |
Net Income Available to Common Stockholders, Diluted | $40,373 | $40,193 | $95,876 | $98,779 |
Equity_and_Incentive_Compensat2
Equity and Incentive Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | Aug. 21, 2013 | Mar. 08, 2011 | Nov. 02, 2013 | Nov. 02, 2013 | 30-May-13 | 30-May-13 | |
Employee Stock Option | Restricted Stock | Before Amendment | After Amendment | |||||||
years | years | Stock Incentive Plan 2003 | Stock Incentive Plan 2003 | |||||||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | 1,500,346 | 3,100,000 | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense recognized | $4,005,000 | $4,800,000 | $11,621,000 | $12,324,000 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, unvested | ' | ' | ' | ' | ' | ' | 4,300,000 | 14,900,000 | ' | ' |
Unrecognized compensation cost, unvested, remaining weighted-average vesting period (in years) | ' | ' | ' | ' | ' | ' | 1.6 | 1.7 | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | 11,750,000 | 13,400,000 |
Total authorized under the Securities Repurchase Program | ' | ' | ' | ' | 250,000,000 | 600,000,000 | ' | ' | ' | ' |
Stock Repurchased During Period, Value | ' | ' | -49,100,000 | -75,000,000 | ' | ' | ' | ' | ' | ' |
Total Available For Share Repurchases Under The Securities Repurchase Program | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Equity_and_Incentive_Compensat3
Equity and Incentive Compensation Plans - Summary of Stock Option Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | ||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Weighted-average fair value of options granted (dollars per share) | $16.60 | $14.09 | $12.44 | |
Stock Options | ' | ' | ' | |
Options outstanding at beginning of period (shares) | ' | 2,785,102 | ' | |
Granted (shares) | ' | 101,400 | [1] | ' |
Exercised (shares) | ' | -269,314 | ' | |
Forfeited or expired (shares) | ' | -104,100 | ' | |
Options outstanding at end of period (shares) | ' | 2,513,088 | ' | |
Vested and exercisable at November 2, 2013 (shares) | ' | 2,007,739 | ' | |
Options expected to vest in the future as of November 2, 2013 (shares) | ' | 437,422 | ' | |
Weighted Average Exercise Price | ' | ' | ' | |
Options outstanding at beginning of period (dollars per share) | ' | $25.61 | ' | |
Granted (dollars per share) | ' | $30.73 | [1] | ' |
Exercised (dollars per share) | ' | $20.56 | ' | |
Forfeited or expired (dollars per share) | ' | $29.67 | ' | |
Options outstanding at end of period (dollars per share) | ' | $26.19 | ' | |
Vested and exercisable at November 2, 2013 (dollars per share) | ' | $25.60 | ' | |
Options expected to vest in the future as of November 2, 2013 (dollars per share) | ' | $28.59 | ' | |
[1] | Awards vest annually over a three-year period and expire ten years after the grant date. |
Equity_and_Incentive_Compensat4
Equity and Incentive Compensation Plans - Summary of Stock Option Activity (Parenthetical) (Detail) (Employee Stock Option) | 9 Months Ended |
Nov. 02, 2013 | |
Employee Stock Option | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options granted annual vesting period | '3 years |
Options granted expiration period | '10 years |
Equity_and_Incentive_Compensat5
Equity and Incentive Compensation Plans - Weighted-Average Assumptions (Detail) | 3 Months Ended | 9 Months Ended | |
Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | |
Disclosure - Weighted-Average Assumptions [Abstract] | ' | ' | ' |
Expected volatility | 53.40% | 52.90% | 54.60% |
Risk-free interest rate | 0.60% | 0.90% | 0.90% |
Expected life (years) | '4 years 4 months 24 days | '5 years 0 months 0 days | '4 years 4 months 24 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Equity_and_Incentive_Compensat6
Equity and Incentive Compensation Plans - Summary of Restricted Stock Activity (Detail) (USD $) | 9 Months Ended | |
Nov. 02, 2013 | Feb. 02, 2013 | |
Performance Restricted Stock Awards | ' | ' |
Number of Shares | ' | ' |
Granted (shares) | 184,699 | ' |
Vested (shares) | 82,633 | ' |
Forfeited (shares) | 11,300 | ' |
Balance at end of period (shares) | 294,437 | 203,671 |
Weighted Average Grant Date Fair Value | ' | ' |
Granted ( dollars per share) | $30.86 | ' |
Vested (dollars per share) | $27.92 | ' |
Forfeited (dollars per share) | $30.73 | ' |
Balance at end of period (dollars per share) | $29.58 | $27.81 |
Time-Based Restricted Stock Award | ' | ' |
Number of Shares | ' | ' |
Granted (shares) | 401,228 | ' |
Vested (shares) | 187,942 | ' |
Forfeited (shares) | 59,917 | ' |
Balance at end of period (shares) | 614,765 | 461,396 |
Weighted Average Grant Date Fair Value | ' | ' |
Granted ( dollars per share) | $30.82 | ' |
Vested (dollars per share) | $27.50 | ' |
Forfeited (dollars per share) | $29.06 | ' |
Balance at end of period (dollars per share) | $29.86 | $27.96 |
Shares Vest Equally In Each Of March 2014, 2015 and 2016 | Performance Restricted Stock Awards | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 175,500 | ' |
Shares Vest Equally In Each Of March 2014, 2015 and 2016 | Time-Based Restricted Stock Award | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 181,500 | ' |
Shares Vest In March 2013 | Performance Restricted Stock Awards | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 3,138 | ' |
Shares Vest In March 2014 | Performance Restricted Stock Awards | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 6,061 | ' |
Shares Vest In May 2014 | Time-Based Restricted Stock Award | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 27,628 | ' |
Shares Vest Equally In Each Of June 2014, 2015 and 2016 | Time-Based Restricted Stock Award | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 13,000 | ' |
Shares Vest In March 2016 | Time-Based Restricted Stock Award | ' | ' |
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Other Than Options Expected To Vest | 179,100 | ' |
Equity_and_Incentive_Compensat7
Equity and Incentive Compensation Plans - Summary of Restricted Stock Activity (Parenthetical) (Detail) (Performance-Based Restricted Stock Awards) | 3 Months Ended | 9 Months Ended | |
Nov. 02, 2013 | Nov. 02, 2013 | Nov. 02, 2013 | |
Minimum | Maximum | ||
Share Based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Restricted stock awards annual vesting period | '3 years | ' | ' |
Percentage grantees earn of the value granted with respect to each tranche of the grant | ' | 50.00% | 150.00% |
Equity_and_Incentive_Compensat8
Equity and Incentive Compensation Plans - Summary of Restricted Unit Activity (Detail) (USD $) | 9 Months Ended |
Nov. 02, 2013 | |
Time-Based Restricted Units | ' |
Number of Shares | ' |
Balance at beginning of period (shares) | 75,016 |
Vested (shares) | -75,016 |
Balance at end of period (shares) | 0 |
Weighted Average Grant Date Fair Value | ' |
Balance at beginning of period (dollars per share) | $19.58 |
Vested (dollars per share) | $19.58 |
Balance at end of period (dollars per share) | $0 |
Performance Based Restricted Units [Member] | ' |
Number of Shares | ' |
Balance at beginning of period (shares) | 46,003 |
Vested (shares) | -46,003 |
Balance at end of period (shares) | 0 |
Weighted Average Grant Date Fair Value | ' |
Balance at beginning of period (dollars per share) | $19.58 |
Vested (dollars per share) | $19.58 |
Balance at end of period (dollars per share) | $0 |
Equity_and_Incentive_Compensat9
Equity and Incentive Compensation Plans Equity and Incentive Compensation - Long Term Performance Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
years | years | |||
Disclosure - Summary of Long Term Performance Compensation [Abstract] | ' | ' | ' | ' |
Long-term performance compensation expense | $2.60 | $6.50 | $9.40 | $14.70 |
Long-term performance compensation expense total compensation not yet recognized | $30.20 | ' | $30.20 | ' |
Unrecognized compensation cost long-term performance compensation plan remaining weighted average service period (in years) | 2.7 | ' | 2.7 | ' |
Revolving_Credit_Facility_Addi
Revolving Credit Facility - Additional Information (Detail) (Revolving Credit Facility, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Feb. 02, 2013 | Nov. 02, 2013 | Oct. 27, 2012 |
Revolving Credit Facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior secured revolving credit facility | $250 | ' | ' |
Line of Credit Sub-Facility, Maximum Borrowing Capacity | 75 | ' | ' |
Line of credit facility, expiration day month and year | 19-Dec-17 | ' | ' |
Potential increase in the total facility and the aggregate commitments thereunder | 400 | ' | ' |
Letters of credit amount outstanding | 14.1 | 11.6 | 16.3 |
Remaining available balance for loans and letters of credit | $150.80 | $238.40 | $228.80 |
Employee_Benefits_Summary_of_C
Employee Benefits - Summary of Components of Net Periodic Pension Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 |
Net periodic pension cost: | ' | ' | ' | ' |
Interest cost | $360 | $437 | $1,080 | $1,312 |
Expected return on plan assets | -323 | -377 | -968 | -1,132 |
Amortization of actuarial loss | 158 | 175 | 473 | 525 |
Settlement loss recognized | 0 | 290 | 0 | 290 |
Net periodic pension cost | $195 | $525 | $585 | $995 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Nov. 02, 2013 | Oct. 27, 2012 | Nov. 02, 2013 | Oct. 27, 2012 | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, beginning balance | ' | ' | ($4,497) | ' | ||
Foreign currency translation adjustment | 31 | 12 | -395 | 12 | ||
Amortization of net actuarial loss | 158 | 175 | 473 | [1] | 525 | |
Income tax expense on other comprehensive income items | 60 | 170 | 181 | 325 | ||
Other comprehensive income/(loss), net of tax | 129 | 307 | -103 | 502 | ||
Accumulated other comprehensive loss, ending balance | -4,600 | -4,816 | -4,600 | -4,816 | ||
Amounts reclassified from AOCL, before tax | ' | ' | 473 | ' | ||
Foreign Currency Translation | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, beginning balance | ' | ' | 19 | ' | ||
Foreign currency translation adjustment | ' | ' | -395 | ' | ||
Amortization of net actuarial loss | ' | ' | 0 | ' | ||
Income tax expense on other comprehensive income items | ' | ' | 0 | ' | ||
Other comprehensive income/(loss), net of tax | ' | ' | -395 | ' | ||
Accumulated other comprehensive loss, ending balance | -376 | ' | -376 | ' | ||
Amounts reclassified from AOCL, before tax | ' | ' | 0 | ' | ||
Unrecognized Pension Benefit Costs | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Loss [Roll Forward] | ' | ' | ' | ' | ||
Accumulated other comprehensive loss, beginning balance | ' | ' | -4,516 | ' | ||
Amortization of net actuarial loss | ' | ' | 473 | ' | ||
Income tax expense on other comprehensive income items | ' | ' | 181 | [2] | ' | |
Other comprehensive income/(loss), net of tax | ' | ' | 292 | ' | ||
Accumulated other comprehensive loss, ending balance | -4,224 | ' | -4,224 | ' | ||
Amounts reclassified from AOCL, before tax | 158 | [3] | ' | 473 | [3] | ' |
Amounts reclassified from AOCL, net of tax | $98 | [3] | ' | $292 | [3] | ' |
[1] | Amount is included in net periodic pension cost, which is presented in bSelling, general and administrative expensesb on the Company's Condensed Consolidated Statements of Operations. See Note 7, bEmployee Benefits,b for further details. | |||||
[2] | Relates to amounts reclassified from AOCL to income tax expense. | |||||
[3] | During the quarter and nine months ended November 2, 2013, the Company reclassified income of $0.2 million ($0.1 million net of tax) and $0.5 million ($0.3 million net of tax), respectively, from AOCL related to the Company's employee benefit plan |