Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 01, 2014 | Dec. 01, 2014 | |
Document Information [Line Items] | ' | ' |
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 | 'AEO | ' |
Entity Registrant Name | 'AMERICAN EAGLE OUTFITTERS INC | ' |
Entity Central Index Key | '0000919012 | ' |
Current Fiscal Year End Date | '--01-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 194,490,669 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $280,445 | $418,933 | $354,284 |
Short-term investments | 0 | 10,002 | 2,930 |
Merchandise inventory | 468,628 | 291,541 | 518,904 |
Accounts receivable | 55,875 | 73,882 | 59,277 |
Prepaid expenses and other | 73,095 | 88,155 | 112,078 |
Deferred income taxes | 53,445 | 45,478 | 46,510 |
Total current assets | 931,488 | 927,991 | 1,093,983 |
Property and equipment, at cost, net of accumulated depreciation | 714,166 | 632,986 | 630,086 |
Intangible assets, at cost, net of accumulated amortization | 47,864 | 49,271 | 44,427 |
Goodwill | 13,512 | 13,530 | 13,792 |
Non-current deferred income taxes | 26,598 | 24,835 | 19,086 |
Other assets | 38,444 | 45,551 | 38,712 |
Total assets | 1,772,072 | 1,694,164 | 1,840,086 |
Current liabilities: | ' | ' | ' |
Accounts payable | 309,348 | 203,872 | 353,228 |
Accrued compensation and payroll taxes | 49,562 | 23,560 | 32,522 |
Accrued rent | 77,102 | 76,397 | 75,680 |
Accrued income and other taxes | 27,472 | 5,778 | 9,002 |
Unredeemed gift cards and gift certificates | 27,712 | 47,194 | 24,689 |
Current portion of deferred lease credits | 13,392 | 13,293 | 13,954 |
Other liabilities and accrued expenses | 41,893 | 45,384 | 29,382 |
Total current liabilities | 546,481 | 415,478 | 538,457 |
Non-current liabilities: | ' | ' | ' |
Deferred lease credits | 58,988 | 59,510 | 65,004 |
Non-current accrued income taxes | 11,312 | 16,543 | 20,777 |
Other non-current liabilities | 35,044 | 36,455 | 23,139 |
Total non-current liabilities | 105,344 | 112,508 | 108,920 |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity: | ' | ' | ' |
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued and outstanding | ' | ' | ' |
Common stock, $0.01 par value; 600,000 shares authorized; 249,566 shares issued; 194,491, 193,149 and 192,787 shares outstanding, respectively | 2,496 | 2,496 | 2,496 |
Contributed capital | 566,449 | 573,008 | 577,108 |
Accumulated other comprehensive income | 10,876 | 12,157 | 23,483 |
Retained earnings | 1,506,519 | 1,569,851 | 1,587,320 |
Treasury stock, 55,075, 56,417 and 56,779 shares, respectively | -966,093 | -991,334 | -997,698 |
Total stockholders' equity | 1,120,247 | 1,166,178 | 1,192,709 |
Total liabilities and stockholders' equity | $1,772,072 | $1,694,164 | $1,840,086 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
Preferred stock, par value | $0.01 | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 | 0 |
Preferred stock, outstanding | 0 | 0 | 0 |
Common stock, par value | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, shares issued | 249,566,000 | 249,566,000 | 249,566,000 |
Common stock, shares outstanding | 194,491,000 | 193,149,000 | 192,787,000 |
Treasury stock, shares | 55,075,000 | 56,417,000 | 56,779,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Retained Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Total net revenue | $854,290 | $857,305 | $2,211,014 | $2,264,095 |
Cost of sales, including certain buying, occupancy and warehousing expenses | 538,818 | 558,430 | 1,432,150 | 1,456,116 |
Gross profit | 315,472 | 298,875 | 778,864 | 807,979 |
Selling, general and administrative expenses | 204,641 | 205,725 | 579,777 | 574,314 |
Loss on impairment of assets | 33,468 | 19,316 | 33,468 | 19,316 |
Restructuring charges | 17,752 | ' | 17,752 | ' |
Depreciation and amortization expense | 36,528 | 31,998 | 104,312 | 97,271 |
Operating income | 23,083 | 41,836 | 43,555 | 117,078 |
Other income, net | 649 | 520 | 2,185 | 987 |
Income before income taxes | 23,732 | 42,356 | 45,740 | 118,065 |
Provision for income taxes | 14,697 | 17,453 | 27,027 | 45,592 |
Net income | 9,035 | 24,903 | 18,713 | 72,473 |
Net income per basic share | $0.05 | $0.13 | $0.10 | $0.38 |
Net income per diluted share | $0.05 | $0.13 | $0.10 | $0.37 |
Cash dividends per common share | $0.13 | $0.13 | $0.38 | $0.25 |
Weighted average common shares outstanding - basic | 194,573 | 192,818 | 194,381 | 192,753 |
Weighted average common shares outstanding - diluted | 195,221 | 194,612 | 194,934 | 195,021 |
Retained earnings, beginning | 1,522,856 | 1,588,094 | 1,569,851 | 1,553,058 |
Net income | 9,035 | 24,903 | 18,713 | 72,473 |
Cash dividends and dividend equivalents | -24,882 | -25,099 | -74,713 | -49,673 |
Reissuance of treasury stock | -490 | -578 | -7,332 | 11,462 |
Retained earnings, ending | $1,506,519 | $1,587,320 | $1,506,519 | $1,587,320 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (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 income | $9,035 | $24,903 | $18,713 | $72,473 |
Other comprehensive loss: | ' | ' | ' | ' |
Foreign currency translation loss | -5,074 | -914 | -1,281 | -5,814 |
Other comprehensive loss: | -5,074 | -914 | -1,281 | -5,814 |
Comprehensive income | $3,961 | $23,989 | $17,432 | $66,659 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 |
Operating activities: | ' | ' |
Net income | $18,713 | $72,473 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 105,294 | 98,873 |
Share-based compensation | 12,952 | -1,793 |
Deferred income taxes | -18,580 | 23,470 |
Foreign currency transaction loss | 75 | 798 |
Loss on impairment of assets | 33,468 | 19,316 |
Changes in assets and liabilities: | ' | ' |
Merchandise inventory | -176,182 | -185,474 |
Accounts receivable | 16,687 | -13,060 |
Prepaid expenses and other | 11,155 | -33,867 |
Other assets | 6,980 | -5,403 |
Accounts payable | 100,441 | 164,988 |
Unredeemed gift cards and gift certificates | -19,464 | -21,601 |
Deferred lease credits | -389 | 6,310 |
Accrued compensation and payroll taxes | 24,925 | -33,261 |
Accrued income and other taxes | 19,898 | -18,394 |
Accrued liabilities | -1,147 | -151 |
Total adjustments | 116,113 | 751 |
Net cash provided by operating activities | 134,826 | 73,224 |
Investing activities: | ' | ' |
Capital expenditures for property and equipment | -210,534 | -217,214 |
Purchase of assets in acquisition | ' | -20,751 |
Acquisition of intangible assets | -1,084 | -1,528 |
Purchase of available-for-sale securities | 0 | -17,373 |
Sale of available-for-sale securities | 10,002 | 125,982 |
Net cash used for investing activities | -201,616 | -130,884 |
Financing activities: | ' | ' |
Payments on capital leases | -3,762 | -1,393 |
Repurchase of common stock as part of publicly announced programs | ' | -33,051 |
Repurchase of common stock from employees | -7,464 | -23,343 |
Net proceeds from stock options exercised | 7,086 | 3,323 |
Excess tax benefit from share-based payments | 742 | 8,267 |
Cash dividends paid | -72,912 | -48,181 |
Net cash used for financing activities | -76,310 | -94,378 |
Effect of exchange rates changes on cash | 4,612 | -2,797 |
Net decrease in cash and cash equivalents | -138,488 | -154,835 |
Cash and cash equivalents - beginning of period | 418,933 | 509,119 |
Cash and cash equivalents - end of period | 280,445 | 354,284 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid during the period for income taxes | 7,623 | 60,689 |
Cash paid during the period for interest | $448 | $297 |
Interim_Financial_Statements
Interim Financial Statements | 9 Months Ended |
Nov. 01, 2014 | |
Interim Financial Statements | ' |
1. Interim Financial Statements | |
The accompanying Consolidated Financial Statements of American Eagle Outfitters, Inc. (the “Company”) at November 1, 2014 and November 2, 2013 and for the 13 and 39 week periods ended November 1, 2014 and November 2, 2013 have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Certain notes and other information have been condensed or omitted from the interim Consolidated Financial Statements presented in this Quarterly Report on Form 10-Q. Therefore, these Consolidated Financial Statements should be read in conjunction with the Company’s Fiscal 2013 Annual Report. In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments and those described in the footnotes that follow) considered necessary for a fair presentation have been included. The existence of subsequent events has been evaluated through the filing date of this Quarterly Report on Form 10-Q. | |
As used in this report, all references to “we,” “our” and the “Company” refer to American Eagle Outfitters, Inc. and its wholly owned subsidiaries. “American Eagle Outfitters,” “American Eagle,” “AEO” and the “AE Brand” refer to our American Eagle Outfitters stores. “aerie” refers to our aerie® by American Eagle® stores. “AEO Direct” refers to our e-commerce operations, ae.com and aerie.com. | |
The Company’s business is affected by the pattern of seasonality common to most retail apparel businesses. The results for the current and prior periods are not necessarily indicative of future financial results. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||
Nov. 01, 2014 | |||
Summary of Significant Accounting Policies | ' | ||
2. Summary of Significant Accounting Policies | |||
Principles of Consolidation | |||
The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At November 1, 2014, the Company operated in one reportable segment. | |||
Fiscal Year | |||
The Company’s financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2014” and “Fiscal 2013” refer to the 52 week periods ending January 31, 2015 and February 1, 2014, respectively. | |||
Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews the Company’s estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. | |||
Recent Accounting Pronouncements | |||
In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt ASU 2014-09 on January 29, 2017. The Company does not expect a material impact of the adoption of this guidance on the Company’s consolidated financial condition, results of operations and cash flows. | |||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 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. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for financial statements issued for annual reporting periods beginning after December 15, 2013 and interim periods within those years. The Company adopted ASU 2013-11 on February 2, 2014 with no significant impact to its Consolidated Financial Statements. | |||
Foreign Currency Translation | |||
In accordance with Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters, assets and liabilities denominated in foreign currencies were translated into United States dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. Revenues and expenses denominated in foreign currencies were translated into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the results of operations, whereas, related translation adjustments are reported as an element of other comprehensive income in accordance with ASC 220, Comprehensive Income. | |||
Revenue Recognition | |||
Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the estimated customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. | |||
Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. | |||
Revenue is not recorded on the purchase of gift cards. A current liability is recorded upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption below. | |||
The Company recognizes royalty revenue generated from its franchise agreements based on a percentage of merchandise sales by the franchisee. This revenue is recorded as a component of total net revenue when earned. | |||
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses | |||
Cost of sales consists of merchandise costs, including design, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively “merchandise costs”) and buying, occupancy and warehousing costs. | |||
Design costs are related to the Company’s Design Center operations and include compensation, travel, supplies and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. | |||
Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses and travel for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. | |||
Selling, General and Administrative Expenses | |||
Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. | |||
Other Income, Net | |||
Other income, net consists primarily of interest income/expense, foreign currency transaction gain/loss and realized investment gains/losses. | |||
Other-than-Temporary Impairment | |||
The Company evaluates its investments for impairment in accordance with ASC 320, Investments – Debt and Equity Securities (“ASC 320”). ASC 320 provides guidance for determining when an investment is considered impaired, whether impairment is other-than-temporary, and measurement of an impairment loss. An investment is considered impaired if the fair value of the investment is less than its cost. If, after consideration of all available evidence to evaluate the realizable value of its investment, impairment is determined to be other-than-temporary, then an impairment loss is recognized in the Consolidated Statement of Operations equal to the difference between the investment’s cost and its fair value. There was no net impairment loss for investment securities recognized in earnings during the 13 and 39 weeks ended November 1, 2014 or November 2, 2013. | |||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | |||
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. | |||
As of November 1, 2014, the Company held no short-term or long-term investments. | |||
As of November 2, 2013, short-term investments include treasury bills with a maturity of greater than three months, but less than one year. Long-term investments include term deposits with an original maturity of greater than one year. Long-term investments are recorded within other assets on the Company’s Consolidated Balance Sheets. | |||
Unrealized gains and losses on the Company’s available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity, within accumulated other comprehensive income, until realized. When available-for-sale securities are sold, the cost of the securities is specifically identified and is used to determine any realized gain or loss. | |||
Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents, short-term and long-term investments. | |||
Merchandise Inventory | |||
Merchandise inventory is valued at the lower of average cost or market, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when both title and risk of loss for the merchandise have transferred to the Company. | |||
The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. | |||
Income Taxes | |||
The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance, in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate. | |||
The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. | |||
The calculation of the deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance require management to make estimates and assumptions. The Company believes that its assumptions and estimates are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income. | |||
Refer to Note 10 to the Consolidated Financial Statements for additional information regarding income taxes. | |||
Property and Equipment | |||
Property and equipment is recorded on the basis of cost, including costs to prepare the asset for use, with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows: | |||
Buildings | 25 years | ||
Leasehold improvements | Lesser of 10 years or the term of the lease | ||
Fixtures and equipment | 5 years | ||
In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified, for stores that have been open for a period of time sufficient to reach maturity. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded. | |||
During the 13 weeks ended November 1, 2014, the Company recorded pre-tax asset impairment charges of $33.5 million that includes $25.1 million for the impairment of 79 retail stores recorded as a loss on impairment of assets in the Consolidated Statements of Operations. Based on the Company’s evaluation of current and future projected performance, it was determined that these stores would not be able to generate sufficient cash flow over the expected remaining lease term to recover the carrying value of the respective stores’ assets. Additionally, the Company recorded $8.4 million of impairment charges related to corporate assets. Refer to Note 12 to the Consolidated Financial Statements for additional information regarding Restructuring Charges. | |||
During the 13 weeks ended November 2, 2013, the Company announced plans to close its Warrendale, Pennsylvania distribution center and transfer the operations to its new Hazelton, Pennsylvania facility, as the Warrendale facility is not physically or geographically capable of supporting the Company’s long-term expansion goals. This announcement resulted in $19.3 million of pre-tax asset impairments. | |||
Refer to Note 6 to the Consolidated Financial Statements for additional information regarding property and equipment. | |||
Goodwill | |||
The Company’s goodwill is primarily related to the acquisition of its importing operations, Canadian business and businesses in Hong Kong and China. In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), the Company evaluates goodwill for possible impairment on at least an annual basis and last performed an annual impairment test as of February 1, 2014. As a result of the Company’s annual goodwill impairment test, the Company concluded that its goodwill was not impaired. | |||
Intangible Assets | |||
Intangible assets are recorded on the basis of cost with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s intangible assets, which primarily include trademark assets, are generally amortized over 15 to 25 years. | |||
The Company evaluates intangible assets for impairment in accordance with ASC 350 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows are less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No intangible asset impairment charges were recorded during the 13 and 39 weeks ended November 1, 2014 and November 2, 2013. | |||
Refer to Note 7 to the Consolidated Financial Statements for additional information regarding intangible assets. | |||
Gift Cards | |||
The value of a gift card is recorded as a current liability upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. The Company recorded $1.1 million of revenue related to gift card breakage during the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. During the 39 weeks ended November 1, 2014 and November 2, 2013, the Company recorded $4.1 million and $4.3 million, respectively, of revenue related to gift card breakage. | |||
Deferred Lease Credits | |||
Deferred lease credits represent the unamortized portion of construction allowances received from landlords related to the Company’s retail stores. Construction allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a deferred lease credit liability at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized on a straight-line basis as a reduction of rent expense over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the landlord. | |||
Co-branded Credit Card and Customer Loyalty Program | |||
The Company offers a co-branded credit card (the “AEO Visa Card”) and a private label credit card (the “AEO Credit Card”). These credit cards are issued by a third-party bank (the “Bank”), and the Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. Once a customer is approved to receive the AEO Visa Card or the AEO Credit Card and the card is activated, the customer is eligible to participate in the credit card rewards program. Customers who make purchases earn discounts in the form of savings certificates when certain purchase levels are reached. Also, AEO Visa Card customers who make purchases at other retailers where the card is accepted earn additional discounts. Savings certificates are valid for 90 days from issuance. | |||
Points earned under the credit card rewards program on purchases are accounted for by analogy to ASC 605-25, Revenue Recognition, Multiple Element Arrangements (“ASC 605-25”). The Company believes that points earned under its point and loyalty programs represent deliverables in a multiple element arrangement rather than a rebate or refund of cash. Accordingly, the portion of the sales revenue attributed to the award points is deferred and recognized when the award is redeemed or when the points expire. Additionally, credit card reward points earned on non-AE or aerie purchases are accounted for in accordance with ASC 605-25. As the points are earned, a current liability is recorded for the estimated cost of the award, and the impact of adjustments is recorded in cost of sales. | |||
The Company offers its customers the AEREWARD$sm loyalty program (the “Program”). Under the Program, customers accumulate points based on purchase activity and earn rewards by reaching certain point thresholds during three-month earning periods. Rewards earned during these periods are valid through the stated expiration date, which is approximately one month from the mailing date of the reward. These rewards can be redeemed for a discount on a purchase of merchandise. Rewards not redeemed during the one-month redemption period are forfeited. The Company determined that rewards earned using the Program should be accounted for in accordance with ASC 605-25. Accordingly, the portion of the sales revenue attributed to the award credits is deferred and recognized when the awards are redeemed or expire. | |||
Segment Information | |||
In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified three operating segments (American Eagle Brand retail stores, aerie retail stores and AEO Direct) that reflect the basis used internally to review performance and allocate resources. All of the operating segments have been aggregated and are presented as one reportable segment, as permitted by ASC 280. | |||
Reclassification | |||
Certain reclassifications have been made to the Consolidated Financial Statements for prior periods in order to conform to the current period presentation. |
Cash_and_Cash_Equivalents_Shor
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | ' | ||||||||||||
3. Cash and Cash Equivalents, Short-term Investments and Long-term Investments | |||||||||||||
The following table summarizes the fair market values for the Company’s cash and marketable securities, which are recorded on the Consolidated Balance Sheets: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 185,212 | $ | 330,013 | $ | 306,572 | |||||||
Money-market | 72,896 | 25,696 | 21,849 | ||||||||||
Treasury bills | 22,337 | 63,224 | 25,863 | ||||||||||
Total cash and cash equivalents | $ | 280,445 | $ | 418,933 | $ | 354,284 | |||||||
Short-term investments: | |||||||||||||
Treasury bills | $ | — | $ | 10,002 | $ | 2,930 | |||||||
Total short-term investments | $ | — | $ | 10,002 | $ | 2,930 | |||||||
Long-term investments: | |||||||||||||
Term-deposits | $ | — | $ | — | $ | 9,588 | |||||||
Total long-term investments | $ | — | $ | — | $ | 9,588 | |||||||
Total | $ | 280,445 | $ | 428,935 | $ | 366,802 | |||||||
Proceeds from the sale of investments were $10.0 million and $126.0 million for the 39 weeks ended November 1, 2014 and November 2, 2013, respectively. There were no purchases of investments for the 39 weeks ended November 1, 2014. The purchase of investments was $17.4 million for the 39 weeks ended November 2, 2013. | |||||||||||||
There were no unrecognized gains or losses for the Company’s available-for-sale securities for the 13 and 39 weeks ended November 1, 2014 or November 2, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
4. Fair Value Measurements | |||||||||||||||||
ASC 820, Fair Value Measurement Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
Financial Instruments | |||||||||||||||||
Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 — Unobservable inputs (i.e., projections, estimates, interpretations, etc.) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
As of November 1, 2014 and November 2, 2013, the Company held certain assets that are required to be measured at fair value on a recurring basis. These include cash equivalents and short-term investments. | |||||||||||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis at November 1, 2014 and November 2, 2013: | |||||||||||||||||
Fair Value Measurements at November 1, 2014 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Identical Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 185,212 | $ | 185,212 | 0 | 0 | |||||||||||
Money-market | 72,896 | 72,896 | 0 | 0 | |||||||||||||
Treasury bills | 22,337 | 22,337 | 0 | 0 | |||||||||||||
Total cash and cash equivalents | 280,445 | 280,445 | 0 | 0 | |||||||||||||
Total | $ | 280,445 | $ | 280,445 | 0 | 0 | |||||||||||
Fair Value Measurements at November 2, 2013 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Identical Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 306,572 | $ | 306,572 | $ | — | $ | — | |||||||||
Treasury bills | 25,863 | 25,863 | — | — | |||||||||||||
Money-market | 21,849 | 21,849 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 354,284 | $ | 354,284 | $ | — | $ | — | |||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 2,930 | $ | 2,930 | $ | — | $ | — | |||||||||
Total short-term investments | $ | 2,930 | $ | 2,930 | $ | — | $ | — | |||||||||
Long-term investments: | |||||||||||||||||
Term-deposits | $ | 9,588 | $ | 9,588 | $ | — | $ | — | |||||||||
Total long-term investments | $ | 9,588 | $ | 9,588 | $ | — | $ | — | |||||||||
Total | $ | 366,802 | $ | 366,802 | $ | — | $ | — | |||||||||
In the event the Company holds Level 3 investments, a discounted cash flow model is used to value those investments. There were no Level 3 investments at November 1, 2014 or November 2, 2013. | |||||||||||||||||
Non-Financial Assets | |||||||||||||||||
The Company’s non-financial assets, which include goodwill, intangible assets and property and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required, and the Company is required to evaluate the non-financial instrument for impairment, a resulting asset impairment would require that the non-financial asset be recorded at the estimated fair value. As a result of the Company’s annual goodwill impairment test performed as of February 1, 2014, the Company concluded that its goodwill was not impaired. | |||||||||||||||||
Certain long-lived assets were measured at fair value on a nonrecurring basis using Level 3 inputs as defined in ASC 820. During the 39 weeks ended November 1, 2014 and November 2, 2013, certain long-lived assets related to the Company’s retail stores and Warrendale Distribution Center were determined to be unable to recover their respective carrying values and were written down to their fair value, resulting in the loss on impairment of assets charge within the Consolidated Statements of Operations for both periods. | |||||||||||||||||
The fair value of these assets were determined by estimating the amount and timing of net future cash flows and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located. |
Earnings_per_Share
Earnings per Share | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
5. Earnings per Share | |||||||||||||||||
The following is a reconciliation between basic and diluted weighted average shares outstanding: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
(In thousands) | November 1, | November 2, | November 1, | November 2, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 194,573 | 192,818 | 194,381 | 192,753 | |||||||||||||
Dilutive effect of stock options and non-vested restricted stock | 648 | 1,794 | 553 | 2,268 | |||||||||||||
Diluted number of common shares outstanding | 195,221 | 194,612 | 194,934 | 195,021 | |||||||||||||
Equity awards to purchase approximately 2.4 million shares of common stock during both the 13 and 39 weeks ended November 1, 2014 and approximately 2.9 million and 1.8 shares of common stock during the 13 weeks and 39 weeks ended November 2, 2013, respectively, were outstanding, but were not included in the computation of weighted average diluted common share amounts as the effect of doing so would be anti-dilutive. | |||||||||||||||||
There were no shares and 0.5 million shares for both the 13 and 39 weeks ended November 1, 2014, respectively, and 0.9 and 0.8 million shares for the 13 and 39 weeks ended November 2, 2013, respectively, of restricted stock units that were outstanding but not included in the computation of weighted average diluted common share amounts as the effect of doing so would be anti-dilutive. Additionally, approximately 1.8 and 1.9 million shares of restricted stock units for the 13 and 39 weeks ended November 1, 2014, respectively, were not included in the computation of weighted average diluted common share amounts because the number of shares ultimately issued is contingent on the Company’s performance compared to pre-established annual performance goals. | |||||||||||||||||
Refer to Note 9 to the Consolidated Financial Statements for additional information regarding share-based compensation. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Property and Equipment | ' | ||||||||||||
6. Property and Equipment | |||||||||||||
Property and equipment consists of the following: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Property and equipment, at cost | $ | 1,694,803 | $ | 1,594,360 | $ | 1,602,732 | |||||||
Less: Accumulated depreciation | (980,637 | ) | (961,374 | ) | (972,646 | ) | |||||||
Property and equipment, net | $ | 714,166 | $ | 632,986 | $ | 630,086 | |||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Intangible Assets | ' | ||||||||||||
7. Intangible Assets | |||||||||||||
Intangible assets consist of the following: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Trademarks and other intangibles, at cost | $ | 59,205 | $ | 58,121 | $ | 52,484 | |||||||
Less: Accumulated amortization | (11,341 | ) | (8,850 | ) | (8,057 | ) | |||||||
Intangible assets, net | $ | 47,864 | $ | 49,271 | $ | 44,427 | |||||||
Other_Credit_Arrangements
Other Credit Arrangements | 9 Months Ended |
Nov. 01, 2014 | |
Other Credit Arrangements | ' |
8. Other Credit Arrangements | |
On March 2, 2012, the Company entered into a five-year, $150.0 million syndicated, unsecured, revolving credit agreement (the “Credit Agreement”). The primary purpose of the Credit Agreement is to provide additional access to capital for general corporate purposes, growth initiatives and the issuance of letters of credit. | |
The Credit Agreement contains financial covenants that require the Company to maintain certain coverage and leverage ratios, and various customary affirmative and negative covenants such as the ability to incur additional debt not otherwise permitted under the Credit Agreement. | |
The Credit Agreement has various borrowing options, including rates of interest that are based on (i) an Adjusted London Interbank Offered Rate (“LIBOR” as defined in the Credit Agreement) plus a margin ranging from 1.00% to 1.75% based on a defined leverage ratio, payable at the end of the applicable interest period; and (ii) a Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.00% to 0.75% based on a defined leverage ratio, payable quarterly. | |
Under the Credit Agreement, the Company is also required to pay a commitment fee ranging from 0.175% to 0.30%, based on the defined leverage ratio, on the unused portion of the total lender commitments. | |
As of November 1, 2014, the Company was in compliance with the terms of the Credit Agreement and had $8.2 million outstanding in letters of credit and no borrowings. | |
The Credit Agreement replaced uncommitted demand lines in the aggregate amount of $110.0 million USD and $25.0 million Canadian Dollar (“CAD”). | |
Additionally, the Company has agreements with two separate financial institutions for an aggregate of $155.0 million USD for the purposes of trade letter of credit issuances. The availability of any future issuances under the trade letter of credit facilities is subject to acceptance by the respective financial institutions. | |
As of November 1, 2014, the Company had outstanding trade letters of credit of $44.6 million. | |
Refer to Note 13 to the Consolidated Financial Statements for a subsequent event footnote related to the Company’s credit facilities. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
9. Share-Based Compensation | |||||||||||||||||
The Company accounts for share-based compensation under the provisions of ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires companies to measure and recognize compensation expense for all share-based payments at fair value. Total share-based compensation expense included in the Consolidated Statements of Operations for the 13 and 39 weeks ended November 1, 2014 was $6.5 million ($4.0 million, net of tax) and $13.0 million ($8.0 million, net of tax), respectively. Total share-based compensation expense included in the Consolidated Statements of Operations for the 13 and 39 weeks ended November 2, 2013 was a net benefit of $11.5 million ($7.1 million, net of tax) and $1.8 million ($1.1 million, net of tax), respectively. | |||||||||||||||||
Stock Option Grants | |||||||||||||||||
The Company grants both time-based and performance-based stock options. Time-based stock option awards vest over the requisite service period of the award or to an employee’s eligible retirement date, if earlier. Performance-based stock option awards vest over one year and are earned if the Company meets pre-established performance goals. | |||||||||||||||||
A summary of the Company’s stock option activity for the 39 weeks ended November 1, 2014 follows: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding - February 1, 2014 | 3,925 | $ | 17.65 | ||||||||||||||
Granted | 126 | $ | 14.5 | ||||||||||||||
Exercised (1) | (595 | ) | $ | 12.01 | |||||||||||||
Cancelled | (917 | ) | $ | 24.66 | |||||||||||||
Outstanding - November 1, 2014 | 2,539 | $ | 16.28 | 2 | $ | 257 | |||||||||||
Vested and expected to vest - November 1, 2014 | 2,527 | $ | 16.29 | 2 | $ | 257 | |||||||||||
Exercisable - November 1, 2014 (2) | 95 | $ | 10.16 | 2.2 | $ | 257 | |||||||||||
-1 | Options exercised during the 39 weeks ended November 1, 2014 had exercise prices ranging from $8.09 to $13.12. | ||||||||||||||||
-2 | Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price at November 1, 2014. | ||||||||||||||||
The weighted-average grant date fair value of stock options granted during the 39 weeks ended November 1, 2014 and November 2, 2013 was $3.99 and $4.17, respectively. The aggregate intrinsic value of options exercised during both the 39 weeks ended November 1, 2014 and November 2, 2013 was $1.3 million. | |||||||||||||||||
Cash received from the exercise of stock options was $7.1 million for the 39 weeks ended November 1, 2014 and $3.3 million for the 39 weeks ended November 2, 2013. The actual tax benefit realized from stock option exercises totaled $3.1 million for the 39 weeks ended November 1, 2014 and $8.2 million for the 39 weeks ended November 2, 2013. | |||||||||||||||||
The fair value of stock options was estimated based on the closing market price of the Company’s common stock on the date of the grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||
Black-Scholes Option Valuation Assumptions | November 1, | November 2, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate (1) | 1.5 | % | 0.3 | % | |||||||||||||
Dividend yield | 3.1 | % | 2 | % | |||||||||||||
Volatility factor (2) | 41.2 | % | 34.4 | % | |||||||||||||
Weighted-average expected term (3) | 4.5 years | 2.5 years | |||||||||||||||
Expected forfeiture rate (4) | 8 | % | 8 | % | |||||||||||||
-1 | Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. | ||||||||||||||||
-2 | Based on a combination of historical volatility of the Company’s common stock and implied volatility. | ||||||||||||||||
-3 | Represents the period of time options are expected to be outstanding, based on historical experience. | ||||||||||||||||
-4 | Based upon historical experience. | ||||||||||||||||
As of November 1, 2014, there was $0.5 million of unrecognized compensation expense related to non-vested time-based stock option awards that is expected to be recognized over a weighted average period of 2.3 years. | |||||||||||||||||
Restricted Stock Grants | |||||||||||||||||
Time-based restricted stock awards are comprised of time-based restricted stock units. These awards vest over three years. Time-based restricted stock units receive dividend equivalents in the form of additional time-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. | |||||||||||||||||
Performance-based restricted stock awards include performance-based restricted stock units. These awards cliff vest at the end of a three year period based upon the Company’s achievement of pre-established goals throughout the term of the award. Performance-based restricted stock units receive dividend equivalents in the form of additional performance-based restricted stock units, which are subject to the same restrictions and forfeiture provisions as the original award. | |||||||||||||||||
The grant date fair value of all restricted stock awards is based on the closing market price of the Company’s common stock on the date of grant. | |||||||||||||||||
A summary of the Company’s restricted stock activity is presented in the following tables: | |||||||||||||||||
Time-Based Restricted Stock Units | Performance-Based Restricted Stock Units | ||||||||||||||||
39 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 1, 2014 | November 1, 2014 | ||||||||||||||||
(Shares in thousands) | Shares | Weighted-Average Grant | Shares | Weighted-Average Grant | |||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Nonvested - February 1, 2014 | 1,155 | $ | 20.13 | 2,395 | $ | 16.85 | |||||||||||
Granted | 1,521 | 14.13 | 1,341 | 14.22 | |||||||||||||
Vested | (647 | ) | 18.1 | (604 | ) | 15.33 | |||||||||||
Cancelled | (457 | ) | 16.93 | (145 | ) | 17.3 | |||||||||||
Nonvested - November 1, 2014 | 1,572 | $ | 16.09 | 2,987 | $ | 15.96 | |||||||||||
As of November 1, 2014, there was $21.6 million of unrecognized compensation expense related to non-vested time-based restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.1 years. Based on current probable performance, there was $3.2 million of unrecognized compensation expense related to performance-based restricted stock unit awards which will be recognized as achievement of performance goals is probable over a one to three year period. | |||||||||||||||||
As of November 1, 2014, the Company had 8.7 million shares available for all equity grants. |
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 01, 2014 | |
Income Taxes | ' |
10. Income Taxes | |
The provision for income taxes is based on the current estimate of the annual effective income tax rate and is adjusted as necessary for discrete quarterly events. The effective income tax rate based on actual operating results for the 13 weeks ended November 1, 2014 was 61.9% compared to 41.2% for the 13 weeks ended November 2, 2013. The effective income tax rate based on actual operating results for the 39 weeks ended November 1, 2014 was 59.1% compared to 38.6% for the 39 weeks ended November 2, 2013. The increase in the effective income tax rate this year is primarily due to valuation allowances on foreign losses and lower income. | |
The Company records accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company recognizes income tax liabilities related to unrecognized tax benefits in accordance with ASC 740 and adjusts these liabilities when its judgment changes as the result of the evaluation of new information not previously available. Unrecognized tax benefits did not change significantly during the 13 weeks ended November 1, 2014 and November 2, 2013. Over the next twelve months, the Company believes that it is reasonably possible that unrecognized tax benefits may decrease by approximately $7.5 million due to settlements, expiration of statute of limitations or other changes in unrecognized tax benefits. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Nov. 01, 2014 | |
Legal Proceedings | ' |
11. Legal Proceedings | |
The Company is subject to certain legal proceedings and claims arising out of the conduct of its business. In accordance with ASC 450, Contingencies (“ASC 450”), management records a reserve for estimated losses when the loss is probable and the amount can be reasonably estimated. If a range of possible loss exists and no anticipated loss within the range is more likely than any other anticipated loss, the Company records the accrual at the low end of the range, in accordance with ASC 450. As the Company believes that it has provided adequate reserves, it anticipates that the ultimate outcome of any matter currently pending against the Company will not materially affect the consolidated financial position or results of operations of the Company. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended | ||||
Nov. 01, 2014 | |||||
Restructuring Charges | ' | ||||
12. Restructuring Charges | |||||
During the 13 weeks ended November 1, 2014, the Company undertook restructuring aimed at strengthening the store portfolio and reducing corporate overhead, including severance and office space consolidation. These changes are aimed at driving efficiencies and aligning investments in areas that help fuel the business. | |||||
Costs associated with restructuring activities are recorded when incurred. A summary of costs recognized within Restructuring Charges on the Consolidated Income Statement for the 13 weeks ended November 1, 2014 are included in the table as follows. | |||||
(In thousands) | 13 Weeks | ||||
Ended | |||||
November 1, | |||||
2014 | |||||
Cash restructuring charges | |||||
Office space consolidation charges | $ | 8,571 | |||
Severance and related employee costs | 7,816 | ||||
Other corporate items | 1,365 | ||||
Total restructuring charges | $ | 17,752 | |||
The Company also incurred non-cash corporate office and other asset impairments charges of $8.4 million. This charge is included within Loss on Impairment of Assets on the Consolidated Income Statement. Also included in Loss on Impairment of Assets is $25.1 million of store asset impairments resulting from evaluation of current and future projected performance. | |||||
A rollforward of the liabilities recognized in the Consolidated Balance Sheet is as follows: | |||||
November 1, | |||||
(In thousands) | 2014 | ||||
Accrued liability as of February 1, 2014 | $ | — | |||
Add: Costs incurred, excluding non-cash charges | 17,752 | ||||
Less: Cash payments | (864 | ) | |||
Accrued liability as of November 1, 2014 | $ | 16,888 | |||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Nov. 01, 2014 | |
Subsequent Events | ' |
13. Subsequent Events | |
On December 2, 2014, the Company entered into a new Credit Agreement (“Credit Agreement”) for five-year, syndicated, asset-based revolving credit facilities (the “Credit Facilities”). The Credit Agreement provides senior secured revolving credit for loans and letters of credit up to $400 million, subject to customary borrowing base limitations. The Credit Facilities provide increased financial flexibility and takes advantage of a favorable credit environment. The Credit Facilities replace the Company’s syndicated, unsecured, revolving credit facility in the amount of $150.0 million. | |
All obligations under the Credit Facilities are unconditionally guaranteed by certain subsidiaries. The obligations under Credit Agreement are secured by a first-priority security interest in certain working capital assets of the borrowers and guarantors, consisting primarily of cash, receivables, inventory and certain other assets, and will be further secured by first-priority mortgages on certain real property. | |
The Credit Agreement will mature on December 2, 2019. Stand-by letters of credit totaling approximately $8.2 million were outstanding under the prior credit facility and are made subject to the Credit Agreement. No loans were outstanding under the Credit Agreement on December 2, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||
Nov. 01, 2014 | |||
Principles of Consolidation | ' | ||
Principles of Consolidation | |||
The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. At November 1, 2014, the Company operated in one reportable segment. | |||
Fiscal Year | ' | ||
Fiscal Year | |||
The Company’s financial year is a 52/53 week year that ends on the Saturday nearest to January 31. As used herein, “Fiscal 2014” and “Fiscal 2013” refer to the 52 week periods ending January 31, 2015 and February 1, 2014, respectively. | |||
Estimates | ' | ||
Estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, our management reviews the Company’s estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt ASU 2014-09 on January 29, 2017. The Company does not expect a material impact of the adoption of this guidance on the Company’s consolidated financial condition, results of operations and cash flows. | |||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 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. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU No. 2013-11 is effective for financial statements issued for annual reporting periods beginning after December 15, 2013 and interim periods within those years. The Company adopted ASU 2013-11 on February 2, 2014 with no significant impact to its Consolidated Financial Statements. | |||
Foreign Currency Translation | ' | ||
Foreign Currency Translation | |||
In accordance with Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters, assets and liabilities denominated in foreign currencies were translated into United States dollars (“USD”) (the reporting currency) at the exchange rates prevailing at the balance sheet date. Revenues and expenses denominated in foreign currencies were translated into USD at the monthly average exchange rates for the period. Gains or losses resulting from foreign currency transactions are included in the results of operations, whereas, related translation adjustments are reported as an element of other comprehensive income in accordance with ASC 220, Comprehensive Income. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Revenue is recorded for store sales upon the purchase of merchandise by customers. The Company’s e-commerce operation records revenue upon the estimated customer receipt date of the merchandise. Shipping and handling revenues are included in total net revenue. Sales tax collected from customers is excluded from revenue and is included as part of accrued income and other taxes on the Company’s Consolidated Balance Sheets. | |||
Revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions. The Company records the impact of adjustments to its sales return reserve quarterly within total net revenue and cost of sales. The sales return reserve reflects an estimate of sales returns based on projected merchandise returns determined through the use of historical average return percentages. | |||
Revenue is not recorded on the purchase of gift cards. A current liability is recorded upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. Additionally, the Company recognizes revenue on unredeemed gift cards based on an estimate of the amounts that will not be redeemed (“gift card breakage”), determined through historical redemption trends. Gift card breakage revenue is recognized in proportion to actual gift card redemptions as a component of total net revenue. For further information on the Company’s gift card program, refer to the Gift Cards caption below. | |||
The Company recognizes royalty revenue generated from its franchise agreements based on a percentage of merchandise sales by the franchisee. This revenue is recorded as a component of total net revenue when earned. | |||
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses | ' | ||
Cost of Sales, Including Certain Buying, Occupancy and Warehousing Expenses | |||
Cost of sales consists of merchandise costs, including design, sourcing, importing and inbound freight costs, as well as markdowns, shrinkage and certain promotional costs (collectively “merchandise costs”) and buying, occupancy and warehousing costs. | |||
Design costs are related to the Company’s Design Center operations and include compensation, travel, supplies and samples for our design teams, as well as rent and depreciation for our Design Center. These costs are included in cost of sales as the respective inventory is sold. | |||
Buying, occupancy and warehousing costs consist of compensation, employee benefit expenses and travel for our buyers and certain senior merchandising executives; rent and utilities related to our stores, corporate headquarters, distribution centers and other office space; freight from our distribution centers to the stores; compensation and supplies for our distribution centers, including purchasing, receiving and inspection costs; and shipping and handling costs related to our e-commerce operation. Gross profit is the difference between total net revenue and cost of sales. | |||
Selling, General and Administrative Expenses | ' | ||
Selling, General and Administrative Expenses | |||
Selling, general and administrative expenses consist of compensation and employee benefit expenses, including salaries, incentives and related benefits associated with our stores and corporate headquarters. Selling, general and administrative expenses also include advertising costs, supplies for our stores and home office, communication costs, travel and entertainment, leasing costs and services purchased. Selling, general and administrative expenses do not include compensation, employee benefit expenses and travel for our design, sourcing and importing teams, our buyers and our distribution centers as these amounts are recorded in cost of sales. | |||
Other Income, Net | ' | ||
Other Income, Net | |||
Other income, net consists primarily of interest income/expense, foreign currency transaction gain/loss and realized investment gains/losses. | |||
Other-than-Temporary Impairment | ' | ||
Other-than-Temporary Impairment | |||
The Company evaluates its investments for impairment in accordance with ASC 320, Investments – Debt and Equity Securities (“ASC 320”). ASC 320 provides guidance for determining when an investment is considered impaired, whether impairment is other-than-temporary, and measurement of an impairment loss. An investment is considered impaired if the fair value of the investment is less than its cost. If, after consideration of all available evidence to evaluate the realizable value of its investment, impairment is determined to be other-than-temporary, then an impairment loss is recognized in the Consolidated Statement of Operations equal to the difference between the investment’s cost and its fair value. There was no net impairment loss for investment securities recognized in earnings during the 13 and 39 weeks ended November 1, 2014 or November 2, 2013. | |||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | ' | ||
Cash and Cash Equivalents, Short-term Investments and Long-term Investments | |||
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. | |||
As of November 1, 2014, the Company held no short-term or long-term investments. | |||
As of November 2, 2013, short-term investments include treasury bills with a maturity of greater than three months, but less than one year. Long-term investments include term deposits with an original maturity of greater than one year. Long-term investments are recorded within other assets on the Company’s Consolidated Balance Sheets. | |||
Unrealized gains and losses on the Company’s available-for-sale securities are excluded from earnings and are reported as a separate component of stockholders’ equity, within accumulated other comprehensive income, until realized. When available-for-sale securities are sold, the cost of the securities is specifically identified and is used to determine any realized gain or loss. | |||
Refer to Note 3 to the Consolidated Financial Statements for information regarding cash and cash equivalents, short-term and long-term investments. | |||
Merchandise Inventory | ' | ||
Merchandise Inventory | |||
Merchandise inventory is valued at the lower of average cost or market, utilizing the retail method. Average cost includes merchandise design and sourcing costs and related expenses. The Company records merchandise receipts when both title and risk of loss for the merchandise have transferred to the Company. | |||
The Company reviews its inventory levels to identify slow-moving merchandise and generally uses markdowns to clear merchandise. Additionally, the Company estimates a markdown reserve for future planned permanent markdowns related to current inventory. Markdowns may occur when inventory exceeds customer demand for reasons of style, seasonal adaptation, changes in customer preference, lack of consumer acceptance of fashion items, competition, or if it is determined that the inventory in stock will not sell at its currently ticketed price. Such markdowns may have a material adverse impact on earnings, depending on the extent and amount of inventory affected. The Company also estimates a shrinkage reserve for the period between the last physical count and the balance sheet date. The estimate for the shrinkage reserve, based on historical results, can be affected by changes in merchandise mix and changes in actual shrinkage trends. | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company calculates income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires the use of the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on the difference between the Consolidated Financial Statement carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to ASC 740. Deferred tax assets and liabilities are measured using the tax rates, based on certain judgments regarding enacted tax laws and published guidance, in effect in the years when those temporary differences are expected to reverse. A valuation allowance is established against the deferred tax assets when it is more likely than not that some portion or all of the deferred taxes may not be realized. Changes in the Company’s level and composition of earnings, tax laws or the deferred tax valuation allowance, as well as the results of tax audits may materially impact the Company’s effective income tax rate. | |||
The Company evaluates its income tax positions in accordance with ASC 740, which prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction. Under ASC 740, a tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable based on its technical merits. | |||
The calculation of the deferred tax assets and liabilities, as well as the decision to recognize a tax benefit from an uncertain position and to establish a valuation allowance require management to make estimates and assumptions. The Company believes that its assumptions and estimates are reasonable, although actual results may have a positive or negative material impact on the balances of deferred tax assets and liabilities, valuation allowances or net income. | |||
Refer to Note 10 to the Consolidated Financial Statements for additional information regarding income taxes. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment is recorded on the basis of cost, including costs to prepare the asset for use, with depreciation computed utilizing the straight-line method over the assets’ estimated useful lives. The useful lives of our major classes of assets are as follows: | |||
Buildings | 25 years | ||
Leasehold improvements | Lesser of 10 years or the term of the lease | ||
Fixtures and equipment | 5 years | ||
In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company evaluates long-lived assets for impairment at the individual store level, which is the lowest level at which individual cash flows can be identified, for stores that have been open for a period of time sufficient to reach maturity. Impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. When events such as these occur, the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded. | |||
During the 13 weeks ended November 1, 2014, the Company recorded pre-tax asset impairment charges of $33.5 million that includes $25.1 million for the impairment of 79 retail stores recorded as a loss on impairment of assets in the Consolidated Statements of Operations. Based on the Company’s evaluation of current and future projected performance, it was determined that these stores would not be able to generate sufficient cash flow over the expected remaining lease term to recover the carrying value of the respective stores’ assets. Additionally, the Company recorded $8.4 million of impairment charges related to corporate assets. Refer to Note 12 to the Consolidated Financial Statements for additional information regarding Restructuring Charges. | |||
During the 13 weeks ended November 2, 2013, the Company announced plans to close its Warrendale, Pennsylvania distribution center and transfer the operations to its new Hazelton, Pennsylvania facility, as the Warrendale facility is not physically or geographically capable of supporting the Company’s long-term expansion goals. This announcement resulted in $19.3 million of pre-tax asset impairments. | |||
Refer to Note 6 to the Consolidated Financial Statements for additional information regarding property and equipment. | |||
Goodwill | ' | ||
Goodwill | |||
The Company’s goodwill is primarily related to the acquisition of its importing operations, Canadian business and businesses in Hong Kong and China. In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), the Company evaluates goodwill for possible impairment on at least an annual basis and last performed an annual impairment test as of February 1, 2014. As a result of the Company’s annual goodwill impairment test, the Company concluded that its goodwill was not impaired. | |||
Intangible Assets | ' | ||
Intangible Assets | |||
Intangible assets are recorded on the basis of cost with amortization computed utilizing the straight-line method over the assets’ estimated useful lives. The Company’s intangible assets, which primarily include trademark assets, are generally amortized over 15 to 25 years. | |||
The Company evaluates intangible assets for impairment in accordance with ASC 350 when events or circumstances indicate that the carrying value of the asset may not be recoverable. Such an evaluation includes the estimation of undiscounted future cash flows to be generated by those assets. If the sum of the estimated future undiscounted cash flows are less than the carrying amounts of the assets, then the assets are impaired and are adjusted to their estimated fair value. No intangible asset impairment charges were recorded during the 13 and 39 weeks ended November 1, 2014 and November 2, 2013. | |||
Refer to Note 7 to the Consolidated Financial Statements for additional information regarding intangible assets. | |||
Gift Cards | ' | ||
Gift Cards | |||
The value of a gift card is recorded as a current liability upon purchase, and revenue is recognized when the gift card is redeemed for merchandise. The Company estimates gift card breakage and recognizes revenue in proportion to actual gift card redemptions as a component of total net revenue. The Company determines an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed. The Company recorded $1.1 million of revenue related to gift card breakage during the 13 weeks ended November 1, 2014 and November 2, 2013, respectively. During the 39 weeks ended November 1, 2014 and November 2, 2013, the Company recorded $4.1 million and $4.3 million, respectively, of revenue related to gift card breakage. | |||
Deferred Lease Credits | ' | ||
Deferred Lease Credits | |||
Deferred lease credits represent the unamortized portion of construction allowances received from landlords related to the Company’s retail stores. Construction allowances are generally comprised of cash amounts received by the Company from its landlords as part of the negotiated lease terms. The Company records a receivable and a deferred lease credit liability at the lease commencement date (date of initial possession of the store). The deferred lease credit is amortized on a straight-line basis as a reduction of rent expense over the term of the original lease (including the pre-opening build-out period). The receivable is reduced as amounts are received from the landlord. | |||
Co-branded Credit Card and Customer Loyalty Program | ' | ||
Co-branded Credit Card and Customer Loyalty Program | |||
The Company offers a co-branded credit card (the “AEO Visa Card”) and a private label credit card (the “AEO Credit Card”). These credit cards are issued by a third-party bank (the “Bank”), and the Company has no liability to the Bank for bad debt expense, provided that purchases are made in accordance with the Bank’s procedures. Once a customer is approved to receive the AEO Visa Card or the AEO Credit Card and the card is activated, the customer is eligible to participate in the credit card rewards program. Customers who make purchases earn discounts in the form of savings certificates when certain purchase levels are reached. Also, AEO Visa Card customers who make purchases at other retailers where the card is accepted earn additional discounts. Savings certificates are valid for 90 days from issuance. | |||
Points earned under the credit card rewards program on purchases are accounted for by analogy to ASC 605-25, Revenue Recognition, Multiple Element Arrangements (“ASC 605-25”). The Company believes that points earned under its point and loyalty programs represent deliverables in a multiple element arrangement rather than a rebate or refund of cash. Accordingly, the portion of the sales revenue attributed to the award points is deferred and recognized when the award is redeemed or when the points expire. Additionally, credit card reward points earned on non-AE or aerie purchases are accounted for in accordance with ASC 605-25. As the points are earned, a current liability is recorded for the estimated cost of the award, and the impact of adjustments is recorded in cost of sales. | |||
The Company offers its customers the AEREWARD$sm loyalty program (the “Program”). Under the Program, customers accumulate points based on purchase activity and earn rewards by reaching certain point thresholds during three-month earning periods. Rewards earned during these periods are valid through the stated expiration date, which is approximately one month from the mailing date of the reward. These rewards can be redeemed for a discount on a purchase of merchandise. Rewards not redeemed during the one-month redemption period are forfeited. The Company determined that rewards earned using the Program should be accounted for in accordance with ASC 605-25. Accordingly, the portion of the sales revenue attributed to the award credits is deferred and recognized when the awards are redeemed or expire. | |||
Segment Information | ' | ||
Segment Information | |||
In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company has identified three operating segments (American Eagle Brand retail stores, aerie retail stores and AEO Direct) that reflect the basis used internally to review performance and allocate resources. All of the operating segments have been aggregated and are presented as one reportable segment, as permitted by ASC 280. | |||
Reclassification | ' | ||
Reclassification | |||
Certain reclassifications have been made to the Consolidated Financial Statements for prior periods in order to conform to the current period presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||
Nov. 01, 2014 | |||
Useful Lives of Major Classes of Assets | ' | ||
The useful lives of our major classes of assets are as follows: | |||
Buildings | 25 years | ||
Leasehold improvements | Lesser of 10 years or the term of the lease | ||
Fixtures and equipment | 5 years |
Cash_and_Cash_Equivalents_Shor1
Cash and Cash Equivalents, Short-term Investments and Long-term Investments (Tables) | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Fair Market Values for Cash and Marketable Securities | ' | ||||||||||||
The following table summarizes the fair market values for the Company’s cash and marketable securities, which are recorded on the Consolidated Balance Sheets: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Cash and cash equivalents: | |||||||||||||
Cash | $ | 185,212 | $ | 330,013 | $ | 306,572 | |||||||
Money-market | 72,896 | 25,696 | 21,849 | ||||||||||
Treasury bills | 22,337 | 63,224 | 25,863 | ||||||||||
Total cash and cash equivalents | $ | 280,445 | $ | 418,933 | $ | 354,284 | |||||||
Short-term investments: | |||||||||||||
Treasury bills | $ | — | $ | 10,002 | $ | 2,930 | |||||||
Total short-term investments | $ | — | $ | 10,002 | $ | 2,930 | |||||||
Long-term investments: | |||||||||||||
Term-deposits | $ | — | $ | — | $ | 9,588 | |||||||
Total long-term investments | $ | — | $ | — | $ | 9,588 | |||||||
Total | $ | 280,445 | $ | 428,935 | $ | 366,802 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis at November 1, 2014 and November 2, 2013: | |||||||||||||||||
Fair Value Measurements at November 1, 2014 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Identical Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 185,212 | $ | 185,212 | 0 | 0 | |||||||||||
Money-market | 72,896 | 72,896 | 0 | 0 | |||||||||||||
Treasury bills | 22,337 | 22,337 | 0 | 0 | |||||||||||||
Total cash and cash equivalents | 280,445 | 280,445 | 0 | 0 | |||||||||||||
Total | $ | 280,445 | $ | 280,445 | 0 | 0 | |||||||||||
Fair Value Measurements at November 2, 2013 | |||||||||||||||||
(In thousands) | Carrying | Quoted Market | Significant Other | Significant | |||||||||||||
Amount | Prices in Active | Observable | Unobservable | ||||||||||||||
Markets for | Inputs (Level 2) | Inputs (Level 3) | |||||||||||||||
Identical Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 306,572 | $ | 306,572 | $ | — | $ | — | |||||||||
Treasury bills | 25,863 | 25,863 | — | — | |||||||||||||
Money-market | 21,849 | 21,849 | — | — | |||||||||||||
Total cash and cash equivalents | $ | 354,284 | $ | 354,284 | $ | — | $ | — | |||||||||
Short-term investments: | |||||||||||||||||
Treasury bills | $ | 2,930 | $ | 2,930 | $ | — | $ | — | |||||||||
Total short-term investments | $ | 2,930 | $ | 2,930 | $ | — | $ | — | |||||||||
Long-term investments: | |||||||||||||||||
Term-deposits | $ | 9,588 | $ | 9,588 | $ | — | $ | — | |||||||||
Total long-term investments | $ | 9,588 | $ | 9,588 | $ | — | $ | — | |||||||||
Total | $ | 366,802 | $ | 366,802 | $ | — | $ | — | |||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding | ' | ||||||||||||||||
The following is a reconciliation between basic and diluted weighted average shares outstanding: | |||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
(In thousands) | November 1, | November 2, | November 1, | November 2, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic number of common shares outstanding | 194,573 | 192,818 | 194,381 | 192,753 | |||||||||||||
Dilutive effect of stock options and non-vested restricted stock | 648 | 1,794 | 553 | 2,268 | |||||||||||||
Diluted number of common shares outstanding | 195,221 | 194,612 | 194,934 | 195,021 | |||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and equipment consists of the following: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Property and equipment, at cost | $ | 1,694,803 | $ | 1,594,360 | $ | 1,602,732 | |||||||
Less: Accumulated depreciation | (980,637 | ) | (961,374 | ) | (972,646 | ) | |||||||
Property and equipment, net | $ | 714,166 | $ | 632,986 | $ | 630,086 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Nov. 01, 2014 | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible assets consist of the following: | |||||||||||||
(In thousands) | November 1, | February 1, | November 2, | ||||||||||
2014 | 2014 | 2013 | |||||||||||
Trademarks and other intangibles, at cost | $ | 59,205 | $ | 58,121 | $ | 52,484 | |||||||
Less: Accumulated amortization | (11,341 | ) | (8,850 | ) | (8,057 | ) | |||||||
Intangible assets, net | $ | 47,864 | $ | 49,271 | $ | 44,427 | |||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Nov. 01, 2014 | |||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of the Company’s stock option activity for the 39 weeks ended November 1, 2014 follows: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding - February 1, 2014 | 3,925 | $ | 17.65 | ||||||||||||||
Granted | 126 | $ | 14.5 | ||||||||||||||
Exercised (1) | (595 | ) | $ | 12.01 | |||||||||||||
Cancelled | (917 | ) | $ | 24.66 | |||||||||||||
Outstanding - November 1, 2014 | 2,539 | $ | 16.28 | 2 | $ | 257 | |||||||||||
Vested and expected to vest - November 1, 2014 | 2,527 | $ | 16.29 | 2 | $ | 257 | |||||||||||
Exercisable - November 1, 2014 (2) | 95 | $ | 10.16 | 2.2 | $ | 257 | |||||||||||
-1 | Options exercised during the 39 weeks ended November 1, 2014 had exercise prices ranging from $8.09 to $13.12. | ||||||||||||||||
-2 | Options exercisable represent “in-the-money” vested options based upon the weighted-average exercise price of vested options compared to the Company’s stock price at November 1, 2014. | ||||||||||||||||
Black-Scholes Option Valuation Assumptions | ' | ||||||||||||||||
The fair value of stock options was estimated based on the closing market price of the Company’s common stock on the date of the grant using a Black-Scholes option pricing model with the following weighted-average assumptions: | |||||||||||||||||
39 Weeks Ended | |||||||||||||||||
Black-Scholes Option Valuation Assumptions | November 1, | November 2, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Risk-free interest rate (1) | 1.5 | % | 0.3 | % | |||||||||||||
Dividend yield | 3.1 | % | 2 | % | |||||||||||||
Volatility factor (2) | 41.2 | % | 34.4 | % | |||||||||||||
Weighted-average expected term (3) | 4.5 years | 2.5 years | |||||||||||||||
Expected forfeiture rate (4) | 8 | % | 8 | % | |||||||||||||
-1 | Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. | ||||||||||||||||
-2 | Based on a combination of historical volatility of the Company’s common stock and implied volatility. | ||||||||||||||||
-3 | Represents the period of time options are expected to be outstanding, based on historical experience. | ||||||||||||||||
-4 | Based upon historical experience. | ||||||||||||||||
Summary of Restricted Stock Activity | ' | ||||||||||||||||
A summary of the Company’s restricted stock activity is presented in the following tables: | |||||||||||||||||
Time-Based Restricted Stock Units | Performance-Based Restricted Stock Units | ||||||||||||||||
39 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
November 1, 2014 | November 1, 2014 | ||||||||||||||||
(Shares in thousands) | Shares | Weighted-Average Grant | Shares | Weighted-Average Grant | |||||||||||||
Date Fair Value | Date Fair Value | ||||||||||||||||
Nonvested - February 1, 2014 | 1,155 | $ | 20.13 | 2,395 | $ | 16.85 | |||||||||||
Granted | 1,521 | 14.13 | 1,341 | 14.22 | |||||||||||||
Vested | (647 | ) | 18.1 | (604 | ) | 15.33 | |||||||||||
Cancelled | (457 | ) | 16.93 | (145 | ) | 17.3 | |||||||||||
Nonvested - November 1, 2014 | 1,572 | $ | 16.09 | 2,987 | $ | 15.96 |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | ||||
Nov. 01, 2014 | |||||
Summary of Costs Recognized Within Restructuring Charges on Consolidated Income Statement | ' | ||||
A summary of costs recognized within Restructuring Charges on the Consolidated Income Statement for the 13 weeks ended November 1, 2014 are included in the table as follows. | |||||
(In thousands) | 13 Weeks | ||||
Ended | |||||
November 1, | |||||
2014 | |||||
Cash restructuring charges | |||||
Office space consolidation charges | $ | 8,571 | |||
Severance and related employee costs | 7,816 | ||||
Other corporate items | 1,365 | ||||
Total restructuring charges | $ | 17,752 | |||
Rollforward of Liabilities Recognized in Consolidated Balance Sheet | ' | ||||
A rollforward of the liabilities recognized in the Consolidated Balance Sheet is as follows: | |||||
November 1, | |||||
(In thousands) | 2014 | ||||
Accrued liability as of February 1, 2014 | $ | — | |||
Add: Costs incurred, excluding non-cash charges | 17,752 | ||||
Less: Cash payments | (864 | ) | |||
Accrued liability as of November 1, 2014 | $ | 16,888 | |||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | Feb. 01, 2014 | |
Segment | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 1 | ' | ' |
Net impairment loss recognized in earnings | $0 | $0 | $0 | $0 | ' |
Short-term investments | 0 | 2,930,000 | 0 | 2,930,000 | 10,002,000 |
Asset impairment charges | 33,468,000 | 19,316,000 | 33,468,000 | 19,316,000 | ' |
Finite-lived impairment charges | 0 | 0 | 0 | 0 | ' |
Revenue related to gift card breakage | 1,100,000 | 1,100,000 | 4,100,000 | 4,300,000 | ' |
Number of operating segments | ' | ' | 3 | ' | ' |
Noncash Corporate Office And Other Asset Impairments Charges | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | 8,400,000 | ' | ' | ' | ' |
Discontinued Operations | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Asset impairment charges | $25,100,000 | ' | ' | ' | ' |
Number of stores impaired | 79 | ' | 79 | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Finite lived intangibles, useful life | ' | ' | '15 years | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Finite lived intangibles, useful life | ' | ' | '25 years | ' | ' |
Useful_Lives_of_Major_Classes_
Useful Lives of Major Classes of Assets (Detail) | 9 Months Ended |
Nov. 01, 2014 | |
Buildings | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Useful lives in asset class | '25 years |
Leasehold Improvements | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Useful lives in asset class | 'Lesser of 10 years or the term of the lease |
Fixtures and equipment | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Useful lives in asset class | '5 years |
Useful_Lives_of_Major_Classes_1
Useful Lives of Major Classes of Assets (Parenthetical) (Detail) (Maximum, Leasehold Improvements) | 9 Months Ended |
Nov. 01, 2014 | |
Maximum | Leasehold Improvements | ' |
Property, Plant and Equipment, Estimated Useful Lives, Lease Terms [Line Items] | ' |
Useful lives in asset class | '10 years |
Fair_Market_Values_for_Cash_an
Fair Market Values for Cash and Marketable Securities (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ' | ' | ' | ' |
Cash and cash equivalents | $280,445 | $418,933 | $354,284 | $509,119 |
Short-term investments: | ' | ' | ' | ' |
Short-term investments | 0 | 10,002 | 2,930 | ' |
Long-term investments: | ' | ' | ' | ' |
Long-term investments | ' | ' | 9,588 | ' |
Total | 280,445 | 428,935 | 366,802 | ' |
Cash | ' | ' | ' | ' |
Cash and cash equivalents: | ' | ' | ' | ' |
Cash and cash equivalents | 185,212 | 330,013 | 306,572 | ' |
Money-market | ' | ' | ' | ' |
Cash and cash equivalents: | ' | ' | ' | ' |
Cash and cash equivalents | 72,896 | 25,696 | 21,849 | ' |
Treasury bills | ' | ' | ' | ' |
Cash and cash equivalents: | ' | ' | ' | ' |
Cash and cash equivalents | 22,337 | 63,224 | 25,863 | ' |
Short-term investments: | ' | ' | ' | ' |
Short-term investments | ' | 10,002 | 2,930 | ' |
Term-deposits | ' | ' | ' | ' |
Long-term investments: | ' | ' | ' | ' |
Long-term investments | ' | ' | $9,588 | ' |
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Short-term Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Proceeds from sale of available-for-sale securities | ' | ' | $10,002,000 | $125,982,000 |
Purchase of available-for-sale securities | ' | ' | 0 | 17,373,000 |
Unrecognized gains (losses) for available-for-sale securities | $0 | $0 | $0 | $0 |
Fair_Value_Hierarchy_for_Finan
Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) Measured at Fair Value on Recurring Basis (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 | Feb. 02, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $280,445 | $418,933 | $354,284 | $509,119 |
Short-term investments | 0 | 10,002 | 2,930 | ' |
Long-term investments | ' | ' | 9,588 | ' |
Total | 280,445 | 428,935 | 366,802 | ' |
Cash | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 185,212 | 330,013 | 306,572 | ' |
Money-market | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 72,896 | 25,696 | 21,849 | ' |
Treasury bills | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 22,337 | 63,224 | 25,863 | ' |
Short-term investments | ' | 10,002 | 2,930 | ' |
Term-deposits | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-term investments | ' | ' | 9,588 | ' |
Fair Value, Measurements, Recurring | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 280,445 | ' | 354,284 | ' |
Short-term investments | ' | ' | 2,930 | ' |
Long-term investments | ' | ' | 9,588 | ' |
Total | 280,445 | ' | 366,802 | ' |
Fair Value, Measurements, Recurring | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Cash | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 185,212 | ' | 306,572 | ' |
Fair Value, Measurements, Recurring | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money-market | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 72,896 | ' | 21,849 | ' |
Fair Value, Measurements, Recurring | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Treasury bills | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 22,337 | ' | 25,863 | ' |
Short-term investments | ' | ' | 2,930 | ' |
Fair Value, Measurements, Recurring | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Term-deposits | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-term investments | ' | ' | 9,588 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Total | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Cash | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Money-market | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Treasury bills | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Total | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Cash | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Money-market | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | ' | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Treasury bills | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $0 | ' | ' | ' |
Reconciliation_Between_Basic_a
Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic number of common shares outstanding | 194,573 | 192,818 | 194,381 | 192,753 |
Dilutive effect of stock options and non-vested restricted stock | 648 | 1,794 | 553 | 2,268 |
Diluted number of common shares outstanding | 195,221 | 194,612 | 194,934 | 195,021 |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 | |
Outstanding Stock Awards | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Shares that were not included in the computation of weighted average diluted common share amounts as the effect of doing so would have been anti-dilutive | 2,400,000 | 2,900,000 | 2,400,000 | 1,800,000 |
Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Shares that were not included in the computation of weighted average diluted common share amounts as the effect of doing so would have been anti-dilutive | 0 | 900,000 | 500,000 | 800,000 |
Shares of restricted stock units not included in the computation of weighted average diluted common share amounts because the number of shares ultimately issued is contingent on performance | 1,800,000 | ' | 1,900,000 | ' |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, at cost | $1,694,803 | $1,594,360 | $1,602,732 |
Less: Accumulated depreciation | -980,637 | -961,374 | -972,646 |
Property and equipment, net | $714,166 | $632,986 | $630,086 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Nov. 01, 2014 | Feb. 01, 2014 | Nov. 02, 2013 |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Trademarks and other intangibles, at cost | $59,205 | $58,121 | $52,484 |
Less: Accumulated amortization | -11,341 | -8,850 | -8,057 |
Intangible assets, net | $47,864 | $49,271 | $44,427 |
Other_Credit_Arrangements_Addi
Other Credit Arrangements - Additional Information (Detail) | Nov. 01, 2014 | Nov. 01, 2014 | Nov. 01, 2014 | Mar. 02, 2012 | Nov. 01, 2014 | Mar. 02, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Nov. 01, 2014 | Nov. 01, 2014 |
Entity | Demand letter of credit facilities | Trade Letter of Credit | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Unsecured Revolving Credit Facility | Currency Us Dollar | Currency Canadian Dollar | |
USD ($) | USD ($) | USD ($) | USD ($) | Minimum | Maximum | LIBOR | LIBOR | Base Rate | Base Rate | Demand letter of credit facilities | Demand letter of credit facilities | |||
Minimum | Maximum | Minimum | Maximum | USD ($) | CAD | |||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, expiration period | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing agreements with financial institutions | ' | $155,000,000 | ' | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility interest rate description | ' | ' | ' | 'The Credit Agreement has various borrowing options, including rates of interest that are based on (i) an Adjusted London Interbank Offered Rate (bLIBORb as defined in the Credit Agreement) plus a margin ranging from 1.00% to 1.75% based on a defined leverage ratio, payable at the end of the applicable interest period; and (ii) a Base Rate (as defined in the Credit Agreement), plus a margin ranging from 0.00% to 0.75% based on a defined leverage ratio, payable quarterly. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Frequency of payments for interest on borrowing | ' | ' | ' | 'Quarterly | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.75% | 0.00% | 0.75% | ' | ' |
Commitment fee payable on the unused portion of total lender commitments | ' | ' | ' | ' | ' | ' | 0.18% | 0.30% | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding amount | ' | ' | ' | ' | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing agreements with financial institutions, replace amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000,000 | 25,000,000 |
Borrowing agreements, number of financial institutions | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | $44,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Millions, except Per Share data, 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 | $6,500,000 | $11,500,000 | $12,952,000 | ($1,793,000) |
Share-based compensation, net of tax | 4,000,000 | 7,100,000 | 8,000,000 | 1,100,000 |
Weighted-average grant date fair value of stock options granted | ' | ' | $3.99 | $4.17 |
Aggregate intrinsic value of options exercised | ' | ' | 1,300,000 | 1,300,000 |
Net proceeds from stock options exercised | ' | ' | 7,086,000 | 3,323,000 |
Tax benefit realized from stock option exercises | ' | ' | 3,100,000 | 8,200,000 |
Shares available for all equity grants | 8.7 | ' | 8.7 | ' |
Time Based Restricted Stock Units | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense, weighted average period | ' | ' | '2 years 1 month 6 days | ' |
Vesting period | ' | ' | '3 years | ' |
Unrecognized compensation expense | 21,600,000 | ' | 21,600,000 | ' |
Performance-Based Restricted Stock Units | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Unrecognized compensation expense | 3,200,000 | ' | 3,200,000 | ' |
Performance-Based Restricted Stock Units | Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense, weighted average period | ' | ' | '1 year | ' |
Performance-Based Restricted Stock Units | Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense, weighted average period | ' | ' | '3 years | ' |
Employee Stock Option | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense | $500,000 | ' | $500,000 | ' |
Unrecognized compensation expense, weighted average period | ' | ' | '2 years 3 months 18 days | ' |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 01, 2014 | |
Options | ' | |
Outstanding - beginning of period | 3,925 | |
Granted | 126 | |
Exercised | -595 | [1] |
Canceled | -917 | |
Outstanding- end of period | 2,539 | |
Vested and expected to vest-end of period | 2,527 | |
Exercisable-end of period | 95 | [2] |
Weighted-Average Exercise Price | ' | |
Outstanding-beginning of period | $17.65 | |
Granted | $14.50 | |
Exercised | $12.01 | [1] |
Cancelled | $24.66 | |
Outstanding-end of period | $16.28 | |
Vested and expected to vest-end of period | $16.29 | |
Exercisable-end of period | $10.16 | [2] |
Weighted-Average Remaining Contractual Term (In years) | ' | |
Outstanding-end of period | '2 years | |
Vested and expected to vest-end of period | '2 years | |
Exercisable-end of period | '2 years 2 months 12 days | [2] |
Aggregate Intrinsic Value | ' | |
Outstanding-end of period | $257 | |
Vested and expected to vest-end of period | 257 | |
Exercisable-end of period | $257 | [2] |
[1] | Options exercised during the 39 weeks ended November 1, 2014 had exercise prices ranging from $8.09 to $13.12. | |
[2] | Options exercisable represent "in-the-money" vested options based upon the weighted-average exercise price of vested options compared to the Company's stock price at November 1, 2014. |
Summary_of_Stock_Option_Activi1
Summary of Stock Option Activity (Parenthetical) (Detail) (USD $) | 9 Months Ended |
Nov. 01, 2014 | |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items] | ' |
Options exercised, exercise price range, lower limit | $8.09 |
Options exercised, exercise price range, upper limit | $13.12 |
BlackScholes_Option_Valuation_
Black-Scholes Option Valuation Assumptions (Detail) | 9 Months Ended | |||
Nov. 01, 2014 | Nov. 02, 2013 | |||
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items] | ' | ' | ||
Risk-free interest rate | 1.50% | [1] | 0.30% | [1] |
Dividend yield | 3.10% | 2.00% | ||
Volatility factor | 41.20% | [2] | 34.40% | [2] |
Weighted-average expected term | '4 years 6 months | [3] | '2 years 6 months | [3] |
Expected forfeiture rate | 8.00% | [4] | 8.00% | [4] |
[1] | Based on the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected life of our stock options. | |||
[2] | Based on a combination of historical volatility of the Company's common stock and implied volatility. | |||
[3] | Represents the period of time options are expected to be outstanding, based on historical experience. | |||
[4] | Based upon historical experience. |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Nov. 01, 2014 |
Time Based Restricted Stock Units | ' |
Shares | ' |
Nonvested - beginning of period | 1,155 |
Granted | 1,521 |
Vested | -647 |
Cancelled/Forfeited | -457 |
Nonvested - End of period | 1,572 |
Weighted-Average Grant Date Fair Value | ' |
Nonvested - beginning of period | $20.13 |
Granted | $14.13 |
Vested | $18.10 |
Canceled/Forfeited | $16.93 |
Nonvested - end of period | $16.09 |
Performance-Based Restricted Stock Units | ' |
Shares | ' |
Nonvested - beginning of period | 2,395 |
Granted | 1,341 |
Vested | -604 |
Cancelled/Forfeited | -145 |
Nonvested - End of period | 2,987 |
Weighted-Average Grant Date Fair Value | ' |
Nonvested - beginning of period | $16.85 |
Granted | $14.22 |
Vested | $15.33 |
Canceled/Forfeited | $17.30 |
Nonvested - end of period | $15.96 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 01, 2014 | Nov. 02, 2013 | Nov. 01, 2014 | Nov. 02, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective income tax rate from continuing operations | 61.90% | 41.20% | 59.10% | 38.60% |
Decrease in unrecognized tax benefit | ' | ' | $7.50 | ' |
Summary_of_Costs_Recognized_Wi
Summary of Costs Recognized Within Restructuring Charges on Consolidated Income Statement (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 01, 2014 |
Cash restructuring charges | ' | ' |
Office space consolidation charges | $8,571 | ' |
Severance and related employee costs | 7,816 | ' |
Other corporate items | 1,365 | ' |
Total restructuring charges | $17,752 | $17,752 |
Restructuring_Charges_Addition
Restructuring Charges - 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 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Asset impairment charges | $33,468 | $19,316 | $33,468 | $19,316 |
Discontinued Operations | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Asset impairment charges | 25,100 | ' | ' | ' |
Noncash Corporate Office And Other Asset Impairments Charges | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Asset impairment charges | $8,400 | ' | ' | ' |
Rollforward_of_Liabilities_Rec
Rollforward of Liabilities Recognized in Consolidated Balance Sheet (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Nov. 01, 2014 | Nov. 01, 2014 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Add: Costs incurred, excluding non-cash charges | $17,752 | $17,752 |
Less: Cash payments | ' | -864 |
Accrued liability as of November 1, 2014 | $16,888 | $16,888 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 0 Months Ended | |
Dec. 02, 2014 | Dec. 02, 2014 | |
Subsequent Event [Line Items] | ' | ' |
Line of credit facility, expiration period | '5 years | ' |
Borrowing agreements with financial institutions, replace amount | ' | $150,000,000 |
Borrowing agreements with financial institutions | ' | 400,000,000 |
Credit agreement maturity date | 2-Dec-19 | ' |
Loans outstanding | ' | 0 |
Standby Letters of Credit | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Stand-by letters of credit | $8,200,000 | $8,200,000 |